A Common-Law Court in an Uncommon Environment: The DIFC Judiciary and Global Commercial Dispute Resolution - ARIA - Vol. 25, Nos. 3-4, 2014
Author(s):
Jayanth K. Krishnan
Priya Purohit
Page Count:
38 pages
Media Description:
1 PDF Download
Published:
April, 2015
Description:
Originally from American Review of International Arbitration - ARIA
Preview Page
A rather remarkable development – upon which surprisingly little research has
focused – is occurring within a religious monarchy in the Middle East. In 2004,
the United Arab Emirates (“UAE”) authorized one of its seven monarchal
provinces, the Emirate of Dubai, to pass Dubai Law No. 9 creating a global,
cosmopolitan business campus.1 Located within the heart of the downtown area,
the “DIFC” – or Dubai International Financial Centre – was established in order to
attract foreign investment and to make this emirate an international hub for
commercial transactions.2 The government touted Dubai’s geographic position in
the Gulf as a strategic advantage – a bridge for those working in South and East
Asia, the Middle East, Europe, and Africa. Moreover, Dubai officials aspired to
an even larger vision: to have the DIFC eventually serve as the world’s leading
arena for major international business dealings.3
Dubai Law No. 9 outlined that there were to be three components to the
DIFC: a) an authorizing agency that would be the regulatory body overseeing
employment law, corporate law, commercial law, and real estate; b) a regulatory
agency that would oversee all financial matters involving the DIFC; and, most
interestingly, c) the DIFC common-law courts.4 The DIFC courts came into
existence in 2006 and for the first five years they served as an adjudicatory forum
for all commercial disputes within the DIFC. In 2011, following the passage of
the Dubai Law No. 16, the DIFC courts were granted jurisdiction over any
commercial matter (domestic or international) so long as all parties gave consent.5
This article will focus, in particular, on these DIFC courts. Dubai government
leaders (and DIFC officials specifically) have promoted the DIFC courts with
great enthusiasm. Western common law and legal principles, and the English
language are used, in order to make the DIFC courts accessible to international
legal and business professionals.6 Furthermore, the judges of the DIFC courts (on
both the first instance court and appellate court) are internationally respected.
(The current Chief Justice is Michael Hwang, an Oxford-educated former law
professor, and leading Singaporean lawyer who headed the litigation and
arbitration department of the firm Allen & Gledhill.7) The goal is to have the
DIFC judiciary be efficient, just, and legitimate. It is to serve as a haven – an
accessible Western-style judicial system within a highly centralized, Arab-Gulf
monarchy.8 The DIFC courts are a prime example of the complicated, nuanced,
and even ironic ramifications that can accompany globalization today.
and even ironic ramifications that can accompany globalization today.