In March 2025, Dubai enacted a new Law concerining Dubai International Financial Centre Courts. The law consolidates provisions from earlier legislative acts concerning the DIFC and introduces changes to the court system. Its aim is to modernise the legal framework, increase transparency and efficiency of the courts, and strengthen Dubai’s position as an international financial centre.
In this article, we briefly review the key changes, including clarification of jurisdiction, new powers of the courts and the creation of the Mediation Centre.
Key Changes Introduced by the New Law
1. New Provision on Enforcement of DIFC Court Decisions in Dubai
Pursuant to Article 32 of Law No. 2 of 2025 concerning the DIFC Courts, judgments, orders, and decisions of the DIFC Courts are now enforceable within the territory of Dubai without the need to submit a separate deputation request to the Dubai Courts. This means that once an enforcement writ is obtained from the DIFC Courts, the decision can be directly submitted to the enforcement division of the Dubai Courts for execution. This change simplifies and expedites the process of enforcing DIFC Court decisions within Dubai.
As for the enforcement of DIFC Court judgments, orders, and decisions in other Emirates, the previous procedure remains unchanged.
2. Clarification of the jurisdiction of the DIFC Courts
One of the most significant changes is the clarification of the jurisdiction of the DIFC Courts. The new law specifies the exclusive jurisdiction of the DIFC Courts, while the contractual jurisdiction is regulated in more detail. The DIFC Courts have jurisdiction over the following types of disputes:
| Type of dispute | Conditions |
|---|---|
| Civil, commercial, or employment disputes involving DIFC bodies or establishments | – Claim filed by or against a DIFC body or establishment; – A DIFC body or establishment is a party to the proceedings. |
| Disputes arising out of commercial and eployment contracts | – Contracts were concluded, completed, or should be performed (fully or partially) in the DIFC; – Contracts expressly provide for performance within the DIFC. |
| Disputes related to activities within the DIFC | – Claims arise out of or related to any incident or transaction relevant to the DIFC bodies or establishments, or occurred fully or partially in the DIFC; – Claims arise from activities of DIFC employees within the DIFC. |
| Disputes arising from trust declarations or wills of non-Muslims | – Declaration or will must be created or registered with the DIFC Courts. |
| Recognition and enforcement of arbitral awards | – The award is recognised and enforced under the DIFC Arbitration Law. |
| Other arbitration-related disputes | – Parties agreed to DIFC as the seat of arbitration; – Arbitration conducted in the DIFC without agreed seat; – Parties expressly agreed to DIFC Court jurisdiction. |
Parties whose dispute falls within the DIFC’s jurisdiction may change the forum. In such cases, the DIFC Courts may decline jurisdiction. The courts must also decline a case if a final, enforceable judgment already exists (res judicata).
The law also clarifies the concept of contractual jurisdiction: the DIFC Courts may entertain civil and commercial disputes if the parties (even those without any connection to the DIFC) have agreed in writing to submit to DIFC jurisdiction, and this agreement is specific, clear and express.
3. Establishment of the DIFC Mediation Centre
An important innovation is the creation of a DIFC Mediation Centre. Its purpose is to provide parties with the opportunity to resolve disputes amicably with the assistance of registered mediators and to reduce the burden on the courts. This is particularly relevant for parties interested in preserving business relationships and avoiding the time and expense of arbitration.
4. Interim Measures
More clarity has been provided on the powers of the DIFC Courts to grant interim measures.
The DIFC Courts may consider applications for interim measures in the following situations:
- Claims and applications that fall within the jurisdiction of the DIFC Courts.
- A claim for the disclosure of the true identity of a defendant or a potential defendant, against whom a claim may be brought before the DIFC Courts.
- A claim for the disclosure of funds or assets owned by the defendant or applicant in applications and claims that fall within the jurisdiction of the DIFC Courts.
- Applications, claims, or current or future arbitral proceeding
Other Amendments
The law devotes considerable attention to the organisation of the judicial system. In exceptional circumstances and in particularly complex cases, the Court of Appeal may now form a panel of five judges (previously limited to three). The law also introduces the institution of dissenting opinions in the Court of Appeal, which are now attached to the final decision of a case.
Conclusion
The new DIFC Courts Law simplifies the legal framework of the DIFC by consolidating the previous DIFC Courts Law and the Judicial Authority Law. It brings clarity to various areas of DIFC practice, particularly regarding the jurisdiction of the DIFC Courts, and codifies the Courts’ powers to grant interim judicial relief in support of foreign proceedings.
This new law can be viewed as a positive step by the Government of Dubai toward further development of legal practices and procedures as the DIFC jurisdiction continues to evolve. Further changes to other DIFC laws may follow.
Cardinals specialises in dispute resolution before the DIFC Courts. We support clients at every stage — from jurisdictional planning and mediation to comprehensive litigation representation. If you are considering filing a claim in the DIFC or planning to include DIFC jurisdiction in a contract, we would be happy to advise you.
