Because of the numerous business opportunities but also because of the business-friendly environment, foreign investors are continuously attracted to Dubai but still cautious about the unfamiliar legal system. In order to eliminate all the concerns regarding legal recourse in case of business relationship breaking down, the United Arab Emirates’ government has enabled pieces of legislation that would help foreign companies resolve any potential legal issues in trustworthy conditions.
Our Dubai lawyers can help you by offering legal assistance if you need to resolve contractual disputes in Dubai.
Legal system in Dubai
Every emirate is governed by the UAE Federal Constitution and specific legislative powers are devolved to each individual emirate. The UAE civil law system is based on the primary sources of law – the statutory codes established by Supreme Council of the Federation. These codes govern civil and commercial relationships in the UAE.
In the case of matters which are not specifically addressed in the codified law, Islamic Shari’ah law is used by local courts. This system is not familiar to international businesses, especially to those from common law backgrounds.
First of all, it is advisable for those who undertake UAE business investment to draft contracts in a way that enables them benefit of the numerous dispute resolution processes that are available in Dubai.
If you ask for their guidance, our Dubai attorneys will make sure you take advantage of the proper documented resolution of contractual disputes in Dubai.
Ways of resolving contractual disputes in Dubai
When talking about commercial agreements to be carried out in Dubai, the contractual disputes which might occur will be dealt with by the local courts. The petition filled with a Dubai court must contain complete translated (in Arabic) documentation, given the fact that all proceedings are conducted in Arabic. The submitted documents are quite important, since most often the judge will read the confidential papers and pleadings and, in some cases even hear the testimony of the involved parties before making a decision. When the judge needs help in determining the cause of the dispute, he might appoint an expert to assist with the fact-finding course.
On the other hand, the arbitration procedure is also very common in resolving contractual disputes in Dubai. This kind of process is governed by the Civil Procedure Code.
There are three important arbitration centers within the UAE: the Dubai International Arbitration Centre (DIAC), the Abu Dhabi Commercial Arbitration Centre and the DIFC-LCIA Arbitration Centre, being run by the Dubai International Financial Centre (DIFC) and the London Court of International Arbitration (LCIA).
Some of the main advantages of the DIFC courts that attract foreign businesses are the fact that they engage common law principles (since most of the international investors came from common law backgrounds) and that most of the proceedings are held in English.
Our law firm in Dubai will offer expertise on the case you’re dealing with, helping you resolve any contractual disputes in Dubai you may encounter and also provide information on both court and arbitration proceedings in Dubai.