DIFC Courts
The DIFC Courts are an independent English language common law judiciary, based in the Dubai International Financial Centre (DIFC) with jurisdiction governing civil and commercial disputes nationally, regionally and worldwide. The Courts began operations in 2006.
Originally, the jurisdiction of the DIFC Courts was limited to the geographical area of the DIFC. On 31 October 2011, the signing of Dubai Law No 16.[1] allowed the DIFC Courts to hear any local or international cases and to resolve commercial disputes with the consent of all parties.
The DIFC Courts are part of the sovereign structure of the Emirate of Dubai, within the UAE. Specifically, Dubai Law No.12 of 2004 [2] ('Dubai Law No.12') is the governing statute which originally established the DIFC Judicial Authority (including the two DIFC Courts, the Court of First Instance and the Court of Appeal).
History
In September 2004, Federal legislation of the UAE authorised the seven Emirates to create the legal structures necessary for international financial centres to be established. The then Ruler of Dubai, Sheikh Maktoum Bin Rashid Al Maktoum, enacted Dubai Law No.9 of 2004 ('Dubai Law No.9') [3] and appointed His Highness Sheikh Mohammed Bin Rashid Al Maktoum (then Crown Prince of Dubai) as President of the DIFC.
The Dubai Law No.9 provided that the Centre had three constituent bodies - the DIFC authority (DIFCA); the Dubai Financial Services Authority (DFSA) and the DIFC Judicial Authority (now known as DIFC Courts).
Jurisdiction
The DIFC Courts have jurisdiction over most civil and commercial matters occurring within the DIFC (alongside their international jurisdiction) This means that, where DIFC Courts have jurisdiction, such jurisdiction will exclude the jurisdiction of the Dubai Courts. Parties are free to agree to submit to the jurisdiction of any other court under Article 5(2) of Dubai Law No 12 of 2004 (except for objections filed against decisions made by the Centre's Bodies, which are subject to objection in accordance with the Centre's Laws and Regulations).
| DIFC Courts areas of law |
|---|
| Companies Law |
| Contract Law |
| Arbitration Law |
| Insolvency Law |
| Data Protection Law |
| Collective Investment Law |
| Investment Trust Law |
| Single Family Office |
| Special Purpose Company Regulations |
| Payment Systems Settlement Finality Law |
| Preferential Creditor Regulations |
| Strata Title Law |
| Trust Law |
The DIFC Courts have no jurisdiction over criminal matters and all criminal matters continue to be referred to the Dubai Police. The DIFC Courts also have no jurisdiction over family and matrimonial matters.
Legislation & Rules
The DIFC laws and regulations are developed by the DIFC Authority (DIFCA) and the Dubai Financial Services Authority (DFSA). The DIFCA is responsible for the laws and regulations that regulate the non-financial activities within the DIFC, including employment law, companies and commercial law and real estate law. The DFSA is responsible for the laws and regulations relating to the all financial and ancillary services within the DIFC.
The DIFC Courts apply the DIFC's laws and regulations, unless the parties explicitly agree that another law governs their dispute.
Judgments, Orders and Enforcement
The DIFC Courts have the power to make orders and give directions as to the conduct of any proceeding before the DIFC Courts that it considers appropriate, including:-
- Orders prescribed by any legislation under DIFC law;
- Injunctions, including requiring an act to be done;
- Interim or interlocutory Orders;
- Orders made without notice to any other party and the circumstances in which such Orders are appropriate;
- Contempt Orders;
- Orders made in the interest of justice or
- Referral of matters to the Attorney General of Dubai
The DIFC Courts have the power to enforce Judgments, Orders or Awards made or ratified by the DIFC Courts within the DIFC. The Chief Justice shall appoint a Judge of the First Instance Court as an Executive Judge with the jurisdiction to issue Execution Orders within the DIFC.
