Further demonstrating that Dubai is an emerging location for the international financial market, the Dubai International Financial Centre (DIFC), in conjunction with the London Court of International Arbitration (LCIA), recently launched the DIFC/LCIA Arbitration Centre. (See articles in Gulfnews, Gowealthy.com, legalweek.com, The Economic Times, among many) In addition to its impact on this emerging market, this is an important development for international arbitration for two reasons: the involvement of the LCIA and the potential role of Islamic law in arbitration proceedings at the DIFC/LCIA Arbitration Centre.
The LCIA is one of the longest standing and prominent courts of arbitration. Until joining with the DIFC, the London Court of International Arbitration had not established a similar partnerships. As such, this speaks volumes of the perceived credibility of the new tribunal and shows an acceptance of the UAE as a viable location for arbitration. This is due in large part to the UAE's signing on the the New York Convention. As a signatory, it now allows for arbitration awards to be enforced in the UAE. (see this article). This is a great sign for the region as well, as it will invite more business into the Mideast. Given this legal progression, the UAE could prove to be a catalyst for change in the region, dependent on the success of this tribal among other things.
One question that I do have is: What, if any, will be the impact of Islamic law on this tribunal? If any of you knows of the convergence of arbitration and Islamic law, either in this venue or another, I would love to get your comments on the role it plays. I do not feel that basic principles of arbitration line up well with the application of Islamic law, given the more rigid process and structure of proceedings under Sharia.
Again, I would love your feedback and thoughts on this new tribunal and the potential impact of arbitration on the Mideast.
