Dispute Resolution in the United Arab Emirates

Abstract

The courts of the UAE represent the traditional forum for the resolution of disputes that arise between parties to a contract, but there exist several spheres where alternative avenues are either available or even mandatory, according to law. This ariicle will examine selected aspects of dispute resolution in the courts and in other fora before which the claims of contraceing parties in the UAE may be heard, and also the extent to which the parties may attempt to choose not only the forum, but also the law by which they will be judged. We shall initially consider briefly the sources of law in the United Arab Emirates, the validity of a choice of foreign law to govern any transaction, the validity of a choice of foreign jurisdiction, and the effect of incorporaiing an arbitration clause in a contract. Thereafter we shall proceed to discuss certain circumstances in which disputes between parties are either required to be or may be resolved in fora other than the established courts in the UAE. Unfortunately, it is beyond the scope of this ariicle to deal with the many problem areas that may be encountered in drafting a dispute resolution clause in an international contractr including such fundamental quesiions as the capacity of the contracting parties, the doctrine of ultra vires? sovereign immunity, and Acts of State.