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The arbitration enforcement proceedings brought by Construction Company International (CCI) against the Ministry of Irrigation of the Government of Sudan (MOI), for whom our firm acted, has now passed through all three tiers of the Dubai Courts. The Dubai Court of Cassation (Case No. 156/2013 Civil Cassation) rejected CCI's arguments and upheld the judgments of the lower Courts. This means that all three tiers of the Dubai Courts, having considered the applicability of the New York Convention, refused to recognise and enforce two ICC Paris arbitration awards on the ground that under the UAE's procedural laws the Court had no jurisdiction. This result is likely to be viewed with concern by arbitration practitioners based in Dubai and worldwide.
The Emirate of Dubai has long been a centre for trade and commercial activity and such activity will inevitably generate disputes. In Arabic culture, traders endeavour to settle their disputes by negotiation, either between themselves or under the guidance of a leading citizen. The growth of international trade and investment has brought a wider range of disputes and Dubai has sought recently to place itself as a centre for commercial dispute resolution. Parties to international contracts are generally unwilling to submit their disputes to the Dubai Courts, with proceedings conducted in Arabic, and therefore international contracts generally include provisions for disputes to be resolved by arbitration. The law is developing rapidly in Dubai and the purpose of this article is to provide an insight into current arbitration practice at this exciting stage of its development.
The merits and de-merits for seating arbitration in the DIFC using the DIFC-LCIA Arbitration Rules for contracts with UAE counterparties are explored by Reema Ashraf, Jonathan Brown and Valeria Lysenko.
Haider K Afridi and Chatura Randeniya
Afridi & Angell
How is commercial arbitration used in your jurisdiction? What are the recent trends? What are the general advantages and disadvantages of arbitration compared to court litigation in your jurisdiction?
Few things are as certain as disputes in construction projects. The Middle East has been, and will continue to be, a hub for construction activity.
Please give a brief overview of the use of commercial arbitration in your jurisdiction, including any recent trends. What are the general advantages and disadvantages of arbitration compared to court litigation in your jurisdiction?
Commercial disputes in the United Arab Emirates (UAE) are generally resolved through litigation in the courts or arbitration. Arbitration is becoming an increasingly popular way to resolve disputes. The UAE recently signed the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (New York Convention).
If enacted, two draft arbitration laws released for consultation in February 2008 stand to put the UAE at the forefront of arbitration in the Middle East.