Dispute Settlement in the United Arab Emirates

Dispute Settlement in the United Arab Emirates generally refers to the process of resolving disputes between two or more parties. Dispute Settlement in the UAE can be either formal or informal. Formal Dispute Settlement usually takes place through a court of law, whereas informal Dispute Settlement is often mediated by a third party such as a mediator, arbitrator, or conciliator. The advantage of informal Dispute Settlement is that it is often faster and cheaper than going to court. However, the downside is that it is often less fair because the outcome is not decided by a judge or jury but by the mediator, arbitrator, or conciliator. Dispute Settlement in the UAE can also be either Domestic or International.

The United Arab Emirates has grown as a key territorial business center, attracting enormous and diverse cross-border exchanges; as a result, financial specialists and parties have entered into contracts in the UAE. While choosing foreign jurisdiction laws to govern such transactions. English law is one of the most commonly used legal systems. It is used to manage contractual relationships, choose a foreign jurisdiction, or employ arbitration as an alternative to litigation. With many international investors drawn to commercial opportunities in the Middle East, notably in the Gulf countries of the UAE, Kuwait, and Bahrain, the efficacy of dispute resolution services in the region is a top priority.

The Gulf, particularly the UAE, has a wide range of powerful and stable organizations. That can deliver justice in the event of a disagreement. And international and local investors have access to a variety of official and alternative dispute resolution processes. When looking at the UAE’s legal system, a civil law jurisdiction with a strong jurisdiction of money-related free zones based on common law is quite important. What follows is a simple yet thorough guide to comprehending the key points of UAE legislation, prosecution, and parleying, i.e. UAE dispute settlement method.

Individuals and parties frequently have disagreements and concerns, and resolving them is referred to as conflict resolution. The key people who deal with difficulties that arise between parties or business-related concerns that, in most cases, require conflict resolution procedures are dispute attorneys and prosecution lawyers. Dispute resolution is a multistep procedure that begins with negotiation, progresses to mediation. And, if necessary, concludes with arbitration and litigation.

Processes of Dispute Settlement in the UAE

People can choose from a variety of dispute resolution options, however, the most common are listed below:

I. Mediation

Mediation is a type of process in which the parties hire a mediator to help them reach an agreement. A third-party individual assists the parties in reaching an agreement. The goal of mediation is for an unbiased third party to help disputants reach an agreement on their own. Rather than imposing a solution, an expert mediator works with the opposing parties to analyze the underlying perspectives. And determine what is truly going on beneath the narratives. Mediation is an appropriate strategy for resolving conflicts because it is less expensive and time-consuming than bringing disagreements to court. As a result, alternative dispute resolution (ADR) procedures such as mediation are recommended.

II. Arbitration

The UAE enacted a new arbitration law, Federal Arbitration Law No. 6 of 2018 (“the Arbitration Law”), which repealed the provisions of the UAE Civil Federal Law No. 11 of 1992’s Arbitration Chapter. Arbitration is a process in which a dispute is resolved by an arbitrator. Unless all parties agree, a settlement and decision are not deemed binding. There is also a third-party individual who will act as a judge and is known as an authority. An arbitrator listens to each party, much like a mediator, but everyone contends and gives proof for their rights.

III. Litigation

Litigation is a form of process in which a disagreement is brought before the right courts, where a judge (and, if applicable, a jury) would determine based on the evidence presented and render a decision on the matter. The two parties are involved in this, and they use a conflicted lawyer to protect their rights as they go through the procedures; this is regarded to be a definite approach for resolving a disagreement between two parties.

Customers seeking to resolve claims with or potentially recover debts from Dubai-based companies that have clearly failed on payments can now seek assistance from the Department of Economic Development (DED), which has established a dispute resolution framework for business issues. The Department of Economic Development’s Commercial Control and Consumer Protection Department (CCCP) has established the Business Protection Department (BPD). This department provides local commercial conflict resolution services in Dubai, whether through intermediation or other law-enforced amicable settlement strategies. The department can also provide business-to-business (B2B) commercial dispute resolution services in the Emirate of Dubai, as well as educate traders on the rules and laws that must be followed in order to ensure a safe trading environment.

Traders who file complaints with Dubai’s Department of Economic Development (DED) are currently getting their grievances resolved in an average of 10 working days.

According to the DED’s business protection department, this time limit should not be seen as definitive, as the BPD Board has the authority to grant more time if circumstances warrant it or vice versa if it is deemed necessary.

Procedure for B2B complaints

Traders who file complaints with the DED in Dubai will begin the process by contacting the CCCP. If the complaint is justified, the complainant may request a contextual analysis and refer the case to mediation within ten days. The intervention will take the shape of a meeting of parties called by the Business Protection Division in the hopes of reaching an amicable resolution to the complaint. B2B has officially handled over 1000 conflicts around the world, which is why the UAE has started to use it. Despite the fact that there is no full list of issues that B2B will address, it will aim to resolve problems that are mostly related to commercial transactions. Contractual terms or invoices against a provision of goods and services would be the most common type of transaction.

The following are the requirements for filing a complaint:

• Disputes must be commercial in nature.
• The defendant must be a DED-registered trading institution or corporation.
• The dispute cannot be resolved while the case is being heard by another judicial, legal, or administrative entity.

Complaint Filing Requirements

• supplying a copy of the documents that support their claim
• Payment of a non-refundable complaint examination fee is required.

The following disputes cannot be handled using the B2B process:

• Electronic Crimes, Bounced Cheques/Returned Cheques, or Construction/Real Estate Technical Service problems

Consumers or foreign traders

The use of the B2B process in conducting mediation for foreign traders or entities that are not DED-licensed is prohibited since they will lack the necessary power or authority to compel the other party to settle before going to court or the ability to impose fines.

Individuals or consumers who are not licensed by the DED are likewise outside of its control. A final B2B decision cannot be appealed. The formalities, regulations, and procedures of the B2B mechanism are less stringent than those of courts and other conflict resolution forums.

When it comes to resolving conflicts with B2B, the costs are significantly lower. Furthermore, unlike other UAE institutions, B2B will accept that documents written in English will be reviewed. If both parties agree, the BPD can resolve disagreements over the phone or via conference calls.

The B2B will accept signed just authorization or representation letters from the offended parties or plaintiffs for plaintiffs from outside the UAE who desire to choose local representatives. These extra B2B features provide plaintiffs with yet another cost-cutting benefit in terms of sectioning and interpreting fees. The B2B administrations validate working together in Dubai and let firms all over the world to benefit from a cost-effective and time-controlled dispute settlement process.