A complete guide to the DIFC Courts
The Dubai International Financial Centre (DIFC Dubai) is a globally recognised financial hub that supports the trade operations of more than 3,600 registered companies. The area is also home to the DIFC Courts, an independent judicial system and legal framework based on the English common law to create a thriving ecosystem that facilitates the investment flows of the burgeoning economies of the MEASA region.
WHAT ARE THE DIFC COURTS?
The DIFC courts are special courts in Dubai established to serve the international institutions operating in the city and the UAE. Created in 2004 by His Highness (Late) Sheikh Maktoum bin Rashid Al Maktoum, then Ruler of Dubai, these special courts follow the English common law system to deliver swift and independent justice for settling local and international civil and commercial disputes in Dubai.
The DIFC special courts were established under the Dubai Law No. 12 of 2004 (as amended) and DIFC Law No: 10 of 2004. The laws that constitute the jurisdiction, functions and administration of DIFC Courts are designed to ensure flexibility, efficiency and greater certainty in legal procedures that meet the highest international standards.
THE JURISDICTION AND FUNCTIONS OF DIFC COURTS
The DIFC Courts’ jurisdiction only covers civil and commercial disputes. Presently, criminal proceedings do not fall under the charter of these courts. Any criminal issues that may arise within the DIFC Dubai are referred to the appropriate external channels.
Till 2011, DIFC Courts only heard cases related to DIFC disputes. However, after its tremendous success, its jurisdiction was extended. The court could hear any civil or commercial cases in which the two parties select DIFC Court’s jurisdiction either in the initial agreement or post dispute.
DIFC Courts independently perform their duties in compliance with the specific laws and regulations of DIFC.
Within their jurisdiction, these courts may choose to settle commercial and civil disputes as they see fit, using one or more of the following remedies:
- Damages
- Compensations
- Restitution
- Disgorgement
The essential overarching services provided by the court include:
- Registration of Practitioners
- e-Bundle
- Probate
- Pro Bono Programme
- Arbitration suites
- Service Charter
- Wills & Probate Services
- Courts of the future
TYPES OF COURTS AND SERVICES
The DIFC law is administered through specialised courts and services. The DIFC legal framework can be divided into different categories, as detailed below.
SMALL CLAIMS TRIBUNAL
The DIFC Courts Small Claims Tribunal (SCT) was formed in 2007 to hear and resolve specific claims falling under the DIFC jurisdiction. The SCT has a great dispute resolution turnaround time that averages four weeks and usually deals with cases:
- Where the value or amount of the subject matter/claim is less than AED 500k.
- Where in case of an employment dispute, the parties involved have agreed in writing that the DIFC Courts Small Claims Tribunal settle the claim.
- Instances that do not fall in the first two provisions, but the parties involved have agreed (in writing) that the SCT settle the claim and the value of the claim is less than AED 1M.
Entities dissatisfied with the outcome of their proceedings at the SCT may seek legal advice before filing an appeal in the Court of First Instance (CFI).
COURT OF FIRST INSTANCE
The Court of First Instance holds single-judge proceedings with complete jurisdiction over all disputes about:
- The entities operating within and/or registered under DIFC laws
- Disputes in contracts that involve the DIFC
- Instances where parties filing the dispute have a written agreement to use DIFC Courts
- Any applications that fall under the jurisdiction of DIFC Courts in compliance with the DIFC laws
- Objections and appeals against any decisions made by other DIFC regulatory bodies, as long as they fall under DIFC laws
Appeals against the decisions of the Court of First Instance can be made in the Court of Appeal.
COURT OF APPEAL
The DIFC Court of Appeal is the highest court in the DIFC legal framework. This is an appellate court where parties seeking legal justice can only appeal against the decisions made by lower courts. This court does not deal with new cases. Only cases previously decided can be filed in the Court of Appeal for a judicial review. The court also provides the interpretation of any DIFC laws article upon request by DIFC’s bodies.
COURTS OF THE FUTURE
This court division only hears technically complex cases. Specialist judges evaluate cases against industry-specific rules to fast-track dispute resolution. For instance, the court will hear cases regarding engineering or claims arising from damage caused by a fire in the construction sector.
