Arbitration and reputation management converge on Dubai

28 Nov 2024

DRD partners Claire Davidson and Kate Miller reflect on five days in Dubai – a ‘hot’ legal centre and new frontier in strategic reputation management.

 

Two key milestones in the global dispute resolution calendar are Thought Leaders 4 FIRE Dubai (Fraud, Insolvency, Recovery and Enforcement) and Dubai Arbitration Week.  Both were based in the Dubai International Finance Centre (DIFC), which has grown rapidly to become the leading international financial hub in the Middle East, Africa and South Asia.

Both events were packed and showcased Dubai as a truly international destination with delegates from all over the world interested in litigation, arbitration and complex disputes. From early breakfast briefings to roof-top parties, during the non-stop criss-crossing of the DIFC it was difficult not to be inspired by the sheer scale of vision and creativity on show, the warmth and generosity of the hosts and the breadth and depth of talented people on show.

The packed dispute resolution programmes mirrored its spectacular pace of growth. The networking opportunities draw in “incomers” attracted by the clear legal pioneering opportunities, beyond just the construction sector, and very sophisticated and established regional practitioners.

Of particular note are the impressive senior women practitioners leading the debate, from law firm partners to general counsel, arbitrators to academics as well as students, the next generation of talent, aspiring to a career in the law in Dubai and the region.

While undoubtedly an attractive leisure and business destination, this is far from the one-dimensional place portrayed by some UK media. Deeper dimensions were investigated during presentations, meetings and debates as experts considered the fascinating interplay of onshore and offshore laws, burgeoning precedent in civil law versus established common law, and developing an effective legal strategy in this jurisdiction, while enabling other legal approaches elsewhere.

There is a real frontier feel, a pioneering spirit amongst practitioners and strategic advisers which unsurprisingly is attracting some of the sharpest and most creative legal minds and businesses around. Notably the removal of the UAE from the Financial Action Task Force (FATF) grey list in February this year has only increased its attractiveness, recognising as it does the UAE’s efforts to strengthen its anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks.

Interestingly, while there were business intelligence and corporate advisory firms aplenty at both conferences, only one panel that we attended included a strategic communications specialist. This is surprising given the central role that the discipline can play in effective reputation management during complex cross-border disputes.

Nonetheless, perhaps reflecting the region’s growth as a hub for resolving international disputes, many panels recognised the growing importance of reputation management and effective stakeholder communications, particularly around complex litigation, arbitrations and M&A.

In this regard, any consideration of communications must factor in the complexity of defamation laws across the GCC. For instance, while DIFC may be exempt from UAE law in relation to civil and commercial matters, UAE criminal law still applies, and defamation is a criminal offence under the Penal Code. Moreover, there is a special and more punitive offence for online offences under the new UAE Cyber Crime Law. Also worth bearing in mind is the fact that the UAE’s defamation laws are viewed by some to be far-reaching in jurisdictional scope; potentially bringing content from other jurisdiction under local laws. Countering this, many stressed that there are, of course, defences such as truth and the right to legal defence. All recommended that claimants and defendants seek specialist counsel as part of their Dubai or international legal and reputational strategies.

Finally, there was one theme on everyone’s lips that was noticeably the same as in London – namely the potential for and impact of AI on the legal system and more broadly. As part of a broader strategy to position itself away from traditional sectors like oil, the emirate launched an initiative earlier this year to become the world’s leading metropolis for AI. This seeks to train one million people in AI technologies within the next three years, transforming the region’s tech sector.

 

Key takeaways:

– Dubai is only likely to grow in strength and sophistication, with tech entrepreneurs and companies from all over the world making it a base of operations, attracting some of the most creative minds around.

– Specialist local knowledge and partners are essential to navigate the landscape, particularly given the complex interplay between onshore and offshore laws.

– There is a growing interest in strategic communications and reputation management, suggesting a significant role for advisory firms like DRD Partnership that understand how to operate in a fast moving and complex international arena.

– Dubai, like everywhere else, is only at the beginning of its AI journey which will undoubtedly bring further exponential growth as well as the need for new thinking to meet its challenges.

DRD Partnership will be exploring the role of strategic communications in disputes with future delegations at Nairobi Arbitration Week in March 2025 and London International Disputes Week in June 2025.