DIFC Courts Resolve First Non-DIFC Case

by Mary Swire, Tax-news.com, Hong Kong

12 January 2012

The Dubai International Financial Centre (DIFC) Courts, the English language, common law judicial system based in Dubai, has reported that its first non-DIFC related case has been heard and resolved.

The case concerned a dispute surrounding the non-payment of an invoice involving two Dubai-based SMEs and was resolved in late December. A settlement was agreed upon by both parties after being overseen by the DIFC Courts and Small Claims Tribunal. Both parties accepted the DIFC Courts jurisdiction and subsequently reached a mutual settlement on December 29.

Shamlan Al Sawalehi, SCT Judge and Judicial Officer at the DIFC Courts said: “This is a very significant step in the history of the DIFC Courts. The recent jurisdiction extension has clearly had particular resonance amongst the UAE’s SME community.”

The claimant, Mr. Rajesh, Operations Manager of a Dubai-based furniture trading company said of the process: “I was compelled to choose the DIFC Courts on account of its exemplary track record and the obvious cost benefits of using the Tribunal. The process was extremely efficient and transparent and I am currently working through another two similar debt repayment cases with the Small Claims Tribunal.”

The recent decree from Sheikh Mohammed bin Rashid Al Maktoum, expanding the DIFC Courts’ jurisdiction to allow any businesses to use the English language DIFC Courts, was made following calls from the region’s business community for a common law English-speaking judicial option for all.

The Court is open to businesses from all over the Gulf Cooperation Council as well as the international business community.

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