What has happened?
His Highness Sheikh Mohammed Bin Rashid Al Maktoum has this week issued Decree No. (29) of 2024, establishing the ‘Judicial Authority for Resolving Jurisdictional Conflicts between DIFC Courts and Judicial Authorities in Dubai’ (the Decree). The announcement can be found here.
From when will the Decree apply?
The Decree becomes effective the day following its publication in the Official Gazette (likely to be at the end of April).
What is a jurisdictional conflict?
In basic terms, a jurisdictional conflict refers to situations where there is uncertainty or dispute over which judicial body (in this case, the DIFC Courts or the local Dubai Courts) has the authority to hear a particular case, interpret legal provisions, or enforce judgments.
There are several scenarios that might cause a conflict, but two of the most common are:
cases involving a mixture of DIFC and “onshore Dubai” parties or activities, leading to ambiguity over which court has the authority to resolve the matter; and
ambiguously drafted contracts, which do not clearly designate the governing law and jurisdiction of the agreement.
A jurisdictional conflict may also arise when both the DIFC Courts and Dubai Courts produce conflicting judgments on a case between the same parties.
What was the position before the Decree?
Before the Decree, the Joint Judicial Committee (JJC), made up of three DIFC Courts Judges and four Judges from the Dubai Courts, handled jurisdictional conflicts between the DIFC Courts and the Dubai Courts.
What does the Decree do?
Pending the publication of the English language version of the Decree, details are limited. However, from the announcement, it is clear that the Decree’s purpose is to bring clarity, certainty, and efficiency to jurisdictional conflicts.
The Decree applies to all courts in Dubai and the DIFC (including any future courts that may be established).
The JJC is to be renamed the ‘Judicial Authority for Resolving Jurisdictional Conflicts between DIFC Courts and Judicial Authorities in Dubai’ (the JARJC) comprising the most senior judges from the DIFC Courts and Dubai Courts.
The law which established the JJC will be replaced in its entirety.
The JARJC’s role will include: (i) determining the correct court for disputes; (ii) clarifying which judgments are enforceable in cases of jurisdictional overlap; and (iii) carrying out directives from the Ruler of Dubai or the Chairman of the Dubai Judicial Council.
JARJC decisions are final. They cannot be appealed.
Any rules or decisions set by the JARJC will be binding on all courts in Dubai and the DIFC.
This material is provided for general information only. It should not be relied upon for the provision of or as a substitute for legal or other professional advice.
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