The UAE Civil Procedure Code, Federal Law No. (11) of 1992
Chapter Three
ARBITRATION
Article (203)
1.
The parties to a
contract may generally stipulate in the basic contract or by a
supplementary agreement that any dispute arising between them in respect of
the performance of a particular contract shall be referred to one or more
arbitrators and may also agree to refer certain disputes to arbitration
under special conditions.
2.
No agreement for
arbitration shall be valid unless evidenced in writing.
3.
The subject of the
dispute shall be specified in the terms of reference or during the hearing
of the suit even if the arbitrators were authorized to act as amiable compositors;
otherwise the arbitration shall be avoid.
4.
Arbitration shall not
be permissible in matters, which are not capable of being reconciled. An
arbitration agreement may be made only by the parties who are legally
entitled to dispose of the disputed right.
5. If the parties to a
dispute agree to refer the dispute to arbitration, no suit may be filed
before the courts. Notwithstanding the foregoing, if one of the parties
files a suit, irrespective of the arbitration provision, and the other
party does not object to such filing at the first hearing, the suit may be
considered, and in such case, the arbitration provision shall be deemed
cancelled.
Article (204)
1.
If a dispute arises
between the parties prior to the execution of an agreement between them to refer
the same to arbitration, or if one or more of the nominated arbitrators
refuses to act as such, withdraws, is dismissed, has his appointment
revoked, or is prevented from acting due to an encumbrance, and no
agreement exists between the parties in this respect, the court which has
jurisdiction to consider the dispute shall appoint the necessary number of
arbitrators at the request of one of the parties filed in the normal
procedure for filing a suit. The number of arbitrators appointed by the
court shall be equal, or complementary, to the number agreed between the
parties to the dispute.
2.
The court's decision
in respect of the foregoing may not be contested in any way whatsoever.
Article (205)
1.
Unless their names
are specifically mentioned in the arbitration agreement or a subsequent
document, arbitrators may not be authorized to act as amiable compositors.
Article (206)
1.
An arbitrator may not
be a minor, bankrupt, legally incapacitated or deprived of his civil rights
due to a criminal offence unless he has been rehabilitated.
2.
If there are more
than one arbitrators, the number shall, at all times be odd.
Article (207)
1.
The acceptance of the
appointment of an arbitrator shall be in writing or may be evidenced by
recording the same in the minutes of the sessions.
2.
If an arbitrator,
after having accepted his appointment, withdraws without good reason, he
may be held liable for compensation.
3.
No arbitrator may be
removed except with the approval of all the parties to the dispute.
However, if it is established that the arbitrator has willfully neglected
to act in accordance with the terms of reference, despite a written notice
to him in this respect, the court which had jurisdiction to consider the
dispute may, at the request of one of the parties, dismiss the arbitrator
and order a replacement in the same manner as he was originally appointed.
4.
An arbitrator may not
be disqualified except for reasons occurring or appearing after his
appointment. A request for disqualification must be based on the same
grounds on which a judge may be dismissed or deemed unfit for passing
judgement. The request for disqualification shall be filed with the court
which has jurisdiction to consider the dispute within five days from
notifying the parties of the appointment of the arbitrator or from the date
on which the reason for disqualification arose or from the time it became
known if subsequent to the notification of the appointment of the
arbitrator. In all events, the request for disqualification shall not be
granted if the court has already passed a judgement or if the hearing of
pleadings has been concluded.
Article (208)
1.
Within a maximum
period of thirty days from the acceptance of his appointment, the
arbitrator shall, without the need to comply with the rules provided under this
Law in respect of serving of notices, notify the parties to the dispute of
the date of the first hearing scheduled for consideration of the dispute
and the venue thereof. The arbitrator shall fix a date for the parties to
the dispute to submit their documents, memoranda and pleadings.
2.
A decision may be
issued on the basis of the documents submitted by only one of the parties
to the dispute if the other party fails to submit his documents within the
time specified.
3.
If there shall be
more than one arbitrator, they shall jointly conduct the investigation and
each of them shall sign the minutes of sessions.
Article (209)
1.
The hearing of a
dispute before the arbitrator shall terminate if a reason for such
termination, as stipulated under this Law, exists. Unless the matter has
been reserved for award, such termination shall have the legal effects
stipulated under the law.
2.
If, during the course
of arbitration, a preliminary issue, which is outside the powers of the
arbitrator, arises or if a challenge has been filed that a document has
been counterfeited, or if criminal proceedings have been taken regarding
such counterfeiting or for any other criminal act, the arbitrator shall
suspend the proceedings until a final judgement on the same has been
passed. In addition, the arbitrator shall suspend the proceedings to refer
to the President of the competent court the following:
a.
To pass a judgement
in accordance with the law to penalize any witness who fails to appear or
refuses to give statement.
b.
To order a party to submit
any documents in its possession which are necessary for the issue of the
arbitration award.
c.
To decide on evidence
by commission.
Article (210)
1.
If the parties to the
dispute did not specify in the arbitration agreement a date for the issue
of the award, the arbitrator shall pass his award within six months from
the date of the first arbitration session; otherwise any of the parties
shall be entitled to refer the dispute to the court or, if a suit has
already been filed, to proceed with the same before the court.
2.
The parties to the
dispute may, expressly or impliedly, agree to extend the date fixed by
agreement or under the law and may authorize the arbitrator to extend the
same for a specified period. The court may, at the request of the
arbitrator or one of the parties, extend the period specified under the
above paragraph for such a period, as the court may deem sufficient to
decide on the dispute.
3.
The period specified
as aforesaid shall cease to run whenever the arbitration is discontinued or
terminated before the arbitrator and shall recommence from the date on
which the arbitrators are notified of the removal of the reason for which
the dispute was discontinued or terminated. If the remaining period is less
than a month, it shall be extended to one full month.
