A Commercial Dispute Resolution CLP Legal Practice Guides
A commercial disputes in UAE are generally resolved through litigation or arbitration. Wherein arbitration is nowadays the foremost
common and widespread medium for resolving such disputes. The country
follows the civil law system with an inquisitive approach of the court. the company Lawyers of Dubai during this article have provided complete information regarding the dispute resolution process in UAE with regards to commercial disputes.
The lawyers of Dubai have made it simpler for international and domestic investors to know the legal framework and therefore the UAE court structure to resolve commercial disputes:
1. What are the first dispute resolution mediums used for resolving the commercial dispute?
The system of UAE springs from the Constitution where Shariah and civil law are the most sources of legislation. There are several mediums available for investors to resolve commercial disputes as follows:
A. Litigation
The disputing parties can refer the matter before the courts specifically Court of First Instance of the respected Emirate. The country (except for a few free zones) follows a civil law system wherein each case is set on the idea of its facts and merits. Court proceedings are in Arabic through a UAE National lawyer. All the documents submitted before the court must be in translated in Arabic bearing legal attestations (if required by courts). Proceedings before UAE courts are through written pleadings supported by documents.
All the Emirates except Abu Dhabi and Ras Al Khaimah (RAK) are a neighborhood of the Federal judiciary . The foregoing Emirates have an independent judiciary . However, each Emirate follows the similar structure as below:
• Court of First Instance;
• Court of Appeal;
• Court of Cassation (RAK doesn't have Court of Cassation and every one the appeals are presented before the Supreme Court of Abu Dhabi .)
B. Dubai International Financial Centre (DIFC)
Apart from the civil courts, the Emirate of Dubai has its own financial free port that's DIFC which has its own laws and regulations and an independent judiciary to affect cases arising within DIFC. it's a standard law jurisdiction, and every one the proceedings and documents are submitted in English. The jurisdiction of DIFC Courts is established by virtue of Dubai Law Number 16 of 2011 which empowers the DIFC Courts to entertain local and international cases and resolve commercial disputes, upon mutual consent of the parties.
Recently, DIFC courts have held that they need jurisdiction to enforce foreign and domestic arbitral awards as they're a signatory to the ny Convention. The court of Appeal of DIFC opined that DIFC court has jurisdiction to enforce foreign financial judgments. However, this had recently caught the eye of Dubai Courts when Dubai Court of First Instance nullified the judgment gone by DIFC courts ratifying an arbitral award, thanks to lack of jurisdiction. Thus, the question regarding DIFC courts' authority over approving foreign arbitral awards remains in conflict, and so as to resolve this conflict, Dubai Courts through Decree Number 19 of 2016 incorporated a Joint Judicial Tribunal. So far, if there's a conflict between jurisdictions, Dubai courts are going to be favoured over DIFC Courts.
C. Abu Dhabi Global Market (ADGM) Courts
ADGM may be a financial free port situated in Abu Dhabi established by virtue of Federal Law Number 8 of 2004, Federal Decree 15 of 2013 and Abu Dhabi Law Number 4 of 2013, having its own separate rules and regulations and its independent court and an arbitration centre. The courts in ADGM only entertain matters arising within ADGM or between the businesses registered with ADGM authority. Common Law system is that the foundation for civil and mercantile law in ADGM which is predicated on English Law Regulations of 2015. Further, ADGM has well-established English statutes which may govern civil and commercial matters. ADGM courts have categories and divisions like Employment divisions, civil claim division, Enforcement courts enforcing judgments of Abu Dhabi Judicial Department.
ADGM provides digital court services, wherein the cases and other documents are filed electronically, and therefore the cases are managed through a web vascular system . ADGM is that the first institution to supply completely digitalized courtroom platform.
2. what's a structure for UAE courts where commercial disputes are referred?
There are not any particular courts for resolving commercial disputes, and every one the commercial cases are tried by the civil courts within the following structure:
a. Court of First Instance:
b. Court of Appeal;
c. Court of Cassation.
