Renate Herrmann`s report

Dubai–fromanoutsider’s,non-lawyer’sperspective
2016wasthefirstyearthattheCompanyawardedinadditiontoitswell-receivedpupillagescheme
two travelling scholarships. Niraj Modha and I, Renate Herrmann, were the two very grateful
candidates that were sponsored to travel to Dubai to learn more about the different local
approachestodisputeresolution.
My very big thank-you goes to the Company’s organisers and the many sponsors of this new
scholarship,aswellasinparticulartoDrMarkHoyleandAlecEmerson,whowelcomedmesokindly
to see their very interesting work locally and who arranged visits for me to the local courts and
arbitration centres as well as to Richard Harding QC, who allowed me to sit in on one of his
arbitrationhearings.
Dubaiisafascinatingplacethatwillcapturetheimaginationofanytraveller.Itsstartlingextremes
meetthetravellerthroughouthisstay,weavingacolourfulsettingofcombiningOneThousandand
One Nights and Star Trek. I, as an outsider, coming from an international trading, shipping and
financing background, felt a highly charged buzz of bridging millenniums, when stepping from the
dhows1creekporttotheJAFZcontainerterminals2ofDPWorld,orwhenenjoyingaCreek-crossing
ononeoftheabras3tocatcharideonthemetro4.
DubaiispartoftheUAEandalthoughAbuDhabiisthecapital,Dubaiisthebiggestcitywithinthe
UAE.Dubai’sruler,H.H.SheikhMohamedbinRashidAlMaktoum,isalsoVicePresidentandPrime
MinisteroftheUAE.
With83,600km²theUAEisslightlybiggerthanScotland,howeverfour-fifthsoftheUAEisdesert.
This, however, has not stopped the local tribes to unite to a nation and to transform themselves
from a tribal culture reliant on agriculture and fishing to an entrepreneurial success story with
world-classinfrastructureinjustoverthreedecades.ItsleadershipisproudtopresenttheUAEasa
major international tourist and business centre, being one of the most modern, stable and safe
countriesintheworld.WithnearlyUS$25,000theUAEhasoneofthehighestpercapitaincomesin
theworld.
AsperH.H.SheikhMohamedbinRashidAlMaktoum:
“Mostpeopletalk,butwedothings.Theyplan,weachieve.Theyhesitate,wemoveahead.Wearea
livingproofthatwhenhumanbeingshavethecourageandcommitmenttotransformadreaminto
reality,thereisnothingthatcanstopthem.”
Withthisvisiontheleadership,in1997,introduceda“pathofchange”anditscampaignof“process
simplification” to reform public administration, which achieved in less than 20 years a dramatic
improvementineducation(effectivelyeliminatingilliteracy),andadvancedhealthcare,encouraging
thenextgenerationtoembracedchangeandtomodernizetheUAE,consistentwithitshistoryand
cultural values. Thus, the UAE is able to present itself today as being one of the fastest growing
economiesintheworld,andtohavepositioneditselfasthebusinesshubfortheentireregion.
Judicially Dubai is similarly fascinating as it is geographically. In 1971, just 45 years ago (!), Dubai
united with 6 other Emirates to form the UAE. From a layman’s perspective the legal hierarchy is
relativelyeasytounderstand:asatthetimeofunificationmostlegalprofessionalscamefromEgypt
andJordantheUAECivilCodeshowsalotofsimilaritieswiththeEgyptianCivilCodeof1947,which
in turn is based on the Code Napoleon but also tried to codify many of the Sharia law principals.
However,theformationofFreeZonesintroducedfurtherindependentjurisdictionsthroughoutthe
UAE. At my last count, I found more than 30 jurisdictions offering their own dispute resolution
services,oftennotonlyissuingtheirownrules,butalsotheirownlaws.TheseFreeZonesarefirstly
governed under the direct jurisdiction of the local ruler and are then, via different protocols,
integratedunderthefederalumbrellaoftheUAE.Fromaninternationaltrader’sperspectivethisisa
puzzlingparticularity,butcaneasilybecomparedwithcompetingtradeassociationsorexchanges,
whichcompeteforhisbusinessinasimilarmanner.
TheinternationallegalcommunitylikestoemphasisethatalthoughtheUAEisgenerallyacivillaw
jurisdiction, the Dubai Financial Free Zone and its local courts (DIFC) and the Abu Dhabi Global
Market (ABGM) operate under a common law approach. From a trader’s perspective this is
interesting,butnotreallyrelevant,as
•
•
firstlytradelawsandinternationaltransportconventionsarecodifiedincommonaswellas
incivillawjurisdictions;and
secondlyfortheinterpretationsofthesenationalstatutescivilaswellascommonlawcourts
oftenrefertoothercourt’sjudgmentsandtointernationaltradepractice.
