Free zone arbitration in the DIFC and the ADGM

摘要

Free zone arbitration is a novel concept of arbitration championed by the United Arab Emirates (UAE). It was initially introduced as an alternative to arbitration onshore, that is arbitrations conducted under the UAE Arbitration Chapter, ie Articles 203-218 of the UAE Civil Procedures Code (the CPC). The provisions of the UAE Arbitration Chapter used to be criticized-whether rightly or wrongly-as little arbitration-friendly. More recently, the arbitration-relevant provisions of the CPC have been repealed and replaced by the provisions of the UAE Federal Arbitration Law, a stand-alone arbitration law based on the UNCITRAL Model Law. At the time of writing, there is virtually no case law precedent under the new Law that would throw some light onto the operation of its provisions in daily arbitration practice. That said, given its reliance on the provisions of the UNCITRAL Model Law, it is likely that the original reasons that prompted the adoption of a concept of free zone arbitration in the UAE have lost some of their compelling nature. Nevertheless, free zone arbitration offers a ready alternative to onshore arbitration and as such widens the scope of the overall product offering on the UAE arbitration landscape.