Enforcement of Arbitral Awards in Commercial Disputes: Challenges of Harmonizing UAE Law with the Imperative of Compliance with Islamic Principles

HRMARS - This study examines the enforcement of arbitral awards in commercial disputes within the framework of United Arab Emirates (UAE) legislation, with a particular focus on the challenge of reconciling the requirements of international commercial arbitration with adherence to Islamic principles as an integral component of public policy. The research is premised on the assumption that the effectiveness of arbitration is not achieved merely by the issuance of an award, but is ultimately realized at the enforcement stage, which constitutes the true test of the system’s efficacy. Adopting an analytical approach, the study reviews the legal framework governing the enforcement of arbitral awards under Federal Law No. 6 of 2018, outlining the conditions and procedures necessary for granting enforceability, as well as examining the role of the judiciary in exercising limited oversight confined to procedural aspects without encroaching upon the merits of the dispute. The study further explores the concept of public policy and its extension to encompass Islamic principles, highlighting key instances of potential conflict between arbitral awards and these principles, such as issues relating to usury (riba), uncertainty (gharar), and the illegitimacy of certain contractual arrangements. The findings indicate that the primary challenge lies in achieving a delicate balance between openness to international arbitration standards and the preservation of the legislative particularity derived from Islamic law. This necessitates the adoption of a flexible approach that distinguishes between fundamental and non-fundamental conflicts. The study also underscores the pivotal role of the judiciary in maintaining this balance through a non-restrictive interpretation of public policy, alongside the importance of awareness among parties and arbitral tribunals of the applicable legal environment to avoid complications at the enforcement stage. The study concludes by recommending enhanced integration between legal frameworks and Sharia-based references to ensure the effectiveness and stability of the commercial arbitration system.