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Embracing Electronic Signatures in UAE Arbitration: A Call for Modernization
Embracing Electronic Signatures in UAE Arbitration: A Call for Modernization
In recent years, the electronic signature of arbitral awards has gained wide acceptance under various laws and institutional rules, a trend accelerated by the increased reliance on virtual operations due to the pandemic. However, despite this global shift, the transition from wet ink signatures to electronic signatures has not been fully realized in many jurisdictions, including the United Arab Emirates (UAE). This article explores the potential benefits of electronic signatures in the UAE and the extent to which they are accommodated under UAE laws and the rules of UAE-based arbitration centres.
The Significance of Signing the Award:
Article 41(3) of the UAE Federal Arbitration Law No. 6 of 2018 (“Arbitration Law”) stipulates that arbitrators must sign the award. Traditionally, UAE court decisions have required signatures on both the dispositive and reasoning sections of an award. This practice has led to a routine among UAE arbitrators to sign every page of an award, a requirement embedded in the rules of certain UAE-based arbitral institutions. For example, the Dubai International Arbitration Centre (DIAC) Rules 2022 require ink-signed awards to be signed on each page (Article 34.6). Similarly, the Abu Dhabi International Arbitration Center (ADIAC) Rules stipulate the same in Article 41(4).
Legal Framework for Electronic Signatures in the UAE:
The UAE has been progressive in integrating technology into its legal and arbitration framework. The Arbitration Law, amended by Federal Law No. 15 of 2023, allows for virtual proceedings and electronic signing of awards. Article 41(6) explicitly mentions the possibility of electronic signatures, acknowledging the UAE’s embrace of technology. When an award is submitted for enforcement in the UAE, it is filed online, eliminating the necessity for a hard copy or wet ink signature. This online process underscores the redundancy of wet ink signatures in the UAE’s legal system.
Institutional Rules on Electronic Signatures:
UAE-based arbitration institutions have also embraced electronic signatures. The DIAC Rules (Article 34.6) allow electronic signing of awards, subject to mandatory procedural laws and after consulting with the parties. However, the term “consultation” may introduce uncertainty, and a more explicit requirement for party consent could enhance clarity. Similarly, the ADIAC Rules (Article 41.4) permit electronic signatures, considering all relevant circumstances, including applicable laws. While the rules do not explicitly require party agreement, prudent tribunals would likely seek and respect the parties’ views.
This progressive stance places UAE institutions ahead of other leading arbitration bodies, such as the ICC and SIAC, whose rules are silent on electronic signatures. However, the ultimate decision on electronic signing should ideally rest with the parties, aligning with principles of party autonomy and addressing enforcement concerns in jurisdictions requiring wet ink signatures.
The Case for Electronic Signatures:
Despite the legal and institutional frameworks supporting electronic signatures, their adoption in UAE arbitration remains limited. This hesitancy may stem from entrenched habits and the perceived need for wet ink signatures for enforcement in certain jurisdictions. However, the arbitration community has successfully adapted to virtual proceedings, suggesting that a similar shift towards electronic signatures is feasible. Signing each page of an award in wet ink is time-consuming, especially for lengthy awards typical in high-value construction disputes. Electronic signatures offer significant efficiency gains, requiring just a few minutes and eliminating the need for multiple copies. Furthermore, electronic signatures promote greener arbitrations by reducing the need for printed documents.
Conclusion:
The UAE has laid the groundwork for the widespread adoption of electronic signatures in arbitration. Despite the current preference for wet ink signatures, the benefits of electronic signatures in terms of efficiency and environmental sustainability are compelling. It is time for the UAE arbitration community to fully embrace electronic signatures, modernizing the arbitration process in line with global trends and the UAE’s technological advancements.
- International Arbitration Centre (DIAC) Rules 2022 require ink-signed awards to be signed on each page (Article 34.6).
- The Arbitration Law, amended by Federal Law No. 15 of 2023, allows for virtual proceedings and electronic signing of awards.
- When an award is submitted for enforcement in the UAE, it is filed online, eliminating the necessity for a hard copy or wet ink signature.
