The establishment of the Conflict of Jurisdiction Tribunal under Decree No. 29 of 2024 marks a significant shift in resolving jurisdictional disputes between the Dubai Courts and the DIFC Courts. This new mechanism replaces the Joint Judicial Committee, addressing prior inefficiencies and ambiguity, while providing a streamlined process for adjudicating jurisdictional conflicts. 

Here’s an in-depth look at the role, function, and implications of the Conflict of Jurisdiction Tribunal. 

The Evolution: From the Joint Judicial Committee to the Conflict of Jurisdiction Tribunal 

The Joint Judicial Committee, established in 2016 under Decree No. 19, was tasked with determining jurisdictional conflicts between the DIFC Courts and the Dubai Courts. While the Committee played a vital role, its functioning was criticized for being susceptible to misuse. Some parties leveraged applications to the Committee as delaying tactics, manufacturing jurisdictional disputes in Dubai to frustrate the enforcement of judgments or arbitral awards. 

The 2024 Decree seeks to address these concerns by replacing the Joint Judicial Committee with the Conflict of Jurisdiction Tribunal, introducing a more robust and effective framework. The Tribunal’s primary objectives remain consistent: determining the competent court to hear disputes and resolving conflicting judgments issued by the DIFC and Dubai Courts. 

This blog is a part of our UAE Mainland Litigation Services

Key Features of the Conflict of Jurisdiction Tribunal 

Jurisdictional Mandate

• • The Tribunal exclusively adjudicates conflicts of jurisdiction between the DIFC Courts and Dubai Courts. 

• • It addresses disputes where the jurisdiction of one court conflicts with the orders or rulings of another. 

Streamlined Decision-Making

• • Unlike its predecessor, the Tribunal operates with greater efficiency, ensuring expedited resolution of jurisdictional conflicts. 

Binding Decisions

• • Decisions issued by the Tribunal are final and binding, reinforcing its authority as the ultimate arbiter in jurisdictional matters. 

Core Principles Governing the Tribunal 

The Tribunal functions under principles that balance the jurisdictional autonomy of both the DIFC and Dubai Courts. Key among these are: 

• • Recognition of the DIFC as a Common Law Jurisdiction: The Tribunal acknowledges the distinct legal framework of the DIFC Courts, which operate under a common law system, compared to the civil law foundation of the Dubai Courts. 

• • Respect for Arbitration Agreements: The Tribunal prioritizes the enforcement of arbitration agreements and awards, aligning with international arbitration norms, including those outlined in the New York Convention. 

• • Genuine Jurisdictional Disputes: As established in prior case law, jurisdictional disputes brought before the Tribunal must be genuine, preventing parties from exploiting the process to delay proceedings. 

Implications for Arbitration in the UAE 

The Tribunal’s rulings have clarified several critical issues in the context of arbitration: 

Exclusive Jurisdiction of the DIFC Courts for DIFC-Seated Arbitrations 

• • If an arbitration is seated in the DIFC, the DIFC Courts hold exclusive jurisdiction to address matters related to the award’s validity, recognition, and enforcement. 

• • Awards issued in the DIFC must first be recognized by the DIFC Courts before they can be enforced through Dubai Courts under the Judicial Authority Law. 

Curtailing Direct Enforcement in Onshore Courts

• • Parties cannot bypass the DIFC Courts to directly enforce a DIFC-seated arbitral award in onshore Dubai Courts. This ensures consistency and respects the autonomy of the arbitration seat. 

Eliminating Contradictory Orders

• • The Tribunal prevents situations where one court enforces an award that another court has annulled, addressing the inherent contradiction and confusion such scenarios create. 

Practical Considerations for Legal Professionals 

Legal practitioners must consider the following when advising clients involved in jurisdictional disputes or arbitration in the UAE: 

• Strategic Planning for Arbitration Agreements: Ensure that arbitration agreements explicitly designate the DIFC or Dubai as the seat, considering the implications for jurisdictional authority and enforcement mechanisms. 

• Procedural Clarity: Parties should follow the recognized mechanisms for award recognition and enforcement, adhering to the specific requirements of the chosen jurisdiction. 

• Efficient Dispute Resolution: Applications to the Tribunal should only be pursued in cases of genuine jurisdictional conflict, as misuse of this process is unlikely to succeed under the Tribunal’s stringent standards. 

A Step Forward in UAE Dispute Resolution 

The Conflict of Jurisdiction Tribunal represents a progressive development in the UAE’s legal landscape, addressing longstanding challenges in resolving jurisdictional disputes. By introducing a robust framework with clear principles and expedited procedures, the Tribunal enhances legal certainty for businesses and arbitration practitioners operating in the region. 

As this new mechanism evolves, it will undoubtedly play a pivotal role in shaping the future of dispute resolution in the UAE, offering greater efficiency, transparency, and consistency in handling complex jurisdictional issues. For legal professionals, staying informed about its rulings and implications will be essential in navigating this dynamic legal environment.