Sheikh Mohammed Bin Rashid Al Maktoum Issues New Law Regulating DIFC Courts In Dubai

His Highness Sheikh Mohammed bin Rashid Al Maktoum, in his role as the Ruler of Dubai, has enacted Law No. (2) of 2025 concerning the Dubai International Financial Centre Courts (DIFC Courts). This law aims to regulate both judicial and administrative functions within the DIFC Courts, complementing existing regulations. It also establishes the jurisdictional boundaries and ensures the independent functioning of various courts within the DIFC.

The new legislation introduces a Mediation Centre to provide an alternative dispute resolution method. This centre allows parties to resolve disputes amicably with mediators registered with the DIFC Courts. The president of the DIFC will determine its operational framework, jurisdiction, and procedures. The law grants exclusive jurisdiction to DIFC Courts over civil, commercial, and labour claims involving DIFC entities.

The DIFC Courts have authority over cases involving their bodies or institutions, whether they are plaintiffs or defendants. They also handle matters related to trust deeds, non-Muslim wills, and arbitration awards under DIFC arbitration law. Additionally, they can hear requests for provisional measures related to cases under their jurisdiction.

This includes identity and asset inquiries and requests or arbitration procedures filed outside the DIFC if protective measures are taken within the Centre. The law outlines litigation procedures, urgent matters handling, enforcement rules, exceptions to compensation bond requirements, technical defects, procedural errors, and statutes of limitations.

The new law replaces previous laws concerning the DIFC Courts: Law No. (10) of 2004 and Law No. (12) of 2004. It annuls any conflicting provisions in other legislation but maintains regulations from these earlier laws until new ones are introduced. The Chief Justice and Director of the Courts' appointment processes and responsibilities are also detailed in this law.

This legislation will be published in the Official Gazette and become effective immediately after publication. It ensures that existing regulations remain valid unless they contradict Law No. (2) of 2025's provisions until new regulations replace them.

With inputs from WAM