Dubai’s new DIFC Courts Law – Dubai Law No. 2 of 2025 issued on 3 March 2025 pertaining to the legal framework governing the Dubai International Financial Centre (DIFC) Courts. It repeals and replaces the prior DIFC Courts laws (Dubai Laws No. 10 and No. 12 of 2004, as amended. Below, we compare key provisions of Law No. 2 of 2025 with the previous Law No. 12 of 2004 (as amended), highlighting the changes by article number and analyzing their practical impact on the DIFC Courts’ functioning.

Dubai Law No. 2 of 2025 – A Modern Framework for DIFC Courts

Expanded Jurisdiction

Dubai’s new Law No. 2 of 2025, issued on 3 March 2025, brings a comprehensive update to the legal structure governing the Dubai International Financial Centre (DIFC) Courts. One of the most significant changes is the expansion and clarification of the Courts’ jurisdiction. Unlike the older law from 2004, which only referred to civil and commercial matters, the new law explicitly states that DIFC Courts now have jurisdiction over employment disputes, trust instruments, and non-Muslim wills registered within the DIFC. These were either previously silent or only governed by separate instruments.

The law also refines the criteria for when a case belongs in the DIFC, using clearer wording like “concluded, completed, or performed” for contracts and includes acts connected to DIFC-based employees or companies. Arbitration-related jurisdiction is also expanded, allowing the DIFC Courts to handle enforcement and disputes for arbitrations seated in the DIFC, or those where the parties have chosen DIFC Courts as the supporting forum. Importantly, the new law maintains the ability for parties to “opt in” to the DIFC Courts’ jurisdiction through a clear, written agreement, even if they have no other connection to the DIFC. It also introduces a new feature—“opt out”—which gives the Courts discretion to decline a case if the parties had already agreed to resolve their dispute in another forum.

Administrative reforms and Judicial Independence

In terms of administration, the new law strengthens the independence and professionalism of the DIFC Courts. It continues to position the Chief Justice as the head of the judiciary but adds new checks and balances. For instance, rules of court and draft laws proposed by the Chief Justice must now be approved by the DIFC President. It also introduces the role of a Director of the DIFC Courts, who will manage the courts’ day-to-day administration, including case filing, practitioner registration, and oversight of court services like the Pro Bono Programme and the newly formalized Mediation Centre.

A new governance body—the DIFC Courts Affairs Committee—has also been created. This committee, which includes the Chief Justice, senior judges, the Director, and other officials, is tasked with guiding the strategic direction of the Courts. It can also review proposed changes in laws, helping ensure transparency and long-term planning. These changes collectively make the DIFC Courts more efficient, better managed, and aligned with international standards. The law also formally incorporates the Wills Registry for non-Muslims into the court’s framework, solidifying its status as a private wealth hub alongside its commercial jurisdiction.

Stronger and Faster Enforcement Mechanism

Perhaps the most practical and impactful improvements come in the area of enforcement. Law No. 2 of 2025 introduces the concept of an “Enforcement Writ,” allowing DIFC judgments, orders, and arbitral awards to be executed directly, including within onshore Dubai, without needing to re-litigate or seek approval from the Dubai Courts. The process has been streamlined to involve direct judge-to-judge coordination between DIFC and Dubai Courts. The Dubai judge is required to enforce the DIFC Court order and cannot revisit the merits of the case. Similar clarity is provided for enforcing foreign judgments and arbitral awards in the DIFC: as long as basic formalities are met (like translation and finality), the DIFC Enforcement Judge can issue an execution order.

There is also now a direct appeal route for enforcement-related decisions, which can be taken straight to the DIFC Court of Appeal. Overall, the changes brought in by Law No. 2 of 2025 modernize and simplify the DIFC Courts’ processes, making them more attractive for both local and international litigants. For lawyers, the law provides precision and certainty. For individuals and businesses, it ensures faster, more reliable resolution and enforcement of disputes.

Written by – Mr. Sanjeev Kandathil