Sunday, November 4, 2012

United Arab Emirates: Nullification Of Another DIAC Arbitration Award - Have The Floodgates Opened? No, Says Clyde & Co.

There have been a number of negative reports in the press in the last few weeks stating that a recent Dubai Court of Cassation judgment nullifying a Dubai International Arbitration Centre (DIAC) arbitration award will have far reaching implications and jeopardise Dubai's position as an international arbitration hub.

Clyde & Co does not share that view. We do not consider that the judgment has any international bearing and it should not affect Dubai's standing as a reputable arbitration centre.

Earlier this year, we reported that the Dubai Court of Cassation had nullified three DIAC arbitral awards on the basis that those awards ran contrary to public policy within the meaning of the Civil Code (Federal Law No. 5 of 1985) and Civil Procedure Code.

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