Dubai launches new ADR centre in effort to cut back on court litigation
Dubai is set to launch a new alternative dispute resolution (ADR) centre in a bid to decrease the amount of court litigation in the emirate. Dubai has seen a rise in the number of contentious disputes as a result of the financial downturn, with large numbers of projects, particularly in the construction field, coming to a halt due to financing difficulties.
October 07, 2009 at 08:04 PM
2 minute read
Dubai ruler announces new law to deter further rise in court litigation in the emirate
Dubai is set to launch a new alternative dispute resolution (ADR) centre in a bid to decrease the amount of court litigation in the emirate.
Dubai has seen a rise in the number of contentious disputes as a result of the financial downturn, with large numbers of projects, particularly in the construction field, coming to a halt due to financing difficulties.
The increase in disputes prompted the ruler of Dubai, Sheikh Mohammed, to announce a new law that will establish the new disputes centre at the end of last month (25 September).
Full details are yet to be outlined; however, it is expected that the new law will say that all disputes, with some exceptions, including all cases involving the Government, will need to go through the alternative arbitration centre in an attempt to seek an amicable resolution before they will be considered for litigation in the Dubai courts.
It is believed that the new Dubai disputes centre will focus mainly on local issues, but dispute resolution specialists at international law firms in Dubai have welcomed the initiative.
Clifford Chance Gulf managing partner and litigation-specialist Graham Lovett (pictured) said: "There are currently a lot of disputes in the Dubai courts, especially on the construction and real estate side, which are time-consuming and costly. For Dubai, the launch of an alternative dispute resolution centre is definitely a step in the right direction."
But Freshfields Bruckhaus Deringer arbitration partner Reza Mohtashami countered: "I expect it to have little impact on international law firms in terms of work levels. The practice of an enforced process for mediation is one that is common in many countries."
The Sheikh's move comes after the Dubai International Finance Centre (DIFC) last year designed a new law aimed at boosting alternative dispute resolution, with the centre taking advice from top 10 City firm Norton Rose.
The London Court of International Arbitration has also been targeting Dubai for business disputes through the launch of a joint venture with the DIFC last year.
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