Electronic Arbitration as a Solution for Electronic Commerce Dispute Resolution in the United Arab

350 Pages·2017·2.06 MB·English

UNIVERSITY OF GLOUCESTERSHIRE
Doctorate in Commercial Law (DCL)

Electronic Arbitration as a Solution for Electronic Commerce
Dispute Resolution in the United Arab Emirates: Obstacles and
Enforceability Challenges

By
MOHAMMED AL HAMED

Thesis submitted to the
University of Gloucestershire
For the degree of
DOCTOR OF PHILOSOPHY
In
Commercial Law

May 2016

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Abstract

This thesis first examines the legislative framework in the UAE and its key guiding principles
from which arbitration laws are derived. Secondly, based on the above examination of the
existing legislative framework and literature the study identifiesthe various aspects of the
existing legislative framework that impact upon the enforceability of e-arbitration for e-
commerce dispute resolution in the UAE. Finally, the thesis demonstrates how e-arbitration
can be incorporated into e-commerce and arbitration procedures in the UAE.

Two methodologies, namely ‘explorative qualitative research method’ and ‘semi-structure
interview’ are employed for the study. The findings from the examination of legislative
framework and literature as well as the empirical field study show that the unprecedented
developments in Information Communications Technology (ICT) had influenced and altered
the traditional methods of societal interaction globally.

The mass adoption of the Internet platform for trading has not only sought to eliminate the
physical distance between the businesses and consumers but presented new avenues for
potentially higher sales, coverage, lower costs and all at high speed. The concept of electronic
trading (E-Trade) has naturally developed new markets and opportunities, which nations
within the Gulf Cooperation Council (GCC) such as the UAE are seeking to capture.

The findings also show that electronic arbitration (E-Arb) is eliminating the physical barriers
between businesses, consumers and others choosing to arbitrate in cyberspace. This implies
that E-Arb is perceived to be an additional component and extension of the growing E-
Commerce market and services. Therefore, adopting and supporting E-Arb provides an ideal
opportunity for the UAE as a global hub for commercial purposes. However, despite the
enthusiasm for the greater utilisation of ICT in UAE society, the domestic legalisation do not
fully recognise the distinctive feature of e-arbitration, which makes it difficult to link them
with international laws.

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The study also identifies concerns with the impact of E-Arb upon the traditional heritage and
cultural practices in the UAE. Therefore, the study recommends that the existing UAE
legislative framework is made compatible with international laws. It also recommends that
there are comprehensive education and research programs in place to transform the traditional
and cultural nuances of UAE society towards a greater understanding of developments in
modern technology.

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Dedication

I dedicate this thesis with deepest love and everlasting respect, to my Father and Mother; to
my wife and children: Ahmed, Luoluo, Sara, Aljoory & Alhoor; and to my brothers & my
sisters & relatives.
Without their support and encouragement,
I could not have reached this stage.

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Acknowledgements

I begin by thanking God Almighty for providing me with the health and the intellectual
ability necessary to complete this thesis. It is from him I draw my strength in life. I would
like to acknowledge the support of the UAE government for providing me with the financial
support to pursue my PhD in the UK. In specific, I would like to thank H.H.Sheikh
Mohammed Bin Zayed Al Nahyan, the Crown Prince, who provided me full support to
continue my studies in the UK. Without his support and encouragement, I could not have
reached this stage.

This Thesis would have remained incomplete without the support and persistence of my
supervisor Dr. Zahid Parvez. I would like to acknowledge the professional supervision,
counseling and guidance that he kindly provided me with. I would also like to express my
gratitude to Dr. Marwan Izzeldin for his kind support and guidance.

My thanks and respect go to my parents whose support, guidance, education and
unconditional love are beyond what I can express in mere words. I also acknowledge the
support and encouragement of my brothers, sisters and relatives for their constant
encouragement.

My special thanks go to my wife and my children: Ahmed, Luoluo, Sara, Aljoory and Alhoor
for their love, support and strength at all times. Their dedication, patience and confidence in
me, has been a major catalyst in my life to pursue my aspirations.

Finally I would like to thank my friends for their constant and unwavering support and for
providing me with the advice, encouragement and motivation to complete my Thesis.

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Declaration

I declare that the work presented in this thesis is my own and original and is carried out in
accordance with the regulation of the University of Gloucestershire except where indicated
by specific reference in the text.

