Opting Out of the Exclusive Jurisdiction of the DIFC Courts
Type
E-journal
Date
3 May 2016
Jurisdiction
Dubai
Taxonomy
Jurisdiction & Choice of Law
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Legal reference
Dubai Law No. 12/2004
Analysis
As is now widely known by lawyers and the business community in Dubai and beyond, Article 5(A)(2) of Dubai Law No.12 of 2004 as amended (the Judicial Authority Law) permits contracting parties to expressly agree to have any disputes arising between them resolved by the DIFC Courts, even if they have no other link to the DIFC.
In the absence of an express choice of the DIFC Courts' jurisdiction, Article 5A(1) of the Judicial Authority Law sets out the following five jurisdictional gateways which confer exclusive jurisdiction on the DIFC Courts to hear and determine:
(a) civil or commercial claims and actions to which the DIFC or any DIFC Body, DIFC Establishment or Licensed DIFC Establishment is a party;
(b) civil or commercial claims and actions arising out of or relating to a contract or promised contract, whether partly or wholly concluded, finalized or performed within the DIFC or that will be performed or is supposed to be performed within the DIFC pursuant to express or implied terms stipulated in the contract;