UAE is one of the top countries that has strict rules and regulations regarding any disputes. Arbitration is also one of those crucial laws and ways that help to solve commercial disputes.
It enables you to know how to deal with disputes and what types of arbitration services can be beneficial for your business as well. There are many essential things that you should know about arbitration that will help you deal with complex business disputes in the UAE. Explore the essential things you must know about arbitration in UAE here.
What is Arbitration in UAE?
E is one of the important ways to resolve disputes between two parties. It is a process in which a dispute will be submitted as an agreement by both parties in front of the panels of arbitrators who will go through the dispute details and offer the decision as well.
Arbitration in UAE can be submitted if both parties agree for this process. This law will apply to international and commercial arbitrations that are commenced outside the UAE according to the Arbitration law in the UAE.
The United Arab Emirates released a new arbitration law on 15 May 2018. Both parties can present their case with all the evidence and proof. Arbitrators release an arbitral award which is also called a binding decision. Arbitrators also allow both parties to comment before releasing any arbitral award.
The Process of Arbitrator in the UAE
- Arbitrator Agreement
The process of arbitration in UAE starts with an agreement where both parties should be agreed. There will be a special clause in the agreement or separate arbitration agreement to proceed with the arbitrator process further.
- Selection of Arbitrators
Selection of the arbitrators will take place after the arbitrator agreement. Both parties should also agree on the selection of arbitrators for further process. The high authority will appoint the arbitrators if both parties do not agree on the selected arbitrators.
- Arbitral Proceedings
Arbitral proceedings start after the selection of arbitrators. Arbitrators will offer opportunities to each party to present their case with all the relevant proof and evidence. The arbitrator will check the agreement, evidence, and other documents carefully.
- Binding Decision
Arbitrators will issue binding decisions for arbitral awards after hearing both parties’ comments and checking submitted evidence and agreements. This arbitral award will be legally binding and UAE’s court can apply a binding decision issued by the arbitrators.
Top Ways to Choose Arbitration Services in UAE
To ensure that the dispute is fairly and promptly resolved, it is important to select an appropriate arbitration service. Here are a few key points to take into consideration:
- Nature of the Dispute
Your choice should be influenced by the complexity and nature of the dispute. Institutional arbitration may be appropriate for complex commercial disputes, while ad hoc arbitration may be preferable for simpler ones.
- Arbitration Rules
Make sure that you are comfortable with the rules governing proceedings in a given arbitration institution like Arbitration International Chamber of Commerce. This includes looking into how arbitrators are selected, time limits, and confidentiality rules.
- Expertise of Arbitrators
The expertise and experience of an arbitrator are very important. Try to find an arbitrator who is well-versed in the law and has dealt with similar cases before many organs have lists of qualified arbitrators to assist with such decisions.
- Cost Considerations
Arbitration can turn out to be costly. How much you will pay depends on the institution and fees charged by the arbitral tribunal members themselves. It is therefore important to factor in such costs while planning your budgeting process accordingly since some institutions provide fee schedules as well as cost estimates.
- Enforceability of Awards
It must also be considered whether awards resulting from these matters shall be enforceable through courts within or outside the UAE (i.e., internationally). The UAE’s accession to the New York Convention makes possible enforcement of arbitral awards globally.
- Administrative Support
The administrative support level given by the institution of arbitration can affect the efficiency of the process. Institutions like Dubai International Arbitration Centre and Arbitration International Chamber of Commerce and Arbitration Centre provide full administrative services including hearing venues and guidance on procedures.
- Linguistic and Cultural Factors
The choice of language and cultural background have a significant impact on how the process takes place. Make sure that arbitrators as well as arbitration service providers are well conversant with the language used and understand the intricacies of cultural diversity.
- Reputation and Track Record
The reputation and track record of the arbitral institution and arbitrators are indicators of their dependability. For this, look at former cases, reviews as well as testimonials to assess their operative history and acceptance levels.
Conclusion
Arbitration in the United Arab Emirates is the best way to solve a dispute by keeping case details confidential. It helps lots of business persons and individuals to get justice if any dispute they have faced. The process of arbitration includes agreement submission, arbitrator selection, proceeding, and releasing binding decisions as well. Consider all the factors to choose the arbitration services in UAE and resolve your dispute easily with the right binding decision.