The UAE has issued Federal Law No. 6 of 2018, which formally promulgates a new arbitration law for the country and repeals the previous provisions contained within the Arbitration Chapter of the UAE Civil Procedures Law No. 11 of 1992, said Al Tamimi & Company, a leading law firm in the region.

The new law will enter into effect one month following the day of its publication and will apply to all arbitral proceedings that are ongoing at the time the law comes into effect, a statement from Al Tamimi said.

The much-awaited self-standing arbitration law of 61 articles, which is based on the UNCITRAL Model Law, will significantly revamp UAE arbitration law, according to the statement.

The new law is expected to build the UAE’s reputation as a preferred seat for international arbitration in the region, since it is aligned with international best practice and standards, it added.

According to Al Tamimi, key highlights of the new arbitration law include:

1. Application to local and international arbitrations in line with the UNCITRAL Model Law and international practice

2.  The principles of separability and competence-competence

3. Both arbitral tribunals and courts (through the president of the court) have the power to order interim and conservatory measures relating to ongoing or potential arbitrations; the fact that the court has ordered such measures does not mean that the parties have waived their right to arbitrate

4. Clarification on the competent court and its powers

5. Confirmation that electronic writings satisfy the requirement that the arbitration clause be in writing

6. Limited restrictions on the requirements of arbitrators

7. Enforceability of interim and partial awards

8. An arbitration award need not be physically signed by the arbitral tribunal in the seat

9. Annulment (total or partial) must be initiated within 30 days of notification of the award to the parties

10. An application for annulment does not automatically stay enforcement proceedings

11. The Minister of Economy will coordinate with the arbitration institutions in the UAE in order to issue a charter on the professional conduct of arbitrators

Essam Al Tamimi, senior partner at Al Tamimi & Company, said: “This state-of-the-art arbitration law will fortify the UAE’s position as the leading arbitral seat in the Mena region.  It is a landmark law that is the best arbitration law in the region.”

Dr Hassan Arab, deputy managing partner and co-head of Litigation, said: “The much-anticipated new law will bring clarity to the conduct of arbitrations seated in the UAE as well arbitration-related court proceedings.”

Thomas R Snider, partner and head of Arbitration, said: “With this new law, the UAE has achieved a critical milestone in fostering arbitration as a leading and reliable form of dispute resolution for all types of commercial and construction disputes in the country.”

Al Tamimi & Company will be rolling out a series of client seminars to introduce clients to the new law and discuss its impact on their business, the statement said. – TradeArabia News Service