Alternate Dispute Resolution Law at United Arab Emirates
The United Arab Emirates (UAE) has developed a comprehensive legal framework for Alternative Dispute Resolution (ADR), encompassing arbitration, mediation, and conciliation. These mechanisms are designed to provide efficient, flexible, and accessible alternatives to traditional litigation, aligning with international best practices.
⚖️ Legal Framework for ADR in the UAE
1. Arbitration
Arbitration in the UAE is primarily governed by Federal Law No. 6 of 2018 on Arbitration, which replaced Articles 203–218 of the UAE Civil Procedures Law No. 11 of 1992. This law applies to arbitrations conducted within the UAE, unless the parties agree to another governing law that does not conflict with UAE public policy. It also applies to international commercial arbitrations conducted abroad if the parties choose it to govern such arbitration .
The law is largely based on the UNCITRAL Model Law, with certain modifications to suit the UAE's legal and commercial landscape. Notably, it requires individuals entering into or amending arbitration agreements to have "special authority"
Recent amendments in 2023 introduced provisions on arbitrator qualifications, confidentiality of proceedings, and the use of technology in arbitration, including virtual hearings .
2. Mediation and Conciliation
In September 2023, the UAE issued Federal Decree-Law No. 40 of 2023, consolidating the legal framework for mediation and conciliation in civil and commercial disputes. This law, effective from 29 December 2023, aims to streamline dispute resolution processes by establishing mediation and conciliation centers within courts and allowing for the creation of private mediation centers .
The law distinguishes between mediation, where the mediator facilitates communication between parties, and conciliation, where the conciliator plays a more active role in proposing solutions. It sets out criteria for the accreditation and qualification of mediators and conciliators, emphasizing confidentiality, conflict of interest, and disciplinary measures .
Mandatory conciliation is required for certain disputes, such as those with a value not exceeding AED 5,000,000 or those involving family members, before litigation can proceed. Voluntary conciliation can be initiated by the parties or by court referral, subject to mutual consent .
🏛️ Key ADR Institutions in the UAE
The UAE hosts several prominent ADR institutions:
Institution | Description |
---|---|
Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC) | Established in 1993, ADCCAC offers arbitration and conciliation services, maintaining panels of specialists in various fields. Conciliation is conducted by accredited mediators, and the default language is Arabic unless the parties agree otherwise. |
Dubai International Arbitration Centre (DIAC) | An autonomous arbitration institution in Dubai, DIAC provides arbitration services under its own rules, aligning with international best practices. |
International Islamic Centre for Reconciliation and Arbitration (IICRA) | A non-profit organization specializing in resolving financial and commercial disputes based on Islamic law principles. |
Sharjah International Commercial Arbitration Centre (Tahkeem) | Tahkeem offers arbitration services in commercial disputes, aiming to provide cost-effective and efficient dispute resolution. |
✅ Key Features of ADR in the UAE
Voluntary Participation: Except for mandatory conciliation in certain disputes, ADR processes are generally voluntary and require the consent of all parties involved.
Confidentiality: Mediation and arbitration proceedings are confidential, and statements made during these processes cannot be used in subsequent legal proceedings.
Enforceability: Arbitral awards are enforceable in the UAE courts, and settlement agreements reached through mediation can be made enforceable by applying to a court for approval.
Use of Technology: The UAE encourages the use of technology in ADR processes, including virtual hearings, to enhance efficiency and accessibility .
🧭 Practical Considerations
Language: ADR proceedings are typically conducted in Arabic, but English is commonly used, especially in international disputes.
Costs: While court-annexed ADR services may be free or low-cost, private ADR institutions may charge fees based on the complexity and value of the dispute.
Accessibility: ADR services are accessible to individuals and businesses across the UAE, with many institutions offering online platforms for initiating proceedings.
0 comments