No Need for a POA in UAE Arbitrations

Analysis

In a recent judgment issued earlier this year, the Dubai Court of Cassation found that parties to an arbitration do not need to submit powers of attorney for their legal representatives. This is because the arbitrator is not bound by all the provisions of the UAE Civil Procedures Law (Federal Law No.5 of 1992), but only those found in the chapter relating to arbitration and these do not state that a power of attorney is needed.

Facts of the case

The claimants (two individuals) and the respondent (a real estate company) entered into a purchase agreement for 16 real estate units. They agreed on December 2007 as the completion date for the project. Due to the respondent's delay in handing over the units, the claimant initiated legal action before DIAC seeking the termination of the purchase agreement and a refund of the amount paid.