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Copyright © International Chamber of Commerce (ICC). All rights reserved. ( Source of the document: ICC Digital Library )
by Alexis Mourre
Over the past years, the MENA region accounted for the highest growth in terms of ICC arbitration filings driven by an increasing commercial transactions and foreign direct investment in the region—mainly in the Gulf Cooperation Council (GCC) countries. According to the latest ICC statistics, the United Arab Emirates (UAE) was listed among the 15 most frequent nationalities of parties, and Dubai has consistently been listed among the top 25 seats of arbitration.
The UAE, which is steadily emerging as a regional hub in the GCC region, has endeavored to adopt legislative reforms in the area of international arbitration to increase certainty, and provide a progressive and modern legal framework in line with internationally recognized best standards.
Since the UAE has signed the New York Convention on Recognition and Enforcement of Foreign Arbitral Award on 13 June 2006, the UAE has attempted to engage in a path towards gradually integrating international arbitration principles in its legal system. In May 2018, the UAE new Arbitration Law, Federal Law No.6/2018—received as a successful attempt—replaced the former arbitration provisions of the UAE Civil Procedures Law No.11 of 1992. The new standalone Federal Law helpfully adopted the 1994 UNCITRAL Model Law on International Commercial Arbitration, helping to bridge the gap between the offshore and onshore seated arbitrations.
The significant positive developments witnessed over the past few years warranted for an ICC publication dedicated to arbitration in the UAE.
The New Federal Arbitration Law No.6/2018 recognized the competence-competence and separability doctrines and introduced provisions enhancing the conduct of arbitral proceedings in relation to the appointment of arbitrators, joinder, interim measures, along with the role given to higher level courts. In addition, the Implementing Regulations of the UAE Civil Procedures Law of 16 December 2018 have brought amendments to expedite the process of ratification and enforcement of foreign arbitral awards.
As such, the UAE increasingly appears as a jurisdiction of interest for arbitration practitioners and for international institutional arbitrations. The establishment of the ICC International Court of Arbitration Representative Office covering the MENA region in Abu Dhabi Global Market (ADGM) is a testament to such evolution.
Despite a few shortcomings and considerations in the New Federal Arbitration Law to which practitioners should pay attention and worth being addressed in the near future, international arbitration in the UAE is undoubtedly progressing in line with the country’s aspiration to become a regional arbitration hub and the input of a diverse cosmopolitan arbitration community contributing to the promising landscape of arbitration in the UAE gaining in maturity and sophistication.
Two years following the adoption of the New Federal Arbitration Law, an initial set of case precedent has emerged reflecting greater support by the judiciary to uphold the arbitration agreement and the enforcement of domestic and international awards. The relevance and scope of these decisions are thoroughly discussed herein by the eminent contributors to this publication.
The authors’ welcomed contributions will help enlighten the readers about arbitrations seated in the UAE, and offer valuable insights with regard to the conduct of arbitral proceedings and procedural integrity in accordance with applicable laws and regulations of the seat in light of the recent legislative, regulatory and judicial developments.