Dubai Courts Recall UK's Accession to NY Convention but Forgets Reservations

Analysis

Earlier this year the Dubai Court of Appeal shocked the local and international legal community by refusing to enforce an English arbitral award on the grounds that it was not satisfied that the United Kingdom was a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. We are pleased to report that the Dubai Court of Cassation has now reversed this decision in a judgment issued on 19 June 2016 (Case No. 384 of 2016). However although the Court found that the UK is indeed a signatory to the NY Convention, the reasoning of the Court failed to acknowledge that the UAE had not made any reservations when acceding to the NY Convention, and that the award should have been recognized irrespective of the UK's status as a signatory.

Background   

By way of background, the Court of Appeal on 30 March 2016 rejected an English arbitral award for two reasons that were controversial: