In his capacity as Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has issued Law No. (2) of 2025, governing the Dubai International Financial Centre (DIFC) Courts.
The new law establishes a comprehensive framework for judicial and administrative operations, reinforcing the independence, jurisdiction, and governance of DIFC Courts.
Key Provisions of Law No. (2) of 2025
The legislation outlines the role, structure, and jurisdiction of the DIFC Courts, including:
- Court of Appeal, Court of First Instance, and Small Claims Tribunal
- Appointment procedures for the Chief Justice and Director of DIFC Courts
- Mediation Centre establishment for alternative dispute resolution
The Mediation Centre will facilitate amicable settlements through registered mediators, with its framework and jurisdiction set by the President of the DIFC.
Exclusive Jurisdiction of DIFC Courts
Under the new law, DIFC Courts have exclusive authority to handle:
- Civil, commercial, and labour claims involving DIFC bodies, institutions, or employees
- Matters related to trust deeds, non-Muslim wills, and arbitration awards
- Provisional and protective measures, such as identity and asset inquiries
- Arbitration-related requests filed outside DIFC, subject to compliance with DIFC regulations
Procedural Enhancements and Repeal of Previous Laws
The law replaces DIFC Law No. (10) of 2004 and Law No. (12) of 2004, ensuring procedural clarity on:
- Litigation and evidence rules
- Urgent legal matters and enforcement
- Compensation bond exemptions
- Technical and procedural corrections
Existing regulations and decisions under the previous laws will remain valid until new regulations are enacted, provided they do not conflict with Law No. (2) of 2025.
The law will be published in the Official Gazette and will take effect the day after its publication.
News Source: Emirates News Agency
