New Dispute Resolution Mechanism on its Way in UAE - Essay Example

United Arab Emirates incorporates a multinational environment that has the firms and workers grouped together from all parts of the world. U.A.E offers a multi cultural and multi ethnic outlook to the business activities. This multi cultural existence at times results in the conflicts and disputes arising within the organizations and with the outside entities. Based on this the U.A.E government and the business sectors and corporations have established essential components that look into the dispute resolution and problems that might take place in the regular routines. Most of the firms have their clearly defined S.O.Ps, legal sanctions and legal domains looking into the often occurring disputes. This paper looks into the broad lined disputes that often occur and the example of how two companies in U.A.E undertook the dispute and conflicts at hand. The paper also looks into the generic code of conduct that is implied towards the business sectors with regard to the legal disputes. Methods incorporated: Various methods are incorporated into the business domain for the purpose of resolution of the disputes. The following are few of the methods based on which the disputes are resolved (SANGAR, 2012). DIFC Courts: The DIFC courts are in place and actively working towards the resolution of the problems in the business sector for quite a while now. They are one of the most authentic and established entity designed for the purpose of looking into the matters and resolving them according to the need and professional requirements (Gaeta, 2012, p 45). The DIFC courts incorporate English for the purpose of interaction and conversation exchange with one another. The multi nationals and the Western companies engaged in the business activities undertake such processes and take assistance of the DIFC courts in preference over the local courts whenever some dispute takes place. DIFC comes in combination and consonance with the Al-Tamimi group that specializes in the working of the finding the legal grounds towards the resolution of problems that may occur at different phases on the project and activities so undertaken (out-law, 2012). New York Convention on Recognition and Enforcement of Foreign Arbitral Awards of 1958. This was of the generic and broad line declaration of the methods by which the disputes can be resolved. Owing to the overall success and influence of the recognition and reconciliation entity, United Arab Emirates has engaged itself in the same mechanism and has taken the ownership and membership which allows it practicing the same principles in the spirit of the professional work. U.A.E government, realizing the importance of it signed it and became an official signatory of it towards 2005 and 2006 and later on made it a general practicing model towards the business activities and disputes resolution. Local courts proceedings: In such scenarios the disputes and the disputed parties go to the local courts. They seek their guidance and advice based on the problems faced by them. The court takes the cases as other routine cases. The major difference between the local courts and the DIFC courts is the manner in which the business engagement principles are defined and explained. For example the conversation is undertaken in the local language which is Arabic. This mostly suits the domestic employees. Arbitration: Arbitration is also used as a means of resolving the disputes. Largely the multi nationals are enrolled in this process who through the presence of the seasoned and professional workers allows their disputes to be resolved in an amicable manner. Seeing the importance, attraction and successful engagement of the arbitration, the scope of arbitration has been expanded to the domain of operating in the multiple cities. These developments have come in place since late 2010. The general expansion and broader operational domain includes the opening of the business and arbitration centers in Dubai under the banner of Dubai International Arbitration Center (DIAC). London Court of International Arbitration is another similar entity engaged for the purpose of the disputes resolution. The unique fact about LCIA is its adherence and fulfilling of the patterns of the western model of business enterprises and actions engagement. Under the supervision of the Law ministry: Law ministry assigns special departments for the purpose of looking into the matters related to the disputes that may arise between the organizations and firms established within United Arab Emirates. Often the companies have complained with regard to the time frame and the overall delay based on which the results of the pending disputes are resolved and declared. The government, in bid to bring about transparency and rapid resolution of the problems has brought about new steps and has in parallel incorporated actions which are directed towards speedy processes handling. Zaheer Bitar in his assessment based investigation reveals that the participation and inclusion of the top judicial ranked officers is in bid to speed up the process and make further reforms with regard to the legal constraints that pop up time and again. Dispute resolving entities: Special entities are in place that look into the matters and aim to find the resolution that are in the best interest of the organizations and the overall business environment within United Arab Emirates. Arbitration based entities are also established that look into it and decide the resolution in the spirit of professionalism and active participation subject to the matters at hand (IBP, 2014). With the ever broadening of the business activities and actions subject to the global activities within the corporations, the DIFC has been expanded in its nature with subject to the resolution of the problems. A.D.R: Acronym for Alternative Disputes resolution is another similar move