TRW & Co · Disputes & Arbitration
DIFC Courts Proceedings in the UAE
The DIFC Courts are Dubai's English-language common-law courts, open to DIFC businesses and to any parties who opt in by written agreement. Since Dubai Law No. 2 of 2025 replaced the original 2004 framework, the court has clearer powers over interim relief, contempt and mediation. This guide explains jurisdiction, procedure, costs and enforcement.
Key pointJurisdiction is won or lost in the clause: a reference to "Dubai courts" is likely to mean the onshore courts, so parties wanting the DIFC must name it expressly or sign a written opt-in once a dispute arises.
At a glance
New governing law
Dubai Law No. 2 of 2025, issued in March 2025, replaced the 2004 Judicial Authority Law and DIFC Courts Law while preserving existing rules.
Opt-in by agreement
Parties with no DIFC connection can choose the court in writing, before or after a dispute arises; the clause must name the DIFC Courts clearly.
Small Claims Tribunal
Hears claims up to AED 500,000, and up to AED 1 million for non-employment claims where all parties elect in writing.
Conflicts with onshore
Since April 2024 the Conflict of Jurisdiction Tribunal decides disputes between the DIFC and Dubai Courts, without an automatic stay of proceedings.
Enforcement onshore
Judgments are executed outside the DIFC through an enforcement writ and the competent onshore court, which does not review the merits.
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What the DIFC Courts do and who uses them
The DIFC Courts are the English-language, common-law courts of the Dubai International Financial Centre. They hear civil, commercial and employment claims connected to the DIFC, claims that parties agree to bring there, and a wide range of applications in support of arbitration, including the recognition of awards made in DIFC-seated arbitrations.
Users are not limited to DIFC-licensed firms. Banks, contractors, technology companies, family businesses and foreign investors with no office in the financial centre regularly choose the court in their contracts because judgments are reasoned, published and delivered by judges drawn from common-law jurisdictions as well as the UAE.
A matter becomes a forum question long before anyone files a claim. The jurisdiction clause signed at contract stage, the place where assets sit and the likely enforcement route will decide whether the DIFC is available, useful or a detour. This page explains how the court works in 2026 and how to decide whether to use it.
The legal framework after Dubai Law No. 2 of 2025
For two decades the court operated under Dubai Law No. 12 of 2004 (the Judicial Authority Law) and DIFC Law No. 10 of 2004. Both were replaced by Dubai Law No. 2 of 2025, issued by the Ruler of Dubai in March 2025. Existing rules and decisions made under the old laws remain in force unless they conflict with the new law.
The 2025 Law restates the court's jurisdiction in a single instrument, expressly adds employment claims to its core remit, codifies the power to grant interim and precautionary measures, strengthens contempt powers and creates a court-annexed Mediation Centre. It also preserves the route by which DIFC judgments are executed outside the financial centre.
Day-to-day procedure is governed by the court's own Rules (the RDC), supported by practice directions. The RDC will feel familiar to anyone who has litigated in England: statements of case, disclosure, witness statements, expert evidence, default and immediate judgment, costs budgeting and adverse costs.
The structure of the court
| Tier or division | What it hears | Practical note |
|---|---|---|
| Small Claims Tribunal (SCT) | Claims up to AED 500,000; non-employment claims up to AED 1 million where all parties elect in writing; employment claims above AED 500,000 by written election | Fees are a percentage of the claim (5% for most claims, 2% for employment, minimum USD 100); a quick, lower-cost route |
| Court of First Instance (CFI) | All other civil, commercial and employment claims within jurisdiction | Usually a single judge; full common-law procedure |
| Technology and Construction Division | Technically complex engineering, construction and technology cases | Specialist judges and industry-specific procedure |
| Arbitration Division | Arbitration claims, interim relief in support of arbitration, recognition and enforcement of awards | Created in 2020 to give arbitration users a dedicated judge in charge |
| Digital Economy Court | Disputes involving blockchain, AI, cloud, data, fintech and similar technologies | Its own specialised rules |
| Court of Appeal | Appeals from the CFI; interpretation of DIFC laws on application | At least three judges, five in exceptional cases; decisions are final |
The court's official resources, including the official court structure page and the Small Claims Tribunal guidance, are the place to check current thresholds and fees before filing.