The judges within the aforementioned courts might not have special expertise in trying these commercial matters. However, they hold the authority to appoint a 3rd [arty expert, if required. Further, it's pertinent to notice that any commercial dispute before being referred before the civil courts, is registered before the Reconciliation and Settlement Committee (the Committee) which is appointed by the Ministry of Justice in lieu of Federal Law Number 26 of 1999 concerning the Establishment of Reconciliation Committee in Federal Courts. The Committee tries the matter and provides a settlement opportunity to the parties which may avoid the litigation process. However, should the parties' fails to settle the difficulty amicably, the matter are going to be registered before the Court of First Instance. Nevertheless, if the parties resolved the case before the Committee, the choice are going to be recorded and signed by both the parties, which is binding and enforceable.
Whereas a special picture are often witnessed in Dubai and RAK courts as under Dubai Law Number 16 of 2009, Dubai courts have established a Centre for Amicable Settlement (the Centre). The Centre has the authority to listen to the subsequent sort of disputes:
a. Dispute regarding the partition of common property;
b. Disputes where parties mutually comply with settle through the Centre;
c. Disputes are concerning outstanding debt worth AED 100,000.
In the aforementioned cases, the matter should be initially mentioned the Centre. Whereas, employment and family matters can't be mentioned the Centre.
3. what's the limitation period within which the commercial disputes shall be presented before the courts?
UAE Federal Law Number 5 of 1985 on the Civil Transactions Law (the Civil Code) provides for the overall rules regarding the statutory limitation imposed on civil and commercial cases. Generally, a civil claim is barred by limitation after 15 years from the date the claim arose, unless otherwise specified by a statute. Notwithstanding the foregoing, there are numerous exceptions to the overall rule of law, as there are certain statutes which give a special time limitation for various disputes.
Further, Federal Law Number 18 of 1993 concerning mercantile law (the Commercial Code) provides for limitation period in certain cases mentioned below:
• Contract disputes are time-barred for 15 years;
• Matters associated with bounced cheque must be filed within 3 years;
• Insurance disputes should be registered within 3 years;
• Any claim arising out of Tort must be referred within 3 years;
• Any claim thanks to defects within the architecture of a building must be registered within 10 years;
• The agreement for the carriage of products by sea must be in 1 year;
• Employment matters to be recorded within 1 year.
4. What are the various stages followed by UAE courts in any court proceeding?
Stage I: Registration of Case
Any proceeding initiated within the Court of First Instance within the relevant Emirate must be through a pleading/plaint followed by respective court fees, depending upon the quantity of the claim. The court fees altogether the Emirates vary from 3-6% with a maximum cap of AED 40,000 which must be paid by the claimant. In several jurisdictions court upon passing an unfavourable judgment against the defendant, can order the defendant to reimburse the court fees to the claimant. Any claim registered before the courts must meet all the wants and must contain all relevant information regarding the claimant and therefore the refore the defendant and the dispute.
Upon registering the claim, the court issues summons (the claim and supportive documents submitted by the claimant) to be served on the defendant along side a hearing date.
Stage II: Service of Summons
The summons or notice for registration of a case is thru by court in various steps that are either by courier, email, or a court officer. it's important for the defendant to acknowledge the receipt of summons, However, if the court officer is unable to deliver the summons to defendant and defendant fails to attend the hearing the court will adjourn the matter for an additional hearing. Also, if the private service wasn't possible, the service should be made by affixing the summons on the defendant's property or through publication in two local newspapers (Arabic and English).
If the defendant resides outside the country, the summons are going to be served through diplomatic channels, including Ministry of Foreign Affairs and UAE Embassy within the country of Defendant. It also can be through electronic means.
