Dubai Decree No. 29/2024 New Judicial Authority for resolving Jurisdictional Conflicts

On April 17, 2024, His Highness Sheikh Mohammed bin Rashid Al Maktoum, issued Decree No. 29 of 2024, which abrogates and replaces Dubai Decree No. 19 of 2016. This decree established a new Judicial Authority for Resolving Conflicts of Jurisdiction between the Dubai International Financial Courts (DIFC) and Judicial Bodies..

Jurisdictional conflicts in Dubai often arise due to the co-existence of two parallel judicial systems—the DIFC Courts and the onshore Dubai Courts. The DIFC Courts operate under a common law system, while the onshore Dubai Courts follow civil law principles. These two systems frequently handle cases that involve the same parties or subject matter, leading to questions of jurisdiction. The new judicial authority can help in addressing jurisdictional issues that arise in international cases, potentially attracting more foreign investment.

The decree makes it clear that the scope of the Judicial Authority extends to all Judicial Bodies within Dubai including but not limited to the Rental Dispute Centres etc, broadening its scope from the previous focus on just the Dubai Courts and the DIFC Courts. This new authority resolves jurisdictional conflicts and can issue binding judgements.

Under Article 4, the Judicial Authority has the following primary competencies:

1. When there is a conflict of jurisdiction between the DIFC Courts and other Judicial Bodies, the authority decides which judicial body will hear the case.
2. If conflicting judgments are issued by the DIFC Courts and other Judicial Bodies, the authority will decide which judgment should be executed.
3. The Judicial Authority may assume other duties assigned by the Ruler or Chairman of the Judicial Council.

This wider authority allows the court to settle jurisdiction disputes clearly, avoiding duplication of cases.

Article 5 of the decree states how the Judicial Authority works, including how it conducts its meetings and procedures. The authority meets when the Chairman calls for a meeting, and decisions are made by majority vote, with the Chairman casting the deciding vote in case of a tie. All discussions are confidential.

In cases where the Judicial Authority takes up a claim, Article 7 specifies the immediate consequences:

1. Any lawsuits involved in the jurisdiction dispute are put on hold until a decision is made.
2. Similarly, the execution of any judgments is halted until a final decision is reached.
3. Time limits and legal deadlines are suspended while the claim is being reviewed.

These provisions ensure that the Judicial Authority full control over the process and help avoid delays in resolving jurisdiction disputes.

Under Article 8, a litigant must deposit a cash guarantee of AED 3,000 when filing a claim with the Judicial Authority. If the claim is accepted, the deposit is returned. If the claim is found to be without merit, the deposit is kept and given to the appropriate Judicial Body.This rule helps prevent frivolous claims and ensures that only real jurisdiction disputes are brought to the authority.

One of the most significant aspects of the decree is the binding nature of the Judicial Authority’s decisions. As stated in Article 9, the decisions are final and cannot be appealed. Additionally, these decisions establish judicial precedents that must be followed by all Judicial Bodies in Dubai, including the DIFC Courts.

This move toward a precedent-based system aligns the Judicial Authority with common law principles, despite Dubai’s predominantly civil law framework. It introduces a higher degree of predictability and consistency in legal rulings, which is expected to improve confidence in Dubai’s legal system for businesses and litigants.

The decree sets up a strong framework for resolving jurisdiction conflicts in Dubai. With the expanded powers of the Judicial Authority, it aims to make the legal process more efficient, consistent, and predictable. For both legal professionals and businesses, it provides a clear path to settle jurisdiction disputes, further boosting Dubai’s position as a global hub for dispute resolution.

Written by - Mr. Sanjeev Kandathil