In this article, we look at statutory basis for the jurisdiction of the DIFC Courts and discuss some recent DIFC Court cases that have considered the extent of that jurisdiction.

Introduction

The Dubai International Financial Centre (DIFC) is a financial free zone located near Dubai's central business district. It was established in 2004 to encourage growth in the banking, investment and the financial services sector in Dubai by offering a zero tax rate on income and profits, 100% foreign ownership, no restrictions on foreign exchange or capital/profit repatriation, operational support and first class business facilities.

An interesting feature of the DIFC is that it has its own laws which govern commerce within the DIFC. It also has an independent court system to hear civil cases (although the Dubai Courts retain jurisdiction to hear criminal cases).