Court Systems in the United Arab Emirates
The United Arab Emirates (UAE) has several mediums to resolve disputes, including litigation and arbitration that are governed by separate judicial systems. It is important for businesses, lawyers in Dubai and residents to understand these systems before making provisions for dispute resolution in their commercial contracts.
The UAE offers three primary court systems for litigation, being, the onshore courts (local courts) that operates in the mainland under the civil law system and, the offshore courts that operates in the freezone, it includes the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM), both offshore courts operate under common law jurisdictions.
Onshore
The onshore court system comprises three main levels:
- Courts of First Instance
- Courts of Appeal
- Courts of Cassation or Federal Supreme Court
Both questions of fact and law are assessed in lower courts. However, as cases progress to the appeal and cassation courts, the focus shifts to questions of law.
The emirate of Ajman, Fujairah, Sharjah and Umm Al Quwain are part of the federal judicial system, with the Federal Supreme Court as the final level of appeal and, the emirate of Abu Dhabi, Dubai, and Ras Al Khaimah have independent judicial systems, with the courts of cassation serving as the final court of appeal. These onshore courts adhere to both federal and local laws, depending on emirate where the dispute is contested.
The litigation proceedings are conducted in Arabic however, there has been recent amendments for certain courts to use English on shore. The onshore courts follow a system wherein the judge performs a more examining role (inquisitorial) on the matter and the proceedings are conducted mainly in writing. The Article 45 of UAE Federal Decree – Law No. 34 of 2022 on Regulating the Legal Profession and Legal Consultancy Professions provides for attorney-client privilege however, onshore courts do not recognize any other ‘privilege’ or ‘without prejudice’ communications.
Onshore local courts maintain exclusive jurisdiction over all criminal proceedings. The Emirate of Dubai has specialized mechanisms for resolving specific disputes. The Dubai Rental Dispute Settlement Center (RDSC) handles landlord-tenant disputes through complaint filing, mediation, and adjudication, with appeals possible to the Dubai Court of Appeal.
Labour complaints can be filed with the Ministry of Human Resources and Emiratisation (MOHRE) via their website, app, or service centers, with mediation attempts followed by referral to Labour Court if unresolved.
Medical complaints are managed by the Dubai Health Authority (DHA) through online or call center filings, investigations, and resolutions, with unsatisfied parties able to escalate cases to the Dubai Courts.
Offshore
DIFC Courts
The DIFC courts are located in Dubai, it is independent from the local court system and provides a common law jurisdiction. DIFC courts have implemented their own laws, rules, procedures and have selectively adopted the laws of England and Wales.
The DIFC court system consists of two main levels:
- Court of First Instance (CFI)
- Court of Appeal
DIFC courts also include specific divisions such as the Small Claims Tribunal (SCT), Technology and Construction Court, Arbitration Division, and Digital Economy Court. The decisions of the Court of Appeal courts are final and binding and cannot be further appealed. It also has exclusive jurisdiction over civil or commercial claims involving the DIFC or its bodies, and claims arising from contracts or transactions performed within the DIFC. Parties may decide to enter into the DIFC courts’ jurisdiction by mutual agreement.
The DIFC SCT handles claims up to AED 500,000 for individuals and up to AED 1,000,000 for employment disputes. SCT judgments can be appealed to the Court of First Instance (CFI) only under specific circumstances, for instance, a serious procedural irregularity. If a judgment is unsuccessful at both the SCT and CFI, it is highly unlikely to be further permitted to be appealed to the DIFC Court of Appeal, unless it meets the necessary grounds for appeal.
ADGM Courts
The ADGM courts are located in Abu Dhabi, similar to the DIFC Courts, ADGM courts is an independent court system that provides a common law jurisdiction for dispute resolution. ADGM courts have also implemented their own laws, rules, procedures and have selectively adopted the laws of England and Wales. It comprises of the following:
- Court of First Instance
- Court of Appeal
ADGM Court of First Instance has divisions for small claims and civil matters as well. It has jurisdiction over disputes involving the ADGM, its authorities, or establishments, and those arising from contracts or transactions performed within the ADGM. Parties may also decide to enter into the ADGM courts’ jurisdiction by mutual agreement.
Statutorily, there are applicable time restraints for litigation in both onshore and offshore courts, which depend on the nature of the dispute whether commercial, construction, contractual etc. These courts may waive the time limits if either party can provide a lawful excuse.
In offshore courts the proceedings are conducted in English with oral arguments and witness examinations. Offshore courts recognize and protect the concept of privilege, allowing parties to resist document disclosure based on privilege. It also offers a wider range of interim relief unlike the onshore courts.
Written by – Sanjeev Kandathil
