“Doing Business in UAE”

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Revolutionizing Cost Allocation in ICC Arbitration: The Dubai Court of Cassation’s Landmark Decision on Article 38

The Dubai Court of Cassation (DCC) has ruled that unilateral arbitration clauses, which grant one party exclusive discretion to choose arbitration as a dispute resolution mechanism, are unenforceable under UAE law. This decision emphasizes the importance of mutual consent and clarity in arbitration agreements, highlighting the need for fair and balanced drafting to ensure enforceability.