Tag: United Arab Emirates

Commercial Arbitration Trends in the United Arab Emirates

In recent years, arbitration has become an increasingly popular method of commercial dispute resolution in the United Arab Emirates (UAE). While disputing parties have often preferred litigation in the past, the establishment of several arbitration institutions, as well as developments in UAE arbitration procedures and enforcement, have made arbitration a more common choice.

Since 2008, the majority of commercial arbitration cases have stemmed from the UAE’s bourgeoning construction and real estate sectors, but the region’s arbitrators have recently dealt with a broader range of commercial matters from a global client base. This is due in part to the continued growth of organizations such as the Dubai International Arbitration Centre (DIAC) and the Dubai International Financial Centre-London Court of International Arbitration (DIFC-LCIA). Located within the Dubai Chamber of Commerce & Industry, the DIAC provides a full range of arbitration services to the international business community, while the DIFC-LCIA represents a partnership between the world’s fastest growing financial center and its longest standing international commercial dispute resolution institution.

In 2006, the UAE joined the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, establishing its commitment to support global arbitration practices and their outcomes. While the country’s arbitration laws currently reside within its Civil Procedure Code, the UAE is working to draft an official commercial arbitration law.

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UAE Participation in the UK’s Royal Military Academy Sandhurst

Royal Military Academy Sandhurst  pic For several decades, the United Kingdom (UK) and the United Arab Emirates (UAE) have worked closely together in the fields of defense and national security. Since 1974, more than 200 Emiratis have graduated from the Royal Military Academy Sandhurst, one of the most prestigious military schools in the UK. The institution’s graduates include some of the UAE’s most influential leaders, among them Abu Dhabi crown prince His Highness General Sheikh Mohamed bin Zayed Al Nahyan and Dubai ruler His Highness Sheikh Mohammed bin Rashid Al Maktoum. In recent years, several other members of the ruling family have graduated from the academy.

In addition to welcoming Emiratis at the Royal Military Academy Sandhurst, the UK regularly loans military officers to the Gulf nation to help it shore up its military capabilities. In the same vein, the UAE supports British defense efforts by cooperating with UK intelligence agencies, supporting UN sanctions regarding Iran’s nuclear capabilities, and helping the UK fight money laundering.

Three Common Types of Foreign Businesses in the UAE

United Arab Emirates pic For many years, the United Arab Emirates (UAE) has established itself as one of the most attractive destinations in the world for foreign businesses. Here is a quick look at three common classifications of foreign-owned businesses in the UAE:

Joint participation company

Commonly referred to as joint ventures, joint participation companies are formed when two or more partners (one of which must be legally authorized to do business in the UAE) enter into a contract. This type of company does not require a local or federal license, although the partner actively doing business is liable to any third parties.

Public joint stock company (PJSC)

To achieve listing as a PJSC, a company must accumulate a minimum of $2.7 million in capital and offer at least 55 percent of its shares to the public. Companies involved in sectors such as finance, banking, and insurance must operate as public companies.

Limited liability company (LLC)

Like its counterparts in many other parts of the world, an LLC in the UAE maintains full control over its management and assumes liability for its profits and losses.

Business Procedures in the UAE

For many years, the United Arab Emirates has received international recognition as a business-friendly nation. Through its many free zones, the UAE allows foreign companies to establish businesses and access highly attractive benefits such as zero federal income tax. Here is a brief overview of three key business procedures in the UAE.

Imports and exports: Based on the Gulf Cooperation Council’s tariff structure, the UAE employs a liberal trade policy designed to increase the overall volume of international trade. In the UAE, customs is a highly facilitated process that requires just six documents, three signatures, and 18 days to move items from a UAE port to a warehouse.

Commercial activities: Before a foreign company begins importing and selling products, it must appoint a commercial agent in the UAE. The agent must be a UAE national and register with the Ministry of Economy.

Dispute resolution: In the UAE, arbitration falls under the jurisdiction of the UAE Civil Procedure Code, Federal Law No. 11 of 1992. The UAE currently plays host to two arbitration services: the Dubai International Arbitration Centre and the Abu Dhabi Commercial Conciliation & Arbitration Centre.

The Evolving Role of Women in the UAE

Since its founding more than 40 years ago, the United Arab Emirates (UAE) has encouraged women to break into fields traditionally dominated by men. In accordance with the tenets of Islam, the UAE Constitution guarantees equal rights for women and men. In today’s economic and social landscape, women are viewed as equal partners and important contributors to sustainable development.

In the political sphere, four ministerial seats in the cabinet are held by women. In addition, women represent 17.5 percent of the partially elected representative body of the UAE. Three women currently serve as UAE ambassadors, and four have been appointed as judges in the domestic judicial system. In terms of business, the UAE recently mandated that a certain percentage of board seats be occupied by women. In addition to helping women obtain leadership roles in prominent organizations, the mandate encourages innovation and diversity in the workplace. Women have also made considerable breakthroughs in areas such as education, sports, and health care.