UNITED ARAB EMRITES Law and Practice Contributed by: Ali Dakhlallah, Karen Seif, Matthew Page and William Prasifka, Habib Al Mulla & Partners
my. The outcome can then be challenged before the Court of First Instance. Under Federal Decree-Law No 40 of 2023 on Media- tion and Conciliation, and corresponding local legisla- tion, claims not exceeding a value of AED5,000,000 must be referred to the relevant mediation and concili- ation centre before a court claim can be admissible. In Dubai, this function is performed by the Centre for Amicable Settlement of Disputes (CASD). Where any of the aforementioned mandatory pre- action requirements apply, failure to comply will result in the court declining jurisdiction or dismissing the claim on grounds of inadmissibility. These require- ments are designed to reduce the judicial burden on the courts, promote early resolution and ensure that parties have exhausted the appropriate administrative or conciliatory channels before resorting to litigation. 2.4 Stages of Court Proceedings Procedure Court proceedings in the UAE are predominantly writ- ten and inquisitorial. A case begins by filing a state- ment of claim before the Court of First Instance, fol- lowed by notification of the defendant. The defendant then submits a statement of defence, often followed by reply and rejoinder pleadings. Once pleadings are closed, the court may appoint one or more court-appointed experts, particularly in com- mercial cases involving accounting, construction or technical issues. Expert reports are frequently central to the outcome of the dispute. Hearings are generally brief and focus on procedural issues rather than oral advocacy. After reviewing pleadings, evidence and expert reports, the court issues a written judgment. Par- ties may appeal judgments as of right to the court of appeal and, on points of law, to the court of cassa- tion. Appeals may stay enforcement at certain stages, depending on the court and relief sought. Timeline Timelines vary significantly depending on the com- plexity of the case. Simple commercial cases may conclude within 6–12 months, while complex matters
involving experts and appeals commonly last two years or more. Despite reforms aimed at efficiency, litigation in the UAE is often slower than arbitration. 2.5 Confidentiality Confidentiality in Onshore Courts Onshore court proceedings in the UAE are not public in the sense of open court hearings or publicly acces- sible case files. Hearings are generally attended only by the parties, their representatives and court officials. Certain categories of disputes are treated as expressly confidential. These include family law, employment disputes, banking matters and cases involving minors or sensitive personal information. Courts may also order confidentiality measures in cases where com- mercial secrets or reputational concerns arise. Commercial litigation is therefore procedurally private but not confidential by agreement. Parties cannot con- tractually impose confidentiality on court proceedings in the same way as arbitration. However, disclosure is limited to the parties and the court, which mitigates damage to reputation. Confidentiality in Offshore Courts Offshore courts and arbitration can also offer confi- dentiality depending on the forum. Nevertheless, in onshore UAE courts, confidentiality is largely a func- tion of procedural design rather than contractual choice. Proceedings in the DIFC courts are usually public, unless the parties opt for them to be private. 2.6 Interim Relief UAE courts are empowered to grant a wide range of interim and precautionary measures to protect parties’ rights pending final judgment. The most common form is precautionary attachment, allowing a claimant to freeze a defendant’s assets where there is a risk of dissipation. Courts may also order attachment of bank accounts, goods, or shares. Other interim measures include injunctions, orders preventing specific acts, appointment of guardians over assets and preservation of evidence. In appropri- ate cases, courts may impose travel bans to prevent defendants from leaving the UAE. Interim relief may be granted ex parte where urgency is demonstrated.
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