Article (211)
1.
The arbitrators shall
cause the witnesses to take oath. Whoever makes a false statement before
the arbitrators shall be deemed to have committed the crime of perjury.
Article (212)
1.
The arbitrator shall
issue his award without being bound by any procedures other than those
stipulated in this Chapter and those pertaining to calling of the parties,
hearing of their pleas and enabling them to submit their documents.
Notwithstanding the foregoing, the parties to the dispute may agree on
certain procedures to be followed by the arbitrator.
2.
The arbitrators award
shall be in conformity with the provisions of law unless the arbitrator was
authorized to reconcile the dispute, in which event he shall not be bound
to comply with such rules except in matters which concern public order.
3.
The special rules
pertaining to immediate enforcement shall apply to arbitration awards.
4.
The arbitrators'
award shall be issued within the United Arab Emirates; otherwise, the rules
applicable to arbitration awards passed in foreign countries shall apply
thereto.
5.
The arbitrators'
award shall be passed by a majority and shall be made in writing and
accompanied by the dissenting vote. In particular, the award shall contain
a copy of the arbitration agreement, a summary of the statements of the
parties, their documents, the grounds and context of the award, the date
and place of issue and the signatures of the arbitrators. Should one or
more arbitrators refuse to sign the award, such refusal shall be stated in
the award; provided, however, that the award shall be valid if signed by a
majority of the arbitrators.
6.
Unless otherwise
agreed between the parties to the dispute, the award shall be in the Arabic
language; otherwise, the award shall, at the time of filing, be accompanied
by a legalized translation thereof.
7.
The award shall be
deemed to have been issued from the date of signing the same by the
arbitrators.
Article (213)
1.
When arbitration is
conducted through court, the arbitrators shall, within fifteen days following
the issue of their award, file with the competent court the award together
with the original terms of reference, minutes of sessions and documents.
They shall also file with the court a copy of the award to be delivered to
each of the parties within five days from the date of filing of the
original copy thereof. The court clerk shall prepare a report on the said
filing to be submitted to the judge or the head of the department, as the
case may be, so as a hearing may be convened within fifteen days for the
purpose of approving the award. The parties of the dispute shall be
notified of the date fixed for the hearing as aforesaid.
2.
Where the arbitration
is conducted in connection with an appeal suit, the filing shall be made
with the court, which has jurisdiction to consider the appeal.
3.
Where arbitration is
conducted between the parties to a dispute outside the court, the
arbitrators shall provide each party with a copy of their award within five
days from the date of the issue of the same. The court shall, at the
request of one of the parties filed within the normal course of filing the
suit, consider whether the award shall be approved or nullified.
Article (214)
1.
While considering the
request for approving the arbitrators' award, the court may refer the same
back to the arbitrators to reconsider any issues which they have omitted or
to clarify the award if it was not specific to the extent that the
enforcement of the same is not possible. Unless otherwise decided by the
court, the arbitrators shall, in both cases, issue their revised award
within three months from the date of their notification of the court's
decision.
2.
The decision of the
court may not be contested except upon the passing of the final judgment in
respect of the approving or nullifying of the award.
Article (215)
1.
The arbitrators'
award may not be enforced unless the same has been approved by the court
with which the award was filed; provided that the court has reviewed the
award and the terms of reference and ensured that there is no encumbrance
to such enforcement. The said court shall, at the request of one of the
parties concerned, correct the material errors in the arbitrator’s award in
accordance with the legally prescribed manners applicable to correction of
errors.
2.
The Execution Judge has
the jurisdiction to all the matetrs related to the execution of the
arbitrators’ awards.
Article (216)
1.
The parties to a
dispute may, at the time of consideration of the arbitrators award, request
the nullification of the same in the following events:
a.
If the award was
issued without, or was based on invalid terms of reference or an agreement
which has expired by time prescription, or if the arbitrator has exceeded
his limits under the terms of reference.
b.
If the award was
issued by arbitrators who were not appointed in accordance with the law, or
by only a number of the arbitrators who were not authorized to issue the
award in the absence of the others, or if it was based on terms of
reference in which the dispute was not specified, or if it was issued by a
person who is not competent to act as an arbitrator or by an arbitrator who
does not satisfy the legal requirements.
c.
If the award of the
arbitrators or the arbitration proceedings become void and such voidness
affected the award.
2.
A request for
nullification of the award shall not be rejected on the grounds of a waiver
by a party of its right to the same prior to the issue of the award.
Article (217)
1.
The award of the
arbitrators may not be contested by any manner of appeal.
2.
The judgement
approving the arbitrators' award may be contested in any of the appropriate
manners of appeal.
3.
Notwithstanding the
preceding paragraph, the award shall not be appealable if the arbitrators
were authorized to reconcile the dispute or, if the parties have expressly
waived their rights to file an appeal or if the disputed amount was not in
excess of Dirhams ten thousand.
Article (218)
1.
The arbitrators shall
estimate their fees and arbitration expenses and may decide that such
amount, in whole or in part, be borne by the party against whom the award
was issued. The court may, at the request of one of the parties, amend the
said estimation taking into account the efforts of the arbitrators and the
nature of the dispute.
Local Laws Concerning
Arbitration
1.
Arbitration in
disputes arising out of contracts to which Dubai Government or any of its
subsidiary departments is a party.
2.
Agreements and
Conventions relating to Arbitration to which UAE is a party.
3.
Agreement for
Judicial Cooperation and Recognition and Execution of Arbitral Award in
Civil and Commercial Matters between UAE and France, 1991.
4.
Agreement of
Encouragement and Protection of Investment between the members of the
Organization of the Islamic Conference (Chapter (2) concerning
Arbitration).
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