News UPPERCASE
2025-05-26 17:26

Dubai Law No. 2 of 2025: A Unified Framework for the DIFC Courts

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Dubai’s new statute repeals DIFC Law No. 10 of 2004 and DIFC Law No. 12 of 2004, consolidating nearly two decades of rules on jurisdiction, practice and procedure into a single, modern text. Below is a practitioner-focussed summary prepared by UPPERCASE’s Dispute Resolution team.
1. Jurisdiction—Now in One Place

Article 14 brings all jurisdictional gateways under a single heading, and the scope is wider than before. Key additions and clarifications:

Employment claims: DIFC Courts are expressly named, ending debate on coverage.

Trusts & Non-Muslim wills: Disputes over DIFC trusts and wills registered in the Centre fall squarely within jurisdiction.

Arbitration-related matters: Seat in the DIFC, hearings in the DIFC, recognition of awards, or express agreement now each provide jurisdiction.

Opt-in contracts: Parties with no Dubai nexus may choose the DIFC Courts; conversely, parties may contract out if done in writing.

International treaties: The Court may hear claims arising under any convention ratified by the UAE.

2. Interim Relief—Statutory Muscle

Article 15(4) codifies the Court’s power to issue standalone injunctions (e.g. freezing orders) in aid of foreign litigation or arbitration, reinforcing the DIFC’s role as a support hub for cross-border disputes.

3. Court of Appeal—Greater Flexibility

  • A five-judge panel may sit “in exceptional circumstances”.
  • Single-judge permission-to-appeal hearings aim to streamline access to the appellate level.

4. Contempt & Sanctions—Scope Clarified

The Court may impose fines or refer matters to the Dubai Attorney General; imprisonment is removed from the menu of sanctions, aligning practice with UAE criminal law.

5. Enforcement Pipeline—Two Clear Steps

  1. Enforcement Writ (Art. 30) issued by the DIFC Court.
  2. Execution via Dubai Courts (Art. 32) without a merits review.
  3. Dubai Enforcement judges must keep the DIFC Court informed and transfer any realised funds back to the DIFC registry.

6. Mediation Centre—Early Resolution Option

Article 13 establishes an in-house DIFC Mediation Centre designed to deliver time- and cost-efficient settlements before parties embark on full litigation.

7. Statute of Limitations—Six-Year Default

All civil claims must commence within six years of the cause of action unless a specific DIFC statute states otherwise (Art. 28).

This briefing is provided for general information only and does not constitute legal advice. Specific advice should be obtained in relation to particular matters.