DIFC Courts: Still A Conduit Jurisdiction?

A recent decision by the Judicial Tribunal casts doubt on the DIFC Courts' ability to act as a conduit jurisdiction.  A summary of that decision is set out in this article.

On 9 June 2016,  H.H. The Ruler of Dubai issued Decree 19/2016 (Decree). The Decree provided for the establishment of a "Judicial Tribunal for the Dubai Courts and the DIFC Courts" to rule on conflicts of jurisdiction between the DIFC Courts and the Dubai Courts. Previously such a conflict was referable to the Union Supreme Court.

The likelihood of such a conflict arising has increased, for example, because of the increasing use of the DIFC Courts as a "conduit jurisdiction" for the enforcement of arbitral awards and court judgments. The recognition and enforcement of an onshore, Dubai seat (as opposed to DIFC seat) arbitral award is an example of the type of conflict that could arise.