Litigation funding is an arrangement where a third party
finances the cost of litigation or arbitration proceedings in
exchange for a return upon success. Typically, this is fully
non-recourse funding in that the claimant is not obliged to repay
the funder unless they recover proceeds by judgment, award or
settlement.
The litigation funding industry is big business in the US and
other common law jurisdictions and has been well-established for
many years. In recent years, and particularly in the post-Covid
era, the interest of funders has been on the rise in the UAE and
the Middle East. With this, the legal landscape has adapted to
accommodate, yet claimant awareness and comfort with this model has
somewhat lagged behind.
