In brief

• Arbitration in the countries which are party to the New York Convention, seated overseas, can be used for UAE counterparties, as enforcement will be based on the reciprocity offered by the New York Convention.

• DIFC-LCIA Arbitration, seated in the DIFC could be a better alternative to consider for contracts with Dubai counterparties.

In UAE project financings, lenders and UAE counterparties would often agree to resolve disputes by arbitration in the countries which are party to the 1958 New York Convention on Reciprocity and Enforcement of Arbitral Awards (New York Convention), say, under the London Court of International Arbitration (LCIA) Arbitration Rules with the seat of arbitration in London.

Seating arbitration in the Dubai International Financial Centre (DIFC) and using the DIFC-LCIA Arbitration Rules may be an alternative to explore where the counterparties are resident in Dubai.

New York Convention