Overview of the DIFC Courts Law 2025

On 10 March 2025, Dubai enacted Law No. (2) of 2025 concerning Dubai International Financial Centre Courts (the “New DIFC Court Law”). The New DIFC Court Law came into force as of 14 March 2025 and replaces both DIFC Law No. 10 of 2004 (the “Old DIFC Court Law”) and Dubai Law No. 12 of 2004 (the “Judicial Authority Law”).

These changes are crucial for legal practitioners and parties engaged with or considering the DIFC Courts' jurisdiction. Below is a summary of the key developments under the New DIFC Court Law:

Jurisdiction

The jurisdictional gateways previously set out in article 5(A) of the Judicial Authority Law are now set out in article 14(A) of the New DIFC Court Law. Key expansions include:

Employment Claims

Articles 14(A)(1)-(3) which relate to civil and commercial claims now explicitly cover employment disputes. Majority of employment claims are currently dealt with by the Small Claims Tribunal of the DIFC. Although there has been speculation that the DIFC Court may set up a separate employment division, the Chief Justice in a recent discussion with BarMENA confirmed that there are no such plans afoot.

Arbitration

Article 14(A)(6)(ii) confirms that the DIFC Courts will be supervisory Courts where arbitral proceedings take place within the DIFC, and the parties have not agreed on the seat of the arbitration.

International Treaties

Article 14(A)(7) broadens jurisdiction to include claims under international treaties and conventions to which the UAE has acceded, enhancing the possibility of parties using the DIFC Courts to commence international treaty claims. Article 33 now confirms that international treaties to which the UAE are party also apply in the DIFC.

Interim Relief

Article 15(4) codifies the decision of the DIFC Court of Appeal in Carmon Reestrutura¹, which affirmed the free-standing jurisdiction of the DIFC Courts to grant interim relief in support of foreign litigation or arbitration proceedings.

Court of Appeal

Composition

Article 17(A) provides that in “exceptional” cases, and upon a decision of the Chief Justice, the Court of Appeal may be comprised of five judges rather than the usual three. Whilst the New DIFC Court Rules do not provide guidance as to what might constitute an “exceptional” case, it is likely to encompass cases which consider fundamental aspects of the DIFC Courts’ jurisdiction and operation or where the parties are asking the Court of Appeal to overturn one of its previous decisions.

Dissenting Opinions

Although there was nothing previously preventing judges in the Court of Appeal from issuing dissenting opinions, article 17(D) now expressly confirms that a dissenting judge(s) can include their dissenting opinion.

Contempt

Article 35 sets out in more detail than the Old DIFC Court Law the circumstances in which someone may be found to be in contempt of court. Of particular interest is article 35(A)(1), which establishes contempt for “[w]ilfully insulting a … lawyer conducting business in the DIFC Courts, either before or during proceedings”. Given the adversarial nature of DIFC proceedings, concerns were raised about this provision in a recent BarMENA discussion with the Chief Justice. The Chief Justice shared practitioners’ concerns about this provision and stated that it may need to be revisited in due course.

The new article however does not change the ultimate issue that unlike in other common law jurisdiction the Court does not issue criminal penalties or imprisonment for contempt.

Enforcement

The process to be followed for enforcing judgments, orders and arbitral awards both inside and outside the DIFC remains the same as before. However, it is notable that article 32 preserves the conduit jurisdiction of the DIFC Courts.

Enforcement Writ

Article 30(B) expands the scope of documents that be used to obtain an Enforcement Writ from solely judgments, decisions and orders of the DIFC Court and awards ratified by the DIFC Court to also include signed settlement agreement approved by the DIFC Courts Mediation Centre or ratified by the DIFC Courts. This expansion aligns with the provision of the Singapore Convention on Mediation.

Other

DIFC Courts Affairs Committee

Article 22 mandates the establishment of a new DIFC Courts Affairs Committee to propose general policy, strategic plans, objectives and development plans for the judicial and administrative bodies, as well as proposing and reviewing draft laws, rules, bylaws and regulations relating to the DIFC Courts. It is unclear whether this will supplement or replace the existing Court Users’ and Rules Committees.

Mediation Centre

Article 13 mandates the establishment of a Mediation Centre at the DIFC Courts. We understand that steps have been commenced to set up such a centre and that judges will soon encourage mediation in suitable cases.

Conclusion

The New DIFC Court Law simplifies the legal framework of the DIFC by consolidating the Old DIFC Court Law and the Judicial Authority Law. It provides helpful clarity on various areas of DIFC practice, particularly in respect of the DIFC Courts’ jurisdiction by codifying the DIFC Courts’ jurisdiction to grant interim relief in aid of foreign proceedings.

The New DIFC Court Law can be seen as a positive step by the Government of Dubai and the DIFC Courts to continue to evolve practice and procedure as the DIFC jurisdiction matures further, and it is possible that further developments may follow in respect of other DIFC legislation.

Our expertise

Our Common Law Disputes team specialises in representing clients in the Dubai International Financial Centre (DIFC) Courts and in arbitration proceedings. Our expertise spans a wide range of disputes, including financial services, shareholder and partnership issues, contractual disputes, professional negligence, fraud, insolvency, and enforcement matters. We specialise in enforcing securities, judgments, and recovering assets through GCC court processes, handling cases from small claims to complex commercial disputes. Additionally, we provide strategic guidance in arbitration, leveraging the DIFC's capabilities to resolve disputes efficiently. We also actively participate in the DIFC Courts Rules Committee, contributing to the refinement of procedural rules and practice directions.

¹ Carmon Reestrutura-engenharia E Serviços Técnios Especiais.(SU) LDA v Antonio Joao Catete Lopes Cuenda [2024] DIFC CA 003.