In a landmark move underscoring its unwavering commitment to evolving its judicial system, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued 1 Law No. (2) of 2025 concerning the Dubai International Financial Centre Courts (DIFC Courts). This legislation marks a transformative phase in justice, one that prioritizes human considerations and amicable resolutions alongside judicial efficiency.
This law, which supersedes Law No. (10) of 2004 and Law No. (12) of 2004, is not merely a procedural amendment; it represents a fundamental shift in the philosophy of adjudication, placing individuals at the heart of the judicial process and prioritizing amicable solutions that preserve human relationships.
From Rigidity to Flexibility: A Paradigm Shift in Dispute Resolution
The establishment of the "Mediation Centre" is a pivotal feature of this new law, providing an effective mechanism for resolving civil, commercial, and labor disputes through amicable means, away from the complexities of courtrooms and protracted procedures. This move reflects a transformation in the concept of justice, shifting from a focus on issuing judicial rulings to pursuing reconciliation and consensus among parties.
Compared to the previous laws, which primarily emphasized traditional litigation, the new law elevates mediation to a prominent position, making it a preferred option for dispute resolution. This flexibility in handling cases reflects a human-centric vision that recognizes justice is not solely achieved through judgments but also through finding sustainable solutions that satisfy all parties.
Precise Jurisdiction Definition: Enhancing Judicial Efficiency
In addition to focusing on mediation, the new law precisely defines the jurisdiction of the DIFC Courts, ensuring swift and efficient case processing. This clear delineation of jurisdictions minimizes the potential for overlapping authorities or case delays, enhancing the transparency of the judicial process.
This precise definition of jurisdictions represents a significant improvement over the previous laws, which left certain aspects of jurisdiction ambiguous. The new law eliminates this ambiguity, ensuring that each case is handled by the appropriate judicial body.
Provisional Measures: Effective Protection of Rights
The new law also grants the DIFC Courts the authority to issue provisional measures, such as asset freezes or identity inquiries, even in cases related to external arbitration, provided that protective measures are taken within the DIFC. This new authority enhances the courts' ability to effectively protect rights and ensures that rights are not lost due to procedural delays.
A Growing Legacy: Law 2025 Builds on Solid Foundations
Law No. (2) of 2025 does not erase the legacy of previous laws; rather, it builds upon and develops it. By replacing the 2004 laws while preserving compatible regulations until new ones emerge, the law strikes a delicate balance between continuity and innovation.
Dubai's Message to the World: Humane Justice Takes Center Stage
The issuance of this law reflects Dubai's steadfast commitment to achieving humane justice and making it accessible to all. It sends a clear message to the world that justice is not limited to the application of law but extends to achieving peace and reconciliation among people.
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