How a dispute gets into the DIFC Courts: jurisdiction gateways and opt-in
Jurisdiction falls into two broad routes. The first is connection: claims involving the DIFC or its bodies, DIFC establishments and licensed entities, contracts concluded or performed wholly or partly in the DIFC, and incidents occurring there. Where the connection exists, the court's jurisdiction is in principle exclusive, so a DIFC entity cannot simply be sued onshore on a DIFC-performed contract without a fight.
The second is consent. Since 2011, parties with no DIFC connection have been able to opt in by written agreement, either in the contract before a dispute arises or in a separate agreement afterwards. The 2025 Law keeps this. The clause must be clear and specific; references to "the courts of Dubai" are routinely argued to mean the onshore Dubai Courts.
Drafting a clause that works
A sound clause names the DIFC Courts expressly, states whether the jurisdiction is exclusive, covers non-contractual claims arising out of the relationship and, where relevant, extends to related guarantees and side letters. Hybrid wording that offers the DIFC and the onshore courts "at the option of either party" invites a satellite jurisdiction fight.
Choice of court is separate from choice of law. Parties can choose English, DIFC or UAE law to govern the contract and still litigate in the financial centre. Where no law is chosen, the DIFC's own conflict rules apply. See our guide to governing law and jurisdiction clauses in UAE contracts for model approaches.
Jurisdiction challenges are the most common early battleground. If you rely on the financial centre's jurisdiction, file evidence of the written opt-in or the DIFC connection with the claim, and be ready for an onshore filing by the other side. Since April 2024, conflicts between the two Dubai court systems go to the Conflict of Jurisdiction Tribunal, and an application no longer stays the DIFC proceedings automatically.
Where the Dubai Courts also claim the case
When both court systems are seised, either party can apply to the Conflict of Jurisdiction Tribunal, created by Dubai Decree No. 29 of 2024 to replace the Joint Judicial Committee set up in 2016. The old committee was criticised because filing an application froze proceedings; the DIFC judges now require a genuine jurisdictional conflict before staying anything.
DIFC Courts or onshore courts or arbitration: choosing the forum
The DIFC is not automatically the right forum. The decision turns on the counterparty, the location of assets, the governing law, confidentiality and how quickly you need a binding result. The table below compares the main options for a Dubai-based commercial dispute.
| Factor | DIFC litigation | Dubai Courts (onshore) | Arbitration (e.g. DIAC, DIFC seat) |
|---|---|---|---|
| Language | English | Arabic, with certified translations | Chosen by the parties |
| Procedure | Common law: disclosure, cross-examination, costs shifting | Civil law: written submissions, court-appointed experts | Flexible; set by rules and tribunal |
| Publicity | Judgments generally published | Not generally published in full | Confidential |
| Appeals | Permission-based appeal to the Court of Appeal | Appeal and cassation within value thresholds | No appeal on the merits; limited set-aside |
| Enforcement onshore | Via execution in the relevant onshore court without merits review | Direct | Recognition first, then execution |
| Enforcement abroad | Depends on reciprocity or treaty | Depends on reciprocity or treaty | New York Convention in 170+ states |
For many cross-border contracts the real comparison is between DIFC litigation and international arbitration in Dubai. Litigation offers summary judgment, a right of appeal and lower tribunal costs. Arbitration offers confidentiality and wider international enforceability. If the counterparty's assets are in a country that enforces awards but not UAE judgments, arbitration usually wins.
For purely local claims against onshore companies with assets in Dubai, the onshore route through commercial litigation in the UAE may be faster and cheaper, particularly for undisputed debts that qualify for a payment order.
The best DIFC Courts strategy is decided at the drafting table: by the time a dispute arrives, the clause has already chosen your judge, your procedure and your enforcement route.
The DIFC Courts process step by step
- Pre-action and jurisdiction check. Confirm the gateway (connection or written opt-in), the governing law, limitation and the identity of every defendant. Send a letter of claim that sets out the case and the documents relied on; pre-action conduct is relevant to costs.
- Urgent relief if needed. If assets may move, apply without notice for a freezing order, disclosure order or injunction before the defendant is alerted. Full and frank disclosure is required, and a cross-undertaking in damages is normally given.
- Issue and service. File the claim form and particulars of claim through the eRegistry, pay the fee and serve. Service abroad follows the RDC and any applicable treaty, which can add weeks.
- Defence or default. The defendant acknowledges service and files a defence or a jurisdiction challenge. Failure to respond opens the way to default judgment; a weak defence can be met with an application for immediate judgment.
- Case management. The court fixes a timetable at the case management conference covering disclosure, witness statements, experts and trial. Costs management and the prospect of mediation are addressed at this stage.
- Disclosure and evidence. Parties exchange documents, including adverse documents, followed by witness statements and expert reports. Privilege and Arabic-language documents need early planning.
- Trial and judgment. Oral hearing with cross-examination, followed by a reasoned written judgment. Costs generally follow the event, subject to the court's discretion.
- Appeal and enforcement. Permission is needed to appeal to the Court of Appeal. A final judgment is enforced in the DIFC, onshore via an enforcement writ, or abroad through recognition proceedings.
The SCT follows a simpler path: a consultation stage aimed at settlement, then a short hearing. It is designed for parties who may not have lawyers, although represented parties are common for larger claims.
Documents and evidence to assemble
Common-law procedure rewards preparation. Disclosure obligations extend to documents that hurt your case, so preservation notices should go out to staff and IT providers as soon as a dispute is foreseeable. Deleting chat messages after that point is a serious risk.
- The signed contract and any amendments, side letters, guarantees and the jurisdiction clause relied on
- Evidence of the DIFC connection or opt-in: licence details, place of performance, written election
- Correspondence, meeting notes, WhatsApp and email threads relating to formation, performance and breach
- Invoices, payment records, bank statements and ledgers proving loss and quantum
- Board resolutions and powers of attorney confirming authority to sign and to litigate
- Arabic originals with certified English translations, and vice versa for documents needed onshore
- Asset information: company registries, property records and known bank relationships for enforcement planning
Witness statements must be in the witness's own words, and expert evidence is owed to the court rather than to the party paying for it. Choosing experts with relevant UAE market knowledge often matters more than seniority.
Interim relief, judgments and enforcement
Article 15 of the 2025 Law confirms the court's power to grant interim and precautionary measures, including freezing orders, disclosure of a defendant's identity or assets, and injunctions. The relief can support proceedings brought elsewhere, including current or future arbitrations, where the order is to take effect within the DIFC. Our emergency and interim relief practice covers the onshore equivalents.
Contempt powers are sharper. Failing to comply with an order, disrupting proceedings or submitting fraudulent evidence can lead to fines and referral to the Attorney General, who can pursue imprisonment through the criminal courts. Judges may also impose conditional penalties that bite until the breach is cured.
Enforcing a DIFC judgment onshore and abroad
Within the DIFC, judgments are enforced by the court's own enforcement officers. Outside it, the judgment creditor obtains an enforcement writ and the judgment is executed by the competent onshore court, which does not re-examine the merits. Documents usually need certified Arabic translation for that stage.
Abroad, enforcement depends on the destination's rules. The court has signed memoranda of guidance with a number of foreign commercial courts describing how each approaches the other's money judgments; these are not treaties but they help. For arbitral awards, see arbitral award enforcement in the UAE.
Arbitration-related work
For arbitrations seated in the DIFC, including arbitrations under the DIAC Rules 2022 where their default seat applies, the DIFC court is the supervisory court. They hear set-aside applications and have exclusive jurisdiction to ratify awards under the DIFC Arbitration Law. In June 2026 the DIFC Authority consulted on a replacement Arbitration and Mediation Law that would, among other things, shorten the period for challenging a DIFC-seated award; parties should check whether it has been enacted before relying on any deadline.
Risks and common mistakes in DIFC Courts proceedings
Relying on an ambiguous "Dubai courts" clause
Many contracts refer to "the courts of Dubai" or "Dubai courts" without more. The onshore Dubai Courts are likely to treat that as a reference to themselves, and the other side will argue the same. If you want the financial centre's court, the clause must name it expressly and, ideally, describe the jurisdiction as exclusive. Where the clause is already signed and unclear, a post-dispute written opt-in agreement is the cleanest fix. Without one, budget for a jurisdiction challenge and possibly a Conflict of Jurisdiction Tribunal application before the merits are reached.
Treating the DIFC as a conduit without assessing the onshore route
For years parties used the court as a conduit to enforce foreign judgments and awards against onshore assets. Jurisdictional conflicts with the Dubai Courts led to the Joint Judicial Committee and, from 2024, the Conflict of Jurisdiction Tribunal. A conduit strategy can still work, but it must be assessed case by case against the direct onshore route under the federal Civil Procedure Law. Choose the path that reaches the assets with the least jurisdictional risk, not the one that feels most familiar.
Underestimating disclosure and costs exposure
Parties from civil-law backgrounds are often surprised by document disclosure and by adverse costs. Losing a contested application or a trial can mean paying a significant share of the winner's legal costs. Preserve documents early, review them before pleading, and treat settlement offers seriously, because they can shift costs at the end of the case. A litigation budget should cover both your own costs and the realistic adverse costs risk.
Moving too slowly on interim relief
A freezing order is only as good as the assets it catches. Delay between discovering a dissipation risk and applying can undermine the application, because the court will ask why urgency was not shown. Prepare an asset map, the evidence of risk and a draft order in parallel with the main claim. Remember that orders take effect in the DIFC; reaching onshore or foreign assets usually needs parallel applications in other courts.
Ignoring the SCT election
Claims up to AED 1 million can be heard by the SCT if all parties elect in writing, and employment claims above AED 500,000 can be heard there by election regardless of value. Many contracts never address this, and claimants end up in the CFI with higher cost and longer timetables. For lower-value commercial relationships, a written SCT election in the contract can be a sensible, cost-conscious choice.
Assuming a DIFC judgment travels everywhere
A judgment of the financial centre court is a UAE judgment. It enjoys the UAE's reciprocity arrangements but is not covered by the New York Convention. If the defendant's assets are in a country without an established route for recognising UAE judgments, the judgment may be hard to enforce there. Check enforcement in the asset jurisdiction before choosing litigation over arbitration.
Cross-border angle: the UK, India, Singapore, China, the GCC and Bangladesh
The DIFC Courts are designed for international parties, and most of TRW & Co's DIFC matters involve at least one foreign element. The questions are always the same: where are the assets, will a judgment be recognised there, and does foreign law govern any part of the dispute?
- United Kingdom. English-law contracts are routinely litigated in the DIFC, and the court applies English law as foreign law with the benefit of judges familiar with it. Enforcement of a DIFC judgment in England is a matter for English common-law rules and needs English advice.
- India. India's 2020 notification treating the UAE as a reciprocating territory lists UAE courts including the financial centre's courts, which can make enforcement of money judgments in India more direct than proving a fresh claim.
- Singapore and China. Both are significant trading partners with established courts; enforcement of UAE judgments depends on their domestic rules and any bilateral arrangements, and arbitration is often the safer route for contracts with substantial exposure there.
- Saudi Arabia and the GCC. Regional conventions on enforcing judgments apply between GCC states, but practice varies and documents must be prepared in Arabic. Plan for local counsel in the enforcing state.
- Bangladesh. For Bangladeshi parties trading with Dubai, an arbitration agreement is usually more reliable than a court judgment for enforcement in Bangladesh, as both countries are parties to the New York Convention. TRW & Co's Dhaka team can coordinate the Bangladesh end.
Where foreign law is pleaded, expert evidence or submissions on that law will be needed. We work with counsel in the relevant jurisdiction and with foreign judgment enforcement teams to plan the route from claim to recovery.
How TRW & Co helps with DIFC Courts proceedings
Our role is advisory, strategic and coordinating. Where representation before the DIFC or ADGM Courts or the UAE onshore courts is required, we work alongside locally licensed advocates and practitioners on the court's register of practitioners.
Forum and clause strategy
We review jurisdiction and governing-law clauses, assess DIFC connection or opt-in, and compare DIFC litigation with arbitration and onshore claims. Where a clause is unclear, we prepare post-dispute opt-in agreements.
Pre-action and urgent relief
We assemble evidence, map assets and prepare freezing and disclosure applications with registered DIFC practitioners. We coordinate parallel onshore and foreign steps so relief reaches the assets.
Case strategy and evidence
We manage disclosure, witness evidence and expert selection, and keep the case aligned to commercial objectives. Settlement and mediation options are tested at each stage.
Jurisdiction disputes
We advise on challenges to and defences of jurisdiction, and on applications to the Conflict of Jurisdiction Tribunal. The aim is to avoid tactical delay eroding the value of the claim.
Arbitration support
For DIFC-seated arbitrations we advise on interim relief, set-aside risks and recognition of awards, working with our UAE-seated arbitration team.
Enforcement planning
We plan execution in the DIFC, onshore and abroad, including in Bangladesh, the UK and India, through TRW & Co's network and local counsel.
See all of our dispute services on our practices page, including ADGM Courts proceedings and mediation and settlement.
Checklist for decision-makers
- Does the contract name the DIFC court expressly, and is the jurisdiction exclusive?
- Is there a DIFC connection if the clause is weak, or can the parties sign a written opt-in now?
- Where are the defendant's assets, and will a DIFC judgment be enforceable there?
- Is urgent relief needed before the defendant is notified?
- Has a document preservation notice been issued internally and to service providers?
- Is the claim within the SCT limits or eligible for SCT election?
- What is the realistic budget, including adverse costs exposure?
- Would mediation through the court's Mediation Centre or a settlement offer change the economics?
- Is foreign law or foreign enforcement involved, and has local counsel been lined up?
To discuss a dispute that may belong in the DIFC Courts, contact TRW & Co at info@trw.co or +971 58 942 1012. Our guide to DIFC jurisdiction, opt-in and enforcement goes deeper on the clause and enforcement questions.
Frequently asked questions
01Can we use the DIFC Courts if neither party is in the DIFC?
Yes. Parties can opt in to the court's jurisdiction by written agreement, either in the contract before a dispute arises or in a separate agreement afterwards. Dubai Law No. 2 of 2025 preserves this route. The agreement must be clear: name the DIFC Courts specifically and say whether the jurisdiction is exclusive. A clause referring only to "the courts of Dubai" is likely to be read as choosing the onshore Dubai Courts, which can lead to a jurisdiction challenge.
02What changed under Dubai Law No. 2 of 2025?
The 2025 Law replaced Dubai Law No. 12 of 2004 and DIFC Law No. 10 of 2004 with a single instrument. It restates jurisdiction, expressly includes employment claims, codifies the power to grant interim and precautionary measures, including in support of proceedings elsewhere, strengthens contempt powers and creates a court-annexed Mediation Centre. The route for executing DIFC judgments onshore is preserved, and existing regulations remain in force unless they conflict with the new law.
03Are DIFC Courts proceedings conducted in English?
Yes. Proceedings are in English and follow common-law procedure under the Rules of the DIFC Courts, with disclosure, witness statements, cross-examination and costs shifting. Arabic documents need certified English translations. When a DIFC judgment is executed by an onshore court, certified Arabic translations of the judgment and key documents are typically required, so it is worth budgeting for translation from the outset.
04How do we enforce a DIFC judgment against assets in mainland Dubai?
The judgment creditor obtains an enforcement writ, and the judgment is then executed through the competent onshore court, which does not re-examine the merits. Enforcement remains subject to the federal Civil Procedure Law. Practical points include certified Arabic translations, accurate details of the debtor and its assets, and early use of interim relief to stop assets moving before execution.
05What happens if the other side files the same dispute in the onshore courts?
Either party can apply to the Conflict of Jurisdiction Tribunal, created by Dubai Decree No. 29 of 2024 to replace the Joint Judicial Committee. Unlike the old system, an application does not automatically stay the DIFC proceedings; the court looks for a genuine jurisdictional conflict. Strong evidence of the DIFC connection or written opt-in is the best protection against tactical parallel filings.
06Can the DIFC Courts help with an arbitration seated elsewhere?
Yes, in some circumstances. The 2025 Law confirms the court can grant interim measures such as freezing and disclosure orders in support of proceedings brought outside the DIFC, including arbitrations, where the relief is sought within the DIFC. For DIFC-seated arbitrations, the court is the supervisory court and has exclusive jurisdiction to ratify awards under the DIFC Arbitration Law.
07How much does it cost to litigate in the DIFC Courts?
Court fees depend on the tribunal and claim value; SCT fees, for example, are a percentage of the claim with a minimum of USD 100. Lawyers' fees are the larger cost, driven by disclosure, evidence and hearings. Costs generally follow the event, so the losing party may pay a significant share of the winner's costs. A realistic budget should include adverse costs risk and enforcement.
Sources and official materials
- DIFC Courts — Official site: rules, judgments, eRegistry and services
- Dubai Law No. 2 of 2025 concerning the DIFC Courts — English text of the 2025 law
- DIFC Courts structure — Divisions, SCT limits and Court of Appeal
- Small Claims Tribunal — SCT jurisdiction and fees
- Conflict of Jurisdiction Tribunal — Resolves DIFC and Dubai Courts jurisdiction conflicts
- DIFC Courts registration of practitioners — Who may appear before the court
General information only, current as at 27 October 2026. It is not legal advice and does not create a lawyer–client relationship. UAE law differs between the onshore jurisdiction, the DIFC, ADGM and the free zones, and changes frequently; check current official sources and take advice on the facts of your matter.
