The U.A.E. Ministry of Economy has announced last Saturday (02/02/2008)that the draft federal law on arbitration and the implementation of arbitral awards has reached the end of its final stage. The draft law, prepared in cooperation with the Ministry of Justice, is expected to be ratified and issued within the next three months according to the ministry's statement. The draft law is aligned with the ministry's efforts to modernize economic and trade laws and legislation to keep pace with current and future national economic growth. The law will also establish provisions for domestic and international arbitration in the U.A.E. and will implement arbitral awards consistent with international obligations. These include the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, also knows as the New York Convention. It is based on the United Nations Commission on International Trade Laws' Model Law on International Commercial Arbitration being adopted last June 21, 1985, as well as the latest developments and standards in international arbitration. Upon ratification and issuance of the draft law, the laws' provisions will apply to all cases of domestic and international arbitration between natural and juridical personalities, regardless of the nature of the legal relationship around which the dispute revolves, whether it be trade, civil or administrative. The draft law creates a modern framework to address the issue of arbitration. Disputing parties has the right to accept the laws' provisions without obligation, and they have the option of either resorting to the advanced national law or choosing the the procedures adopted in London, Paris and Singapore as currently applied.

According to the announcement, the Ministry of Justice and the Ministry of Economy will play crucial roles in supervising the implementation of the new law's provisions, ensuring their effectiveness and enhancement in accordance with the country's best interests and keeping in mind international developments in arbitration.