Question from Giana, What is the clause in UAE law that allows for a change in arbitration institution if it ceases to exist?
Answer from AI:
In the United Arab Emirates (UAE), the legal framework for arbitration is primarily governed by the Federal Arbitration Law No. 6 of 2018. However, the specific clause or provision that addresses the situation where an arbitration institution ceases to exist is not explicitly stated in this law.
General Provisions on Arbitration in UAE
The Federal Arbitration Law No. 6 of 2018, which is based on the UNCITRAL Model Law on International Commercial Arbitration, provides the general framework for arbitration proceedings in the UAE. It covers various aspects of arbitration, including the arbitration agreement, composition of the arbitral tribunal, jurisdiction of the arbitral tribunal, conduct of the arbitration proceedings, and the recognition and enforcement of arbitral awards.
Change of Arbitration Institution
In the event that an arbitration institution ceases to exist, the parties to the arbitration agreement may need to agree on a new institution. If the parties cannot agree, the court may be asked to intervene to appoint a new institution or arbitrator, as per Article 11 of the Federal Arbitration Law.
However, it’s important to note that this is a general interpretation and the specific circumstances of the case could lead to different outcomes.
Arbitration in DIFC
In the Dubai International Financial Centre (DIFC), arbitration is governed by the DIFC Law No. 1 of 2008 (the DIFC Arbitration Law). This law does not specifically address the situation where an arbitration institution ceases to exist. However, it does provide that if the parties cannot agree on the procedure to be followed in conducting the arbitration proceedings, the tribunal may, subject to the provisions of the DIFC Arbitration Law, conduct the arbitration in such manner as it considers appropriate (Article 27(4)).
Given the complexity of arbitration law and the potential implications of changing the arbitration institution, it is recommended that individuals or entities involved in such a situation consult with a legal professional who is experienced in UAE arbitration law.