VP issues law pertaining to Dubai International Financial Centre Courts

Provisions of the new law seek to regulate the judicial and administrative aspects of the DIFC Courts alongside existing DIFC regulations.

DUBAI: In his capacity as the Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, issued Law No. (2) of 2025, pertaining to the Dubai International Financial Centre Courts (DIFC Courts).

Provisions of the new law seek to regulate the judicial and administrative aspects of the DIFC Courts alongside existing DIFC regulations.

The law also defines the jurisdictional remit and ensures the independent operation of DIFC Courts, including the Court of Appeal, the Court of First Instance, and the Small Claims Tribunal. It also outlines the procedural framework for the appointment of the Chief Justice and the Director of the Courts and their respective responsibilities.

The new law offers an alternative dispute resolution pathway by establishing a Mediation Centre, where parties can amicably resolve their disputes with the help of mediators registered with the DIFC Courts. The president of the DIFC is responsible for defining its operational framework, jurisdiction, and the procedures to be followed.

Under the new law, the DIFC Courts have exclusive jurisdiction to hear and resolve civil, commercial, and labour claims involving the DIFC’s bodies or institutions, whether filed by or against them, or in which they are a party. They also handle claims involving the DIFC’s bodies, institutions, activities, and employees, as well as matters related to trust deeds, non-Muslim wills, and the recognition or enforcement of arbitration awards under DIFC arbitration law.

The law also grants the DIFC Courts jurisdiction to hear requests for provisional and protective measures related to cases under their jurisdiction, including identity and asset inquiries. The courts also handle requests or arbitration procedures filed outside the DIFC, provided appropriate protective measures are taken within the Centre.

The law outlines the jurisdiction of the DIFC Courts, covering litigation and evidence procedures, urgent matters, enforcement, exceptions to the compensation bond requirement, technical defects, procedural errors, and statutes of limitations.

The law replaces DIFC Law No. (10) of 2004 and Law No. (12) of 2004 concerning the DIFC Courts. This law also annuls any conflicting provisions in other legislation. Regulations and decisions issued under Law No. (10) of 2004 and Law No. (12) of 2004 will remain in effect, provided they do not contradict the provisions of Law No. (2) of 2025, until new regulations and decisions are introduced to replace them.

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

Dubai ranked world’s top destination for attracting Greenfield FDI for fourth successive year. Meanwhile, Dubai has been ranked the world’s No.1 destination for Greenfield Foreign Direct investment (FDI) projects for the fourth successive year, according to the Financial Times Ltd.’s ‘fDi Markets’ data.

In 2024, Dubai attracted Dhs52.3 billion ($14.24 billion) in estimated FDI capital, a 33.2% increase from Dhs39.26 billion ($10.69 billion) in 2023, marking the highest FDI value ever recorded in a single year for the emirate since 2020.

Dubai attracted a record-breaking 1,117 Greenfield FDI projects in 2024, the highest in its history. Dubai also achieved a historic milestone in FDI attraction with 1,826 announced FDI projects, an 11% increase from 1,650 projects in 2023, according to DET’s Dubai FDI Monitor. This marks the highest number of total announced FDI projects ever recorded by the emirate. A total of 58,680 estimated jobs were generated through FDI in 2024, a 31% increase from 44,745 jobs in 2023.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, and Chairman of The Executive Council of Dubai, said Dubai’s emergence as a frontrunner in the global investment landscape has been inspired and guided by the visionary leadership of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai.

"Dubai’s ability to steadily consolidate its status as a leading global destination for foreign direct investment reflects its commitment to delivering exceptional value to investors worldwide. The city’s ranking as the world’s No.1 destination for attracting Greenfield FDI for the fourth consecutive year is a testament to its ability not only to set new global benchmarks for sustained, rapid growth but also to continuously evolve its investment proposition in response to changes sweeping the international market.

This success is the result of a strategic vision that keeps pace with economic and technological transformations, aligned with the ambitious objectives of the Dubai Economic Agenda D33 to double the size of the emirate’s economy by 2033 and establish it as one of the world’s top three urban economies.”

H.H. Sheikh Hamdan bin Mohammed further said: "This latest FDI rankings across key areas mark yet another key milestone in Dubai’s development journey. Even amid economic headwinds elsewhere, Dubai continues to rise as a global magnet for investment, enterprise, and talent, offering stability, world-class infrastructure, and a dynamic business environment. We remain committed to fostering a culture of innovation, enhancing economic competitiveness, and building an exceptional ecosystem that empowers businesses and investors to achieve growth and prosperity. Driven by our bold aspirations, we are resolute in strengthening Dubai’s position as the city of the future and a global hub for the brightest minds and most pioneering enterprises.”

Dubai’s forward-looking strategies have transformed the emirate into a global hub for FDI, with the city’s attractive business environment, favourable regulations, infrastructure, and strategic location making it a preferred destination for investors. In 2024, the city was ranked fourth globally for attracting Greenfield FDI capital, up from fifth position in 2023, while also claiming the top spot in the Middle East and Africa (MEA) region, marking a significant leap in its investment appeal, according to the Financial Times Ltd’s ‘fDi Markets’ data.

The city also advanced from fourth to third globally in terms of jobs created through inward FDI in 2024, securing the top position in MEA. Dubai experienced a surge in talent attraction across key sectors such as business services, software IT services, real estate, transportation/warehousing, financial services, industrial equipment, consumer products, and communications. This highlights the city’s dynamic business environment, strategic economic policies, and ability to draw skilled professionals, reinforcing its position as a top destination for investment and innovation.

For the third consecutive year, Dubai was also ranked No.1 globally in the attraction of Headquarter (HQ) FDI projects, with 50 projects in 2024. Regionally, Dubai was No.1 in Greenfield FDI projects, capital, and jobs in MEA.

WAM