DIFC Courts signals surge in cases from SMEs

The Dubai International Financial Centre (DIFC) Courts today released its figures for the first half of 2019, with the English-language, common law courts continuing to assist global businesses resolve their largest and most complex disputes, while becoming the increasingly prevalent forum for settling the smaller claims of corporations, SMEs and individuals.

Signaling strong public confidence, the total volume of cases across all divisions for the first six months of 2019 was 463, a 25% increase from the first half of 2018. The main Court of First Instance (CFI), including arbitration-related cases and counter claims, continued to provide business certainty, with the total value of cases recorded as AED 2 billion.

The period was also notable for a significant increase in the number of enforcement cases, indicating the assurance businesses have in the DIFC Courts to collect on money judgments. The total caseload of enforcement claims filed witnessed a 16% increase from the first half of 2018, with a total of 101, rising from 87 in the same period in 2018. 

INCREASING ACCESS TO JUSTICE FOR SMEs

The dynamic delivery of the region’s first Small Claims Tribunal (SCT) in the first six months of 2019 was particularly striking, with its case load increasing by 34% to 321 claims (H1 2018: 240 cases). This growth was partly driven by greater awareness campaigns through local strategic partnerships, including a cooperation agreement with Dubai Healthcare City Authority (DHCA) and the launch of the Special Complaints Referral Centre (SCFC). Reinforcing the ‘Smart’ SCT’s increasing appeal to individuals and SMEs, the total value of claims increased by 23% in the first half of 2019, rising from AED 30.6 million to AED 37.5 million.

Amna Al Owais, Chief Registrar, DIFC Courts, said: “The first half of 2019 saw the DIFC Courts serve the biggest multinationals, the smallest start-ups, and individuals, seeking justice with equal consideration. When it comes to resolving disputes, businesses like choice and they need certainty - few rational companies would invest money, resources or intellectual property in a country with questions marks around legal protection. Likewise, effective commercial courts are essential enablers for local companies to thrive and have become major points of difference within the region in the race for global investment. 

Businesses and individuals in Dubai are free to choose between litigation and arbitration; common or civil law; English or Arabic language - whichever system best suits their specific needs. Our performance so far this year speaks to the maturity of the DIFC Courts, our position as a valued public service, and cements our status as a regional leader in the field of commercial justice.”

WILLS SERVICE CENTRE

The first six months of 2019 witnessed a total of 549 wills registered at the DIFC Courts, bringing the total since the inception of this ancillary service to over 5,160, with more than 85 lawyers representing more than 80 law firms, based in the UAE and overseas, registered as Wills Draftsmen.

In July 2019 the DIFC Courts announced changes to the rules of wills registrations, which will now accommodate all resident and investor assets across the Emirates, as well as assets held outside the UAE.

Effective from July 1, 2019, the Courts’ Wills Service Centre also confirmed that existing wills registered with the Courts can be amended free-of-charge until August 31, 2019, to include UAE-wide assets and assets outside the UAE.

In 2019 the DIFC Courts also signed a cooperation agreement with the Dubai Land Department (DLD) to ensure that its public service offering through the Wills Service Centre will complement and reinforce the overall service with the DLD to property purchasers.

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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. 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. 

© Press Release 2019