United Arab Emirates: RAK Establishes Commercial Court

UAE Law No. 1 of 2019 issued on 30th June 2019 by HH Sheikh Mohammed Bin Soud Al Khasimi

Ras Al Khaimah is one of seven's emirates of the UAE. As a recent World Bank report pointed out, Ras Al Khaimah has one of the best economies for enforcement contracts and its "estimated Ease of Doing Business". Furthermore, this report places the emirate amongst the top 30 economies on the ease of doing business and is currently 31 out of 169 countries. Attractiveness of the UAE and the Middle East region concerning business represents one of the main reasons for this. Everything is done to offer attraction to the UAE and its 7 emirates that has constituted it such as UAE Federal regulations, free zone regulations, the oil and gas business and the newer parts of business in the region, the environment and tourism economy. The Ras Al Khaimah emirate, like its near cousins, Dubai and Abu Dhabi,, has an attractive, adapted, balanced and specialized commercial legal system, with tailor made regulations for business actors. As stated by the latest World Bank's Report, the commercial court, which has recently been ordered by public authorities, is an "...another improvement in rankings for the emirate" including "the efficiency in the process to resolve a commercial dispute in Ras Al Khaimah’s courts…".

As it is the purpose of this short overview, we will highlight the fact that this legislative reform of the Ras Al Khaimah emirate joins the worldwide trends of commercial dispute resolution by a creation of a Commercial Court.

Law No. 1 on the 30th of June 2019 states that a Commercial Court will be established in the Ras Al Khaimah emirate and shall start work on 8th September 2019. H.H. Sheikh Mohammed bin Saud bin Saqr Al Qasimi, Crown Prince of Ras Al Khaimah and Chairman of the Judicial Council, has ordered the establishment of the Ras Al Khaimah Commercial Court. Ahmed Mohammed Al Khateri, Chairman of the Courts Department in Ras Al Khaimah, has instructed and briefed its teams so that this new Court will work "in the times schedules".

It is right to say that this Regulation is a last stone to an efficient commercial judicial system of Ras Al Khaimah. An efficient commercial dispute resolution purpose is in all minds, which can be seen from the previous decision of the Ras Al Khaimah judicial Court No. 36 on 2016 and No. 13 on 2017. These recent decisions stated that the Court shall have a special court, like the one day court. This includes circuits for partial claims, fully claims, appeal and cassation, as well as having exclusive jurisdiction circuits.. The same apply for the commercial Court, which took over the commercial matters and cases and applied the same order of handling.

It will be interesting to point out characteristics of this new commercial Court. We also must see the main points that will be raised, such as the strengthening of efficiency of commercial dispute resolution. The purpose and news insights targeted by this Law will be highlighted For these reasons, we will firstly suggest why this law is important. Secondly, we will focus on the effect of this law, followed by the issue of change provided by this law and finally we will see what this change means.

Enhancement of legal framework, unify systems and certainty of business

This law implements and completes the Ras Al Khaimah emirate legal system. The initial text of the last 30th of June set up an independent commercial Court within the Judicial system of Ras Al Khaimah. The material and territorial scope of application are strictly limited to the emirate of Ras Al Khaimah and the Commercial Court is competent for any commercial issue, dispute or commercial practices hindered by one or several parties into commercial's relations. The need to let economy's activities and investments grow promptly, safely but also securely, in all aspects of business and financial matter, carry on along the path of judicial and jurisdictional reforms of the Ras Al Khaimah emirate.

This reform involves a special Court which is dedicated to commercial issues and business. It lays down commercial matters, with the purpose to provide, business actors, current or future, a suitable forum for their disputes. For this reason, in addition to this commercial court, this law has also set up an office to manage all requests and commercial hurdles that have arisen by the parties. This is then referred to a specialist panel in commercial law, whose main task is to assess the case before referring them to the judges.

From a material scope point of view, the new commercial court has exclusive authority on all commercial matters submitted to the jurisdiction within the Ras Al Khaimah emirate.

Finally, Law No. 1 of 2009 is also historic, to the extent that it has set up a separate, independent and special jurisdiction under UAE law, to handle the commercial cases as an exclusive jurisdiction.

Ras Al Khaimah on the path of attractiveness through secure and safe dedicated dispute resolution jurisdiction

Simplifying and providing the parties a suitable and unifying forum to know their dispute, improves attractiveness of the territory of where this jurisdiction is based. If Ras Al Khaimah can provide business actors a jurisdiction exclusively dedicated to commercial dispute, business actors will see a secure and safe place to conduct their business.

Securing and enhancing business relations and attracting business actors to invest, has been done within other international business areas, with a positive impact on the investment and economy activities. For example, in Belgium, the government set up the new Brussels International Business Center and in the Netherlands, public authorities ordered the setting up of the Netherlands Commercial Court, joining Singapore with the Singapore International Commercial Court. In Paris also, in 2017, the French Court of Appeal set up a new chamber within the Court of Appeal named the "International Commercial Chamber of the Paris Court of Appeal", this being entirely dedicated to complex and commercial dispute resolution. Everywhere, such jurisdictions are being created and we've noted an increasing number of cases presented there by international parties, with interests or investments on their jurisdiction. The result expected with the setting up of the new commercial jurisdiction of Ras Al Khaimah shall be the same, an increase of investment, a result of the new forum represented by this jurisdiction.

What will change?

Here, we are talking about a new jurisdiction and the impact that the change will bring with it. This new jurisdiction, for the first time, will give a specialized commercial forum for business actors to know their dispute. However, we've already mentioned that this jurisdiction will also compose of an office to hear and assess these cases, to decide whether this case could be brought before judges of the Commercial Court. Therefore, the need for staff, judges and experts could potentially raise very quickly in the near future. Furthermore, the development of this court may be increased, specifically in regards to the different subject matters and contracts that the parties will be able to have. Because of this, we can expect that this new jurisdiction will be divided into different Chambers. By doing so, Judges and experts would be named in terms of their specialties and would be placed in the relevant chamber. Also good to mention that it shall need a certain qualification of the expert appointed by the court in case the court need to get an expert opinion or recommendations ... etc.

Moreover, we are talking about a specialized chamber that will be able to mention specialized regulations, that are applicable before this jurisdiction. For this reason, we can expect that Ras Al Khaimah's government will proceed to enact a specialized regulation that will relate to a commercial matter. An increasing number of the commercial regulations more accurate and more detailed will be enacted by the local government to provide to the parties a legal framework, in compliance with what they are looking for in Ras Al Khaimah.

What does this mean?

This law is entirely in line with economic reforms that started a few years ago by public authorities. In order to achieve purpose to be a suitable business place for investors and growing as a one of strongest economy in the region, the government has started reforms. This law of June 2019 is a perfect example. The legal system will become more liberal, and this jurisdiction should constitute as another stone of the strong legal system of Ras Al Khaimah.

After construction, financial service, tourism and other parts of Ras Al Khaimah's economy, judicial systems are highly specialized and focus only on commercial matters. There is no doubt that a good understanding of business will help to strengthen the construction of the Ras Al Khaimah emirate as one of the leaders in the region, and in the world.

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.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions