Dubai provides and interesting landscape for dispute resolution with a civil and common law court system within the jurisdiction, and an increasing use of arbitration proceedings to resolve disputes.

Since the promulgation of Dubai’s Law No (16) in October 2011, the jurisdiction of the common law courts of the Dubai International Financial Centre (DIFC) has been extended offering the business community an additional forum for dispute resolution, in particular as opposed to the civil law courts of Dubai. The major development through the law is that the DIFC Courts may now be engaged to hear civil and commercial claims, not only pursuant to its exclusive jurisdiction (which can be invoked where there is a connection to the DIFC, be that territorial, transaction related, based on the identity of the parties or depending on the subject matter of the proceedings), but also where parties agree to opt into the DIFC Courts’ jurisdiction. Parties can opt in either by drafting jurisdiction clauses into their agreements, or otherwise agreeing to opt into the jurisdiction of the DIFC Courts when a dispute arises.

Some advantages of the DIFC Courts over the Dubai Civil Courts include the use of oral testimony and submissions as a right rather than exception; the availability of summary procedures over straightforward claims; discovery rules; certain types of injunctive relief, which are generally unavailable in the Dubai Civil Courts; and awarding legal costs to a successful party – a factor alone which can deter spurious claims being made.

Dubai also provides sophisticated mechanisms for dispute resolution through both institutional and ad hoc arbitration. Historically the Dubai International Arbitration Centre (DIAC) has been the most common forum for arbitration in the UAE. However, this had much to do with there being lack of an alternative. A recent joint-venture between the DIFC and the London Court of International Arbitration has established the DIFC-LCIA Arbitration Centre in 2009, providing an attractive alternative. Both institutions have their own set of comprehensive procedural rules and are considered to have certain advantages over court proceedings including the use of expert arbitrators in specialist areas, such as construction-related disputes, and the proceedings being confidential.

Offering choice and making dispute resolution an easier and more familiar process to international companies doing business in the region places Dubai firmly on the map. With its continued efforts to develop its legal system and provide effective solutions to potential litigants, it would seem that Dubai is all set to lead the way in dispute resolution in the Middle East.

Khadija S. Ali is a senior litigator at Afridi & Angell in Dubai where she specialises in DIFC Courts’ litigation and also acts in arbitration proceedings, both institutional and ad hoc.  Afridi & Angell is a full service law firm in the United Arab Emirates.  The firm is one of the longest established firms in the United Arab Emirates with offices in Dubai, Abu Dhabi, Sharjah and Dubai International Financial Centre.

Tel: +971 (0)4 330 3900.  Fax +971 (0)4 330 3800. Email: k.ali@afridi-angell.com, Web: www.afridi-angell.com