The Battle For Jurisdiction

In Allianz Risk Transfer AG (Dubai Branch) v Al Ain Ahlia Insurance Co PSJC (CFI 012/212), the DIFC Court of First Instance has for the first time considered jurisdictional issues in a reinsurance policy, asserting its jurisdiction in a dispute involving an international reinsurer's DIFC branch and a UAE based insurance company.

The DIFC Courts are the common law based, English language courts within the UAE's otherwise civil law legal system. The DIFC Courts started as a specialist forum servicing the Dubai International Financial Centre, but have undergone a transformation over the last few years through a series of legislative and judicial pronouncements. The effect has been to elevate the DIFC Courts into an international judicial forum available to deal with a wide range of international disputes. This particular judgment clarifies some aspects of competing jurisdiction between the DIFC Courts and other courts in the UAE.