UAE Law and Practice Contributed by: Abdelhak Attalah and Ghassan Hidar, Attalah Legal Consultancy
disputes under both the charterparty and the B/L. • Binding arbitration clauses: as long as the arbitration clause applies to disputes aris - ing from both the B/L and the charterparty, it may be considered enforceable, even if the specific details of the charterparty are not included in the B/L. Challenges With Incorporation by Reference The incorporation of an arbitration clause by reference is more complicated when a B/L is transferred to a third party (such as a consignee). Since the third party might not have knowledge of the charterparty’s terms, the validity of such incorporation can be disputed. The third party may challenge the arbitration clause, arguing that it was not properly incorporated or that they did not consent to it. Legal Risks for B/L Transferees Transferees of a B/L should be cautious when accepting an endorsement, as they may inad - vertently agree to an arbitration clause they did not negotiate. This could lead to legal disputes about the enforceability of the clause in the onshore UAE jurisdiction, where “express terms” are generally required for incorporation. 6.3 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 is applicable in the UAE. The UAE ratified the Convention on 31 August 2006 without any reservation. As a result, foreign arbitral awards are generally recognised and enforced in the UAE, subject to the conditions outlined in the Convention.
In terms of domestic law, the recognition and enforcement of foreign arbitral awards in the UAE are governed by Article 222, 223 and 225 of the CPC, specifically under Articles 222 and 223 read together, which provide the condi - tions under which foreign arbitral awards may be refused recognition or enforcement. The general rule is that foreign arbitral awards, even from non-signatory states, are recognised and enforced in the UAE, with certain statutory exceptions. 6.4 Arrest of Vessels Subject to Foreign Arbitration or Jurisdiction Courts in the UAE can order the arrest of a vessel or the attachment of assets, even if the relevant claim is subject to a foreign arbitration or juris - diction clause. This is because the UAE courts have the authority to arrest vessels in their ter- ritorial waters, regardless of whether they have jurisdiction to adjudicate the substantive claim or whether the claim is subject to a foreign arbi - tration or jurisdiction clause in a contract such as a B/L or charterparty. While the UAE is not a member of the Interna - tional Convention on Arrest of Ships of 1999, it follows its own legal framework, which allows for the arrest of vessels based on maritime debts recognised under Article 53 of the ML, including claims that may be subject to foreign arbitra - tion or jurisdiction clauses. Therefore, even if a contract stipulates foreign arbitration or jurisdic - tion, this does not preclude the possibility of a vessel being arrested in UAE waters to secure the claim. 6.5 Domestic Arbitration Institutes There is no specialised domestic arbitration institute exclusively for maritime claims in the UAE. However, parties to a maritime contract who wish to resolve disputes through arbitra -
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