His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has issued Law No. (2) of 2025 concerning the Dubai International Financial Centre Courts (DIFC Courts). This legislation aims to regulate both the judicial and administrative functions of the DIFC Courts while complementing existing DIFC regulations.

The new law clarifies the jurisdictional remit of the DIFC Courts, which includes the Court of Appeal, the Court of First Instance, and the Small Claims Tribunal, ensuring their independent operation. Additionally, it establishes the procedural framework for appointing the Chief Justice and the Director of the Courts, detailing their respective responsibilities.

An important feature of this law is the introduction of an alternative dispute resolution pathway through a Mediation Centre. This Centre will enable parties to resolve disputes amicably with the assistance of mediators registered with the DIFC Courts. The president of the DIFC will define the operational framework, jurisdiction, and procedures of this Centre.

Under the new legislation, the DIFC Courts will exclusively handle civil, commercial, and labor claims involving DIFC bodies or institutions. This includes claims filed by or against these entities, as well as matters related to trust deeds, non-Muslim wills, and the enforcement of arbitration awards under DIFC arbitration law.

The law also empowers the DIFC Courts to address requests for provisional and protective measures related to cases under their jurisdiction, which includes inquiries into identities and assets. Furthermore, the courts can manage arbitration procedures initiated outside the DIFC, provided that necessary protective measures are implemented within the Centre.

Additionally, the law defines various aspects of the DIFC Courts’ jurisdiction, covering litigation and evidence procedures, urgent matters, enforcement, and exceptions to compensation bond requirements. It replaces DIFC Law No. (10) of 2004 and Law No. (12) of 2004, while annulling any conflicting provisions in other legislation. Regulations issued under the previous laws will remain valid unless they contradict the new provisions until replaced by updated regulations.

This law will be published in the Official Gazette and will come into effect the day after its publication.