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DIFC Courts sign memorandum with counterparts in Southern District of New York
Dubai - UAE-USA business ties were boosted today with the signing of a cooperation agreement between the DIFC Courts and United States District Court for the Southern District of New York (SDNY), the oldest and busiest district court in America. The two courts' respective chief justices met in Dubai to agree a Memorandum of Guidance (MoG) that provides companies operating in both markets additional contract certainty by setting out the procedures for the mutual enforcement of money judgements.
This is the latest in a chain of enforcement memoranda signed in recent years by the DIFC Courts with leading international jurisdictions, including the Commercial Court of England and Wales, the Supreme Court of Singapore, the Federal Court of Australia, the New South Wales Supreme Court, and the High Court of Kenya (Commercial and Admiralty Division).
With jurisdiction over New York's finance centres, including Wall Street, the SDNY is considered to be among the most important commercial courts in the world. Following the signing of the MoG, the Court's Chief Judge, Loretta A. Preska, reinforced the significance of the memorandum during her keynote address at the second DIFC Courts Lecture of 2015, titled "The Elements of Commerce in the Twenty-First Century: How Commercial Courts Enhance a City's Position as a Financial, Commercial and Legal Hub."
Chief Judge Loretta A. Preska said: "New York and Dubai have a strong bilateral trade relationship as two major centers of global finance and commerce. Thus both have a shared interest in ensuring predictable, efficient, and fair resolution of commercial disputes. Because commerce is now so international, it is more necessary than ever for judgments rendered in one court to be easily recognized in other countries. Today, two of the world's most vibrant commercial centers have taken a huge leap forward by providing guidance for business people and lawyers about our respective countries' abilities and willingness to recognize judgments in the other."
The strength of the UAE-US economic relationship has helped to create an estimated 200,000 jobs in each country. Non-oil bilateral trade was valued at $26.9 billion in 2013 and the UAE is the United States' single largest export market in the Middle East.
The memorandum will be particularly important to the more than 1,000 American firms that have a presence in the Emirates, and to UAE companies which are believed to have trade relations with every state in America.
Michael Hwang, Chief Justice of the DIFC Courts, said: "Much of the trade between the US and UAE originates from, or is routed via, New York and Dubai, so there is an imperative for the courts systems of both jurisdictions to work together to support the needs of business. This memorandum with one of the world's premier commercial courts builds on our existing comprehensive enforcement regime, and brings additional certainty to investors during a time of rising economic confidence in both the UAE and United States."
The Southern District Court commemorated its 225th anniversary in 2014. It was the first Court to convene under the new United States Constitution in 1789 and for this reason it is often referred to as the "Mother Court."
Since their jurisdiction was opened to businesses worldwide in October 2011, the DIFC Courts have established one of the world's strongest enforcement regimes. The judgments of the DIFC Courts can be enforced internationally through treaties such as the GCC Protocol and Riyadh Convention; treaties with China and France; and arrangements with many common law courts overseas.
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About the DIFC Courts
The UAE's DIFC Courts administer a unique English-language common law system - offering swift, independent justice to settle local and international commercial or civil disputes. The Courts, based in Dubai, provide certainty through transparent, enforceable judgments from internationally-recognised judges, who adhere to the highest global legal standards. The DIFC Courts are independent from, but complementary to, the UAE's Arabic-language civil law system - offering a choice that strengthens both processes while ensuring public access to world-class justice.
In October 2011, a decree of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister of the UAE and Ruler of Dubai, opened the DIFC Courts' jurisdiction to businesses from all across the GCC region and beyond to provide the international business community with access to one of the most advanced commercial courts in the world.
The DIFC Courts were established under laws enacted by the late HH Sheikh Maktoum bin Rashid Al Maktoum, Ruler of Dubai in September 2004. The laws establishing the DIFC Courts are designed to ensure that the DIFC Courts provide the certainty, flexibility and efficiency expected by Court users. Nearly 500 cases have been resolved through the DIFC Courts since 2008, while over 90% of Small Claims Tribunal cases are concluded within three weeks. The Courts' community-focused approach encourages early settlement, while their successful track record supports Dubai's growing status as an international business hub.
In line with HH Sheikh Mohammed's vision, the DIFC Courts serve to develop the UAE national workforce and enhance the competitiveness of Emirati advocates. The DIFC Courts are spearheading training programmes predominantly aimed at local Emirati lawyers, which offer knowledge of, and qualifications in, the English-language common law system.
For further information, please contact:
Liam Turner / Tameem Alkintar
ASDA'A Burson-Marsteller
Dubai, UAE
Tel: 971-4-4507600
Fax: 971-4-4358040
Email: liam.turner@bm.com / tameem.alkintar@bm.com
© Press Release 2015
