Arbitration has become an increasingly popular method for resolving disputes, offering parties a private, flexible, and efficient alternative to traditional litigation. In the United Arab Emirates (UAE), arbitration is firmly supported by a comprehensive legal framework, making the UAE a hub for dispute resolution in the Middle East. The UAE's Federal Law No. 6 of 2018 on Arbitration "the "Arbitration Law," ensures alignment with international best practices while catering to the unique characteristics of the UAE's legal environment.
The UAE offers a pro-arbitration environment, strengthened by modern arbitration centers such as the Dubai International Arbitration Centre (DIAC). The supportive legal framework ensures that arbitration awards are enforceable, and courts maintain a supervisory role to uphold the integrity of the process without undue interference.
The state court's role in ensuring an efficient arbitration process.
One critical feature of arbitration in the UAE is the ability to secure interim measures from state courts. Interim awards are essential in preserving parties' rights and ensuring the arbitration process's efficiency. Such measures can include freezing orders, preservation of evidence, or securing assets to safeguard the arbitration's outcome.
As per Article 18 of Federal Law No. 6 of 2018, either party in an arbitration proceeding may request interim or conservatory measures from the competent court, which is generally the Court of Appeal. This provision is a cornerstone of the Arbitration Law, reflecting the UAE's commitment to creating a balanced and efficient dispute resolution system.
Key Features of Arbitration Interim Measures in the UAE
The Court of Appeal in the UAE holds exclusive jurisdiction to hear requests for interim measures related to arbitration. This centralized approach streamlines the process and ensures consistency in the application of the law.
It is worth noting that as per article 18 of the arbitration federal law, the court's president may, at the request of one of the parties or the Arbitral Tribunal, order provisional or precautionary measures, as it deems appropriate, for the existing or potential arbitral proceedings, whether before or during arbitral proceedings.
Timing of the Application
Parties may seek interim measures before or during arbitration proceedings, offering valuable flexibility, particularly in urgent situations where delays could result in irreparable harm. It is important to note that, as a general rule, if a party requests an interim award before initiating arbitration, they must formally commence the arbitration proceedings within eight days from the date the interim award is issued.
Types of Interim Measures
Interim measures granted by UAE courts can address a range of needs, including:
Asset Preservation: Ensuring assets are not dissipated during arbitration.
Evidence Protection: Preventing the destruction or alteration of critical evidence.
Security for damages: Requiring a party to provide financial assurance for potential liabilities.
Judicial Support Without Overreach
Arbitration is a distinctive and exceptional method of resolving disputes between parties. Recognizing its independent nature, the state court has To preserve the rights of the parties without interfering in the substantive claims, which fall exclusively within the jurisdiction of arbitrators or the arbitration institutions; the court issues interim measures that may include attaching the respondent's assets, freezing bank accounts, or seizing other rights that could be lost or damaged during the arbitration process.
Conclusion
The UAE's arbitration framework, underpinned by Federal Law No. 6 of 2018, highlights the state courts' crucial role in supporting arbitration. The ability to seek interim measures from the Court of Appeal ensures that parties' rights are safeguarded, assets are protected, and the integrity of the arbitration process is upheld.
This collaboration between arbitration tribunals and state courts reflects the UAE's dedication to maintaining its status as a leading jurisdiction for arbitration. By providing a secure and supportive environment for arbitration, the UAE continues to attract businesses and investors seeking reliable dispute resolution mechanisms.
In conclusion, the UAE courts' ability to issue interim awards exemplifies their crucial role in ensuring justice and enhancing confidence in arbitration as an alternative method to resolve disputes. It demonstrates the UAE's commitment to being a global leader in dispute resolution.
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