More and more businesses are resorting to the Dubai International Financial Centre (DIFC) Courts to settle conflicts, with the nearly 1,000 disputes filed last year and the value of commercial claims cases reaching more than 3.1 billion UAE dirhams ($844 million), new statistics revealed.

The total volume of complaints lodged across different divisions at the common law court went up by 43 percent in 2019 to 952.

The cases filed involved companies in the banking and finance sector, construction, real estate and manufacturing, as well as arbitration-related disputes, according to a report released on Wednesday by the DIFC Courts.

The judiciary, which started operations in 2006, deals with civil and commercial disputes occurring within the DIFC. It deals with different types of cases, ranging from sophisticated, international financial transactions to debt collection and labour disputes, and has the power to issue orders, which may be made concerning compensation and damages, among others. 

“The laws establishing the DIFC Courts are designed to ensure we provide the certainty, flexibility and efficiency expected by court users. The performance of our courts in 2019 reflects continued trust of process and confidence in delivery of swift outcome of justice,” Zaki Azmi, chief justice at DIFC Courts Azmi said in a statement. 

Cases in various divisions

The volume of disputes jumped by 16 percent year-on-year at the Court of First Instance (CFI), while the combined value of commercial claims, including the ones related to arbitration, amounted to 3.1 billion UAE dirhams. This, the DIFC Courts said, is testament to “strong business confidence” in its ability to resolve disputes.

“Cases brought before the CFI covered a range of sectors including banking and finance, construction, real estate and manufacturing and involving disputes related to breach of contract, outstanding payments, wills and probate, and employment,” the Courts said.

It also noted a noticeable increase in the number of opt-in cases filed last year, with more than 70 percent of the claims coming from parties electing to use the DIFC Courts to resolve issues.

As for enforcement claims filed with the Courts, the total value reached 2.6 billion UAE dirhams in 2019, while the number of cases went up by 35 percent.

At the Small Claims Tribunal (SCT), the case load for claims surged by 47 percent to 585. Topping the list were cases related to breach of contract, accounting for 43 percent of all claims filed with the SCT, followed by disputes related to banking (27 percent) and employment (20 percent).

(Writing by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.Maceda@refinitiv.com

#DIFC #LEGAL #DUBAI #UAE

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020