UAE is being an emerging hub for arbitration because numerous companies choose to keep their regional offices in the country where many expats invest in real estate. It’s been recognised as a successful hub due to its investor-friendly laws, internationally recognised principles and efficient enforcement mechanisms. The procedural laws of the UAE provide cost-effective and fast-track legal resolutions.
Not even the individual but businesses from across the Gulf often choose to bring their cases to the UAE in Dubai International Financial Centre (DIFC) courts and the Abu Dhabi Global Market (ADGM) courts. However as per Article 24 of the DIFC Court Law, which allows DIFC courts’ jurisdiction to ratify judgments from foreign courts. “Judgment creditors often approach the DIFC Courts seeking ratification of the orders rendered by the non-UAE courts, in circumstances where the judgment debtor has assets in the UAE,”
After the enforcement of foreign award, the UAE has now become a formality, there is no wonder that more and more companies are choosing the UAE to conduct their business; this shows a lot of trust in the UAE legal system.
In UAE, because of the tax and ownership benefits Many foreign companies choose to open their businesses in free zone. such as the DIFC courts and the ADGM courts. However, on offshore arbitration they operate under respective laws of UAE excluding the DIFC and ADGM court.
As per the current situation, majorly clients prefer to use arbitration centres rather than bringing cases to court. The most common arbitrations refer to contractual breaches, oil and maritime disputes – specifically the cases were the parties have previously agreed to submit their dispute to arbitration because of the diversity of international arbitrators rather than the court performance.
Furthermore, there are domestic arbitrations as well which is known to be the alternative litigation wherein most of the arbitration revolve around the real estate industry.