The UAE ratified the New York Convention (Convention) in 2006. However, until 2010 there had been no known cases of enforcement in the UAE under the Convention. Uncertainties therefore remained in relation to how the UAE courts would actually interpret and apply the Convention.

In 2010, the Fujairah Federal Court of First Instance enforced a foreign arbitration award under the Convention. This was the first known case of enforcement under the Convention in the UAE. The case involved an award rendered in London under the LMAA arbitration rules and the judgment expressly recognised that conventions and treaties entered into by the UAE have the force of local legislation. However, the case was not contested by the party against whom enforcement was sought and, although encouraging, was therefore treated with some caution.

The Fujairah judgment was followed last month by a similar decision by the Dubai Court of First Instance. The case again involved an award rendered in London, this time under the DIFC-LCIA arbitration rules. However, unlike the Fujairah case, enforcement was contested. This, together with the fact that the judgment comes from one of the more well known Emirates, means that it is more likely to be seen as "test case" than the earlier Fujairah judgment. The case is subject to appeal but is nevertheless an extremely encouraging one. It is the clearest indication yet that the local judiciary will uphold the UAE's obligations under the Convention. It will therefore give further comfort to international parties doing business in the UAE, where those parties agree to submit their disputes to arbitration outside the UAE, in another Convention territory.

Both decisions are unreported.

A new federal arbitration law giving effect to the Convention is expected in 2011.