Mohammed bin Rashid issues law on the DIFC Courts

- New law establishes a Mediation Centre, providing an alternative pathway for dispute resolution

In his capacity as the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, issued Law No. (2) of 2025, pertaining to the Dubai International Financial Centre Courts (DIFC Courts).

Provisions of the new law seek to regulate the judicial and administrative aspects of the DIFC Courts alongside existing DIFC regulations. The law also defines the jurisdictional remit and ensures the independent operation of DIFC Courts, including the Court of Appeal, the Court of First Instance, and the Small Claims Tribunal. It also outlines the procedural framework for the appointment of the Chief Justice and the Director of the Courts and their respective responsibilities.

The new law offers an alternative dispute resolution pathway by establishing a Mediation Centre, where parties can amicably resolve their disputes with the help of mediators registered with the DIFC Courts. The president of the DIFC is responsible for defining its operational framework, jurisdiction, and the procedures to be followed.

Under the new law, the DIFC Courts have exclusive jurisdiction to hear and resolve civil, commercial, and labour claims involving the DIFC’s bodies or institutions, whether filed by or against them, or in which they are a party. They also handle claims involving the DIFC’s bodies, institutions, activities, and employees, as well as matters related to trust deeds, non-Muslim wills, and the recognition or enforcement of arbitration awards under DIFC arbitration law.

The law also grants the DIFC Courts jurisdiction to hear requests for provisional and protective measures related to cases under their jurisdiction, including identity and asset inquiries. The courts also handle requests or arbitration procedures filed outside the DIFC, provided appropriate protective measures are taken within the Centre.

The law outlines the jurisdiction of the DIFC Courts, covering litigation and evidence procedures, urgent matters, enforcement, exceptions to the compensation bond requirement, technical defects, procedural errors, and statutes of limitations.

The law replaces DIFC Law No. (10) of 2004 and Law No. (12) of 2004 concerning the DIFC Courts. This law also annuls any conflicting provisions in other legislation. Regulations and decisions issued under Law No. (10) of 2004 and Law No. (12) of 2004 will remain in effect, provided they do not contradict the provisions of Law No. (2) of 2025, until new regulations and decisions are introduced to replace them.