Ministry of Economy advances economic legislation with modifications to the Arbitration Law

He Ministry of Economy (MoEc) held a press conference to review the most notable developments in legislation and policies designed to support and develop the UAE’s national economy.

These include the issuance of Federal Decree Law No. 15 of 2023, which modifies some provisions of Federal Law No. 6 of 2018 on arbitration, which aims to promote sustainable development in light of the objectives of the vision ‘We, the UAE 2031’.

Abdullah Al Saleh, Undersecretary of the Ministry of Economy, stated that the UAE government continues to develop the country’s economic legislation by establishing progressive, flexible and more efficient laws that improve the attractiveness of its business environment. These efforts therefore increase investor confidence in the local economy and enhance the UAE’s position as a permanent hub for trade and investment.

Al Saleh He explained that the announcement of the issuance of Federal Decree Law No. 15 of 2023 that modifies some provisions of Federal Law No. 6 of 2018 on arbitration is the result of the concerned efforts of all partners at the federal and local levels and of the partners of the different arbitration bodies in the country.

The undersecretary said,

“The Ministry of Economy recognizes that the development of the regulatory and legislative economic environment; the strengthening of the business environment and its governance; and the consolidation of innovation practices based on flexibility, proactivity and preparation for the future are the basic tools for enhancing the overall competitiveness of the UAE economy and supporting its prestigious position among the world’s strongest economies.”

He added,

“The modifications to the Arbitration Law are one of these tools through which the Ministry intends to achieve a qualitative change in the country’s business environment and support its economic model based on knowledge driven by new sectors of the economy. This will be achieved through the development of an arbitration system “Mechanism that has the highest levels of responsiveness, resilience and resolution of economic and commercial disputes in accordance with global best practices. “It will support the sustainable growth of the national economy while ensuring the highest standards of transparency and fair competition.”

He pointed out that while preparing the project to modify certain provisions of Federal Law no. 6 of 2018 on arbitration, the Ministry of Economy took into account the opinions and observations of relevant stakeholders, including the country’s arbitration centers and institutions, as well as arbitrators, who are key partners supporting the UAE’s development path. This was done to develop an integrated legislation that addresses all the challenges that stand in the way of creating an attractive environment for business and investment.

The Undersecretary of the Ministry of Economy highlighted the most notable provisions and points addressed by the reform, which are the following:

• Allows all arbitration work to be carried out through modern technological means or in technological communities compared to the previous law, which limited the handling of modern technological means to meetings only.

• Allows the appointment of an arbitrator who is a member of the Board of Directors or Trustee of the arbitration institution handling the case in accordance with rules that guarantee integrity and impartiality and avoid conflicts of interest.

• The rules and conditions referred to in it require that the arbitrator not be a member or president of the arbitral tribunal, that the regulations of the arbitral institution in question do not oppose this, and that the appointment, removal, recusal and referee’s work be regulated.

• Introduces legal actions against the arbitration institution and the arbitrator if the aforementioned governance conditions are violated, starting with the annulment of the arbitration award and civil compensation for the injured party.

• Allows confidentiality of the arbitration work unless the parties agree otherwise, compared to the previous text, which restricted confidentiality only to meetings and did not extend to full coverage of the arbitration work.

• Authorizes the agreement of the parties on the arbitration procedures, including subjecting these procedures to the rules of any arbitration organization or institution inside or outside the country and granting the arbitral tribunal jurisdiction to determine them in the absence of an agreement that contradicts the fundamental principles of the dispute. . and international agreements to which the country is a party.

• Establishes the discretion of the arbitral institution, which is not contrary to public order, when determining the rules of evidence to follow in the absence of agreement and proof of the applicable law.

• Grants the arbitral tribunal greater discretion with respect to statements, whether in terms of acceptance or evaluation of their association with any fact, opinion, experience, time, method or manner for the exchange of such statements between the parties and how they are presented . to the arbitral tribunal.

He added that the amendments to the Arbitration Law are in response to the request of the country’s arbitration institutions and centers to address a number of existing challenges that hinder the recruitment of competent international arbitrators and the formation of partnerships with international arbitration institutions, especially the permission to appoint the arbitrator as a member of the arbitration court that hears the case in the same institution or arbitration center where the arbitrator is a member of the board of directors, board of trustees or ruling.

In conclusion, the Undersecretary stated that these modifications are a new milestone in the economic and legislative structure designed to boost national and foreign investment flows and keep up to date with the latest international trends in arbitration.

He noted that he will promote the UAE’s ranking as a leading center for the adoption of forward-looking legislation, especially after allowing all arbitration work to be carried out through modern technological means or in technological communities.

News source: Emirates News Agency