The UAE has become a hub for resolving high value cross-border disputes. As a specialist dispute resolution firm, focussed on cross-border litigation, we regularly act for clients in UAE related matters, including cross-border enforcement, recognition of judgments, arbitration awards, and white-collar crime investigations.
DIFC Litigation
The Dubai International Financial Centre (“DIFC”) was established in order to take advantage of Dubai’s strategic geographical position and attract foreign investment, leading to it becoming an international hotspot for commercial transactions. In order to make the DIFC more accessible to foreign investors, an independent judiciary was established in the form of the DIFC Courts, which apply common-law principles and the English language.
Whilst the DIFC Courts generally have jurisdiction to hear and determine civil and commercial disputes with a connection to the DIFC, over the last two decades, the DIFC Courts have anchored themselves as a favoured venue for complex dispute resolution, with an increasing amount of non-DIFC entities, agreeing to submit to the jurisdiction.
The evolution of the DIFC Courts as a court of choice in cross-border litigation has come as a result of recent developments which have affirmed the DIFC Courts’ pro-enforcement stance. Recognising the ease and speed with which money and financial assets can be moved around the world, particularly through Dubai as a leading financial centre, the DIFC Court of Appeal has recently confirmed that the DIFC Courts have jurisdiction to grant freezing orders in support of pending foreign proceedings (even when there is a no direction connection to the DIFC). This recent decision which acknowledges the importance of asset preservation in cross-border litigation aligns with the DIFC’s objective of promoting the UAE as an international centre for dispute resolution.
The DIFC Courts are widely recognised for setting the benchmark for modern dispute resolution, through their proactive approach to new technologies and digital assets.
ADGM Litigation
The Abu Dhabi Global Markets (“ADGM”) launched in October 2015, is one of the largest financial districts globally. ADGM is the first jurisdiction across the Middle East that directly applies English Common Law, and The ADGM Courts are entirely digital with an end-to-end eCourts platform. This combination has provided both legal certainty and cost efficiency, making it an attractive court of choice for cross-border litigation.
Unlike DIFC, pursuant to The Application of the English Law Regulations 2015, ADGM benefits from the direct application of English Common Law. The Courts may reference and rely upon English court precedents, and the ADGM Judiciary are comprised exclusively of judges from common law jurisdictions.
The ADGM Courts are regulated by the ADGM Courts, Civil Evidence, Judgments, Enforcements and Judicial Appointments Regulations, 2015. The ADGM Founding Law establishing the jurisdictional authority of the courts is complemented by the ADGM Courts Regulations which provide a procedural structure.
The Courts generally have jurisdiction over civil or commercial claims involving ADGM, an ADGM authority, or an ADGM-licensed entity, as well as over civil or commercial claims and disputes in connection with ADGM. However, parties with no connection to ADGM may nonetheless agree in writing to refer their civil or commercial claims and disputes to the ADGM Courts. The Courts also provide a free court-annexed mediation service under which an internationally accredited mediator is provided to the parties.
The ADGM Courts have become particularly known for disputes concerning funds, insolvency and shareholder disputes. The ADGM’s Investment Fund Regulations delineate the establishment and management of various types of funds Meanwhile, the ADGM Insolvency Regulations govern the procedures for corporate and personal insolvency cases. Notably, the ADGM provides priority financing, enabling to administrators to obtain funding for the purposes of administration costs.
On 14 January 2025, the ADGM Courts and onshore Dubai Courts signed a memorandum of understanding for reciprocal enforcement of judgments by direct application or deputization, providing a step towards integrating the UAE’s common and civil law courts.
DIAC
The Dubai International Arbitration Centre (“DIAC”) replaced the DIFC London Court of International Arbitration (“DIFC-LCIA”) Centre and the Emirates Maritime Arbitration Centre (“EMAC”) in September 2021. It has evolved to allow increasingly streamlined single centre arbitration in Dubai, governed by the DIAC Rules. Abu Dhabi has followed suit, with the establishment of the Abu Dhabi Commercial Conciliation and Arbitration Centre.
Notably, the DIAC Rules have evolved to allow increased flexibility for multi-party disputes compared to its predecessor. The rules allow for the consolidation of proceedings and joining of parties. The DIAC Rules also provide that the initial seat shall be the DIFC, which has come to be known for its arbitration friendly approach.
The latest Annual Report (2023) reflected 355 registered cases (a 4.4% increase from 2022). Disputes in the construction and real estate sector made up the majority of the Centre’s caseload, representing 59% of all administered cases.
The DIAC has also witnessed several innovations, including new mediation rules in October 2023, with a view to promote mediation as the preferred dispute resolution mechanism.
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