Law No. 2 of 2025 on the Dubai International Financial Center (DIFC) Courts replaces Law No. 10 of 2004 and Law No. 12 of 2004 and contains a number of new provisions covering the judicial and administrative areas of work of these courts.
1. A key innovation of the Law is the establishment of a Mediation Center.
The Center represents an effective mechanism for resolving civil, commercial and labor disputes amicably. Parties to a dispute can peacefully resolve conflicts with the support of accredited mediators. Compared to previous laws which focused on traditional court proceedings, the new law prioritizes mediation.
2. The jurisdiction of DIFC courts is now defined more precisely.
The DIFC courts have exclusive jurisdiction to hear civil, commercial and labor claims related to DIFC bodies and entities, as well as disputes on trusts, non-Muslim wills and the enforcement of arbitration orders. The law guarantees the independence of the DIFC courts, including the Court of Appeal, the Court of First Instance and the Small Claims Tribunal. Clear definition of jurisdictions minimizes the risks of authority duplication or delays in process...