Parties in recent years have preferred to choose arbitration as their preferred mode of dispute resolution mechanism over the Dubai or UAE Courts. There are several advantages for choosing arbitration over litigation in the UAE especially for International entities as they are able to retain flexibility over the language, seat and applicable law of the arbitration. The Dubai International Financial Centre (DIAC) is fast developing into a well recognized arbitration centre in the Middle East. DIAC has developed its sets of rules for conducting arbitration. In addition to DIAC rules, parties in the UAE also tend to choose LCIA-DIFC rules for domestic arbitration in the UAE. In addition to these rules, there are several institutional arbitration bodies that are established or being established in the UAE which publish their rules of arbitration. Domestic Ad Hoc arbitrations that are not governed by the rules of any institution are usually supervised by the local courts under the UAE Civil Procedure laws.
International arbitration is also finding more widespread acceptance in the UAE with the UAE becoming a signatory of the New York Convention in 2006. This has made it easier to enforce foreign arbitral awards in the UAE. We have come across several agreements, especial in international commercial agreements, where parties have chosen to resolve their disputes through International arbitration.
There are also interesting legal developments in the Emirate of Dubai where parties use DIFC Courts as a conduit jurisdiction for ratification of domestic and international arbitration awards for their enforcement by Dubai Courts.
Lutfi & Co DIFC lawyers have the requisite expertise and experience to assist clients in domestic arbitration and international commercial arbitration with its seat in the UAE or elsewhere.