United Arab Emirates: Dispute Resolution Procedure In UAE – B2B Procedure

Last Updated: 4 January 2019
Article by STA Law Firm
Most Popular Article in United Arab Emirates, January 2019


The United Arab Emirates has overcome many years of strong monetary development and has risen as a major territorial business center, attracting vast and various cross-border exchanges; this has led financial specialists and parties into contracts in the UAE while choosing foreign jurisdiction laws to govern those contracts. One of the primary legal systems used is the English law, and it is used to oversee the contractual relationship and select a foreign jurisdiction or for arbitration as another option to litigation. With numerous international investors attracted to business openings in the Middle East, particularly with the political steadiness and economically buoyant nations of the Gulf including the UAE, Kuwait, and Bahrain, the efficacy of dispute resolution services in the region is an immediate consideration. The Gulf, and predominantly the UAE, has a scope of strong and stable organizations that can provide justice when disputes occur, and there are numerous formal and alternative dispute resolution process accessible to foreign and domestic investors. Taking a glimpse at the legitimate system of the UAE, a civil law jurisdiction with a robust jurisdiction of money related free zones displayed on the common law is of enormous significance. What follows is a straightforward yet comprehensive manual to help with understanding the critical highlights of the decision of law, prosecuting and parleying in the UAE, i.e. procedure of dispute resolution in UAE.

Disputes and issues frequently emerge between individual and parties and settling them is essentially called dispute resolution. Dispute attorneys and prosecution lawyers are the primary people who handle problems that develop between parties or business-related issues that as a rule require dispute resolution procedures. Dispute resolution is a multistep process that can start with negotiation, move on to mediation, and if necessary end in arbitration and litigation.

Types of Dispute Resolution Process

There are many types of dispute resolution that people can decide to choose but mainly are given below:

I. Mediation

Mediation is a kind of process wherein the parties seek a mediator to avail in achieving a settlement. The third- party individual helps parties to settle to an agreement. The objective of mediation is for an unbiased third party to enable disputants to agree all alone. Instead of forcing an answer, an expert mediator works with the conflicting sides to investigate the underlying positions and to figure out what honestly is going on behind the narratives. Mediation is a suitable method to resolve issues since it is not akin to bringing disputes to legal proceedings, which is more expensive and lengthier. Therefore, it is advisable to fix things through alternative resolution (ADR) methods such as mediation.

II. Arbitration

The UAE issued a new arbitration law, Federal Arbitration Law No. 6 of 2018 ("the Arbitration Law"), thus annulling the provisions of the Arbitration Chapter in the UAE Civil Federal Law No. 11 of 1992; this is a process wherein an arbitrator settles a dispute. A settlement and decision wouldn't be considered as binding unless the two parties concurred. There is additionally a third-party person who is known as an authority and will serve as a judge. Much the same as mediation, an arbitrator listens to each party and yet everyone contends and presents their evidence for their rights.

III. Litigation

Litigation is a type of process wherein the dispute arises before the proper courts, and a judge (and jury if relevant) will decide given the proof that has been displayed and delivering a verdict concerning the case. The two parties engaged with this, and they shield their rights utilizing a dispute lawyer as they experience procedures; this is thought to be a definitive method for settling a difference between two sides.

Customers wishing to resolve claims with or potentially to recover the debts from Dubai based companies, which have unmistakably defaulted on their payments, can now take the help from the Department of Economic Development (DED) which has enabled a dispute resolution mechanism for disputes between companies. The Commercial Control and Consumer Protection Department (CCCP) at the Department of Economic Development have built up the Business Protection Department (BPD). This department provides local business dispute settlement service in Dubai, regardless of whether by intermediation or by other amicable settlements strategy stipulated by laws. The department also can provide business to business (B2B) commercial dispute settlement services in the Emirate of Dubai and to educate traders about the regulations and procedures required to create a safe trading environment.

Traders who submit their complaints to the department of economic development (DED) in Dubai are presently having them settled within an average of 10 working days.

According to the business protection section of the DED, this time limit should not be taken as being official and final, as the BPD Board has the discretion to make more time if cases require it or vice versa should it be seen as relevant.

B2B complaint procedure

Traders who submit complaints to the DED in Dubai will commence the proceeding by reaching the CCCP to complain. If there is a legitimate grievance, the complainant may charge for conducting a contextual analysis and allude the matter to mediation within ten days. The intervention will take the form of a meeting of parties convened by the Business Protection Division which expects to settle the complaint amicably. B2B has officially resolved over 1000 disputes internationally, and this is why the UAE has begun to implement it. Even though there is no exhaustive list that B2B will address as far as disputes, in any case, it attempts to resolve conflicts that predominantly relate to business transactions. Such transactions would principally involve either contractual terms or invoices against a provision of goods and services.

Criteria for filing the complaint

  1. Disputes shall be commercial.
  2. The defendant shall be trading establishment /Company registered in DED.
  3. Determination of the dispute cannot occur during the process of being heard before any other judicial/legal/administrative authority.

Requirements for Filing Complaints

  1. Providing a copy of the documents which validate their claim.
  2. A non-refundable complaint examination fee will require payment.

Disputes cannot be resolved by the B2B process are:

  1. Bounced Cheques/Returned Cheques
  2. Electronic Crimes or Construction/Real Estate
  3. Technical Service issues.

Foreign Traders or consumers

Use of the B2B process in undertaking mediation for foreign traders or entities which are not licensed by the DED is impermissible because they won't have any relatable power or authority to hold sway over the other party to settle before heading to the courts or have the capacity to apply sanctions.

Disputes involving individuals or consumers who lack licensing under the DED are also beyond its jurisdiction. Parties cannot appeal a B2B final decision. The B2B mechanism concerning formalities, requirements, and procedures are less demanding than those of the courts and customary disputes settlement forums. Expenses for all things considered are substantially less when raising disputes with the B2B. Furthermore, unlike other UAE authorities, the B2B will acknowledge considering reviewing documents, which are in English. The BPD can settle disputes by telephone, or conference calls if both parties agree.

For plaintiffs based outside the UAE and wishing to choose local representatives, the B2B will acknowledge signed merely authorization or representation letters from the offended parties or plaintiffs for that purpose. These additional facilities with the B2B constitute another cost saving advantage to plaintiffs as far as sectioning and interpretation charges. The B2B administrations give affirmation to working together in Dubai and further empowers organizations everywhere throughout the world to benefit from a cost-effective and time managed dispute resolution mechanism.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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