In June 2012, an official enforcement guide [4] was created to clarify procedures for lawyers, businesses and individuals using the DIFC Courts, and provides details on enforcing DIFC Courts' judgments outside the DIFC in Dubai, the UAE, and the GCC and across the world. The document clarifies where and how DIFC Courts' judgments are enforceable, and shows the results of extensive consultation with leading international and regional legal firms registered with the Courts. The document is available through the DIFC Courts’ website.
Court of First Instance (CFI)
Hears cases where the amount in dispute exceeds Dhs100, 000. A single Judge hears the proceedings. The CFI has exclusive jurisdiction over any civil or commercial case when it relates to the DIFC, and following the amendment to the governing law in October 2011, DIFC Courts can also hear cases when the contract in question specifies DIFC Courts’ jurisdiction (pre-dispute jurisdiction) or when both parties elect to use DIFC Courts to resolve a dispute which has already arisen (post-dispute jurisdiction).
Court of Appeal (CA)
Deals with a variety of civil and commercial disputes. It comprises at least three judges, with the Chief Justice. The CA has exclusive jurisdiction over: 1. Appeals filed against judgments and awards made by the CFI. 2. Interpretation of any article of the DIFC’s laws based upon the request of any of the DIFC’s establishments, provided that the establishment obtains leave of the Chief Justice in this regard. Such interpretation shall have the power of law. 3. The Court of Appeal is the highest court in the DIFC Courts and no appeal shall arise from a decision of this court.
Small Claims Tribunal (SCT)
The only operating tribunal of its kind in the region, the SCT was set up to enable access to justice in a swift and efficient manner. It can hear:
Any case that is related to the DIFC, where the amount of the claim or the value of the subject matter of the claim does not exceed AED100,000 or AED200,000 [5] for employment matters; or
- A case in which the claim pertains to an employment issue of any amount and both parties to the claim elect in writing that it be heard by the SCT; or
- Non-employment related cases where the amount of the claim or the value of the subject-matter of the claim does not exceed AED500, 000; and all parties to the claim elect in writing that it be heard by the SCT.
- Any case that is not related to the DIFC, where both parties consent to using the SCT and either i) where the amount of the claim or the value of the subject matter of the claim does not exceed AED 500,000 or ii) where the claim is related to an employment issue of any claim amount.
Pro Bono
The DIFC Courts implemented the Middle East’s first [6] Pro Bono Programme in 2009. The Courts offer services from basic advice to full case management and representation in proceedings for eligible individuals. The Pro Bono Programme is designed to ensure that professional legal advice is available to anyone who can demonstrate that they are unable to afford legal representation.
Courts Users’ Committee
The DIFC Courts' Users’ Committee is a liaison between the DIFC Courts and the users of the Court (these include legal practitioners registered with the Courts). The Committee advises on performance, perceived reputation, strategic direction, international best practice, as well as local legal developments. The Committee advises the Chief Justice about administrative issues related to the Courts and any other appropriate issues which will help increase the level of users' satisfaction.
| Judicial Bench |
|---|
| Michael Hwang, Singapore (Chief Justice) |
| Sir Anthony David Colman, UK (Deputy Chief Justice) |
| Justice Sir John Murray Chadwick, UK |
| Justice Tan Sri Siti Norma Yakoob, Malaysia |
| Justice David A R Williams QC, New Zealand |
| Justice Sir David Steel, UK |
| HE Justice Ali Shamis Al Madhani, UAE |
| HE Justice Omar Juma Al Muhairi, UAE |
| Small Claims Judge |
|---|
| Shamlan Al Sawalehi |
| Courts' Staff | |
|---|---|
| Registrar | Mark Beer, OBE |
| Deputy Registrar & SCT Registrar | Amna Al Owais |
| HR & Business Excellence Manager | Reem Al Shihhe |
| Head of Communications | Stefan Kemball |
| Judicial Coordinator | Rita Englebrecht |
| Case Progression Officer | Maha Al Mehairi |