In September 2023, the United Arab Emirates (UAE) introduced significant amendments to its Federal Arbitration Law (Federal Decree Law No. 6 of 2018) through Federal Decree Law No. 15 of 2023, effective from September 16, 2023.
Key Updates:
- Arbitrator Independence and Impartiality:
- The amendments introduce provisions to ensure arbitrators’ independence and impartiality, particularly when appointing individuals from the boards of arbitration institutions. Specific conditions must be met to prevent conflicts of interest and maintain the integrity of the arbitration process.
- Remote Hearings and Procedural Flexibility:
- Article 28 has been updated to explicitly permit parties to agree on conducting arbitration hearings remotely or in person. In the absence of such an agreement, the arbitral tribunal can decide based on the dispute’s nature and the convenience of the arbitration venue. This change reflects a modernization of the arbitration process, accommodating technological advancements and the increasing acceptance of virtual proceedings.
- Rules of Evidence:
- The amendments grant arbitral tribunals discretionary power to determine applicable rules of evidence when not specified by the parties, provided these rules do not conflict with UAE public policy. This aims to enhance procedural efficiency while ensuring adherence to fundamental legal principles.
- Confidentiality and Document-Only Proceedings:
- The updated law emphasizes maintaining the confidentiality of arbitration proceedings and allows tribunals to handle disputes based solely on documentary submissions, streamlining processes and reducing the need for oral hearings when appropriate.
Impact:
These amendments are poised to enhance the UAE’s position as a leading international arbitration hub by:
- Enhancing Transparency and Impartiality: The new provisions regarding arbitrator appointments aim to bolster confidence in the arbitration process by ensuring decisions are made impartially and without conflicts of interest.
- Increasing Procedural Flexibility: Explicitly permitting remote hearings and granting tribunals discretion over evidentiary matters align the UAE’s arbitration framework with global best practices, accommodating the evolving needs of international commerce.
- Streamlining Proceedings: Allowing document-only arbitrations and emphasizing confidentiality can lead to more efficient dispute resolution, reducing time and costs for parties involved.
Overall, these updates reflect the UAE’s commitment to providing a modern, efficient, and reliable arbitration environment, reinforcing its appeal to international businesses and legal practitioners.
