The Arbitration Law of the Dubai International Finance Centre

Keywords: Law, Dubai, United Arab Emirates, International Commercial Arbitration.



Introduction



The Dubai International Finance Centre (DIFC) was established by Federal Law No.8 of 2004.1 It is a free financial zone within Dubai city. Dubai is one of the seven Islamic principalities that make up the federation of the United Arab Emirates. At the federal level, measures have been taken to bring UAE arbitration law into line with the international norms. On 13 June 2006 the United Arab Emirates (UAE) ratified the New York Convention on the Recognition and Enforcement of Arbitral Awards 19582. Rumor has it that a UNCITRAL Model Law statute is being discussed. Although the UAE is yet to pass a federal arbitration statute the creation of Special Economic Zones3 like the DIFC has raised its status as a seat. This is because the DIFC is 'arbitration friendly' - it has a dedicated arbitration law4 and an independent legal system mandated to support arbitral proceedings.



Arbitration under DIFCAL



Articles 203 to 218 of the UAE Federal Code of Civil Procedure concern arbitration. In the absence of contrary election by the parties, the Federal Code of Civil Procedure stands as lex arbitri in the UAE (including Dubai). For reasons outside the scope of this paper, the Federal Code is not ideal. One way of disputing parties safely contracting out of it is to select DIFC law. The lex arbitri of the DIFC is Law No.8 of 2004 (Arbitration Law)5. DIFCAL governs the actual conduct of arbitral proceedings and the recognition and enforcement of foreign arbitral awards in the DIFC. Process before product, it is appropriate to review the procedural rules and requirements of DIFCAL before we consider its enforcement provisions. Under DIFCAL:


1. Arbitration agreements