Third-party funding may provide access to justice for impecunious parties who would otherwise be unable to pursue a claim.

A strong claim is required, and extensive due diligence will be carried out by the potential funder.

The existence of third-party funding may encourage settlement.

The DIFC and ADGM Courts have specific provisions relating to third-party funding.

In the DIFC and ADGM Courts, success fees for lawyers may be permitted under certain circumstances, but not in onshore UAE courts.

Third-party funding has been used in courts and arbitrations in the UAE, but there have been no reported Cassation decisions clarifying the position.

Legal fees are generally not recoverable in onshore courts and in arbitration under Federal Law No. 6/2018 on Arbitration.

New York Convention: United Nations Convention on Recognition and Enforcement of Foreign Arbitral Awards 1958.

DIFC: Dubai International Financial Centre, with its own laws and courts, which operate in English and apply common law procedures.

ADGM: Abu Dhabi Global Market, with its own laws and its own courts, which operate in English and apply common law procedures.

DIAC: Dubai International Arbitration Centre, which has its own Arbitration Rules.