Dubai has recently introduced a significant new law, Law No. (2) of 2025, which governs the judicial and administrative bodies of the Dubai International Financial Centre (DIFC) Courts. This legislation outlines the jurisdictions and operational frameworks for the Court of Appeal, the Courts of First Instance, and the Small Claims Court. These courts are mandated to operate independently, adhering to the provisions of the law, DIFC regulations, and court rules.

The law, issued by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, also details the appointment processes for the President and Director of the Courts. This includes defining their roles and jurisdictions, ensuring a structured and efficient judicial system within the DIFC.

In line with its commitment to effective dispute resolution, the new law establishes a mediation services centre. This centre facilitates amicable dispute settlements between parties with the assistance of registered mediators. The operating system, jurisdiction, and procedures of the centre are to be determined by its President, ensuring a streamlined process for mediation.

The DIFC Courts have been granted exclusive jurisdiction over civil, commercial, and labour claims involving the Centre’s bodies or institutions. The law comprehensively covers litigation procedures, evidence handling, urgent matters, enforcement mechanisms, and exemptions from compensation pledges. It also addresses technical defects, procedural errors, and statute of limitations.

This new legislation replaces earlier laws, specifically Centre Law No. (10) of 2004 and Law No. (12) of 2004, and supersedes any conflicting provisions in other legislation. By streamlining and modernizing the legal framework, Dubai aims to enhance its position as a leading financial hub with robust legal infrastructure.