The lawyers of Dubai have made it simpler for international and domestic investors to know the legal framework and therefore the UAE court structure to resolve commercial disputes:
1. What are the first dispute resolution mediums used for resolving the commercial dispute?
The system of UAE springs from the Constitution where Shariah and civil law are the most sources of legislation. There are several mediums available for investors to resolve commercial disputes as follows:
A. Litigation
The disputing parties can refer the matter before the courts specifically Court of First Instance of the respected Emirate. The country (except for a few free zones) follows a civil law system wherein each case is set on the idea of its facts and merits. Court proceedings are in Arabic through a UAE National lawyer. All the documents submitted before the court must be in translated in Arabic bearing legal attestations (if required by courts). Proceedings before UAE courts are through written pleadings supported by documents.
All the Emirates except Abu Dhabi and Ras Al Khaimah (RAK) are a neighborhood of the Federal judiciary . The foregoing Emirates have an independent judiciary . However, each Emirate follows the similar structure as below:
• Court of First Instance;
• Court of Appeal;
• Court of Cassation (RAK doesn't have Court of Cassation and every one the appeals are presented before the Supreme Court of Abu Dhabi .)
B. Dubai International Financial Centre (DIFC)
Apart from the civil courts, the Emirate of Dubai has its own financial free port that's DIFC which has its own laws and regulations and an independent judiciary to affect cases arising within DIFC. it's a standard law jurisdiction, and every one the proceedings and documents are submitted in English. The jurisdiction of DIFC Courts is established by virtue of Dubai Law Number 16 of 2011 which empowers the DIFC Courts to entertain local and international cases and resolve commercial disputes, upon mutual consent of the parties.
Recently, DIFC courts have held that they need jurisdiction to enforce foreign and domestic arbitral awards as they're a signatory to the ny Convention. The court of Appeal of DIFC opined that DIFC court has jurisdiction to enforce foreign financial judgments. However, this had recently caught the eye of Dubai Courts when Dubai Court of First Instance nullified the judgment gone by DIFC courts ratifying an arbitral award, thanks to lack of jurisdiction. Thus, the question regarding DIFC courts' authority over approving foreign arbitral awards remains in conflict, and so as to resolve this conflict, Dubai Courts through Decree Number 19 of 2016 incorporated a Joint Judicial Tribunal. So far, if there's a conflict between jurisdictions, Dubai courts are going to be favoured over DIFC Courts.
C. Abu Dhabi Global Market (ADGM) Courts
ADGM may be a financial free port situated in Abu Dhabi established by virtue of Federal Law Number 8 of 2004, Federal Decree 15 of 2013 and Abu Dhabi Law Number 4 of 2013, having its own separate rules and regulations and its independent court and an arbitration centre. The courts in ADGM only entertain matters arising within ADGM or between the businesses registered with ADGM authority. Common Law system is that the foundation for civil and mercantile law in ADGM which is predicated on English Law Regulations of 2015. Further, ADGM has well-established English statutes which may govern civil and commercial matters. ADGM courts have categories and divisions like Employment divisions, civil claim division, Enforcement courts enforcing judgments of Abu Dhabi Judicial Department.
ADGM provides digital court services, wherein the cases and other documents are filed electronically, and therefore the cases are managed through a web vascular system . ADGM is that the first institution to supply completely digitalized courtroom platform.
2. what's a structure for UAE courts where commercial disputes are referred?
There are not any particular courts for resolving commercial disputes, and every one the commercial cases are tried by the civil courts within the following structure:
a. Court of First Instance:
b. Court of Appeal;
c. Court of Cassation.
The judges within the aforementioned courts might not have special expertise in trying these commercial matters. However, they hold the authority to appoint a 3rd [arty expert, if required. Further, it's pertinent to notice that any commercial dispute before being referred before the civil courts, is registered before the Reconciliation and Settlement Committee (the Committee) which is appointed by the Ministry of Justice in lieu of Federal Law Number 26 of 1999 concerning the Establishment of Reconciliation Committee in Federal Courts. The Committee tries the matter and provides a settlement opportunity to the parties which may avoid the litigation process. However, should the parties' fails to settle the difficulty amicably, the matter are going to be registered before the Court of First Instance. Nevertheless, if the parties resolved the case before the Committee, the choice are going to be recorded and signed by both the parties, which is binding and enforceable.