Similarly, technology-related offences could include liability against cybercrime incidents, data breaches, data misuse and issues related to introducing new technology. Tech lab and space-related issues come under the umbrella of Courts of the Future.
DIGITAL ECONOMY COURT
DIFC Courts have also set up a special court to look into disputes originating from the digital economy. It looks into local and international disputes related to current and emerging technologies. This could include big data, blockchain, cloud services, 3D printing and robotics.
ARBITRATION DIVISION
Another important service rendered by the DIFC Courts is Arbitration Division, particularly for entities in the MENA region. Adopting common law principles in their proceedings, these courts employ judges specialised in international arbitration to deal with:
- Appointment of independent arbitrators
- Interpretation of arbitrary agreements
- Implementation of interim measures for the duration of arbitrary proceedings
- Enforcement of the decision once the process concludes
To assist the Division, an Arbitration Working Group was also formed. The panel of experts in the group were requested to share best practices and developments with an advisory team of arbitration professionals, educational institutes, industry-related organisations, bodies and centres.
WILLS SERVICE
This service by DIFC Courts gives all non-Muslims investing and residing in the country the choice to transfer their assets to their children or appoint guardians. Types of will include Full Will, Property Will, Financial Assets and Business Owners Will.
IMPLEMENTATION OF DIFC COURT JUDGEMENTS
DIFC is now recognised as one of the strongest enforcement regimes in the world. The DIFC Court judgements are enforced through various treaties, conventions and reciprocal agreements. And DIFC court decisions are implemented locally, regionally and internationally.
DIFC COURTS LOCATION, TIMINGS AND CONTACT
The DIFC Courts are located on the ground floor in Building 4 of The Gate District in DIFC.
TIMINGS
The DIFC Courts opening hours are as follows:
- Office hours: 08:00 am to 04:00 pm | Closed on the weekends
- Registry hours: 08:30 am to 04:00 pm | Closed on the weekends
CONTACT
You can contact the DIFC Courts via:
- Phone number: +971-4-427-3333
FREQUENTLY ASKED QUESTIONS
Here are the answers to some frequently asked questions about the DIFC Courts and their procedures that may help you understand the system better.
WHAT IS THE DIFFERENCE BETWEEN DUBAI COURTS AND THE DIFC COURTS?
While the DIFC Courts are part of the courts in Dubai, two basic things set them apart:
- Jurisdiction
- The laws they follow
As mentioned above, the DIFC Courts have jurisdiction over a limited type of civil and commercial disputes. The civil courts in Dubai hear all other cases on these matters. Second, DIFC Courts decide cases based on English common law, whereas the civil courts in Dubai follow the Federal Civil Procedural Law for the same.
WHAT LANGUAGE DO DIFC COURTS OPERATE IN?
All legal proceedings in the DIFC Courts are held in English. The documents submitted to the court must also be in English.
HOW CAN I FILE A CASE IN THE DIFC COURTS?
You can apply via the e-Registry portal on the DIFC website. You may have to create an account and log in first before filing a case application. For further details, visit the official website – Forms on the Courts section.
As mentioned earlier, claims and cases DIFC Courts deal with may pertain to:
- The entities operating within and/or registered under DIFC laws
- Disputes in contracts that involve the DIFC
- Instances in which parties have a written agreement to use DIFC Courts to handle a dispute
WHAT IS THE COST OF USING DIFC COURTS?
The DIFC Courts fees are different for different services. You can refer to the DIFC Courts fees structure for a detailed insight into the cost of using these specialised courts in Dubai.
The Academy’s Pro Bono Programme allows people in need to request free-of-cost services via volunteering lawyers and law firms in Dubai. For further details about the programme, you can call +971-4-427-3390.
The DIFC is a free zone regulated by a separate set of laws that undergo regular amendments for increased efficiency. For instance, the leasing law in DIFC was implemented to clarify the legal stance of leasing disputes and their resolution. Before that, the new gratuity law in the DIFC was implemented in January 2020.
Civil courts in Dubai and the UAE handle various legal matters. Apart from resolving legal disputes that may arise in everyday life to administering court marriages in the UAE – their jurisdiction’s scope is expansive. Similarly, personal family laws in the UAE are also enforced by courts.
People can choose to file a civil lawsuit in the UAE related to child custody, rental disagreements and labour and commercial disputes, among other matters.
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