Dubai announces new Judicial Authority to Resolve Jurisdictional Conflicts in the Emirate

The Ruler of Dubai HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE (the Dubai Ruler), has issued Decree No. 29 of 2024 on the Judicial Authority for Resolving Jurisdictional Conflicts between the DIFC Courts, namely the ‘offshore Dubai Courts’, and the various Judicial Bodies in the Emirate of Dubai, namely the ‘onshore Dubai Courts’.

Decree No. 29 of 2024 supersedes all prior legislation which it may be inconsistent with, in particular it replaces Dubai Law No. 19/2016, considered below. It was published in the Official Gazette on 17 April 2024 and is now effective. We have set out below a brief overview of what you need to know and whom the Decree is relevant to.

Background

In 2016 Decree No. 19 of 2016 established the “Judicial Tribunal for Dubai Courts and DIFC Courts” (the “Judicial Tribunal”) to resolve conflicts of jurisdiction between the independent DIFC Courts, which are English language common law courts located in the Dubai International Financial Centre, and the onshore Dubai Courts which are Arabic language civil law courts. This Decree No. 19 of 2016 has now been replaced by Decree No. 29 of 2024.

Such jurisdictional conflicts can arise between the two courts when equivalent proceedings are commenced by the same parties in the offshore DIFC Courts and the onshore Dubai Courts. For example, if a party is presented with a claim which has been issued against it in the DIFC Courts, but that party objects to the jurisdiction of the DIFC Courts, it could respond by commencing corresponding proceedings against the opponent in the onshore Dubai Courts. In such circumstances the Judicial Tribunal would determine the conflict of jurisdiction between the two courts. 

While the jurisdiction is being determined, the proceedings in both the offshore DIFC Courts and the onshore Dubai Courts would be stayed. Once the Judicial Tribunal has issued its decision on jurisdiction, the stay would be lifted and the appropriate court action progressed, while the court action without jurisdiction would be dismissed. 

What are the key things to know?

According to Decree No. 29 of 2024 the name of the Judicial Tribunal has change to become the “the Judicial Authority for Resolving Conflicts of Jurisdiction between DIFC Courts and Judicial Bodies in the Emirate of Dubai”, wherever mentioned in any legislation applicable in the Emirate (the “Judicial Authority”).

The term Judicial Bodies includes: the Dubai Courts, the Rental Disputes Resolution Centre in the Emirate, and the Judicial Committees that are formed by virtue of a decree or a decision of the Ruler or the Chairman, and other judicial bodies that are deemed as judicial authorities according to the legislation establishing them or regulating their functions in the Emirate.

The Judicial Authority shall assume the following duties and powers:

(i) determine the competent Judicial Body for the consideration of  any lawsuit or claim that may cause a conflict of jurisdiction between the DIFC Courts and any Judicial Body.

(ii) determine the judgments that shall be executed wherever there is a case of conflicting judgments between the DIFC Courts and other Judicial Bodies on lawsuits related to the same litigants and the same subject-matter of the dispute.

(iii) any other duties or powers which may be assigned to it by the Dubai Ruler or the Chairman of the Dubai Judicial Council.

As explained above, where the Judicial Authority handles a claim, the proceedings in all Courts which are the subject matter of a conflict of jurisdiction will be stayed until a decision is issued by the Judicial Authority determining the Judicial Body deemed competent to consider the proceedings.  Any execution procedures will also be suspended until a decision has been issued by the Judicial Authority determining the enforceable judgment. There will also be a suspension of the legal terms and limitation terms stipulated in the applicable legislation from the date on which a claim is submitted to the Judicial Authority.

The deliberations of the Judicial Authority shall be confidential and its decisions shall be reasoned. The Judicial Authority shall decide on the claims submitted to it according to the jurisdiction rules stipulated in the applicable legislation.  Decisions of the Judicial Authority will be final and not subject to appeal.

Decisions which have been issued pursuant to Decree No. 19 of 2016 will remain in place so long as there is no contradiction with Decree No. 29, or until new decisions are issued to replace the earlier ones.

Whom is the Decree relevant to?

Decree No. 29 of 2024 applies to the “Judicial Authority of Dubai Courts and DIFC Courts” formed by virtue of Dubai Decree No. 19/2016. It will primarily be relevant to any litigants who are currently involved in a case which is being determined by the Judicial Tribunal (now called the Judicial Authority) or who becomes involved in a conflict of jurisdiction between the DIFC Courts and the onshore Dubai courts.

The litigants involved in cases where there is a conflict of jurisdiction between the DIFC Courts and any of the Judicial Bodies, or where contradictory judgments have been issued by the Courts, can request the Judicial Authority to determine the competent Judicial Body for the consideration of the lawsuit, claim or enforceable judgment.

Of particular interest to disputes specialists practicing in Dubai, the Decree provides that the legal rules prescribed in the decisions issued by the Judicial Authority shall be deemed to be judicial principles that shall be abided by all Judicial Bodies of all degrees, including the DIFC Courts. If any judgment breaches the legal rules set out in the Judicial Authority’s decisions then this shall be deemed to be a ground to file an appeal against. 

Conclusion

The Judicial Authority is reported to have a mandate to streamline the determination of jurisdictional conflicts between the DIFC Courts and the onshore Dubai Courts.  In doing so, it should reduce the time and costs involved in resolving jurisdictional conflicts between the two courts. The new Decree will undoubtedly reassure commercial parties operating in Dubai that the Emirate remains committed to offering parties the unique ability to decide whether to resolve their commercial disputes in the English speaking common law DIFC Courts or the Arabic speaking Civil Law Dubai Courts. Further, having made that decision the Judicial Authority will ensure that any jurisdictional conflicts which do arise between the two courts are resolved fairly, clearly and efficiently.

Please get in touch if you would like to discuss the effects of the Decree on your contract or claim.

The authors would like to acknowledge the contribution of Amy Robert, Associate CMS Dubai, in preparing this article.