The DIFC is an independent judiciary in the Emirate of Dubai, and in this blog we will clarify how rental disputes being resolved in the DIFC. If you are interested, continue with us for more information.
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Jurisdiction Over Rental Disputes Within the DIFC
The courts within the DIFC, through the established Court of First Instance, have jurisdiction to resolve all civil and commercial disputes. Since rental disputes often fall under civil disputes, and sometimes commercial disputes depending on whether the lease is for residential or commercial purposes, they are included under this jurisdiction.
Referring to the provisions of Decree No. 26 of 2013 concerning the establishment of the Rental Disputes Center in the Emirate of Dubai, it is noted that the center has comprehensive and general jurisdiction over all rental disputes between landlords and tenants concerning properties leased within the Emirate of Dubai or in the free zones.
However, rental disputes that arise within the free zones, which have their own competent courts to adjudicate such disputes, are excluded.
Turning to the provisions of the DIFC Real Property Law No. 10 of 2018, it is clear that this law applies to all properties under the authority of the DIFC.
This means that all rental disputes related to properties located within the DIFC are resolved according to the center’s laws and are not subject to the jurisdiction of the Rental Disputes Center.
Therefore, any agreement between the parties in a rental relationship, the landlord and the tenant, to subject such a relationship to the jurisdiction of the DIFC courts, is considered contrary to public order and will not be recognized unless the property in question is located within the center’s boundaries.
What is the Independent Court System in DIFC?
The DIFC operates an independent court system separate from the Emirate of Dubai, applying its own laws according to the provisions of Law No. 12 of 2004 concerning the DIFC Courts, as amended by Law No. 16 of 2011.
Moreover, the DIFC adheres to the rules of the Dubai International Arbitration Centre, established by Decree No. 34 of 2021. Article 2 of this decree explicitly states that the center will have a branch within the DIFC.
The International Arbitration Center relies on international arbitration rules, particularly those applied by the London Court of International Arbitration.
According to the latest statistics from the DIFC, the competent courts and the International Arbitration Center have resolved numerous disputes arising within the center. The cases heard are increasing and vary between civil, commercial, banking, and real estate disputes.
Given that these courts require comprehensive and extensive legal knowledge, particularly as the center operates under its own judicial systems, it is crucial for anyone with a legal dispute falling under the jurisdiction of the DIFC courts to seek the expertise of specialized lawyers. You can contact a specialized lawyer via the WhatsApp button at the bottom of the screen, where our legal team will provide all the necessary legal services related to these disputes, whether they are before the courts or arbitration centers.
The General Jurisdiction of the Courts in the Dubai International Financial Centre (DIFC)
The general jurisdiction of the DIFC courts encompasses the Court of First Instance, the Court of Appeal, and the Enforcement Judge.
Jurisdiction of the Court of First Instance
- This court has jurisdiction to hear and adjudicate civil or commercial cases where the DIFC, or any entity or institution affiliated with it, is a party.
- It has jurisdiction over all contracts that are made or executed within the center.
- Additionally, it deals with civil or commercial disputes arising from or related to an event or transaction that occurred wholly or partially within the center.
- It also has jurisdiction over appeals against decisions and judgments issued by the center’s bodies, which are not appealable under the center’s laws and regulations.
- It handles any requests or claims that fall within the jurisdiction of the center’s courts under its laws.
Jurisdiction of the Court of Appeal
- This court handles appeals against judgments and decisions issued by the Court of First Instance.
- It is competent to interpret any article of the center’s laws or regulations, and such interpretations carry the force of the legislation that was interpreted.
- Decisions issued by the Court of Appeal are final and binding, and no further appeal is permissible.
Jurisdiction of the Enforcement Judge
This judge is responsible for enforcing judgments, decisions, and orders issued by the courts, as well as arbitral decisions ratified by the courts, provided that the enforcement occurs within the center’s boundaries.
Laws and Regulations Applied in the Courts of the DIFC
The courts in the DIFC apply their own specific laws and regulations, which differ from those applied in the Emirate of Dubai.
These laws are issued in English and are aligned with English law. In case of disputes concerning interpretation, reference is made to the legal interpretation rules under English legislation.
Furthermore, the center has its own laws concerning corporate, commercial, civil matters, employment, and securities law. The laws of the United Arab Emirates or the Emirate of Dubai are applied only within a limited scope, primarily encompassing criminal law and immigration regulations.
Key legislation related to the DIFC includes Law No. 9 of 2004 regarding the Dubai International Financial Centre, as amended by Law No. 5 of 2021, and Law No. 12 of 2004 concerning the DIFC Courts, as amended by Law No. 16 in 2011.
Frequently Asked Questions (FAQS)
Can Landlord and Tenant Agree to Submit Disputes to Jurisdiction Over Rental Disputes Within the DIFC?
Landlords and tenants cannot agree in the lease contract to submit arising disputes to the jurisdiction of the Dubai International Financial Centre courts unless the leased property is located within the center’s boundaries. If the property is outside the center, such a clause is considered contrary to public order, and the jurisdiction then belongs to the Dubai Rental Disputes Center.
Are the Judgments Issued by the Court of Appeal in the Dubai International Financial Centre Subject to Appeal?
Judgments issued by the Court of Appeal in the Dubai International Financial Centre are final and conclusive. They do not accept any form of appeal, meaning they cannot be challenged by cassation.
At the end of our article on the Jurisdiction over rental disputes within the DIFC. we hope to have clarified all aspects related to this jurisdiction in rental disputes between the courts of the Dubai International Financial Centre and the Dubai Rental Disputes Center.
You might also read:
How to File a Rental Dispute in Sharjah
Sources:
Law No. 5 of 2021 concerning the Dubai International Financial Centre.
Law No. 12 of 2004 and its amendments concerning the courts of the Dubai International Financial Centre.
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Senior Legal Consultant with extensive experience in providing specialized legal advice in various fields within the United Arab Emirates. He specializes in commercial, criminal and personal status law cases, and works on representing individuals and companies in complex cases and legal disputes.