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List the Main Centers of Arbitrations in UAE

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Arbitration is now a popular method of dispute resolution in the UAE and in the surrounding regions. The growth of arbitration in the UAE is reflected to some extent by the fact that there are now several institutions in the UAE which administer commercial arbitrations. The UAE also introduced Federal Law No. 6/2018 on Arbitration (Arbitration Law), the UAE's first stand-alone law on arbitration, which introduced, among other things, a more streamlined process to enforce domestic arbitration awards, as well as amendments to the UAE Civil Procedure Code to facilitate the recognition and enforcement of foreign arbitral awards.

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Although the Federal Government retains exclusive jurisdiction over matters such as foreign affairs, education and health, the Constitution expressly provides that each Emirate has absolute power to establish its own legislative body, independent from that of the Federal Government. There are thus two tiers of law: Federal law and the local law of each Emirate. In the event of any conflict, Federal law will prevail

In each Emirate a hereditary ruler exercises sovereign power and sits on the Federal Supreme Council. Supreme authority is, however, vested in Abu Dhabi’s Ruler, currently Sheikh Khalifa bin Zayed Al Nahyan. The UAE is a civil law jurisdiction and its legal system is primarily based on a Civil Code that has been greatly influenced by the Egyptian Civil Code. Where the UAE’s codified law is silent on a particular issue, the principles of Sharia Law may be applied. Basic civil and human rights are protected by the Constitution, which provides that all individuals are equal in the eyes of the law and that there is to be no discrimination on the basis of religion, ethnicity, origin or gender. Created in 2004, the DIFC is one of the most widely recognised and used financial free zones in the UAE. The DIFC has its own body of civil and commercial laws (including its own arbitration law) modelled closely on international standards and principles of common law that have been tailored to the region. It has an independent judicial authority with its own English language common law courts, whose procedure is based heavily on English procedural law. The DIFC Courts will apply any law chosen by the parties or in the absence of an express agreement, such law as the Court determines applicable. Unlike in the onshore courts, foreign qualified lawyers can obtain rights of audience in the DIFC Courts. The Abu Dhabi Global Market (the “ADGM”) was established in 2013 and has also its own civil and commercial laws (including its own arbitration law) and its own Courts. The ADGM Courts have an independent common law framework to adjudicate civil and commercial disputes in English and the ADGM Courts and its judiciary are broadly modelled on the English judicial system.

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The parties refer to the arbitration because it provides a range of substantial benefits for them. The empirical study conducted by Christian Buhring-Uhle showed that arbitration is advantageous because of the two main reasons (Drahozal and Naimark 31): It is a neutral forum. Arbitrators can be impartial and not have biases in the other party’s court. With its help of arbitration, the enforcement is likely to be obtained without complications. Professionals tend to prefer arbitration award because it is not so difficult to enforce internationally in comparison with the national court judgment. This happens because courts can prevent enforcement only because of the crucial procedural irregularities and integrity issues. Except for that, the parties find it beneficial that there is a possibility to maintain the whole procedure and the award confidential. As a rule, confidentiality is guaranteed by the institutional rules. Still, it can be expanded under the agreement that is made by both parties. For example, if there is a necessity to involve witnesses and experts, they can be bound by a confidentiality agreement. Such an approach is extremely advantageous for businesses because they tend to be reluctant to disclose their operations and other information about the organization. At the same time, some would like to keep back the type of dispute and its outcome, especially if it is negative. One more advantage that is given by such type of adjudication is the ability to choose arbitrators. It can be seen when the experts of some unique spheres are required, for example, those who have technical skills. Except for that, arbitration provides an opportunity to save some time. It requires fewer discoveries than in full-scale litigation. The absence of the possibility to make several appeals of the decision is advantageous. When finishing a dispute, businesspeople finally receive a chance to get on with their businesses.As the opportunities for the appeal are extremely limited, the party can face a range of difficulties because it will be extremely difficult to find a way out in the case of having a decision that is wrong on the law or the facts. Trying to solve such a problem, some parties that operate in the US started to add a new clause to their agreement. However, the Supreme Court prohibited judicial review of the merits (Baker and Berkowitz para. 1).Moreover, arbitrators do not have any power that they could be able to use to provide penalties or force some of the parties to do something that is expected and required. In such a situation, it seems to be more advantageous to refer to the court because it has such coercive powers

Arbitrators are said to have no power at usually; that is why the court assistance can be required anyway.

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To conclude, one of the distinctive features of trusts is that the settlor may designate classes of beneficiaries who are minor or who are not yet born or unascertained. As an award may affect the interest of these beneficiaries and incapacity and inability to present one’s case are grounds for refusal of enforcement under Articles V(1)(a) and V(1)(b) of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, they need to be properly represented so as to ensure that all interested parties are bound by the arbitral award. Where beneficiaries could include minor, unborn and unascertained persons, a settlor should include, in addition to the ICC Clause, a clause providing for adequate representation of those beneficiaries in event of arbitration.

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Baker, Donelson, and P.C. Berkowitz. High Court Rejects Expansion of Judicial Review of Arbitration Awards. 2008. Web.

Brewer Smith Brewer Gulf. Arbitration in the UAE. 2015. Web.

Drahozal,‎ Christopher, and Richard Naimark. Towards a Science of International Arbitration, Hague: Kluwer Law International, 2005. Print.

Kwan, James, and Emma Teale. “Arbitration in the United Arab Emirates: the Traps, the Tricks and Tips for the Unwary.” International Arbitration Law Review 4.1 (2006), 95-99. Print.

LCIA. International offices. 2016. Web.

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