UNITED ARAB EMRITES Law and Practice Contributed by: Ali Dakhlallah, Karen Seif, Matthew Page and William Prasifka, Habib Al Mulla & Partners
3.9 Court Intervention Court intervention in arbitration is limited and tightly regulated. Courts may intervene primarily at the out- set, during interim relief stages or at enforcement or annulment. Substantive review of the merits of the arbitration is strictly not permitted. Intervention typically occurs when: • there is no valid arbitration agreement; • procedural irregularities have taken place; or • public policy is implicated. Courts cannot re-examine the tribunal’s factual find- ings. This restrained approach reinforces the finality Arbitral tribunals in the UAE may grant a wide range of relief including monetary damages, declaratory relief, contract termination and specific performance. The scope of relief mirrors what courts may grant in busi- ness matters. Punitive damages are not granted. Tribunals also have statutory powers to grant interim relief, such as asset preservation and injunctions. While tribunals may require court assistance to enforce interim measures, there are no material restrictions on their power to order such relief. Arbitration in the UAE therefore provides comprehensive remedial authority comparable to litigation. of arbitration. 3.10 Relief In the UAE, several formal ADR procedures exist for resolving commercial disputes rather than litigation and arbitration. These mechanisms are increasingly institutionalised and supported by legislation, judicial policy and specialised centres. ADR in the UAE is designed to encourage early settlement, to preserve commercial relationships and reduce court conges- tion. The most prominent ADR procedures include media- tion, conciliation and negotiation. Mediation is the most developed and widely used ADR mechanism 4. Other ADR Methods 4.1 ADR Procedures
and is supported by both private institutions and court-annexed frameworks. It involves a neutral medi- ator assisting parties to reach a voluntary settlement without imposing a decision. Conciliation is similar to mediation but allows the neu- tral third party to play a more active role, including proposing settlement terms. While conciliation is less commonly used than mediation, it still remains rel- evant in certain regulatory and commercial contexts. Negotiation, although informal, is frequently embed- ded into multi-tier dispute resolution clauses as a mandatory first step. ADR procedures are now recognised as core com- ponents of the UAE’s commercial dispute resolution framework. Although ADR outcomes are consen- sual rather than adjudicative, settlement agreements approved by courts may be directly enforceable. As a result, ADR has evolved from an optional alternative into a strategically important process for commercial parties. 4.2 Requirements to Engage in ADR UAE law does not generally impose a universal obliga- tion to engage in ADR before commencing litigation or arbitration processes. Parties are free to initiate pro- ceedings unless mandated by a specific legal or con- tractual requirement as a preliminary step. According- ly, ADR is usually voluntary unless expressly required by law or agreement. However, there are a few important exceptions. Cer- tain disputes, such as employment claims and com- mercial agency disputes, require mandatory referral to mediation or administrative committees before court proceedings may begin. By way of another example, Federal Decree-Law No 40 of 2023 on Mediation and Conciliation mandates that claims not exceeding AED5 million in Abu Dhabi must be referred to the relevant mediation prior to the filing of a court claim. Where ADR is contractually required, such as in multi-tier dispute resolution clauses, courts and tri- bunals generally enforce those obligations, and if a party bypasses a mandatory negotiation or mediation step, the opposing party may challenge admissibility or seek a stay of proceedings. Subsequently, the con-
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