Arbitration law will enhance ease of doing business

Published: Tue 15 May 2018, 9:56 PM

Last updated: Tue 15 May 2018, 11:56 PM

One of the salient features of established, business-friendly economies is the variety of options they offer to local, regional and international firms for sorting cross-border disputes without the cumbersome process of litigation. A strong arbitration law is key as it helps settle legal disputes privately outside the public court system. It offers confidentiality and neutrality, which is what big businesses seek mostly in cases of disputes. The UAE has been working on these lines for more than a decade and has recently introduced a new arbitration law. It is a significant move, crucial to the UAE's modernising economic reforms, and is likely to cement the country's position in the region as a preferred place for international arbitration. A strong arbitration law has helped countries like Singapore emerge as a preferred seat for arbitration in Asia. The small island nation has challenged established players such as London, Paris and Stockholm by settling cases for many Asian companies. A number of firms from India, China, South Korea and even Russia prefer Singapore to settle legal disputes, and what's noteworthy is that a majority of the companies do not have a connection with Singapore. The new law issued in the UAE could also make it destination for resolving company rows without rancour.
This new rules are based on the model law by the United Nations Commission on International Trade Law (UNCITL), which gives it more credibility and confidence. Arbitration is a major business, and much in demand as companies grow their presence across borders and become multinationals. In fact, the emirates has been aggressively introducing business-friendly laws and procedures. In recent few years, it has unveiled a new Commercial Companies Law, the Bankruptcy Law and the Value Added Tax and Excise Tax legislation, all of which are investor-friendly moves in line with best practices followed internationally. As the UAE becomes a modern crossroad between the East and the West, progressive laws such as this will only increase its attractiveness and provide confidence to investors flocking to its shores.

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