The Ministry of Economy discussed amendments to the UAE’s arbitration law on Wednesday, highlighting their role in enhancing the nation’s economic competitiveness.
These changes, outlined in Federal Decree Law No. 15 of 2023, amend Federal Law No. 6 of 2018 on arbitration.
Undersecretary HE Abdullah Al Saleh emphasised the government’s commitment to fostering a favourable business environment by enhancing economic legislation. These amendments aim to boost investor confidence, positioning the UAE as a permanent trade and investment centre.
The decree, a product of joint efforts between federal and local partners alongside various arbitration bodies, signifies a pivotal step in enhancing the UAE’s economic competitiveness. HE Al Saleh stressed that augmenting the economic and regulatory environment, fostering business governance, and encouraging innovation are instrumental in enhancing the UAE’s global competitiveness among leading economies.
“The amendments to the Arbitration Law is one of these tools through which the Ministry aims to bring about a qualitative shift in the country’s business environment and support its knowledge-based economic model powered by new economy sectors,” said HE Abdullah Al Saleh, Undersecretary of the Ministry of Economy.
“This will be achieved by developing an arbitration mechanism that boasts the highest levels of responsiveness, resilience, and economic and business dispute resolution in accordance with global best practices,” he added.
This amendment is instrumental in elevating the UAE’s business environment by fostering a robust arbitration mechanism aligned with global best practices. It facilitates economic growth, maintaining high transparency and fair competition standards.
In drafting the amendment, the Ministry considered feedback from arbitration centres, institutions, and arbitrators to create comprehensive legislation that promotes an attractive business and investment environment.
The amendments to the arbitration law now permit:
- Conducting all arbitration work through modern technology or in tech communities, expanding from the previous limitation to only meetings.
- Appointment of arbitrators who are members of the arbitration institution’s Board of Directors or Trustees, ensuring their integrity and avoiding conflicts of interest.
- Establishment of rules governing the arbitrator’s role, preventing their membership or presidency in the arbitral tribunal and regulating their appointment, removal, recusal, and work.
- Introduction of legal consequences for violating governance conditions, beginning with invalidating the arbitral award and providing civil compensation for the affected party.
- Allows confidentiality of arbitral work unless otherwise agreed by the parties, as compared to the previous text, which restricted confidentiality to meetings only and does not extend to the full coverage of arbitral works.
- Agreement of the parties to arbitral proceedings, allowing them to subject these proceedings to rules of any arbitral organisation or institution within or outside the country.
- Granting discretion to arbitral institutions to determine rules of evidence without an agreement or applicable law.
- Providing greater discretion to the arbitral tribunal regarding accepting and assessing statements associated with facts, opinions, experiences, time, method, or form of their submission.
The amendments aim to enhance the UAE’s economic legislative framework, fostering domestic and foreign investments. They position the UAE as a leader in progressive legislation, particularly by allowing arbitration via modern technological means, contributing to the nation’s digital transformation and bolstering arbitration bodies for sustainable economic development.