Whereas a special picture are often witnessed in Dubai and RAK courts as under Dubai Law Number 16 of 2009, Dubai courts have established a Centre for Amicable Settlement (the Centre). The Centre has the authority to listen to the subsequent sort of disputes:
a. Dispute regarding the partition of common property;
b. Disputes where parties mutually comply with settle through the Centre;
c. Disputes are concerning outstanding debt worth AED 100,000.
In the aforementioned cases, the matter should be initially mentioned the Centre. Whereas, employment and family matters can't be mentioned the Centre.
3. what's the limitation period within which the commercial disputes shall be presented before the courts?
UAE Federal Law Number 5 of 1985 on the Civil Transactions Law (the Civil Code) provides for the overall rules regarding the statutory limitation imposed on civil and commercial cases. Generally, a civil claim is barred by limitation after 15 years from the date the claim arose, unless otherwise specified by a statute. Notwithstanding the foregoing, there are numerous exceptions to the overall rule of law, as there are certain statutes which give a special time limitation for various disputes.
Further, Federal Law Number 18 of 1993 concerning mercantile law (the Commercial Code) provides for limitation period in certain cases mentioned below:
• Contract disputes are time-barred for 15 years;
• Matters associated with bounced cheque must be filed within 3 years;
• Insurance disputes should be registered within 3 years;
• Any claim arising out of Tort must be referred within 3 years;
• Any claim thanks to defects within the architecture of a building must be registered within 10 years;
• The agreement for the carriage of products by sea must be in 1 year;
• Employment matters to be recorded within 1 year.
4. What are the various stages followed by UAE courts in any court proceeding?
Stage I: Registration of Case
Any proceeding initiated within the Court of First Instance within the relevant Emirate must be through a pleading/plaint followed by respective court fees, depending upon the quantity of the claim. The court fees altogether the Emirates vary from 3-6% with a maximum cap of AED 40,000 which must be paid by the claimant. In several jurisdictions court upon passing an unfavourable judgment against the defendant, can order the defendant to reimburse the court fees to the claimant. Any claim registered before the courts must meet all the wants and must contain all relevant information regarding the claimant and therefore the refore the defendant and the dispute.
Upon registering the claim, the court issues summons (the claim and supportive documents submitted by the claimant) to be served on the defendant along side a hearing date.
Stage II: Service of Summons
The summons or notice for registration of a case is thru by court in various steps that are either by courier, email, or a court officer. it's important for the defendant to acknowledge the receipt of summons, However, if the court officer is unable to deliver the summons to defendant and defendant fails to attend the hearing the court will adjourn the matter for an additional hearing. Also, if the private service wasn't possible, the service should be made by affixing the summons on the defendant's property or through publication in two local newspapers (Arabic and English).
If the defendant resides outside the country, the summons are going to be served through diplomatic channels, including Ministry of Foreign Affairs and UAE Embassy within the country of Defendant. It also can be through electronic means.
Stage III: Hearing
Once a response is submitted by the Defendant, the court will adjourn the hearing for claimant's reply on another date. Further hearing dates are going to be issued; until both, the parties submit the memorandums and documents to support their claim. However, if the defendant post several attempts did not attend the hearing, the court will pass an ex-parte judgment. Also, the court can appoint a 3rd party expert, should the matter require technical knowledge and assistance.
5. Do the courts in UAE leave interim reliefs? If yes, on what groups can such application be brought before the court?
Generally, interim reliefs aren't granted to the claimant. However, the competent court will grant the following:
a. summary judgement
The court is empowered under the Civil Code to pass a summary judgement if:
• A creditor confirms in writing his debt;
• If the claim is predicated on a selected amount;
• The claim was against the guarantor.
The demand to hunt such claim was raised a minimum of 5 days before submitting the appliance for summary judgement . If the court orders a summary judgement , in favour of either party the order along side application should be served to the defendant who then has 15 days from the date of judgment to line aside the order on reasonable grounds.
b. Preliminary attachment orders
The court upon being satisfied that there's a clear case against the defendant or if the order for attachment of property isn't granted the Claimant even after receiving the favourable order won't be ready to enforce the judgment will pass provisional orders for attachment of the property.
