What is the DIFC?

DIFC is the only free zone in Dubai with an internationally recognised, independent financial
regulator and a proven judicial system with an English common law framework (as opposed to civil
law and commercial in other free zones).

What are the DIFC bodies?

1- DIFC Authority

Oversees the strategic development, operational management and planning of the Dubai
International Financial Centre. It is also responsible for the development and administration of laws
and regulations other than those related to the financial services.

2- Dubai Financial services authority (DFSA)

DFSA is an independent regulator of financial and related services conducted in or from the Centre.
The DFSA supervises regulated companies and monitors their compliance with applicable laws and
rules. The Regulatory Law, DIFC Law No. 1 of 2004 grants the DFSA its powers as a financial services
regulator.

3- DIFC Courts

Operating within a common law framework to ensure the highest international standards of legal
procedure and dispute resolution. The DIFC Courts acts as an independent administration of justice
for resolving all civil and commercial laws but not criminal cases. In English.

What is the ADR?

Alternative Dispute Resolution ("ADR") refers to any means of settling disputes outside of the
courtroom. ADR typically includes early neutral evaluation, negotiation, conciliation, mediation, and
arbitration. As burgeoning court queues, rising costs of litigation, and time delays continue to plague
litigants, more states have begun experimenting with ADR programs. Some of these programs are
voluntary; others are mandatory.

How was the DIFC freezone established?

The constitution was amended to include a freezone and launched in accordance with federal decree
no 35 of 2004. It is a financial free zone as defined in federal law no 8 of 2004 as an independent
jurisdiction within the UAE, DIFC is empowered to create its own legal and regulatory framework for
all civil and commercial matters.

What is the reason for the DIFC Free zone creation?

A freezone in English, the legal documentation is in English, you don’t need to translate anything. A
legal regime that is comfortable for the foreign investor. The attractiveness. The dealing with the
government is in English. Zero tax. to diversify dubai’s economic resources and attract capital and
investments in the region.

DIFC courts jurisdiction ?

The difc court was established by Dubai Law No. 12 of 2004 (as amended by Dubai Law No. 16 of
2011 –click here to read Law 12 of 2004 as amended ) established the DIFC Courts, describes the
jurisdiction of the Courts and provides for the independent administration of justice in the DIFC. DIFC
Law No: 10 of 2004 sets out the powers, procedures, functions and administration of the DIFC
Courts.

How is jurisdiction of the difc courts determined ?

Opt in / companies registered in the difc / negative jurisdiction /

Any civil or commercial case in which both parties select the DIFC Courts’ jurisdiction, either in their
original contracts/agreements or post- dispute

as well as Any civil, commercial or employment case related to the DIFC

What are the unique features of difc courts?

1- Three levels
2- In English
3- Fast process
4- Witness testimony
5- Cost efficient
6- Accepting of informal evidence
7- In small claims no need for lawyers
8- The failing party will pay him and his attorney
9- Since they are specialized, they have subject matters expertise
10- No back to back hearings

DIFC Arbitration Law

Making an application to seek recognition by the winning party. The court makes sure there is award
and agreement, the court doesn’t go into the subject of the award only formalities, so either it
ratifies or rejects or clarifies if there is something missing.

Setting aside:

The other party can seek setting aside the award, the grounds in the difc mirror the ones in new York
convention.

1) Public order
2) Manifest error ‫خطأ جسيم في القانون‬
3) Lack of service
4) Violation of public policy
5) Preexisting arbitral proceedings that have come to conclusion

Idea of finality of award:

‫ فتعل و حجي ة االم ر المقض ي على‬،‫ طالم ا ان اك دنا حكم التحكيم غ ير قاب ل للبطالن‬، ‫ طالما انحكم في ش يء‬، ‫حجية االمر المقضي‬
‫مبادئ النظام العام عشان يكون في استقرار‬
What is the scope of the applicability of it?

When the seat of arbitration is DIFC, and the parties agree on it.

Characteristics of DIFC arbitration law?

1- Procedural law not substantive as in ‫ ليست قاعدة موضوعية وانما قاعدة إجرائية‬there is no discussion
on the merits.
2- The agreement has to be written in the contract for evidence purpose so we can check the
validity of the arbitration award.
3- Process of appointment of arbitrator:
a- Check agreement of parties
b- The law decides

Institutional arbitration and adhoc

Institutional: rules set by an arbitration institution.

Adhoc: we use the arbitration law

4- Procedure of challenging: there is a procedure to challenge but if you have exhausted this
law, you cant go to the difc arbitration law. So you rely on the difc law even if you have
exhausted the procedures in any institution.