“Conflict and resolution are two sides of the same coin”
The process options available to businesses wishing to resolve disputes range from basic avoidance through to formal litigation.
Early identification and mitigation of legal, financial and other risks arising from disputes saves costs and management time. However, there may come a time when informal or facilitated negotiations fail to build consensus in a dispute situation. This is usually the point at which the parties start to consider which formal dispute resolution process best suits their particular situation. Formal advice is important at this stage since often – but not always – the dispute resolution process is already formally set out in the contract governing the dispute between the parties. Setting aside the contractually agreed process may be possible by mutual agreement and is worth considering if the chosen method of dispute resolution is not appropriate to the dispute that has arisen. There is a range of dispute resolution processes open to parties and these fall into broadly two categories – adjudicative or consensual. Broadly, adjudicative processes require an external forum to determine the resolution of the conflict whilst in a consensual process the parties work together to arrive at mutually agreed conclusion.
Arbitration is essentially an adjudicative process of dispute resolution and the options for chosing arbitration in Dubai and in the region generally are further considered below.
What is arbitration?
This is one of most common questions about arbitration. Simply put, arbitration is a private dispute resolution procedure that is efficient, enforceable and confidential to the parties.
What is an arbitrator?
You cannot have an arbitration without an arbitrator. An arbitrator is an impartial person chosen by the parties to the dispute to decide the issue between them. The question of how to appoint an arbitrator is an important one for both parties. Arbitrators are key to arbitration proceedings and will hear the dispute as presented by the parties and their legal advisors; review the evidence; apply the relevant law and issue an enforceable and binding award.
What is a party representative?
Parties are also represented during arbitrations either by a lawyer or other by other suitable individuals whom they entrust with the management of the proceedings on their behalf.
How to select an arbitrator? How to select a party representative?
There are many questions about arbitration in Dubai including how to select an arbitrator. Selecting the right arbitrator is important. An arbitrator should be independent and impartial with the right professional expertise for the dispute. This expertise is often legal but need not necessarily be.
The nationality of the arbitrator is also important as some institutional rules prevent a sole arbitrator from having the same nationality as either party..
An individual chosen to represent a party in an arbitration should ideally have expertise in the subject matter of the dispute and be familiar with arbitration proceedings in the region.
How to appoint an arbitrator?
This is usually a decision for the parties who can agree on a single arbitrator. If the parties have decided on a three-member arbitral tribunal then each party will appoint an arbitrator and these together agree on the third arbitrator.
Anja is experienced both as sole arbitrator, as Tribunal member and as Tribunal Chairman.
What is the UAE Law on Arbitration?
If you have other questions about arbitration please follow the link below to Federal Law 6 of 2018 which is the new UAE law governing arbitrations.
UAE ARBITRATION LAW
What are DIAC Arbitration, DIFC-LCIA Arbitration, ADGMAC Arbitrations and other Institutional Arbitrations?
Procedure is often one of the overlooked questions about arbitration. The parties will often have agreed (usually in the contract dispute resolution clause of their agreement) that the arbitration rules of a particular UAE or international arbitration institute such as DIAC or ADGMAC (or other specialist institutes) should apply to the arbitration process.
Alternatively the process may be ‘ad hoc’ – an ad hoc arbitration allows the parties to tailor the arbitration process to the specific circumstances of the dispute.
Below is a list of arbitration institutes in the UAE.
UAE ARBITRATION INSTITUTES
Writers Destination 