The party filing an application for attachment of property must provide supporting documents and specify the assets which require to be attached. Interim relief for attachment of property completely depends upon the discretion of the court. Nevertheless, parties must submit evidence proving an imminent danger to the property which is that the very basis of the claim.
Further, if it's proven within the court that the interim relief was sought on malicious grounds or with the intention of causing harm or delay within the proceedings, the claimant are going to be susceptible to pay damages decided by the court. additionally , the court may require from the applicant to submit a bank guarantee or a letter of indemnity along side the appliance for interim relief.
c. Special cases
The interim relief in special cases involve an application for a travel ban, where the claimant features a strong apprehension that the defendant might leave the country without settling the claim, the claimant may file an application to hunt the subsequent remedy:
a. Travel ban until the ultimate judgment;
b. An order to seize defendant's passport. If the defendant fails to supply his passport, he must submit a bank guarantee adequate to the quantity of the claim.
Further, in some circumstances, if the court is of the opinion that the evidence within the material are often destroyed, they'll appoint an expert to look at things and draft a report counting on which the court may grant interim relief.
6. what's the role of an expert in any court proceeding?
The appointment of third-party experts within the courts of law is thru Federal Law Number 7 of 2012 regarding the Expert Evidence before UAE Courts. Further, Federal Law Number 10 of 1992 concerning the Evidence Law governs the appointment of Expert. The experts are usually appointed certain seeking opinion on several matters which require appropriate knowledge and skills like in financial or technical matter. All the courts have an inventory of experts through which the experts are appointed. The court doesn't allow the parties to make a decision an expert thanks to problems with biases mutually.
The expert so appointed must suits the principles and regulations began by the Evidence Law, which incorporates arranging meetings with parties or their legal representatives and maintaining the minutes of the meeting and more. Once a report is drafted and submitted to the court, the court will issue a hearing date for both parties to discuss the report. The post is receiving both parties' comments; if the court is of the opinion that further investigations are required, the matter are often again mentioned an equivalent or new expert.
It is important to spotlight that claimant is typically required to buy expert fees, which may be reimbursed, should he receive a favourable judgment.
7. What are the principles concerning appeals during a court proceeding?
Any party aggrieved from the judgment of the Court of First Instance can file the case before the Court of Appeal. The appeal are often filed on the grounds of fact and law. Patties even have the proper to present further submissions and evidence. All the appeals must be filed within 30 days from the date of receiving the judgment from Court of First Instance. However, the time-frame could also be extended in some circumstances.
The appellant filing appeal has got to submit the grounds for filing the appeal along side documentary evidence supporting the claim. Upon receiving the appeal, the court will notify the opposite party and can provide a hearing date for the respondent's submission. Subsequent hearing dates are going to be provided for submissions, and once the court is satisfied that the matter is pleaded, the court will order for judgment.
Parties have further right to file an appeal before the Court of Cassation within 60 days from receiving the judgment from Court of Appeal on the grounds of law.
8. What procedures are followed to enforce an area or a far off judgment in UAE?
Enforcing Local Judgment
Either party upon receiving the judgment form a competent court may file for execution after 30 days from the date of judgment. The execution court will notify the opposite party to submit the claim amount, however, if he fails to the court can execute the judgment through:
a. Sale of debtor's property;
b. Sale of his shares within the market;
c. bench warrant against the debtor.
Enforcing Foreign Judgment
UAE may be a signatory to many bilateral treaties and judicial co-operation to acknowledge and enforce arbitral awards. Under Riyadh Convention to which UAE may be a signatory, all other signatory countries can enforce the judgment passed from their courts in UAE.
