G - Developments in Enforcement of Arbitration Awards in the UAE
On 4 July 2019, the Abu Dhabi Global Market Court (ADGM Court) issued its first arbitration-related judgment since its enactment in 2016.
Introduction
The ADGM Court of First Instance considered an application for a declaration that an arbitration agreement was valid and binding on the parties. The Claimant applied to the ADGM Court after having initiated arbitral proceedings before the International Chamber of Commerce (ICC), and the ICC Court had decided to not proceed with the arbitration.
The parties entered into a lease agreement on 25 October 2017. The Claimant leased a property on Al Maryah Island, Abu Dhabi to the Defendant for a period of five years. Less than a year later, the Defendant sought to terminate the Lease. The Claimant disputed the Defendant's right to do so and, on 12 November 2018, purported to terminate the Lease on the basis that the Defendant was in breach of its terms.
The Claimant sought to initiate arbitration proceedings against the Defendant, and relied on the dispute resolution terms of the Lease, as follows: