The UAE has just undertaken one of the most significant and anticipated law reforms to be undertaken by the UAE Government in recent times, according to arbitration experts at Pinsent Masons.
HH Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, recently issued the Federal Law No. 6 of 2018 on Arbitration in Commercial Disputes, which repeals and replaces the law which has governed arbitration in the UAE since 1992.
Thought to be imminent since the UAE acceded to the 1958 New York Convention in 2006, the new arbitration law is based on the internationally accepted UNCITRAL Model Law, which has been adopted in 111 jurisdictions across 80 states which are commonly perceived to be arbitration-friendly jurisdictions. The enactment of a Model Law based Federal Arbitration Law solidifies the UAE's position as the most attractive hub for arbitration in the MENA region.
This new law will have a positive impact on both domestic and foreign businesses, while encouraging even more foreign direct investment into the UAE. Businesses already operating in the region will benefit from further reassurance should any disputes arise, as the new law provides greater certainty of outcome, within a recognised international framework for conflict resolution. The new law will come into effect one month after it is published in the Official Gazette, which is expected to happen shortly.