Pursuant to the directive of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Law No. 2 of 2025 concerning the DIFC Courts has been enacted to clarify and streamline the operations of the DIFC Courts. This New Law will govern the administrative, procedural, and enforcement matters within the DIFC Courts and take precedence over any conflicting provisions contained in Law No. 10 of 2004 and Law No. 12 of 2004, which remain in effect where no conflict exists.
I. Regulation of Administrative and Judicial Procedures
The New Law establishes a more transparent framework for court operations, ensuring public access to court proceedings, publicly announced judgments, and well-defined procedures for the submission and evaluation of evidence.
The Chief Justice and the Director have been granted expanded responsibilities under the New Law. The Chief Justice is now empowered to oversee court procedures, propose legislation and regulations, supervise judicial officers, and issue professional guidelines for legal practitioners. The Director is tasked with overseeing administrative court functions, supervising practitioner registration, and managing authentication and attestation processes.
II. Advancing Alternative Dispute Resolution
The New Law also establishes a Mediation Centre to facilitate amicable dispute resolution. This is a notable development that provides an official mediation channel, fostering efficient and cost-effective settlements.
III. Jurisdiction and Court Structure
The DIFC Courts now have exclusive jurisdiction over civil, commercial, and employment claims brought by entities with direct or indirect links to the DIFC. The New Law formalises the roles of the courts and clarifies the composition and jurisdiction of the courts in the following hierarchy:
- The Court of Appeal
- The Court of First Instance
- The Small Claims Tribunal
IV. Judicial Independence, Enforcement, and Oversight
The independence of DIFC judges is reinforced and the New Law ensures judicial immunity for actions taken in the course of their duties. It outlines the process for appointing, removing, and ending the service of judges, specifying that removal must be based on inability, incapacity, or misconduct, and conducted through a disciplinary inquiry.
The DIFC Courts' enforcement powers have expanded regarding executing judgments, orders, and arbitral awards including allowing the cooperation with Dubai Courts for enforcement outside the DIFC, with limited interference.
Where there are violations in the court procedure, such as misconduct in proceedings or a failure to comply with court orders, a financial penalty will be imposed in addition to further measure taken at the discretion of the court.
V. Conclusion
This legislative reform represents a significant evolution in the governance of the DIFC Courts. By clarifying administrative and judicial procedures, enhancing enforcement mechanisms, and safeguarding judicial independence, the New Law advances operational efficiency and transparency, thereby strengthening the rule of law within the DIFC framework.
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