UAE Issues New Arbitration Law

by Hogan Lovells
Contact

Hogan Lovells

The United Arab Emirates (the UAE) issued a new arbitration law, Federal Arbitration Law No. 6 of 2018 (the “Arbitration Law”), thus repealing the provisions of the Arbitration Chapter in the UAE Civil Procedures Federal Law No. 11 of 1992 (the CPC).

The Arbitration Law is a long time coming; although the UAE Ministry of Economy has circulated various drafts of a proposed federal arbitration law in the past, this is the first time the UAE Federal National Council has approved a draft. The new Arbitration Law adopts the UNCITRAL Model Law, thereby modernising the current arbitration process and aligning the UAE arbitral framework with international standards. The law is expected to have a positive impact on foreign business operations and investments within the UAE, with the aim of supporting economic development and attracting foreign direct investments. In particular, it is expected to bring more certainty and confidence in arbitration as an effective means of dispute resolution in the UAE and in the wider MENA region.

Some key highlights of the new Arbitration Law include:

Scope of Application 

  • Article 2: The Arbitration Law applies to domestic and international arbitration proceedings.
  • Article 61 provides that the Arbitration Law will enter into effect one month following its publication in the UAE's Official Gazette and pursuant to Article 59, the Arbitration Law will apply to all ongoing arbitral proceedings at the time of it coming into effect.

Arbitration Agreement

  • The requirements of a valid arbitration agreement include:  Article 4: Legal capacity of a person to enter into an arbitration agreement and Article 7: The arbitration agreement must be in writing.
  • Article 6: The arbitration agreement is separable and independent from the other terms of the contract, a principle that was not provided for in the CPC.

Tribunal Authority and Court Assistance

  • Article 9: The default is that the arbitral tribunal shall be composed of three arbitrators, unless the parties agree otherwise.
  • Article 10(2): Arbitrators cannot be members of the Board of Trustees or of the administrative body within the relevant domestic arbitral institution.
  • Article 10(3): There are no gender or nationality requirements for arbitrators unless the parties or the governing law provide otherwise.
  • Article 19: Although not provided for in the CPC, the new Arbitration Law grants the tribunal authority to rule on its own jurisdiction.
  • Article 8:  A court petition in relation to the arbitration agreement does not preclude the commencement or continuation of the arbitral proceedings or the issuance of an award.

Electronic Communications

  • Article 24: Written correspondence can be sent, amongst other means, via fax or email.
  • Article 28: Arbitral sessions and deliberations can be conducted via telephone or through other electronic means.
  • Article 41: Arbitral awards can be signed electronically outside the seat of arbitration.

Interim Measures

  • Article 21: While the CPC did not provide for interim measures, the Arbitration Law permits the tribunal to award interim measures and to issue provisional orders which are enforceable in court, including ordering a party to provide adequate security.
  • Article 18: The relevant courts are directed to support the arbitral process by ordering interim or provisional measures in support of current or potential arbitral proceedings.

Challenging an Arbitral Award

  • Article 53 of the Arbitration Law provides limited grounds for annulment, which include the lack of capacity of a party entering into the arbitration agreement, lack of authorisation to act on the matter, lack of notice, or that the award did not apply the law chosen by the parties.  Additionally, Article 54(2) of the Arbitration Law provides a 30 day time limit for a party to commence nullification proceedings.

Recognition and Enforcement of an Arbitral Award 

  • Article 55: To rectify the lengthy and uncertain enforcement process that has plagued the arbitration process in the UAE, the Arbitration Law provides that a court has 60 days from the application date to order the enforcement of an award if it does not find any grounds to set aside or nullify it. This is in contrast to the CPC, which did not provide a timeline for enforcement.

The Arbitration Law is a positive development in the arbitral community as it sets a comprehensive framework for the complex business disputes in the greater MENA region. Please look out in the upcoming days for our detailed analysis of the Arbitration Law and its potential ramifications.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Hogan Lovells | Attorney Advertising

Written by:

Hogan Lovells
Contact
more
less

Hogan Lovells on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.