Asineveryotherjurisdiction,thetruetestfortheuserofanyjudicialsystemliesintheefficiency/
non-efficiency of the local enforcement procedure. As everything in Dubai, so is the speed of
development within the judicial system breath-taking. After setting its economy on sound
foundationsandhavingtackledtheefficiencyofitspublicadministration,theUAEleadershipisnow
concentrating on reforming its judicial proceedings. There is currently an excited buzz noticeable
that moves through the local judiciary. The young judges embrace the new campaign of the
“administration of change” full-heartedly, which is reflected in their clearly structured and wellreasoned judgments that make the law understandable and accessible to local and international
businesscommunities.Oneofthedrivingforcesinthisprocessaretheinternationallytrainedand
highlyexperiencedresidentjudgesoftheDIFC,whosejudgementsarepubliclyavailable,writtenin
English.
Asthistrendispositivelyreceivedthroughoutthedifferentbusinesscommunities,moreandmore
parts of the local society engage in this process, which is expected to be recognised (and in time
followed)bymoretraditionallymindedjudges,too.
IthasbeenagreatprivilegetotraveltoDubaitotakeaglimpseattheseelectrifyingdevelopments,
and I would like to thank everyone whom I met in Dubai and the UAE for their very warm and
friendlywelcome.Iwillkeepfollowingthelocalprocesseswithgreatinterest.
London,May2016
RenateHerrmann
1
Dhows traditional wooden ships, up to 4,500 tons deadweight, being built with traditional methods, i.e. without any
drawings,saidtobeoperatingstill20-30%ofthebreak-bulktradedbetweenArabianGulf,AfricaandIndia DhowBuildingYard
DhowWharf
JAFZcontainerterminals
2
JebelAliPort,theworld’slargest man-madeharbour,locatedwithinJebelAliFreeZoneandoperatedbyDPWorld,is
th
said to be the world’s 9 largest container port, running over 90 weekly services connecting more than 140 ports
worldwide.ThePort’stotalhandlingcapacitywasexpandedto19millionTEUinthesecondhalfof2015,operatingatotal
of 26 berths (3 additional berths under development) 87 cranes (10 additional cranes on order) to cater to the world’s
largestcontainervessels.
3
Abra,traditionallymadewoodenferryboat,themostefficientmeansoftransporttocrosstheDubaicreekforAED1
4
DubaiMetro,driverless,fullyautomatedrailnetwork,madebyaJapanesemanufacturer,operatingreliablywithinannual
temperaturechangesofmorethan30degrees
Tipsforthetraveller:
Wheretostay:
Dailyserviced,fullyfurnishedapartments,centrallylocatedatreasonablerates,whichareopenfor
negotiation(especiallyatlongerstaysorforcorporateaccounts)bycallingthemanagers:
Mr.MarcelLuck
[email protected]
or
Mr.MohammadNazim
[email protected]
Mob.+971563220206
BAITYHotelApartments
PoBox124052,
KuwaitSt.BurDubai,
DUBAI,UAE
Tel:+971(0)43558800
Fax:+971(0)43558889
www.baityhotel.com
ExchangeRates
IfoundthebestexchangeratesforGBPintoAEDattheexchangeofficesattheMetrostations,as
these are normally used by the many migrant workers to exchange their locally earned AED into
otherinternationalcurrencies.
LocalMobile
To get around in Dubai more easily, one should buy a local mobile number. The local provider(s)
offer usually cheaper rates than European providers. It is very easy to get a local SIM card for
visitors,buttobuythisallpassportdetailswillberegistered.Inthemostunexpectedsituations(e.g.
buying a theatre ticket, exchanging money, or entering a building) one is asked for one’s mobile
number,whichisanefficientwayforthelocalauthoritiestotrackone’smovements,butbybeing
abletoprovidealocalnumbertheexecutionofthesemanylittledailytransactionsbecomeseasier,
too.
PublicTransport/SilverCard/findingyourway
LiketheLondonOysterCardtousepublictransportonewillneedtobuyanRTAcard.Ifoundthe
Silver Card best value for money, but I was able to use the lady’s compartments, which is a great
advantagethatmaletravellerstonothave.
Fortheladytraveller:EnjoythespaceoftheLady’sCompartmentswhenusingpublictransport,itis
clean,spacious,safeandyouwillseeandhearmuchmoreof/aboutDubai,thanwhentravellingby
taxi,howeverrush-hourmightbeachallenge,butitisagreatfeelingofhaving“properlyarrivedin
town/goinglocal”,whenoneisabletonegotiatetherushhourontheDubaiMetro.
Aweb-site,whichbecamemydailycompanion,istheDubaiJourneyPlaner:http://wojhati.rta.ae/
Tomeetthelocals:
TomeetarealEmiratifromDubaiissimilarlydifficulttomeetingatrueCockney,whoisbornwithin
earshotofthebellsofStMaryleBow.However,ifyouhavethechanceoftravellingtoDubaiduring
thetimeoftheAlMarmoumHeritageFestival,goandenjoythesingularlygreatatmosphereofthe
camelraces,don’tbeputoffthatracesstartalreadyat6.00am.It’ssomethingonehastodo,and
onewilllovetheEmiratisforlife.(ForabitofextraadventureonecangettotheAlMarmoumrace
trackaswellastheAlLisailiendurancecampandcamelmarket,beingabout40-60mindriveinto
thedesert,bylocalbusno.66or67,butbeawarethatthebussesruneverytwoalternativehour
only)