Legal resolution

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It is feared, however, that although the model will apply to all arbitration, whether domestic or global, “the cut and paste exercise” of basing the law on international sources “will lead to anomaly and ambiguity,” according to Riesenburg.

And, the draft law is not without its drawbacks, says Gillians: “The courts of the UAE will retain a higher degree of control over the arbitration process when compared with those of other countries.”

But Riesenburg suggests that the draft bill will offer a fairer process for arbitral tribunals: “They will be given the autonomy that is arguably currently amiss. This includes the jurisdiction to deliver preliminary, interim, interlocutory, partial and final awards and costs,” she explains.

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“This does not however mean that parties will be barred from recourse to the court for urgent or interlocutory applications; which is the current practice. How the two will be reconciled will be of great interest.”

The draft law remains subject to consultation and legislators will be given the opportunity to amend details before the bill is passed. However, from the brief that has been seen so far, it seems that legal professionals are happy with the changes.

“All in all I would say that the majority of the changes which will be brought about by the draft arbitration law are, though subtle, welcome to the region,” says Gillians.

“The key benefit of the draft law is that, being significantly more detailed than the current law, it will bring greater clarity as to the legal provisions which apply to arbitration in the UAE.”

And, Wilson adds: “The law may steam-line the process for enforcing arbitration awards rendered here in the UAE.”

Riesenburg also agrees that the model is “sound and progressive,” but stresses the importance of front-end legal advice.

“Federal laws have their limitations, and indeed it is rare that any arm of the justice system will or should interfere with the parties’ original intentions. Intervention is the exception and not the rule,” she says.