The confidentiality of UAE arbitration proceedings is a cornerstone of arbitration in the UAE, governed by the UAE Federal Arbitration Law (Federal Law No. 6 of 2018 on Arbitration) and institutional arbitration rules. Here are the key points regarding confidentiality in arbitration proceedings in the UAE.
Statutory Provisions on Confidentiality
The UAE Federal Arbitration Law emphasizes the confidentiality of arbitration proceedings. Article 33(1) of the law explicitly states that arbitration hearings shall be held in private unless the parties agree otherwise. Parties, arbitrators, and other participants in the arbitration are generally bound to maintain confidentiality regarding the proceedings and related documents. This provision underscores the significance of safeguarding sensitive information and trade secrets, ensuring that the UAE arbitration process remains both equitable and confidential.
This blog is a part of our Arbitration: An Introduction Series.
Institutional Arbitration Rules
Several arbitration centers in the UAE have rules reinforcing confidentiality. For instance, Article 40 of the Dubai International Arbitration Centre (DIAC) Arbitration Rules (2022) mandates arbitrators, the tribunal, and the center to maintain confidentiality of arbitration details unless otherwise agreed by the parties or required by law. Similarly, the Abu Dhabi Global Market (ADGM) Arbitration Regulations (2015) ensure confidentiality of proceedings, with exceptions for legal obligations or court orders. Additionally, Article 30 of the Dubai International Financial Centre-LCIA (DIFC-LCIA) Arbitration Rules highlights the obligation of parties, the tribunal, and the center to uphold confidentiality throughout the arbitration process.
Scope of Confidentiality
- Documents and Evidence: Confidentiality extends to documents submitted during arbitration, evidence presented, and any awards or decisions.
- Hearing and Proceedings: The conduct of hearings is private, with access restricted to authorized individuals.
- Awards and Outcomes: Publication of arbitral awards is generally prohibited unless both parties consent, or the award is anonymized for educational or institutional purposes.
Benefits of Confidentiality
Confidentiality is one of the key advantages of arbitration, offering a secure forum for resolving disputes without public exposure. This ensures that sensitive business information, trade secrets, and proprietary data disclosed during the process remain protected, safeguarding the parties’ interests and mitigating the risk of reputational damage. The privacy provided by arbitration also encourages open dialogue, allowing parties to present their cases candidly without fear of competitive disadvantage. This is particularly valuable in disputes involving intellectual property or complex financial arrangements, where public disclosure could harm market positions.
Additionally, confidentiality helps preserve business relationships by fostering a less adversarial and more collaborative atmosphere compared to public court proceedings. It also protects strategic legal approaches, ensuring that arguments, evidence, and case strategies remain private and cannot be exploited in future disputes or negotiations. This discretion makes arbitration an attractive option for businesses seeking efficient and effective conflict resolution while maintaining trust, respect, and a competitive edge in a globalized marketplace.
Exceptions to Confidentiality
- Court-Related Disclosures: If enforcement or annulment of an award is sought in UAE courts, some level of disclosure may be required.
- Legal or Regulatory Obligations: Parties may be obligated to disclose arbitration details due to legal or regulatory compliance.
Practical Considerations
- Confidentiality Agreements: Parties often include explicit confidentiality clauses in their arbitration agreements to reinforce protection.
- Third-Party Involvement: The presence of witnesses, experts, or funding parties may necessitate careful confidentiality management.
Judicial Practice in the UAE
UAE courts recognize the confidentiality of arbitration proceedings and typically seal records related to arbitration cases. However, this confidentiality may be partially waived if disclosure is required to support judicial proceedings.
Confidentiality in arbitration proceedings in the UAE provides a secure platform for dispute resolution. It ensures that sensitive business information and dispute details remain private, reinforcing the attractiveness of arbitration as a dispute resolution mechanism in the region. However, parties must be vigilant about exceptions and the need for court-related disclosures.
