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Ratification and Execution Process of Arbitration Award in UAE

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Arbitral Awards in UAE sets out two stages: Ratification and Execution. This means that Arbitral Award must first be ratified so that it will subsequently enforce in the same way as court judgements issued by UAE courts. However, recent changes have been introduced to pave way of simplifying the process of ratification and enforcement of the Awards govern by UAE laws.

Federal Law No. 6 of 2018 (the “New Arbitration Law”) governs the conduct of arbitration proceeding and the enforcement of arbitration awards in UAE. Under this law, it differentiates domestic and international arbitrations and the distinction between these has an impact on the process and procedure for the execution of the arbitral award.

The provisions of the Arbitration Law shall apply to:

Under this new law, the enforcing party may now apply for recognition and enforcement of arbitral awards in UAE. Summary of the process involved are as follows:

It is important to note that the new law, however, is not intended to apply to foreign arbitral award therefore it does not affect the enforcement of foreign awards in the UAE. Under Civil Procedure Code, enforcing party to a foreign award in UAE must file a substantive case in the local courts of first instance and the decision of the court of First Instance will be subject to two level: Court of Appeal and Court of Cassation.

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