Weekly Spotlight: UAE’s Draft Arbitration Law Approved
This week the spotlight is on arbitration developments in the UAE, where the country’s Federal National Council has approved a draft Arbitration Law. The UAE’s judicial authority will now consider the Law before it is considered by the Council of Ministers and the Supreme Court. It is likely the law will be enacted in the second half of this year. Under the draft law, parties will be able to choose the arbitrator they want to hear their case according to its subject, the legal system they wish to govern their case, be it the UAE, UK, Singapore or any other jurisdiction and where it is heard. The law will apply to all arbitrations in the country, provided the parties ‘agree to not be subject to another arbitration law’ and provided the case does not ‘contradict the UAE’s public order and morals’. It is expected to adopt many of the provisions in the United Nations Commission on International Trade Law, which is a model for international commercial arbitration and has been enacted successfully in many countries. It comes as the numbers of commercial disputes in the country are increasing, according to DIFC Court figures. According to the Courts they handled 520 cases in 2017, with Court of First Instance claims, which include arbitration cases up 17% compared to the previous year, at 54.