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The UAE is a multinational business corner, offering a powerful legal framework for arbitration. Arbitration is a preferred method for resolving disputes, especially in commercial contexts. However, not all disputes are arbitrable, and public policy matters are a notable exception. How the UAE approaches the arbitrability of disputes that intersect with public policy, its challenges, and howlegal expertisecan guide individuals and businesses through the complexities.

Understanding Arbitrability in the UAE

Arbitrability refers to the types of disputes that can legally be resolved through arbitrationinstead of court litigation. While arbitration offers flexibility and efficiency, it is limited in scope when disputes touch upon matters deemed non-arbitrable. In the UAE, public policy plays a critical role in defining the boundaries of arbitrability.

What Constitutes Public Policy?

Public policy in the UAE is a broad concept encompassing legal principles, societal norms, and ethical considerations rooted in Islamic Sharia. It includes issues such as:

Criminal activities.
Family law matters like marriage, divorce, and child custody.
Employment disputes involving statutory protections.
Bankruptcy cases that affect creditors' rights.

Disputes falling under these categories are typically non-arbitrable as they impact societal welfare and public interest.

Public Policy and Arbitration in the UAE

The UAE Federal Arbitration Law (Federal Law No. 6 of 2018) governs arbitration proceedings in the country. Article 53 of the law explicitly states that arbitral awards can be annulled if they violate public policy. This reflects the legal system’s commitment to balancing the autonomy of arbitration with the protection of fundamental societal values.

Key Challenges in Arbitrability

1. Ambiguity in Public Policy Definition

Public policy is often broadly interpreted, leading to uncertainty in determining what disputes are arbitrable.

2. Judicial Oversight

UAE courts retain the authority to review arbitral awards to ensure compliance with public policy, which may lead to delays or complications.

3. International vs. Local Standards

Public policy considerations in international arbitrations seated in the UAE may differ from domestic standards, complicating enforcement.

Case Studies in Public Policy and Arbitrability

1. Employment Disputes

Employment issues including statutory rights and protections are typically deemed non-arbitrable. For example, even if an employment contract has an arbitration clause, if statutory benefits are at risk, the case may wind up in UAE courts.

2. Family Law Matters

Family law matters, such as child custody or divorce, fall solely under the jurisdiction of UAE courts since they include deeply ingrained public policy considerations.

3. Fraud and Criminal Elements

Cases involving charges of fraud, embezzlement, or other criminal activity are not arbitrable because they affect public safety and order.

Legal Guidance in Navigating Arbitrability

Given the complexities of arbitrability and public policy in the UAE, engaging experienced legal counsel is essential. Legal experts can:

Assess whether a dispute is arbitrable under UAE law.
Draft arbitration agreements that account for potential public policy conflicts.
Navigate the enforcement or annulment of arbitral awards involving public policy issues.

Reasons to Select Al Adl Legal for Arbitration Disputes

Al Adl Legal specializes in arbitration and is well-versed in UAE public policy laws. Our skilled legal team guarantees that arbitration agreements and processes comply with local rules, thereby protecting your interests. Whether we're creating enforceable contracts, defending clients in arbitration, or conducting judicial challenges to arbitral rulings, we're dedicated to providing great legal services.

For public policy conflicts, Al Adl Legal can give clarity and strong counsel in a complex legal framework