The Finance World Magazine| Edition: November 2023

UAE Reforms
UAE Reforms Arbitration Law
The UAE has recently enacted
Federal Law No. 15 of 2023, which
has brought about revisions to
Articles 10, 23, 28, and 33 of Federal
Law No. 6 of 2018, collectively referred
to as the “Amendments.” These changes
have been introduced with the primary
goal of enhancing the efficiency and
adaptability of arbitration proceedings
within the UAE.
The changes in UAE arbitration law
took effect on September 16, 2023, and
are discussed further below.
Arbitrators’ Qualifications (Article 10)
Article 10 of the Amendments has
undergone modifications to reinforce
arbitrators’ independence and integrity.
Arbitrators are now explicitly required
to have no prior affiliations with any
involved parties that could compromise
their impartiality or independence. Significantly,
Article 10 no longer includes
the previous prohibition that barred
parties from appointing individuals who
are members of the Board of Trustees,
Executive Management, or Administrative
Bodies of the arbitral institution overseeing
the arbitration process. However, it also
places the onus on arbitral institutions
to establish specific governance policies
and mechanisms that ensure the ongoing
impartiality and independence of the
selected arbitrators.
Applicable Proceedings (Article 23)
Article 23 of the Amendments reiterates
the significance of party autonomy
in arbitral proceedings. The revised text
explicitly excludes the prior reference to
Article 10.2, which previously restricted
arbitrators associated with arbitral institutions
overseeing the arbitration from
being nominated. Instead, it emphasises
that arbitrators must adhere to the
procedural framework mutually agreed
upon by the parties while respecting the
arbitration rules of the relevant arbitral
institution. In instances where the parties
fail to reach a consensus on the arbitration
procedure, the arbitral tribunal is
empowered to determine an appropriate
procedure. This determination must align
with the litigation standards and international
agreements to which the UAE
is a signatory, ensuring that arbitration
proceedings remain just, efficient, and
consistent with international norms.
Remote Hearings and Use of Technology
(Article 28)
Article 28 of the Amendments now
mandates that arbitral institutions must
provide the essential technological infrastructure
to facilitate remote hearings.
This amendment necessitates that both
the involved parties and arbitral institutions
exercise diligence in selecting the
appropriate technology and configuring
the technical setup to uphold the integrity
and security of the proceedings.
Hearings and Evidence (Article 33)
Article 33 of the Amendments bestows
arbitrators with the authority to determine
proceedings on a “document-only” basis.
This provision empowers arbitrators to
decide whether oral evidentiary hearings
are necessary or whether the proceedings
can rely solely on written documentation.
This change offers arbitration tribunals
greater flexibility in managing proceedings,
which, in turn, enhances efficiency and
is likely to contribute to cost savings in
the arbitration process.
These amendments signify a significant
step toward the UAE’s ambitions
of establishing itself as a global centre
for international arbitration.
14 www.thefinanceworld.com November 2023