VP issues law on DIFC Courts
dubai — In his capacity as Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, has issued a law expanding the jurisdiction of the Dubai International Financial Centre Courts (DIFC Courts). Law No. (5) of 2017 has been issued on the judicial authority at the DIFC Courts. The new law amends the provisions of Article No. (5) of Law No. (12) of 2004 regarding the jurisdictions.
In addition to civil and commercial claims, the new amendment expands the jurisdiction of DIFC Courts to include labour claims and actions arising out of labour contracts signed between DIFC companies and establishments and their employees.
The article’s amendment includes the jurisdiction of the Court of First Instance, the jurisdiction of the Court of Appeal, the litigation procedures and the authorities of the execution judge.
The Court of First Instance will have exclusive jurisdiction to hear and determine the civil, commercial and labour claims and actions to which the DIFC or any DIFC body, DIFC establishment or licensed DIFC establishment is a party.
The Court of First Instance shall have exclusive jurisdiction to hear and determine the civil, commercial and labour claims and actions arising out of or relating to a contract or promised contract, incident or transaction related to DIFC activities.
These could be partly or wholly concluded, finalised or performed within DIFC, or performed or is supposed to be performed within DIFC pursuant to express or implied terms stipulated in the contract.
The Court of First Instance may not hear or determine any civil, commercial and labour claim or action in respect of which a final judgment is rendered by another court.
The procedure outlined in the rules of the courts shall apply to civil, commercial and labour claims and actions heard by DIFC Courts and the Chief Justice of the Courts shall assign one or more of the courts’ judges as execution judges.
Law No. (5) of 2017 is effective from the date of issuance and will be published in the Official Gazette.
The new law boosts DIFC’s position as a global hub that attracts leading companies and talent in the financial industry. The law also helps to facilitate litigation procedures for employees based in DIFC.