Signed: MOHAMMED AHMED ABDULLA AL HAMED Date: 16/05/2016

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Table of Contents

Abstract ..................................................................................................................................... 2
Dedication ................................................................................................................................. 4
Acknowledgements .................................................................................................................. 5
Declaration................................................................................................................................ 6
Transliteration Table .............................................................................................................. 7
List of Tables and Figures .................................................................................................... 16
List of Abbreviations and Acronyms ................................................................................... 17
List of Cases ............................................................................................................................ 20
List of Statutes, Regulations and Other Official Documents ............................................. 23

CHAPTER ONE: INTRODUCTION TO STUDY ............................................................. 26
1.0 Introduction ............................................................................................................................... 26
1.1 Background ............................................................................................................................... 27
1.2 Significance of the Research..................................................................................................... 28
1.3 Research Questions ................................................................................................................... 29
1.4 Organisation of the Thesis ........................................................................................................ 31

CHAPTER TWO: LITERATURE REVIEW ..................................................................... 35
2.0 Introduction ............................................................................................................................... 35
2.1 Electronic Commerce in the Gulf ............................................................................................ 35
2.2 Arbitration in the Middle East and in the Gulf ...................................................................... 40
2.3 Arbitration in the UAE ............................................................................................................. 41
2.4 Electronic Arbitration .............................................................................................................. 44
2.5 Summary .................................................................................................................................... 45

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CHAPTER THREE: RESEARCH METHODOLOGY .................................................... 46
3.0 Introduction ............................................................................................................................... 46
3.1 Exploratory Study ..................................................................................................................... 46
3.2 Exploratory Empirical Qualitative Methodology .................................................................. 48
3.3 Research Design ....................................................................................................................... 50
3.3.1 Sampling .............................................................................................................................. 51
3.3.1.1 Purposive Sampling .......................................................................................................... 51
3.4 Data Collection Instruments .................................................................................................... 52
3.4.1 Semi-Structured Individual Interviews (SSI) ....................................................................... 52
3.4.1.1 Interview Preparation ........................................................................................................ 53
3.4.1.2 Interview Design ............................................................................................................... 54
3.4.2 Qualitative Secondary Sources: Document Analysis ........................................................... 54
3.5 Data Analysis ............................................................................................................................. 55
3.5.1 Deductive Approach ............................................................................................................ 55
3.6 Ethical Considerations .............................................................................................................. 56
3.6.1 Consent ................................................................................................................................ 57
3.6.2 Debriefing ............................................................................................................................ 57
3.6.3 Confidentiality ..................................................................................................................... 57
3.6.4 Right to Withdraw from Participation ................................................................................. 57
3.6.5 Harm .................................................................................................................................... 58
3.6.6 Due Diligence ...................................................................................................................... 58
3.6.7 Validity ................................................................................................................................ 58
3.6.8 Reliability ............................................................................................................................. 59
3.7 Summary of Research Process and Methods.......................................................................... 59

CHAPTER FOUR: ELECTRONIC COMMERCE: HISTORY, DEVELOPMENTS AND
FUTURES ................................................................................................................................. 60
4.0 Introduction ............................................................................................................................... 60
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4.1 E-Commerce - A Brief Discussion ........................................................................................... 60
4.2 Definition of E-Commerce........................................................................................................ 63
4.3 The Scope of E-Commerce ....................................................................................................... 67
4.3.1 Forms of E-Commerce ......................................................................................................... 69
4.4 The Prospects and Future of E- Commerce ........................................................................... 71
4.4.1 Consumer Protection ............................................................................................................ 73
4.4.2 Guaranteeing Variety and Competition Within the Market ................................................. 74
4.4.3 Financial and Payment Systems ........................................................................................... 75
4.4.4 Collection ............................................................................................................................. 75
4.4.5 Intellectual Property Rights ................................................................................................. 76
4.5 Summary .................................................................................................................................... 76

CHAPTER FIVE: ELECTRONIC COMMERCE IN THE UAE .................................... 78
5.0 Introduction ............................................................................................................................... 78
5.1 Review of Literature ................................................................................................................. 79
5.2 E-Commerce in UAE Legislation ............................................................................................ 82
5.3 E-Commerce Contracts in UAE Legislation........................................................................... 87
5.3.1 The E-Contract and the Conventional Contract in UAE Legislation ................................... 88
5.3.2 The E-Contract as an International Contract ........................................................................ 90
5.3.3 The Timing of an E-Contract ............................................................................................... 91
5.4 Authenticating E-Commerce Contracts via Official Documents in the UAE ...................... 95
5.4.1 Definition of Official Documentation and the Requirements for their Authority in
Authentication in UAE Legislature ............................................................................................... 96
5.4.2 Definition of Paper Documentation and the Requirements for their Authority in
Authentication in the UAE Legislature ......................................................................................... 96
5.4.3 Definition of Customary Documents and the Requirements for their Authority in
Authentication in the UAE Legislature ......................................................................................... 98
5.5 Summary .................................................................................................................................... 99

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