The procedural laws determine to what extent the local, or the courts applicable to the dispute, would intervene in the arbitration proceedings. The uae has long been a regional hub for international arbitrations, with arbitration becoming the preferred dispute resolution method. The law replaces the previous enactment being federal law no. Drafting arbitration clauses in international contracts. The uae arbitration law came into force on 15 june 2018, one month after it was published in the. However, the uae arbitration law is absent any statutory immunity of the arbitrator. By chatura randeniya, mevan bandara and sulakshana senanayake. Uae new arbitration law 2018 arabic nationality of arbitrators appointed in diac cases of march 2020.
The uae s arbitration law applies to arbitrations conducted in the uae that is, where the parties agreed that the juridical seat of arbitration shall be the uae or, albeit less likely, where the parties agreed that uae law shall apply to arbitral proceedings conducted outside the uae art. Any arbitration arising from a dispute governed by uae law. Number of cases registered with diac from 2007 to march 2020. Our litigation team is fluent in arbitration law in uae and internationally under the usual and lessknown arbitration rules and bodies, either directly or by working closely with associates in foreign jurisdictions in case of need. It appears that the arbitration law will not apply to arbitration proceedings seated in the dubai international financial centre difc and abu dhabi global market.
It applies to all arbitrations seated in the united arab emirates uae excluding the difc and. Earlier this month, the uae issued a new federal arbitration law referred to as the new law in this briefing that is based on the uncitral model law and will come into effect one month after its publication in the uae official gazette. Dubai international financial centre al fattan currency house tower 2 level 8 po box 506870 dubai united arab emirates tel. A draft federal arbitration law based on uncitral has been discussed but remains only a draft. Uae federal law on arbitration the official portal of. The uae is a civil law jurisdiction and its legal system is primarily based on a civil code that has been greatly influenced by the egyptian civil code. Federal law number 6 of 2007 amended by federal law number 3 of 2018 is the insurance law of the uae, and article 28 2 states that any exemptions stated in an insurance policy require writing in bold and a different color to the rest of the text. It repealed and replaced articles 203 to 218 of federal law no 11 of 1992 the old law. The new arbitration law annuls articles 203 to 218 of the uae civil procedures law no. The uaes new arbitration law has been highly anticipated by practitioners and merchants alike, and replaces the prior regime, which. A comprehensive discussion on arbitration in the uae. Assessing the impact of the new uae arbitration law. In 2008, three additional significant developments occurred. International arbitration laws and regulations united.
A new arbitration law for the united arab emirates third. Draft and revise iccs arbitration, mediation, expert, dispute board rules and other forms of dispute resolution rules. As a forum for pooling ideas on issues relating to international arbitration and other forms of dispute resolution, the icc commission on arbitration and adr aims to. The uaes arbitration law applies to arbitrations conducted in the uae that is, where the parties agreed that the juridical seat of arbitration shall be the uae or, albeit less likely, where the parties agreed that uae law shall apply to arbitral proceedings conducted outside the uae art. The new legislation is very much aligned with the uncitral model law on international commercial arbitration and best international practice. Where the uae s codified law is silent on a particular issue, the principles of sharia law may be applied. The uaes federal national council approved the draft arbitration law on tuesday, the emirates news agency said. The arbitration law is currently expected to come into force in july 2018, one month after it is published in the official gazette.
In relation to arbitration proceedings conducted outside the uae, the new arbitration law can apply to their dispute as per article 22, if all parties agree. The newly enacted federal arbitration law is likely to offer an attractive solution to some of the problems facing uaeseated arbitrations in recent years. The six sections of the new arbitration law contain 61 articles, most of which can be traced in the uncitral model law, and are expected to significantly revamp the uae chapter on arbitration. On june 16, the uae will usher in its new federal arbitration law to replace a law which has stood since 1992.
The new arbitration law annuls articles 203 to 218 of the. Uae federal law on arbitration the official portal of the uae. The introduction of the muchanticipated arbitration law in may 2018, i. On april 16, 2012, a new saudi arbitration law was issued by royal decree no. The law will come into force 30 days after it is published in the official. In this short briefing, we cover key features of the new law.
