Developments in the Interpretation of Arbitration Agreements by Local Courts

Arbitration is fast becoming the preferred route for dispute resolution, particularly in certain
sectors including construction.

With the emergence of the New UAE Arbitration Law (“Arbitration Law”), the local courts are
steadily developing their pro-arbitration approach.
Below are some of the developments in the way local courts used to deal with arbitration
agreements even before the passage of the Arbitration Law. In a case ruled in 2017, Dubai
Courts have ruled that:

1. The arbitration jurisdiction is derived from the litigants’ consensus agreement to arbitrate
instead of the default position (i.e. the recourse to competent courts).
2. The Attorney does not require any specific authorization to challenge the court’s jurisdiction
because of the arbitration agreement.
3. There is no adhesion in agreeing to have the seat of arbitration outside the state.
4. The arbitral tribunals shall be treated as judiciary/local courts. This point may change some of
the well-settled judicial principles including, by way of example, that a tribunal may refer a
constitutional challenge to the Supreme Court. Note that in the past the Supreme Court has
concluded that referrals thereto can only come from local courts and, therefore, an arbitral
tribunal cannot refer a constitutional challenge to the said court, because the Tribunal was
never treated as a court earlier.
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https://www.lexology.com/library/detail.aspx?g=ee96c268-553f-4ebb-996a-a82443709db9