Is Online Arbitration available under the UAE Law?

Is Online Arbitration available under the UAE Law?

Online arbitration covers all stages of arbitration, including the exchange of statements, the several types of hearing and notification. The new UAE Arbitration Law, Federal Law 6/2018), expanded the use of electronic technology in Arbitration. It starts with the use of electronic emails for the purpose of writing the arbitration agreement (Article 7/2).

 

Arbitrators tend to accept electronic submissions alone with no need for print copies. In order to avoid any unfavourable legal consequences, they tend to get the parties to agree on this approach and/or include it in their first procedural order. Personally, I prefer electronic copies of statements as I can access them anywhere and at any time. I can also search through the documents easily and swiftly.

 

As for the online hearing, the new law made it clear that online hearing is possible unless it is precluded by the agreement of the parties. Article (28/2) states that “Unless otherwise agreed by the parties, the Arbitral Tribunal may … (b) Hold arbitration hearings with the parties and conduct the deliberation through the means of communication and modern techniques. The Arbitral Tribunal shall deliver or send the hearing minutes to the parties.”

 

The new arbitration law allows hearing the statements of fact and expert witnesses alike through electronic means of communication. Article (35) states that “The Arbitral Tribunal may hear the statements of witnesses, including expert witnesses, through means of modern telecommunication that do not require their physical presence at the hearing.”

 

Finally, Article 41(6) allows the award to be signed by electronic means and anywhere in the world. We certainly passed the stage when it was an issue of invalidity to sign a local award outside the UAE. Now, if the Seat is UAE, the award can be signed anywhere and by all means.

 

The notification of the award can be done electronically. The new law allows the notification of a copy of the award. Article (44) states that “the Arbitral Tribunal shall notify all parties of the award by delivering a true copy or a copy thereof signed by the arbitrator to each party within fifteen (15) days from the date the award is rendered.” A certified copy of the award is also acceptable for the purpose of enforcement of the award under article (55).

However, the parties’ agreement or arbitration rules, that constitute part of the arbitration agreement, may require original copies to be delivered to the parties through the arbitration centre. Nowadays, due to the Covid-19 pandemic, many arbitration centres do not accept original copies through the mail. So, arbitrators are strongly advised to get the parties to agree to accept electronic copies of the awards. The arbitrator may instruct the arbitration centre to forward an electronic copy of the award to the parties, in order to comply with the period of 15 days under Article (44). Alternatively, the Arbitrator may directly courier the original award to the parties provided that the parties agree to this approach and the arbitration centre has no objection.

 

To sum up, online arbitration is generally available under the UAE law. This helps to keep the arbitration proceedings uninterrupted through an unprecedented time of lockdown or bans on travelling. It also helps to reduce the costs of arbitration, such as the costs of travelling costs, booking meeting halls, etc. Many electronic conferencing means provide free recording as well.

 

Professor Aymen Masadeh 

Arbitrator & Professor of Law

aymen.masadeh@buid.ac.ae