International Journal of Academic Research in Business and Social Sciences

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The Enforcement of Arbitral Awards in Commercial Disputes: Challenges of Aligning UAE Law with the Necessity of Adherence to Islamic Rules

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This research examines the enforcement of arbitral awards in commercial disputes under United Arab Emirates (UAE) legislation, focusing on the problem of reconciling the requirements of international commercial arbitration with adherence to Islamic rules as an integral component of public policy (ordre public). The study originates from the hypothesis that the efficacy of arbitration is not realized merely by the issuance of an award; rather, it materializes during the enforcement stage, which constitutes the true litmus test for the viability of this system. Utilizing an analytical methodology, this study reviews the regulatory legal framework governing the enforcement of arbitral awards pursuant to Federal Law No. (6) of 2018. It elucidates the conditions and procedures required to grant an award executory force, and analyzes the judiciary's role in exercising limited supervisory control restricted to formal, procedural aspects without review on the merits. Furthermore, the study addresses the concept of public policy and its extension to Islamic rules, demonstrating the prominent forms of conflict that may arise between arbitral awards and these rules, such as issues pertaining to usury (riba), uncertainty (gharar), and the illegality of certain contracts. The study concludes that the primary challenge lies in achieving a delicate balance between openness to international arbitration standards and preserving the legislative particularity derived from Islamic Sharia. This necessitates the adoption of a flexible approach that distinguishes between material and non-material non-compliance. The findings also underscore the pivotal role of the judiciary in sustaining this equilibrium by interpreting the concept of public policy in a non-restrictive manner, alongside the importance of the parties' and arbitral tribunals' awareness of the local legal environment to preempt complications at the enforcement stage. Ultimately, the study recommends enhancing the integration between legal frameworks and Sharia reference points to guarantee the efficacy and stability of the commercial arbitration system.
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