Whereas, for countries where UAE has not signed any treaty, the wants mentioned within the Civil Code must be satisfied which are highlighted as below:
• Courts of UAE must have jurisdiction to undertake that matter;
• Judgment should be issued by a competent foreign court;
• The foreign court should have summoned the defendant;
• The foreign court judgment should be binding and enforceable;
• Judgment should be in line with the laws.
9. What are the most Alternative Dispute Resolution methods available in UAE for resolving commercial disputes?
Alternative dispute resolution methods involve arbitration, mediation and conciliation. For arbitration, the Chamber of Commerce has their rules and regulations and authority which may undertake cases filed to resolve through ADR like Dubai International Arbitration Centre, Abu Dhabi Commercial Conciliation and Arbitration Centre. aside from the govt recognized, the 2 financial free zones, DIAC and ADGM even have their own arbitration Centre that's DIFC-LCIA. Further, UAE has passed Federal Law Number 6 of 2018 on Arbitration in UAE, which sets out guidelines for undertaking arbitration.
For conciliation and mediation, the courts in several cases offer amicable settlement which is discussed in question 1.
10. What are the first organisations which supply ADR for commercial disputes?
There are numerous ADR organizations resolving commercial disputes between the parties through a mutual consent which are as follows:
• Dubai International Arbitration Centre;
• Abu Dhabi Commercial Conciliation and Arbitration Centre;
• Dubai International Financial Centre- London Court of International Arbitration;
• Reconciliation and Settlement committee;
• Amicable Dispute Settlement Centre.
Each arbitration centre has their own rules and regulations governing the disputes and therefore the procedure for referring disputes before them.
Once a response is submitted by the Defendant, the court will adjourn the hearing for claimant's reply on another date. Further hearing dates are going to be issued; until both, the parties submit the memorandums and documents to support their claim. However, if the defendant post several attempts did not attend the hearing, the court will pass an ex-parte judgment. Also, the court can appoint a 3rd party expert, should the matter require technical knowledge and assistance.
5. Do the courts in UAE leave interim reliefs? If yes, on what groups can such application be brought before the court?
Generally, interim reliefs aren't granted to the claimant. However, the competent court will grant the following:
a. summary judgement
The court is empowered under the Civil Code to pass a summary judgement if:
• A creditor confirms in writing his debt;
• If the claim is predicated on a selected amount;
• The claim was against the guarantor.
The demand to hunt such claim was raised a minimum of 5 days before submitting the appliance for summary judgement . If the court orders a summary judgement , in favour of either party the order along side application should be served to the defendant who then has 15 days from the date of judgment to line aside the order on reasonable grounds.
b. Preliminary attachment orders
The court upon being satisfied that there's a clear case against the defendant or if the order for attachment of property isn't granted the Claimant even after receiving the favourable order won't be ready to enforce the judgment will pass provisional orders for attachment of the property.
The party filing an application for attachment of property must provide supporting documents and specify the assets which require to be attached. Interim relief for attachment of property completely depends upon the discretion of the court. Nevertheless, parties must submit evidence proving an imminent danger to the property which is that the very basis of the claim.
Further, if it's proven within the court that the interim relief was sought on malicious grounds or with the intention of causing harm or delay within the proceedings, the claimant are going to be susceptible to pay damages decided by the court. additionally , the court may require from the applicant to submit a bank guarantee or a letter of indemnity along side the appliance for interim relief.
c. Special cases
The interim relief in special cases involve an application for a travel ban, where the claimant features a strong apprehension that the defendant might leave the country without settling the claim, the claimant may file an application to hunt the subsequent remedy:
a. Travel ban until the ultimate judgment;
b. An order to seize defendant's passport. If the defendant fails to supply his passport, he must submit a bank guarantee adequate to the quantity of the claim.
Further, in some circumstances, if the court is of the opinion that the evidence within the material are often destroyed, they'll appoint an expert to look at things and draft a report counting on which the court may grant interim relief.
6. what's the role of an expert in any court proceeding?
