A notable quirk has long existed within the United Arab Emirates (UAE) regarding signature requirements for arbitral awards. An inconsistency in imposition arose across the different Emirates and presented a practical challenge for arbitrators and parties alike, centred around whether UAE arbitral law or public policy mandated a signature on every page of an award or, more naturally, merely on its final page. This seemingly minor procedural detail carried significant weight, as non-compliance could potentially lead to the invalidation of an award. The ramifications of such a technicality were substantial, given the time and resources invested in arbitration proceedings.
The practical burden associated with signing every page of an arbitral award is often immense and tiresome. Awards, particularly in complex disputes, frequently span hundreds of pages, and this runs alongside a requirement for at least three original copies of it, with one for each party, one for the tribunal records, and more if multiple parties are involved. Arbitrators, as such, faced the arduous task of individually signing thousands of pages, and this administrative load resulted in the diversion of endless valuable hours that could otherwise be dedicated to the more pertinent substantive aspects of their arbitral duties. The spectre of an award being challenged or rendered unenforceable solely due to a missed signature on one out of hundreds of pages created a serious element of uncertainty and inefficiency in the arbitral process and risked undermining the theoretically quicker and cheaper nature of arbitration in comparison to the extensive tendencies of court proceedings that many seek to avoid.
This persistent issue generated significant debate and divergent practices and was ultimately referred to the UAE Federal and Local Judicial Principles Unification Authority (the ‘Unification Authority’), which plays a crucial role in harmonizing legal interpretations and practices across the Emirates to ensure a more consistent and predictable legal landscape. Its intervention in this matter was a clear indication of the widespread recognition of the problem and the imminent need for a definitive resolution.
The Unification Authority has now issued a ruling that unequivocally settles the matter: from now on, arbitral awards in the UAE need only be signed on the last page.
This decision marks a major and welcome development for the legal and commercial community in the UAE by effectively resolving a long-standing point of contention that had contributed to unnecessary procedural complexities and potential pitfalls for parties seeking to enforce arbitral awards.
The clarification not only alleviates practical burdens on arbitrators but also brings UAE arbitral practice firmly in line with international norms. In most developed arbitration jurisdictions globally, standard practice is to simply require signatures only on the final page of an arbitral award, hence our understanding of the term ‘signing off’ in the United Kingdom, for instance. The previous ambiguity across the UAE created a unique divergence that could sometimes be perplexing for international parties unfamiliar with the nuances of local practice, and this was not ideal for a country that has continually sought to be a hub for capital and commercial affairs in the 21st century and beyond. By aligning with global standards, the UAE has further enhanced its reputation as a leading international arbitration hub, fostering greater confidence among foreign investors and businesses operating within its jurisdiction.
The Unification Authority's decision also underscores a pragmatic approach to legal interpretation in prioritising efficiency and consistency while upholding fundamental principles of due process. It diligently acknowledges the evolution of modern arbitral practice and the need for procedural requirements to be proportionate and practical, while the countless hours previously spent by arbitrators painstakingly signing page after page can now be reallocated to more productive aspects of their work, much to the benefit of dispute resolution as a whole.
In conclusion, the Unification Authority's ruling on the signature requirements for UAE arbitral awards is a commendable and timely intervention. It addresses a long-standing inconsistency and procedural hurdle and harmonises UAE arbitration law with international best practices. The decision is a testament to the UAE's commitment to continually refine its legal frameworks, ensuring they remain enforceable, predictable, and conducive to proper dispute resolution. The arbitration community in the UAE will surely welcome this newfound clarity, and the nation will benefit hugely in an economic, social, and legal sense from smoother and more streamlined out-of-court solution-finding.
