Introduction: A New Chapter in DIFC’s Legal Evolution

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai, issued Law No. (2) of 2025 concerning the Dubai International Financial Centre Courts. This landmark legislation represents a significant evolution in the DIFC legal framework, replacing Law No. (10) of 2004 and introducing comprehensive reforms to the structure, jurisdiction, and procedures of the DIFC Courts. As one of the world’s leading financial hubs, the DIFC’s legal system plays a crucial role in attracting international business and investment. The new law strengthens this foundation by modernizing court operations, expanding jurisdictional reach, and enhancing enforcement mechanisms.

Understanding the DIFC Courts Structure Under the New Law

The DIFC Courts structure established under Law No. (2) of 2025 maintains a clear hierarchical organization while introducing greater flexibility and specialization. At the apex sits the Court of Appeal, comprising one or more circuits with panels of three to five judges presided over by the Chief Justice or a senior judge. This court serves as the final arbiter within the DIFC judicial system, hearing appeals from lower courts and issuing authoritative interpretations of DIFC legislation.

Below the Court of Appeal are the Courts of First Instance, which now include provisions for specialized courts to handle specific types of disputes. This innovation allows for focused judicial expertise in complex areas such as banking, insurance, or intellectual property. The law grants the Chief Justice authority to establish these specialized courts as needed, ensuring the DIFC Courts can adapt to evolving business needs.

At the foundation of the DIFC Courts structure is the Small Claims Tribunal, designed to provide accessible justice for disputes of lower value. The Chief Justice determines the monetary thresholds and types of claims that fall within this tribunal’s jurisdiction, ensuring proportionate dispute resolution pathways for all DIFC users.

Expanded DIFC Courts Jurisdiction and Powers

The DIFC Courts jurisdiction has been significantly expanded under the new law, granting exclusive authority over a comprehensive range of matters. The Courts of First Instance now have jurisdiction over all civil and commercial claims arising from or related to contracts concluded or performed within the DIFC, as well as disputes between DIFC establishments and their employees.

The Court of Appeal possesses broad appellate powers, including the authority to affirm, vary, or set aside judgments from lower courts. It can also issue orders that could have been issued by the lower court, attach terms or conditions to its orders, and make any judgment or order that the justice of the case requires. These extensive powers ensure the Court of Appeal can effectively oversee the DIFC judicial system and correct errors when necessary.

Perhaps most notably, the DIFC Courts jurisdiction now explicitly covers the recognition and enforcement of foreign judgments and arbitral awards. This enhancement positions the DIFC as a hub for international dispute resolution, allowing businesses to enforce rights across jurisdictions through the DIFC Courts.

Modernized DIFC Courts Procedures and Evidence Rules

The DIFC Courts Law 2025 introduces several innovative procedural aspects that modernize the courts’ operations. Among the most significant is the provision for remote testimony, allowing witnesses to give evidence via video link, telephone, or other electronic means. This forward-thinking approach enhances accessibility and efficiency, particularly for international disputes involving parties and witnesses from multiple jurisdictions.

The law also establishes flexible evidence rules, permitting testimony to be given orally, by affidavit, or as otherwise directed by the court. This flexibility allows judges to tailor procedural requirements to the specific needs of each case, promoting both efficiency and fairness.

Transparency is emphasized through the requirement that hearings generally be conducted in public, with provisions for closed sessions only when necessary for reasons such as public order, national security, or the protection of confidential information. This commitment to open justice enhances the credibility and accountability of the DIFC Courts.

DIFC Courts Enforcement Mechanisms Within and Beyond the Centre

Robust enforcement mechanisms are crucial to the effectiveness of any judicial system, and the new law establishes comprehensive provisions in this area. A dedicated Enforcement Judge, appointed from among the DIFC Courts’ Judges, oversees the execution of judgments, decisions, and orders. This judge is supported by enforcement bailiffs and may contract with entities to assist in enforcement activities.