The appointment of third-party experts within the courts of law is thru Federal Law Number 7 of 2012 regarding the Expert Evidence before UAE Courts. Further, Federal Law Number 10 of 1992 concerning the Evidence Law governs the appointment of Expert. The experts are usually appointed certain seeking opinion on several matters which require appropriate knowledge and skills like in financial or technical matter. All the courts have an inventory of experts through which the experts are appointed. The court doesn't allow the parties to make a decision an expert thanks to problems with biases mutually.
The expert so appointed must suits the principles and regulations began by the Evidence Law, which incorporates arranging meetings with parties or their legal representatives and maintaining the minutes of the meeting and more. Once a report is drafted and submitted to the court, the court will issue a hearing date for both parties to discuss the report. The post is receiving both parties' comments; if the court is of the opinion that further investigations are required, the matter are often again mentioned an equivalent or new expert.
It is important to spotlight that claimant is typically required to buy expert fees, which may be reimbursed, should he receive a favourable judgment.
7. What are the principles concerning appeals during a court proceeding?
Any party aggrieved from the judgment of the Court of First Instance can file the case before the Court of Appeal. The appeal are often filed on the grounds of fact and law. Patties even have the proper to present further submissions and evidence. All the appeals must be filed within 30 days from the date of receiving the judgment from Court of First Instance. However, the time-frame could also be extended in some circumstances.
The appellant filing appeal has got to submit the grounds for filing the appeal along side documentary evidence supporting the claim. Upon receiving the appeal, the court will notify the opposite party and can provide a hearing date for the respondent's submission. Subsequent hearing dates are going to be provided for submissions, and once the court is satisfied that the matter is pleaded, the court will order for judgment.
Parties have further right to file an appeal before the Court of Cassation within 60 days from receiving the judgment from Court of Appeal on the grounds of law.
8. What procedures are followed to enforce an area or a far off judgment in UAE?
Enforcing Local Judgment
Either party upon receiving the judgment form a competent court may file for execution after 30 days from the date of judgment. The execution court will notify the opposite party to submit the claim amount, however, if he fails to the court can execute the judgment through:
a. Sale of debtor's property;
b. Sale of his shares within the market;
c. bench warrant against the debtor.
Enforcing Foreign Judgment
UAE may be a signatory to many bilateral treaties and judicial co-operation to acknowledge and enforce arbitral awards. Under Riyadh Convention to which UAE may be a signatory, all other signatory countries can enforce the judgment passed from their courts in UAE.
Whereas, for countries where UAE has not signed any treaty, the wants mentioned within the Civil Code must be satisfied which are highlighted as below:
• Courts of UAE must have jurisdiction to undertake that matter;
• Judgment should be issued by a competent foreign court;
• The foreign court should have summoned the defendant;
• The foreign court judgment should be binding and enforceable;
• Judgment should be in line with the laws.
9. What are the most Alternative Dispute Resolution methods available in UAE for resolving commercial disputes?
Alternative dispute resolution methods involve arbitration, mediation and conciliation. For arbitration, the Chamber of Commerce has their rules and regulations and authority which may undertake cases filed to resolve through ADR like Dubai International Arbitration Centre, Abu Dhabi Commercial Conciliation and Arbitration Centre. aside from the govt recognized, the 2 financial free zones, DIAC and ADGM even have their own arbitration Centre that's DIFC-LCIA. Further, UAE has passed Federal Law Number 6 of 2018 on Arbitration in UAE, which sets out guidelines for undertaking arbitration.
For conciliation and mediation, the courts in several cases offer amicable settlement which is discussed in question 1.
10. What are the first organisations which supply ADR for commercial disputes?
There are numerous ADR organizations resolving commercial disputes between the parties through a mutual consent which are as follows:
• Dubai International Arbitration Centre;
• Abu Dhabi Commercial Conciliation and Arbitration Centre;
• Dubai International Financial Centre- London Court of International Arbitration;
• Reconciliation and Settlement committee;
• Amicable Dispute Settlement Centre.
Each arbitration centre has their own rules and regulations governing the disputes and therefore the procedure for referring disputes before them.
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