Arbitration in UAE

Arbitration is well-known when it comes to dispute resolution. In the UAE, it is an infamous method used to resolve mild to severe legal matters and issues. The significance of arbitration has aroused to an extent that there are various institutions in UAE. They administer the arbitration services. In 2018, there was an introduction of Federal law for arbitration. It was introduced to streamline the procedure of arbitration. It guided domestic and commercial matters in the country. Moreover, some amen dents were also inculcated to facilitate the transactions in arbitration.

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In recent years, many arbitrations have come up about construction and real estate disputes. Therefore, it can be said that arbitration in the real estate sector is quite popular. Nowadays, more people are inclined towards it. Parties are more willing to arbitrate to resolve their disputes of various types and natures. This is also quite known in commercial-related matters. In the UAE, in the case of “Arbitration, Arbitration Laws” are applicable. The laws are highly based upon the UNCITRAL Model Arbitration law. Currently, there are two prominent financial free zones operational and established in the Emirates. 

Arbitration in Dubai and ABU DHABI

Dubai and two Financial Free Zones including DIFC (Dubai International Financial Center) and ADGM (Abu Dhabi Global Market) are more inclined towards it. There has been a growth in its popularity resulting from the benefits attached to it along with a proper process to dispute resolution. Arbitration laws are usually determined by the arbitration institution in UAE.  Contrary, the local courts in UAE supervise the entire process. They will supervise the function of the disputes. Local Courts in the UAE have openly welcomed this move. More and more people are encouraged to opt for it. Moreover, it is one of the first stands along the arbitration law of UAE. Arbitration has been given a preference over litigation due to the several advantages associated with it. Let us discuss some of the benefits attached to the procedure:

Under Arbitration the procedure remains confidential. Only if the parties agree to disclose that the information is revealed to a third party. Otherwise, the information remains under wraps. Communication, conversation, and exchange of words, data, and information, all are done behind closed doors. On the other hand, in case of litigation, nothing is concealed. Information and the final verdict are disclosed publicly. This may damage business secrets and evade the privacy of sensitive information. Read more here about Arbitration Law Firms.

In UAE, the arbitration can be conducted in Arabic, Urdu, Hindi, or in English to facilitate the procedure.  Moreover, it is also extended to other languages to facilitate the entire process. The parties can agree on any language they feel comfortable with.  On the contrary, the litigation in the UAE courts is restricted to Arabic only. In arbitration, oral evidence is quite significant. Under the process of litigation, only written evidence is given due importance.  Written submissions are not necessary in case of arbitration. This makes the arbitration process a whole lot easier. 

On the other hand, litigation has a formal law that needs to follow when generating evidence. Court also has its set of rules to conduct the procedures that must be followed. Arbitration processes are less costly than litigation.  Considering the tribunal and administrative fees and the fee of the arbitrator, it is quite economical. On the contrary, litigation is an expensive affair.

Arbitration allows the dispute to resolve more quickly. Under arbitration, efforts are made to sort out the matters and problems as soon as possible while, in litigation the case can prolong for weeks, months, and even years at times. Therefore, it can be said if you are looking for a rapid solution to your worries opt for arbitration.