The United Arab Emirates (UAE) is one of the main maritime crossing points between Asia and Europe. Geographically, it is situated at the intersection of the Suez Canal, the Bab el-Mandeb Strait, and the Strait of Hormuz. The Dubai Marine City Authority (DMCA) was founded in 2007 for Maritime Arbitration by His Highness Sheikh Mohammed bin Rashid Al-Maktoum, the ruler of Dubai, to oversee, advance, and publicize maritime activities in Dubai.
UAE is registering dense maritime activity in oil and goods transportation. To increase confidence in the UAE market, DMCA took the initiative to establish a specialized maritime arbitration centre in Dubai known as “Emirates Maritime Arbitration Centre”.
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Emirates Maritime Arbitration Centre
Emirates Maritime Arbitration Centre (EMAC) will settle disputes related to contracts of ships lease; goods transportation; sale of used ships, building and repairing ships; insurance and re-insurance policies; marine collisions cases; marine aid and rescue; and marine losses by offering absolute climate of freedom and confidentiality in choosing the applicable laws and implementing the arbitral procedure.
EMAC Rules are expected to provide for any dispute to be resolved by a sole arbitrator in the absence of the parties express agreement to the contrary. The sole arbitrator will be appointed by EMAC within thirty days of request for arbitration being filed in the event that the parties are not able to agree on the appointment. Whilst the EMAC rules will not restrict the tim eframe in which proceedings are to be concluded, final awards must be issued within ninety days of the date on which the hearing is deemed closed, subject to any extension of time granted by the Tribunal and/or Registrar and to settlement of the Tribunal’s fees.
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EMAC aims at dealing with small claims, fast track arbitration, mediation and other alternative dispute resolution methods. This could potentially provide a cost-effective forum for the determination of relatively low value and straightforward claims.
FAQ about Maritime Arbitration in the UAE
1-What maritime contracts may be subject to arbitration?
Maritime Arbitration’s Purpose
It includes marine salvage, towing of vessels, and the transportation of products by sea. Damage claims resulting from collisions, groundings, fires, or other similar maritime mishaps whether they occurred in port or at sea, including harm to fixed or floating port objects.
2-How does arbitration work in UAE?
Arbitration is considered to be an extraordinary type of conflict resolution. A written arbitration agreement must be signed by all parties who have the legal authority to dispose of the disputed right, according to the law. A party cannot be forced to arbitrate without a written agreement to do so.
3-What are the three types of arbitration?
Three methods exist for parties to enter the arbitration process: judicial arbitration, contractual arbitration, or via stipulation.
Khairallah Advocates & Legal Consultants are a leader in Maritime / Admiralty / Shipping Law Services in the UAE. We will also assist you with Maritime Arbitration in Dubai. Please feel free to contact us for all kinds of maritime issues.
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