Dubai's global standards give it key role in resolving disputes

Dubai: Dubai will play a key role for resolving international disputes, as many operators here reflect global standards, Lord Mayor Nick Anstee of the City of London said Sunday during his visit to the Dubai International Financial Centre (DIFC) .

During a seminar titled "Towards Economic Recovery: The role of the courts and arbitration," the Lord Mayor said there has been considerable growth of the local arbitration system.

"We are already impressed with the work, which has been achieved in advancing dispute resolution here in Dubai. Many of the same attributes that made powerful [arbitrators], we are now finding among the dispute resolution operators in Dubai," he said.

Ahmad Humaid Al Tayer, Governor of DIFC, said: "Events over the past two years have only highlighted the importance of building deeper collaborations and linkages among leading international financial centres."

He said that the Middle East, North Africa and South Asia region has "huge potential for growth as it hosts powerful emerging economies; and the business delegation members are invited to explore these opportunities."

Meanwhile, Anstee said that as global economies start to recover, the sector for financial services will see a return in demand.

"The deterioration in the global economy caused by the credit crunch means a slowdown in growth exports, investments and international financial transactions. But we are starting to recover and with that recovery, I have no doubt demand will continue for international dispute resolution services," he said.

Anthony Evans, chief justice of the DIFC Courts, said that he has seen a "rapid upsurge" in caseloads since mid-2009.

He said that it might be due to the financial crisis and some were related to the real estate sector. The total number of proceedings in 2009 was 36, compared to nine in the first six months of 2008 when the courts became fully operational, he said.

Anstee spoke of increasing demand in London, a jurisdiction that DIFC courts adopt, saying that it has experienced an increase in cases related to maritime, commodities, financial services and construction. "Ten thousand such disputes have been resolved in the UK in 2007," and the numbers are growing, he said.

During his visit, the Lord Mayor said he would be looking to encourage investments into UK from UAE-based financial institutions.

He said that they should "look to London as a partner to raise capital and do business."

A Bloomberg report said that the mayor plans to ask His Highness Shaikh Mohammad bin Rashid al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to help British banks owed money in Dubai.

"There are about five banks which are owed a considerable sum of money," Anstee told reporters Sunday.