1. What legislation applies to arbitration in your country? Are there any mandatory laws?

The legislation which applies to an arbitration is dependent on whether the arbitration is governed by the laws of the United Arab Emirates ("UAE"), or by the laws of distinct jurisdictions such as the Dubai International Financial Centre ("DIFC") or the Abu Dhabi Global Market ("ADGM"), generally understood as "Free-zone Jurisdictions"), both of which have their own arbitration laws/regulations.

UAE - Federal

Federal Law No. 6 / 2018 on arbitration (the "UAE Arbitration Law") replaced Articles 203 to 218 of Federal Law No. 11/1992 (the "UAE CPC").

Articles 203 to 218 of the UAE CPC were those provisions which were relevant to arbitration.

This UAE Arbitration Law applies to all arbitral proceedings carried out in the UAE, unless the parties agree to apply a different arbitration law.

Should the parties agree to apply a different arbitration law, that arbitration law must comply with the requirements of public order and morality in the UAE.

UAE - Free-zone Jurisdictions

Dubai

DIFC Law (No. 1 of 2008, as amended by DIFC Law no. 6 of 2013) (the "DIFC Arbitration Law"), governs arbitral disputes which are subject to the jurisdiction of the DIFC.

The amendment to the DIFC Law No. 1 of 2008 clarified the DIFC Court's authority to dismiss or stay an action brought before the court (which is also subject to an arbitration agreement) unless it finds 'that the arbitration agreement is null and void, inoperative or incapable of being performed'' even where the seat of the arbitration is one other than the DIFC and where no seat has been designated or determined. Abu Dhabi

The ADGM has established an arbitration hearing centre (the "ADGM Arbitration Centre") on Al Maryah Island. The ADGM Arbitration Centre became fully operational on 17 October 2018 as a venue for arbitration.

The ADGM Arbitration Regulations 2015 ("ADGM Regulations"), based on the UNCITRAL Model Law will govern arbitrations where the:

  • seat of the arbitration is the ADGM; or
  • arbitration agreement applies the ADGM Regulations.

The Judicial Tribunal for the Dubai Courts and the DIFC Courts

Decree no. 19 of 2016 established the Judicial Tribunal for the Dubai Courts and the DIFC Courts (the "Judicial Tribunal"). The Judicial Tribunal was established to deal with issues including conflicts of jurisdiction between the DIFC and Dubai Courts.

A limited number of decisions have been issued by the Judicial Tribunal to date. These decisions generally indicate that for arbitration proceedings that are seated in mainland Dubai, the Dubai (Federal) Courts would have curial jurisdiction, whereas the curial jurisdiction of the DIFC Courts would be limited to those arbitration proceedings seated in the DIFC.

2. Is your country a signatory to the New York Convention? Are there any reservations to the general obligations of the Convention?

The UAE is a signatory to the New York Convention since 2006 with no reservations to the general conditions of this convention.

3. What other arbitration-related treaties and conventions is your country a party to?

Conventions

The two most relevant conventions to which the UAE is a party, are the:

  • Riyadh Arab Agreement for Judicial Cooperation between States of the Arab League (1983) (the "Riyadh Convention"); and
  • GCC Convention for the Execution of Judgements, Delegations and Judicial Notifications (1996) (the "GCC Convention").

These above conventions may be more relevant, when attempting to enforce an arbitral award in country-members of the Riyadh Convention, where the New York Convention does not apply, for example Iraq and Yemen.

Memorandums of Understanding

The 2009 Memorandum of Understanding between the Dubai Courts and the DIFC Courts (the "2009 MOU").

The 2009 MOU promoted the discussion of issues of mutual interest including the formation of joint working groups (such as a committee to 'develop recommendations and protocols concerning matters such as service of documents between the courts, enforcement of orders between the courts and resolution of jurisdictional questions that might arise between the courts'), 'technical assistance, cooperation and information sharing and training'.

The 2009 MOU's relevance to arbitration may arise for instance when an international award is recognised by the DIFC Courts and then enforced in mainland Dubai, through the Dubai (Federal) Courts.

To read this Chapterin full, please click here.

Originally published by The Legal 500 & The In-House Lawyer Comparative Legal Guide UAE: Arbitration.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.