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Dubai: The newly established Dubai International Financial Centre (DIFC) Courts have jurisdiction over civil and commercial matters related to DIFC and have no power over criminal cases, officials clarified on Thursday.
The creation of the DIFC Courts, the only English language, common law judicial system in the Middle East, has drawn questions over its specific powers, its relationship with Dubai Courts, as well as the enforcement of its judgments in and outside the DIFC.
The DIFC Courts met with legal professionals at a seminar yesterday to provide insights into the independent judicial system that has been created to adjudicate civil and commercial disputes arising in connection with the DIFC and its residents.
The establishment of the courts, which has bolstered Dubai's image as a major financial hub, is expected to help sustain the stability of the region's economic climate.
"At a time when developed markets are going through a turbulent period, legal institutions like the DIFC Courts, which provide globally benchmarked judicial procedures, are essential to maintain a stable economic environment in the region," said Sir Anthony Evans, Chief Justice of the DIFC Courts.
Evans said as a working rule, the DIFC Courts' powers are limited to matters related to Dubai's financial centre, but he admitted that the precise limits of jurisdiction are obviously going to be open to argument.
"In general terms, one can say the jurisdiction is limited to DIFC-related matters. But we have acknowledged that there is room for argument as to where precisely the limit lies, should borderline disputes arise," said Evans during the seminar.
Unique position
According to DIFC Courts Judge Ali Al Madhani, the DIFC Courts are in a unique position because they are common law courts that "have been set up in civil law Dubai which itself falls within a federal constitution and civil legal system".
"Another important factor which makes the situation unique is the impossibility of separating the business in the DIFC from that of Dubai and the rest of the emirates. This is even the case when it comes to drawing a theoretical borderlines between them," Al Madhani said.
Madhani explained the enforcement of the DIFC Courts orders and decisions within and outside the financial centre and the enforcement of foreign court orders, decisions and awards within the DIFC.
The DIFC Courts, which became fully operational only this year, was established four years ago to guarantee the business and contracting environment of the DIFC.
The courts are now fully staffed to tackle cases within its jurisdiction.
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