The new arbitration law in uae 3fold education centre. The new uae arbitration law another step in the right. In june 2018, federal law no 6 of 2018 on arbitration the new law came into force in the uae. The laws of the procedures are to be applied on the actions which havent been settled and the proceedings which havent been executed prior to the date of their application. As such, our arbitration team is one of the firms greatest assets. The uae has taken a significant step towards making commercial arbitration a more appealing dispute resolution mechanism for companies conducting business in the uae and the broader gcc region. Where the uaes codified law is silent on a particular issue, the principles of sharia law may be applied.
M34 and subsequently approved by the bureau of experts at the council of ministers in the kingdom of saudi arabia. Basic civil and human rights are protected by the constitution, which provides that all. This uae arbitration law applies to all arbitral proceedings carried out in the uae, unless the parties agree to apply a different arbitration law. The arbitration law permits the tribunal, either of its own accord or pursuant to a request from one of the parties, to request the court of appeals assistance to obtain evidence.
Arbitration proceedings in the uae are governed by federal law no. The new law confirms that it applies to any arbitration relating to a legal relationship which is governed by uae law, unless another provision of law states otherwise article 23. The publication aims to guide the reader through the arbitration process in jurisdictions that are mostly unfamiliar to an international arbitration community and provide. The concept of kompetenzkompetenz is recognised in the uae, both in the arbitration law and in various institutional rules.
Federal law concerning civil procedures uae civil procedure code introductory chapter. A procedure regulated by law in which a dispute between one or more parties is submitted, by agreement of the parties, to an arbitral tribunal which. The entity obtaining the insurance must also acknowledge the clause for it to take effect. The new arbitration law provides for a more secure framework for the conduct of arbitral proceedings in the uae. The current united arab emirates uae arbitration law is enshrined in articles 203218 of federal law no.
The uae federal arbitration law does not apply to certain financial free zones in the uae, for example, the difc and adgm, which are exempt from the application of. Commentary on new federal uae arbitration law lexisnexis. These are the two key arbitration laws which are in place today in the uae. Uae federal law 11 of 1992 concerning issuance of the. Arbitration in the mena is a unique compilation of contributions from authoritative academics and scholarpractitioners on the practice and procedure of arbitration in the middle east and north africa. The arbitration law repeals articles 203 to 218 of the uae civil procedure code federal law no. We can guide you through the complexities of arbitration proceedings with simple language, always being cost effective in an area which can otherwise prove to be. The new law, which came into force 30 days after its publication in the official gazette on june 8, 2012, replaced the previous arbitration law issued by royal decree no. Uae civil code and law governing exclusion clauses sta. Any international commercial arbitration seated outside the uae, provided the parties have chosen the faa to apply. Following the announcement by the uaes federal national council on 27 february 2018 that the longawaited federal arbitration law had been approved, 2018 promises to be a momentous year for arbitration in the uae. United arab emirates advances new arbitration law law360. Any arbitration seated in the uae, unless the parties have agreed that another law apply, provided there is no conflict with the public order and morality of the state.
Once the law is finalized, it will apply to all arbitrations within the country as. Fortheinterestofclarity,i will attempttogiveabriefoutlineoftherelevantprovisionsofthecodeinthis. Gazette and is largely based on the uncitral model. A step toward modernization with continuing uncertainties june 4, 2018. The procedural law for arbitration of the uae is currently the fccp and for the difc it is the difc arbitration law. The new arbitration law therefore brings uae arbitration practice in line with global arbitration practice. Uae federal law on arbitration in may 2018, the uae issued federal law no. Interestingly, the uae acceded to the new york convention in 2006 and, since then, has attempted. Underuaelawsineffect,arbitrationisgovernedandregulatedbythe uaecivilprocedures codeof 1992. The uae arbitration law supersedes articles 203 to 218 of the civil procedures code law no. Alternative methods to settle commercial disputes the. The new law, scope article 2, the new arbitration law shall apply to i arbitrations seated in the uae unless the parties agree on the application of a different arbitration law, provided that such a law does not contravene uae public policy and morality. Here are some arbitration institutions for commercial disputes. The only exception is article 22 of the difc arbitration law, which also extends the immunity to employees and agents of.
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