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The United Arab Emirates Joining the Convention of New York
on Recognition and Enforcement of Foreign Arbitral Awards
On 13th June 2006, pursuant to UAE Federal Decree No. 43, the United Arab Emirates become a member of the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”). By ratifying the New York Convention, the UAE joins 137 nations from across the globe that have already adopted and implemented the treaty. A leading multilateral agreement on the enforcement of foreign arbitral awards, UAE’s accession brings the country up to date with the wider arbitral community and in particular makes it a highly attractive seat for arbitral proceedings involving contracts or parties in the region.
Foreign arbitral awards in the UAE have been dealt with in the same manner as foreign judgements under Articles 235-246 UAE Federal Law 11- Civil Procedure Code. However, stringent interpretation of these provisions has lead to courts setting aside arbitral awards on grounds such as non-compliance with the above international provisions and reciprocity issues, whereby enforcement is only possible where an UAE award is also enforceable in the country of the origin of the award.
The New York Convention sets out conditions for the recognition and enforcement of foreign arbitration awards in the territories of its member states. This would mean a wider number of countries benefit from reciprocity, as arbitration awards issued in the UAE would become directly enforceable in the territory of another member states and vice versa.
Federal Decree No. 43 for the Year 2006
Regarding
The United Arab Emirates Joining the Convention of New York
on Recognition and Enforcement of Foreign Arbitral Awards
________________________________________________
We, Khalifa Bin Zayed Al Nahyan, the President of the United Arab Emirates,
After perusal of the constitution,
And Federal Law No. 1 of 1972 concerning Competencies of Ministries and Powers of Ministers and its amending laws,
Based on the presentation of the Minister of Foreign Affairs, the approval of the Council of Ministers and the approval of the Supreme Council of the Union,
We decree the following:
Article (1)
It has been agreed that the United Arab Emirates joins the convention of New York for Recognition and Enforcement of Foreign Arbitral Awards, the text of which is hereto attached.
Article (2)
The Minister of Foreign Affairs shall execute this decree and the decree shall be published in the Official Gazette.
Khalifa Bin Zayed Al Nahyan
President of the United Arab Emirates
Issued in the Presidential Palace in Abu Dhabi
Date: 13 June 2006
To view the New York Convention, please click here