The law creates a seamless enforcement framework between the DIFC Courts and the Dubai Courts, allowing judgments and orders issued by DIFC Courts to be executed by Dubai Courts without review of the merits.

This provision removes potential barriers to enforcement and ensures that DIFC judgments carry real weight throughout the Emirate. Furthermore, the law provides for electronic enforcement processes, allowing parties to submit enforcement applications through electronic channels, reflecting Dubai’s commitment to digital transformation in government services.

Particularly significant is the provision enabling DIFC Courts’ judgments to be executed against assets located outside the DIFC, including those within other parts of Dubai and potentially internationally. This expanded enforcement reach greatly enhances the practical value of DIFC Court judgments to international businesses, providing confidence that rights established within the DIFC can be effectively protected.

Judicial Appointments and Qualifications: Ensuring Excellence on the Bench

The DIFC Courts Law 2025 establishes rigorous standards for judicial appointments, demonstrating Dubai’s commitment to maintaining a world-class judiciary. The Chief Justice and other judges are appointed by decree of the Ruler, ensuring the highest level of authority and legitimacy. The law requires judges to possess extensive legal expertise, with specific emphasis on experience in civil and commercial matters relevant to the DIFC’s role as a financial center.

Notably, the law maintains the DIFC’s international character by allowing qualified legal professionals from various jurisdictions to serve as judges. This approach acknowledges the global nature of the DIFC and ensures that its courts benefit from diverse legal perspectives. The law also emphasizes judicial independence, with provisions protecting judges from removal except in specific circumstances and according to established procedures.

The law establishes a clear judicial hierarchy, with the Chief Justice at the apex, followed by the Deputy Chief Justice, Judges of the Court of Appeal, and Judges of the Courts of First Instance. This structure provides clarity regarding authority while maintaining flexibility to adapt to changing needs.

International Cooperation and Recognition: Positioning the DIFC Courts Globally

A remarkable aspect of the DIFC Courts Law 2025 is its emphasis on international cooperation and recognition. The law explicitly authorizes the DIFC Courts to enter into memoranda of understanding and other arrangements with courts and judicial authorities outside the DIFC. These provisions recognize the increasingly borderless nature of commercial disputes and position the DIFC Courts as participants in a global network of judicial cooperation.

The law also establishes mechanisms for the recognition and enforcement of foreign judgments and arbitral awards, enhancing Dubai’s attractiveness as a venue for international dispute resolution. By creating clear pathways for the enforcement of rights established in other jurisdictions, the DIFC Courts offer businesses a valuable hub for coordinating their global legal strategies.

These international provisions reflect Dubai’s vision of the DIFC as not merely a local financial center but a global nexus for business activity. The law’s forward-looking approach to international judicial cooperation aligns with broader trends in global commerce, where businesses increasingly operate across multiple jurisdictions and require legal systems capable of addressing cross-border complexities.

Conclusion: A Foundation for the Future of International Business in Dubai

The DIFC Courts Law No. (2) of 2025 represents a significant advancement in Dubai’s legal infrastructure, providing a robust foundation for the continued growth of the DIFC as a leading global financial center. By modernizing court structures, expanding jurisdictional reach, enhancing enforcement mechanisms, and emphasizing international cooperation, the law addresses the evolving needs of international businesses.

The law’s focus on accessibility, efficiency, and transparency demonstrates Dubai’s commitment to providing a business-friendly legal environment that meets the highest international standards. The provisions allowing for specialized courts, flexible procedures, and electronic processes reflect an understanding of the practical needs of commercial parties engaged in complex, high-value transactions.

As the DIFC continues to attract international businesses and investment, the Courts Law 2025 will play a crucial role in providing the legal certainty and dispute resolution mechanisms necessary for commercial confidence. Through this comprehensive legislation, Dubai has further strengthened its position as a jurisdiction of choice for global business, offering not only economic opportunity but also the rule of law protections essential for sustainable commercial relationships.

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