A wide-ranging and important new law has just been issued in respect of the Dubai International Financial Centre (DIFC) Courts. Law No. (2) of 2025 pertaining to the DIFC Courts (the New Law) has been signed by HH Sheikh Mohammed bin Rashid Al Maktoum in his capacity as Ruler of Dubai and will take effect on the day it is published in the Official Gazette.
The New Law replaces DIFC Law No. (10) of 2004 and Law No. (12) of 2004 concerning the DIFC Courts and also annuls any conflicting provisions in other legislation. Regulations and decisions issued under the repealed laws will remain in effect, provided they do not contradict the provisions of the New Law, pending new regulations and decisions being introduced to replace them.
So what does the New Law provide? Once it is published and available DIFC Court practitioners will no doubt review its provisions in depth and we intend to issue an article (or articles) commenting on the new provisions. For now, from publicly available sources, we note that the New Law sets out when the DIFC Courts have jurisdiction in respect of:
- Civil, commercial and labour claims against DIFC bodies and institutions, noting that the DIFC Court has exclusive jurisdiction unless the parties have opted out.
- Claims involving DIFC bodies or institutions, activities and employees.
- Trust Deeds.
- Wills of Non-Muslims.
- Recognition and enforcement of arbitration awards under the DIFC Arbitration Law.
- Requests for provisional and protective measures relating to cases under the jurisdiction of the DIFC Courts, including identity and asset inquiries.
- Requests or arbitration procedures filed outside the DIFC, provided appropriate protective measures are taken within the DIFC.
- Litigation and evidence procedures, urgent matters, enforcement, exceptions to the compensation bond requirement, technical defects, procedural errors, and statutes of limitation.
In addition the New Law:
- Regulates the judicial and administrative aspects of the DIFC Courts including the procedural framework for appointment of the Chief Justice, the Director of the Courts and their respective responsibilities
- Defines the jurisdictional remit and independent operation of the DIFC Courts
- Offers an alternative dispute resolution pathway by establishing a Mediation Centre
Clearly DIFC Court practitioners and users of DIFC Courts will need to spend time acquainting themselves with the New Law and the Courts are likely to be busy interpreting its provisions during the coming period.