Whether such a power existed had been the subject of inconsistent DIFC Court judgments, but the amendments have finally resolved the matter in a way that re-affirms the DIFC's commitment to international arbitration and the New York Convention. 

The Issue

Although the DIFC is a separate civil and commercial jurisdiction in Dubai, as a jurisdiction within the UAE it is bound by the various international treaties and agreements entered into by the UAE. This includes the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958, which despite its name also addresses the recognition of arbitral agreements. Article II(3) of the Convention states that a court of a state that has ratified the Convention must, at the request of one of the parties, refer a dispute to arbitration if the parties have made an agreement to arbitrate. The only exception is where the court finds that the arbitration agreement is void or inoperable.