incorporated for the purpose of bringing about speedy and efficient process and mechanism based solution. It involves the active participation of the government appointed entities who look into all the legal and complicated aspects of the case and aim to bring about a solution in a directly successful and most amicable manner (Bitar, 2009). The ambit of A.D.R: The scope of A.D.R has been relatively broadly defined for the purpose of making the overall process smooth and clearer. It handles the cases with regard to the labor policies definition, the legal transfers and exchange, disputes arising from within the departments and organizational functioning, the wages complications, the unions definition and scope of operation and finally the cross cultural and broad border exchange of information and resources which makes the progresses clear. With a clearly defined scope of operation, the A.D.R tries to find solutions in the context of the local law as well as the global operations in the business world. Common practicing entities: Seeing the trend towards the multinational corporations and the global dispute resolution functions, numbers of business and legal agencies have come forth who now take into account the manner in which the businesses disputes are resolved. They specifically specialize in the function of finding amicable resolutions to the problems faced in the day to day activities. One of the top names in this regard is Al Tamimi And Company. Al Tamimi Profile: Al Tamimi is a regionally renowned and established organization that serves in the domain of finding legal solutions to the disputes that the companies often come across. Their services and specialized functions are not just limited to the U.A.E market, but Saudi Arabia and other adjoining regions and countries in the domain of Middle Eastern zone. The main considerations taken into account by the incumbent company is the fact that it entails all the actions, the manifestos and the disciplinary commands in the light of the legal context of the law of the land. For example if it is operating in two different countries, it would take into account the factors and legal constrains of the country subject to the commercial law and other business rules and engagement principles (Int., 2005). Jon Day: Jon Day comes as the second example of the companies that are formally operating in the domain of improving the relationship and mitigating the legal obstacles faced by the companies in their intercourse of legal actions. Acquisition international, an internationally approved and recognized company that gives its recommendations and credits to the states with regard to the problem resolution has termed the performance of the incumbent( Jon- Day) as one of the significant and remarkable with regard to the success stories and the performance it has delivered in the recent times . Jon Day does not only specialize in its services delivery in the Middle East, it instead makes use of its services and specialized functions in other parts of the world. It is therefore an integral part of the world famous business solution providers and based on this, Jon Day has earned itself a rank in the standing of the globally recognized and Forbes Top 500 companies in the world that operate on large scale. .Jon Day does not formally go as a long existing entity, rather it has made inroads in the recent years and has become an integral part only in the recent times. It also earned itself the A1 legal award, which is among the awards that are awarded to the companies that provide and depict excellence in the different domains of business disputes and other legal aspects entailing the overall functions within. The expansion of its works in United Arab Emirates has set a very good precedence. This precedence comes in the form of allowing other major business enterprises to initiate such a legal domain oriented business activity and action. Its cooperation with the both parties and aiming to provide the best solutions make up for the top ranked standing in the modern business world. Jon Day has an array of publications to its list. Based on this, it provides guidance to the newly in place business organizations that may need directional motivation. The publications are used for the purpose of a reference from the past precedence between two parities which allow the clear guidance and right pattern following towards the overall originally set forth objectives of the company. Conclusion: The trends in United Arab Emirates have set in from the global businesses and the practices that are commonly in place in the United States of America and part of Europe. With the multi cultural and cross cultural existence, it is imperative to have a clearly defined goals and objectives list in terms of the legal aspects. The legal entities not only provides clear solutions, but also guidance and direction in the reference of legally sound decisions making. References: Bitar, Z. (2009, June 11). New dispute resolution mechanism on its way in UAE. Retrieved from Gulf-news: http://gulfnews.com/business/general/new-dispute-resolution-mechanism-on-its-way-in-uae-1.71742 Gaeta, G. (2012). Opportunities in Emerging Markets: Investing in the Economies of Tomorrow. John Wiley & Sons IBP, I. (2014). UAE: How to Invest, Start and Run Profitable Business in the UAE Guide - Practical Information, Opportunities, Contacts. Intl Business Publications Int., U. (2005). Dubai Business Law Handbook. Intl Business Publications SANGAR, A. (2012, March 09). Dispute Resolution In the UAE | Litigation Is Not The Only Way. Retrieved from emiratesbusinesslaw: http://www.emiratesbusinesslaw.com/2012/03/19/dispute-resolution-in-the-uae-litigation-is-not-the-only-way/ out-law. (2012, Dec). Dispute resolution in The United Arab Emirates. Retrieved from out-law: http://www.out-law.com/sectors/infrastructure1/dispute-resolution-in-the-united-arab-emirates/ Read More