New Law Regulating DIFC Courts Operations in 2025

New Law Regulating DIFC Courts Operations in 2025

By Published On: April 16, 2025Views: 17

The government of the United Arab Emirates (UAE) has recently witnessed an increase in foreign investments that is booming the economy. Emirate of Dubai has become an economic hub for expats where international transactions are happening every day. UAE has proved opportunity for the businesses from all over the world, therefore government has introduced several new laws in Dubai including International Financial Centre (DIFC) Courts. The Law No. (2) of 2025 facilitate the administrative and judicial operations of the DIFC Courts, supporting their independent operations regarding the Court of Appeal, Court of First Instance, and small and tribunal claims in the respective jurisdiction. DIFC has separate courts, and legislation. DIFCS lawyers

Aspects of New DIFC Courts Law

The DIFC Courts law is implemented in various areas:

  • DIFC Jurisdictions

The jurisdiction has expanded, becoming a game changer for dispute resolution. Previously, the courts were handling cases related to the DIFC, its employees and entities. With the establishment of the new law, DIFC courts can resolve cases that are not even directly related to the DIFC, but related to business disputes. It is good news for the businesses operating across different regions. They can now have an alternative of litigation in other terrorities that is reliable and accessible. Now DIFC has its own courts and its own legislation.

  • Leadership and Administration

The Law No. 2 of 2025 has introduced better mechanisms for the business sector. Therefore, the business owners are concerned about signing contracts, wanting to be sure that court judgments are enforced. The Mediation Centre is established as an alternative dispute resolution. It is quick and a cost-effective way to resolve your disputes with DIFC or any business-related conflicts. Other laws remain the same unless they conflict with the new law.

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FAQs about Law No. (2) of 2025 and DIFC Courts

The new DIFC Law No. 2 of 2025 governs the judicial and administrative operations, ensuring self-rule and well-defined authority.

The new DIFC law is introduced by the Ruler of Dubai, Prime Minister of the UAE and Vice President of the UAE, Your Highness Sheikh Mohammed bin Rashid Al Maktoum

The new DIFC law resolves disputes related to civil, commercial, and employment cases and claims.

Yes, an alternative dispute resolution is introduced by establishing a Mediation Centre within the DIFC Courts. All mediators are registered with the relevant authorities.

The President of the DIFC governs, controls and manages the mediation centre, ensuring smooth operations and justice.

The new DIFC law allows the DIFC Courts to hear cases outside the DIFC. However, those cases shall not affect DIFC.

DIFC laws used to hear cases related to DIFC only. The Law No. 2 of 2025 is the successor Law No. (10) of 2004 and Law No. (12) of 2004, nullifies the conflicts within both laws.

The new law will appoint Chief Justice and Director of the DIFC Courts ensuring better business activities. It is for inside the UAE and outside the UAE.

The new DIFC law covers areas of evidence rules, technical defects, procedural errors, litigation processes, statutes of limitations and compensation bond exceptions.

The new law will be taken into effect as soon it is published in the Official Gazette.
To promote the economic activities in the country, the UAE has to make changes to its business laws, ensuring authorities are regulating policies as per the international standards of businesses. The new DIFC law can address several issues in the business world. However, the implementation of the new law can enhance the global position of the UAE as an international economic leader. For further details you can visit DIFC or grab the information online.

Note:

ASK THE LAW is the Online Legal Entity of Al Shaiba Advocates & Legal Consultants, a full-service Emirati Law Firm. The blog is just for legal knowledge, which can be outdated with time with the inventions of new laws or modifications in previous laws. There might be some human errors too in the blog content. Therefore no liability is taken or owned, and we suggest consulting our experts for any decision or proceedings.