Let's explore this,

but firstly,

What is Reconciliation?

Reconciliation is a resolving dispute means between the parties before they resort to either litigation or Arbitration.

Reconciliation & Arbitration under UAE Regulations

In the UAE regulations, what is not subject to Reconciliation shall resolve through Arbitration.

As according to

·   Article 203.4 of the Civil Procedural Code No. 11/1992

"It shall not be possible to arbitrate in the matters in which the reconciliation is not possible."

·   And to Article 4.2 of the Federal Arbitration Law No. 6/2018

"Arbitration is not permitted in matters that do not permit compromise."  

The consequence of the inability to resort to Arbitration is due to Reconciliation's failure.

The latter is unlikely to be conducted unless the parties expressed their willingness to resort to it as a primary means before resolving Arbitration's dispute.

Therefore, they seek Reconciliation to settle the dispute in an amicable way to save both time and arbitration expenses.

Public order matters are off-limits when the parties resort to Arbitration concerning: unresolved crimes neither by Reconciliation nor Arbitration and personal nature matters. Thus, Arbitration can be the only resort regarding material nature issues for Reconciliation or waving. According to the above mentioned article 203

The Arbitration shall not be permissible, as a matter of Public Policy, in some instances: bankruptcy, labor disputes, commercial agency agreements, disputes relating to deferred debt, forgery and criminal activity, etc.

You may ask now why Arbitration not a resort regarding public order matters?

There is wisdom from this. Let's check this!

These matters are subject to authority Supervision.

According to Article (3) of the Federal Civil Code No. 5/1985

" Public order shall include matters relating to personal status: marriage, inheritance, and lineage,

And matters relating to sovereignty,freedom of trade, the circulation of wealth, private ownership rules, and society based foundations.

In such a manner as not to conflict with Islamic Sharia" final provisions and fundamentals

otherwise, the relevant Arbitration agreements shall be void.

However, there are court order remedies through Arbitration virtue rather than subjection to Reconciliation.

As the pure personal status matters related to marriage and its validity,

However, personal status on financial matters, as mentioned, material nature matters, subjected to Reconciliation such as Alimony determination.

But, Reconciliation and Arbitration can’t settle nationality-related matters.

The law occasionally requires Public Prosecution inclusion in specified cases,

such as Minors' rights' cases, since minors lack the judicial capacity to conduct Arbitration. Neither can their guardian resort to Arbitration on behalf of their succession.

Remember, urgent matters cannot generally be subject to reconciliation uncles the parties expressly agree for its subjection to Arbitration.

Reconciliation cannot be resorted to,let alone arbitrated in the case of a Debt nature determination request,whether considered a gambling date or no. Such debts are neither subjected initially to Arbitration nor Reconciliation.

Likewise, the public interest exploration shall not be subject to Reconciliation or Arbitration.

We are glad to receive your further inquires,

feel free to contact with FTD Partners team.