Enforcing Arbitration Awards: A Path to Global Resolution

Arbitration is a legal term used to describe the process to resolve a dispute resolution matter which is separate than a Court Case. When arbitration is mentioned in contracts then, first the decision is taken through arbitration resolution followed by final verdict issued by Courts. Dispute resolution comes first than Courts.

It is a procedure that holds similarities to traditional court litigation. However, it offers distinct benefits to its users. This is a private and confidential procedure. Arbitration is a budget friendly way for the resolution of significant matters. The experts are called as Arbitrators or Arbitration Lawyers & Legal Consultants.  

In dispute settlements it is quite a common practice nowadays. It is also quite common to incorporate arbitration clauses into their commercial agreements when needed. The growing reliance on arbitration is closely tied to dependable enforcement options. The available options for arbitral awards across many international jurisdictions. 

This reliability stems from the New York Convention of 1958. In effect since June 7, 1959, this convention enables the international enforcement of arbitration awards in multiple jurisdictions across the world. Almost 150 countries are showing their reliance upon it. All the thriving nations have ratified this convention. 

The countries have signed it to ensure their commitment. It fosters a framework for international arbitration. The United Arab Emirates is also among these signatories. The UAE has shown keen interest in Arbitration. Thus, they have adopted the New York Convention through the enactment of Federal Law Decree No. 43 of 2006.

Therefore, the UAE is not new to it and has been interested in arbitration practices for a long time. All the efforts are made for dispute resolution in many stringent cases. Besides, Energy is dedicated to Enforcing the Arbitration Awards in the UAE. In the United Arab Emirates (UAE), the framework for arbitration is defined by Federal Law No. 6 of 2018 and its subsequent amendments. The law is also called the Arbitration Law.

According to Article 3 of this law, arbitration is deemed ‘international arbitration’ if either party, at the time of agreeing to arbitration, has its business presence in two or more different states or places.  In case, the dispute’s subject matter is connected to various states the same rule is applied. Article 55 is dedicated to the arbitration and it outlines the procedure and prerequisites for enforcing an arbitral award in the country.

The confirmation is submitted to the chief justice of the Appeal Court for enforcement. Thirdly, an Arabic translation of the award. It should be verified by an authorized entity in case the award is in any other language than Arabic. Fourthly, a copy of the award’s deposit minutes within the Appeal Court. The chief justice or the delegated staff from the Appeal Court shall give an order within 60 days. They order the confirmation and enforcement of the arbitral award within 60 days of the submission. 

In case, there are some grounds for setting aside the award, the situation may differ. This is clearly outlined in Article 53 of the Arbitration Law. A significant advancement introduced by the Arbitration Law in the UAE is a crucial move. This is the simplification of enforcement proceedings to ease the process.

Nevertheless, now enforcing an arbitral award can now be initiated before the court of appeal more quickly. By filing for the award’s ratification and enforcement, this can be done. Additionally, the law includes stricter regulations under the arbitration law. This is to ensure a timely conclusion of arbitral proceedings. Besides, it is a way to guarantee arbitrators’ impartiality and fairness.  Neutrality is also ensured under the process.

The legal framework introduced has taken inspiration from the UNCITRAL. Nonetheless, it aligns the UAE with international best practices across the globe. The UAE’s adoption of this law underscores its commitment to becoming a more advanced and cohesive legal framework across the world.

Arbitration emerges as an attractive and robust alternative to traditional litigation. This is all due to its swiftness, cost-efficiency, confidentiality, privacy, and implications.

The worldwide enforcement options provided by the New York Convention empower all sorts of businesses, enterprises, corporations, and companies. Now they can easily resolve their outstanding disputes and matters. Nevertheless, it also facilitates businesses and companies operating at the global level. In the UAE, the Arbitration Law creates a more supportive environment for arbitration enforcement. It is done by encouraging and facilitating the procedure. 

This allows the stakeholders and interested parties to seek the confirmation and enforcement of awards. Additionally, it ensures more effectiveness and efficiency for businesses. Arbitration is cost-effective and flexible to the users. Moreover, the process of arbitration is more private and maintains the secrecy of the company which is absent in the traditional methods. It keeps it away from the public eye.

Arbitration is attributed with more benefits including cost efficiency. The procedure is less complicated. There are more simplified laws to resolve the dispute. It is much easier to provide the evidence and the procedure is simple to handle. Henceforth, this is a lucrative way to end the dispute which takes a toll on the expenses, efforts, energy, and resources of the businesses. Litigation is usually more expensive while arbitration is an economical and relatively cheaper way to get the desirable outcome of an outstanding dispute.

The arbitration law also reflects the UAE’s dedication and commitment to staying in line with international standards. Over time, as businesses and companies continue to recognize the benefits of arbitration, the mechanisms for enforcing arbitral awards become essential pillars. It is considered to be the backbone of global legal harmony across the world.

Note: Information can be found outdated or OLD as well. We strongly recommend to consult the Advocates and Legal Consultants if you have plan to step inside the court. Lawyers and Legal Consultants, can even help you to take a decision as per the need.  

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