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UAE Joins Singapore Convention to Boost Trade and Promote Commercial Dispute Mediation

UAE Joins Singapore Convention to Boost Trade and Promote Commercial Dispute Mediation

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In its bid to boost global trade and investment and promote mediation to settle cross-border commercial disputes, the UAE has joined the Singapore Convention on Mediation as the 56th signatory of the convention.

The UAE is all set to start enacting a framework for the enforcement of settlement agreements resulting from commercial disputes, noted a brief released on 16th March 2022 Wednesday by Abu Dhabi Global Market.

At its inaugural dispute resolution forum, Resolve 2022, ADGM announced its move to join the Singapore convention on the back of support from the financial centre, the Ministry of Foreign Affairs and International Cooperation and the Ministry of Justice.

The Chairman of ADGM, H.E. Ahmed Jasim Al Zaabi, welcomed the local and global participants to the inaugural #RESOLVE2022 which is a leading International Dispute Resolution Forum.

“Joining the Singapore Convention will be a momentous step for the UAE, underlining its progressive spirit and leadership and reinforcing its position as a global trading hub,” ADGM Chairman added.

“The move will help boost international trade and investment, encourage commercial dispute resolution through mediation and strengthen the UAE as a global business destination of choice,” he emphasized.

The convention will provide the UAE with a “uniform and efficient mechanism” by which it can enforce the terms of agreements in other jurisdictions, a similar framework to what the New York Convention on the Recognition and Enforcement of Arbitral Awards does for international arbitral awards, an official statement from the ADGM noted.

Abu Dhabi arranged a fast-track courtroom last year to hear monetary disputes under commercial and civil circumstances, for giving judgments in record time, within 15 days of registration of cases.

The Emirates, in its attempt to broaden and advance economic opportunities, is aggressively forging partnerships with other countries for business setup in Dubai UAE and has already engaged with major global economies including the US, Israel and Singapore to improve investments and trade.

Businesses will benefit from mediation as an additional dispute resolution option to litigation and arbitration in settling cross-border disputes facilitating FDI inflow into the country through Singapore company incorporation.

The United Nations General Assembly in December 2018 passed a consensus resolution to adopt the United Nations Convention on International Settlement Agreements Resulting from Mediation, recommended that the Convention be known as the “Singapore Convention on Mediation”, and authorised the signing ceremony of the Convention to be held in Singapore on 7 August 2019.

A total of 46 countries, including the world’s two largest economies including the United States and China along with the three largest Asian economies including India and South Korea signed the Convention on opening day. Also, another 24 countries attended the signing ceremony in Singapore to show their support for the Convention.

Joining the Singapore convention would help the UAE in promoting worldwide trade and funding, encourage commercial dispute decisions utilizing mediation and strengthen the country as a preferred global business destination.

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