Examining the Recent Growth of Arbitration in the United Arab Emirates
Arbitration is quickly becoming one of the most important methods of commercial dispute resolution in the United Arab Emirates. Disputes used to be settled in the UAE through litigation. Long lawsuits were commonplace, and many of these legal cases caused major business interruptions. The establishment of several major arbitration institutions in the UAE has made this a more popular choice.
Recent Legal Developments
Several developments in arbitration enforcement have changed the legal climate in the UAE, and local authorities are now more likely to enforce details laid out during an arbitration hearing. A majority of commercial arbitration cases are the result of disagreements among people involved in the large construction and real estate sector that dominates the economy in the UAE. This has made many people think of arbitration as something that only works for major local companies, but this is no longer the case according to international legal analyst Dr Shahram Shirkhani.
Shirkhani found that a survey of recent cases suggests that the technique is becoming more popular for a variety of global concerns. The recent growth of the Dubai International Arbitration Center (DIAC) is one reason for the recent push for arbitration. The organization is located within the regular Dubai Chamber of Commerce & Industry, which helps it to maintain solid relations with the proper legal channels.
The DIAC provides a variety of arbitration services to countless members of the international business community. A few other organizations have also helped to speed up this process. These groups often tend to work together.
The Dubai International Financial Centre-London Court of International Arbitration (DIFC-LCIA) represents a joint venture between a long-standing international dispute resolution organization and one of the fastest growing financial centers in the world. This kind of joint operation has helped those in the local community to recognize the validity of the terms laid out during the arbitration hearings.
International Arbitration Laws
The UAE joined the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards back in 2006. This also helped to ensure that arbitration hearings were valid. The country is still lagging behind in some aspects of commercial law, but this is starting to change. The recent emphasis on arbitration as a dispute resolution technique is helping to ensure that enforcement authorities are doing their jobs.
Arbitration means nothing if the terms can’t be enforced. The fact that agents are now making sure that both parties adhere to terms laid out during legal arbitration has helped those who are skeptical to consider this as a valid option. Doubtful individuals don’t have to worry about whether or not their agreements will be legally binding.