LAWS AND INSTITUTIONS
1. MULTILATERAL CONVENTIONS
Is your country a contracting state to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards? Since when has the Convention been in force? Were any declarations ornotifications made under articles I, X and XI of the Convention? What other multilateral conventions relating to international commercial and investment arbitration is your country a party to?
The UAE is a contracting state of the New York Convention. The Convention entered into force on 19 November 2006, following its ratification on 13 June 2006 (article 1, Decree No. 43 of 2006). No declarations or notifications were made by the UAE under articles I, X or XI of the Convention bar the very common reservation that recognition and enforcement of foreign awards under the Convention would be confined to awards rendered in other Convention countries (article 1, Decree No. 43 of 2006). The UAE is a party to the following further multilateral conventions:
- the Riyadh Convention on Judicial Cooperation between States of the Arab League (1983), which entered into force in 1999; the GCC Convention for the Execution of Judgments, Delegations and Judicial Notifications (1987); and
- the ICSID Convention, namely, the Washington Convention on the Settlement of the Investment Disputes between States and Nationals of Other States (1965).
- The UAE has entered into a number of bilateral treaties relating to arbitration, including: the Treaty on Judicial Cooperation in Criminal Matters, Extradition of Offenders, Cooperation in Civil, Commercial and Personal Matters with Morocco (2006);
- the Treaty on Mutual Legal Assistance in Criminal Matters, Extradition of Offenders, cooperation in Civil, Commercial and Personal Matters, Service of Judicial and Extrajudicial Documents, Obtaining Evidence, commissions and the Recognition and Enforcement of Foreign Judgments and Arbitral Awards with Sudan (2005);
- the Agreement on Legal and Judicial Cooperation with Syria (2002);
- the Agreement on Legal and Judicial Cooperation with Egypt (2000);
- the Agreement on Legal and Judicial Cooperation with Jordan (1999);
- the Treaty on Judicial Cooperation, Recognition and Enforcement of Judgments in Civil and Commercial Matters with France (1992);
- and the Agreement on Legal and Judicial Cooperation with Somalia (1972). The bilateral treaties with Sudan and Somalia are of particular importance given that these two countries have not yet satified the New York Convention.
2. BILATERAL TREATIES
Do bilateral investment treaties exist with other countries?
The UAE has entered into a number of bilateral investment treaties. These are:
- the Convention for Mutual Protection and Encouragement of Investments between the State Emirates and the Hashemite Kingdom of Jordan (2009);
- the Convention between the Untied Arab Emirates and the Republic of Uzbekistan for Encouragement and Protection of Investments (2008);
- the Convention for Mutual Protection and Encouragement of Investments between the State Emirates and the Republic of Uzbekistan (2007);
- the Convention for Mutual Protection and Encouragement of Investments between the State and the Republic of Turkey (2006);
- the Convention for Mutual Protection and Encouragement of Investments between the United Arab Emirates and the Belgium– Luxembourg Economic Union (2005);
- the Convention for the Encouragement and Protection of Investments between the State Emirates and the Republic of Korea and the Protocol annexed thereto (2004);
- the Convention for Encouragement and Protection of Investments between the United Arab Emirates and the Republic of Ukraine (2004);
- the Convention for the Encouragement and Mutual Protection of Investments between the State Emirates and the Republic of Sudan (2002);
- the Convention for the Encouragement and Mutual Protection of Investments between the State Emirates and the People's Democratic Republic of Algeria (2002);
- the Convention for the Encouragement and Mutual Protection of Investments between the State Emirates and the Republic of Austria (2002);
- the Convention for Mutual Protection and Encouragement of Investments between the United Arab Emirates and the Mongolian People's Republic (2002);
- the Convention for Encouragement and Protection of Investments between the United Arab Emirates and the Republic of Belarus and the Protocol annexed thereto (2001);
- the Convention for the Exchange and Protection of Investments between the State Emirates and the Republic of Yemen (2001)
- the Convention for Mutual Protection and Encouragement of Investments between the United Arab Emirates and the Kingdom of Sweden (2000);
- the Convention for Encouragement, Protection and Guarantee of Investment between the United Arab Emirates and the Republic of Syria (1999); and the Convention for the Encouragement and Mutual Protection of Investment between the State Country and the Swiss Federal Council (1999).
3. DOMESTIC ARBITRATION LAW
What are the primary domestic sources of law relating to domestic and foreign arbitral proceedings, and recognition and enforcement of awards?
The primary domestic source of law relating to both domestic and foreign arbitral proceedings are articles 203 to 218 of Federal Law No. 11 of 1992, the UAE Civil Procedure Code (CPC). The recognition and enforcement of domestic awards more specifically is addressed by article 215 CPC, whereas the recognition and enforcement of foreign awards is guided by articles 235 to 237 CPC, as outlined in further detail in questions 39, 41 and 42.
Apart from the UAE CPC, there is also the DIFC Law No. 1 of 2008, which governs arbitration proceedings in the DIFC from the arbitration agreement to the recognition and enforcement of DIFC arbitration awards.
The following sections of this chapter will focus on the application of the arbitration provisions of the CPC given the restrictive application of the DIFC Arbitration Law.
4. DOMESTIC ARBITRATION AND UNCITRAL
Is your domestic arbitration law based on the UNCITRAL Model Law? What are the major differences between your domestic arbitration law and the UNCITRAL Model Law?
