The Advantages of Successful Arbitration in Business Disputes

Many global companies in the region select Dubai as their primary arbitration hub.
November 21, 2023 by
Eduard Nedelcu


Dubai has become the preferred seat of arbitration for many international corporations operating in the region. While the UAE offers vast business opportunities for entrepreneurs worldwide, these opportunities can also give rise to disputes involving employees, competitors, or other corporate entities. When mediation or negotiation fails to resolve such conflicts, arbitration emerges as an effective and cost-efficient alternative for dispute resolution.

A good legal team has to analyze the arbitration clause, which is part of the contract, and present all possible options to their clients, explaining what each option entails.

Eduard P. Nedelcu, Head of Arbitration, Al Safar and Partners

Arbitration: A Key to Resolving Real Estate Disputes

Arbitration is particularly favored in resolving real estate disputes. Depending on the case, disputes may be handled under the Dubai International Arbitration Centre (DIAC) using UAE law or through the DIFC-LCIA, which follows English law. The choice of the language for proceedings is typically agreed upon by both parties, with English being the most common. Arbitration centers in Dubai also offer arbitrators who are fluent in the parties' native languages, facilitating smoother resolution processes.

Arbitration in Construction Disputes Post-COVID-19

The impact of COVID-19 has led to a rise in disputes between contractors and subcontractors. In such cases, mediation and arbitration have become popular as peaceful and efficient ways to settle disagreements, without the need for lengthy court battles.

Arbitration in the Oil Sector: Confidentiality and Finality

In the oil sector and related industries, parties often include arbitration clauses in their agreements to maintain confidentiality and resolve disputes outside of the courtroom. One of the key benefits of arbitration in these sectors is the binding nature of arbitral awards, which are final and not subject to appeal in court. This ensures swift and private resolution of disputes.

Financial Institutions and Arbitration: Ensuring Enforceability

Financial institutions, including those involved in currency trading and financial instruments, frequently incorporate Alternative Dispute Resolution (ADR) mechanisms such as negotiation, mediation, and arbitration into their contracts. Arbitration is particularly valued for its enforceability and confidentiality, making it the ideal method for resolving financial disputes.

Arbitration for Investor Disputes: Protecting Confidentiality

For investors, especially in corporate and real estate sectors, arbitration is the preferred method of dispute resolution. This is largely due to the confidentiality it offers, ensuring that sensitive information remains protected. Arbitration proceedings in the UAE are also conducted in accordance with the International Bar Association (IBA) guidelines, ensuring a high level of compliance and fairness.

ADCAC: A Pioneer in Efficient Arbitration

The Abu Dhabi Arbitration Centre (ADCAC) has established itself as a leader in cost-effective and timely arbitration. ADCAC’s efficient processes help resolve disputes quickly, providing final awards faster than traditional court systems, making it an attractive option for parties seeking swift justice.

Dubai: The Premier Arbitration Hub in the Middle East

As Dubai continues to evolve as a global business hub, it has gained the trust of international corporations seeking a reliable legal framework for arbitration. Many businesses now consider Dubai the primary seat of arbitration in the Middle East, confident in the UAE’s legal system and its pro-investor practices, which foster a business-friendly environment.

Contact Us to Learn More

For more information on how arbitration can resolve your business disputes, contact us at: arbitration@alsafarpartners.com