The current arbitration provisions of the CPC are not based on the UNCITRAL Model Law. The differences between the two are legion and too numerous to enumerate here. It is also unlikely that the new UAE arbitration law will follow the spirit and content of the UNCITRAL Model Law; following latest information from confidential sources, the new arbitration law which is to be adopted soon may take guidance from the Egyptian arbitration law and hence be not entirely in line with the UNCITRAL Model Law, although it may to some extent take account of it. By contrast, the DIFC Arbitration Law is modelled on the UNCITRAL Model Law.
5. MANDATORY PROVISIONS
What are the mandatory domestic arbitration law provisions on procedure from which parties may not deviate?
The following UAE domestic arbitration law provisions on procedure contain mandatory content and may not be derogated from by the parties:
- the uneven number of arbitrators (article 206(2), CPC);
- the arbitrators' independence and impartiality (article 207(4), CPC);
- the right of both parties to a fair hearing (article 212(1), CPC);
- the obligation of any fact or expert witnesses to present their respective evidence on oath on the pain of perjury (article 211,CPC);
- and any other public policy considerations (see question 39).
6. SUBSTANTIVE LAW
Is there any rule in your domestic arbitration law that provides the arbitral tribunal with guidance as to which substantive law to apply to the merits of the dispute?
There are no specific provisions in the domestic arbitration law of the UAE as to which substantive law is applicable to the dispute at hand. As a general rule, parties are free to agree on the laws applicable to the dispute between them, barring the application of a number of mandatory provisions under UAE law (see question 5). Failure to consider the application of mandatory rules may adversely affect the enforceability of the resulting arbitration award. Where the parties fail to agree on the applicable law, the arbitration tribunal may take guidance from the conflict of laws rules contained at articles 10 et seq of the UAE Civil Code.
7. ARBITRAL INSTITUTIONS
What are the most prominent arbitral institutions situated in your country?
The most prominent arbitration institutions in the UAE and their main features are:
Dubai International Arbitration Centre (DIAC)
c/o Dubai Chamber of Commerce and Industry (DCCI)
14th Floor, Baniyas Road
PO Box 1457
Deira
Dubai
United Arab Emirates
Tel: +971 4 2028 343
Fax: +971 4 2028 668
DIAC administers arbitrations under the DIAC Arbitration Rules 2007, or alternatively serves as an appointment or challenging authority in ad hoc arbitral proceedings. DIAC draws upon an impressive list of arbitrators from the Middle Eastern region and beyond, with domestic and international profiles. Apart from registration fees, DIAC charges for its administrative services on the basis of a cost schedule annexed to the DIAC Rules, depending on the aggregate value of the claims and counterclaims in dispute. Arbitrators' fees are computed by reference to the same schedule. The parties are free to opt for a sole arbitrator or a three-member tribunal of their choice, provided the nominated individuals are independent and impartial. The place of arbitration will be Dubai by default, unless otherwise determined by the parties. The language of arbitration will be the language that is most suitable taking into account all the circumstances, unless otherwise determined by the parties.
Dubai International Financial Centre – London Court of International Arbitration (DIFC-LCIA)
c/o Dubai International Financial Centre
The Gate Precinct
Building 4
PO Box 211724
Dubai
United Arab Emirates
Tel: +971 4 427 3333
Fax: +971 4 4273330
The DIFC-LCIA administers arbitrations under the DIFC-LCIA International Rules of Arbitration 2008 (which are modelled on the Rules of Arbitration of the LCIA) in association with the London-based LCIA, or alternatively serves as an appointment or challenging authority in ad hoc arbitral proceedings. The DIFC-LCIA primarily draws upon the LCIA list of arbitrators. Apart from registration fees, the DIFC-LCIA charges for its administrative services on the basis of hourly rates. Arbitrators' fees are equally computed on an hourly-rate basis. The parties are free to opt for a sole arbitrator or a three-member tribunal of their choice, provided the nominated individuals are independent and impartial. The place of arbitration will typically be the DIFC, unless otherwise determined by the parties. The language of arbitration will be English, unless otherwise determined by the parties.
Abu Dhabi Commercial Conciliation and Arbitration Centre
(ADCCAC)
c/o Abu Dhabi Chamber of Commerce and Industry (ADCCI)
PO Box 662
Cornish Road
Abu Dhabi
United Arab Emirates
Tel: +971 2 317599
Fax: +971 2 2311410
ADCCAC administers arbitrations under the ADCCAC Procedural Regulations. Apart from registration fees, ADCCAC charges for its administrative services 15 per cent of the arbitrators' fees. ADCCAC keeps a register of members who may be shortlisted to serve in an ADCCAC arbitration. Arbitrators' fees are to be agreed between the parties. The parties are free to opt for a sole arbitrator or a three-member tribunal of their choice, provided the nominated individuals are independent and impartial. The place of arbitration will be Abu Dhabi, unless otherwise determined by the parties. The language of arbitration will be Arabic, unless otherwise determined by the parties.
There are other regional arbitration centres in other Emirates of the UAE, such as Sharjah and Ras Al Khaimah, of lesser prominence and importance. Reference in the following will primarily be made to the DIAC Rules as the rules most tested in the UAE.
To view this document in its entirety please click here.
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.
