A strong start in 2016 for DIFC Courts

The DIFC Courts’ position as the region’s preeminent English-language business courts was reinforced in the first half of 2016, with the number and total value of cases continuing to increase strongly. The period was also notable for a significant increase in the number of enforcement cases, indicating the confidence business has in the DIFC Courts as an efficient and effective conduit to reclaim money owed to them.

Between January and June 2016, the total value of Court of First Instance (CFI) cases, including arbitration-related cases and counter claims, and enforcement cases, handled by Dubai’s established English-language, commercial common law judicial system was approximately AED 3.44 billion. This compares with AED2.33 billion in the same period of last year, a 48 percent year-on-year increase.

Driving growth was a significant increase in the number of enforcement cases before the DIFC Courts. While the total number of CFI and arbitration cases grew by 35 percent during the period, from 17 to 23, the total number of enforcement cases grew by 194 percent, from 17 to 50.

The average claim value of enforcement cases also grew significantly during the period, from AED 6 million in the first half of 2015 to AED31 million this year, a fourfold increase. Meanwhile, the average claim value of CFI and arbitration-related cases fell from AED132 million to AED82 million, suggesting the main courts’ workload is maturing to include a broad mix of both high value and moderate value commercial disputes. Overall, the average value of claims filed with the DIFC Courts in the first half of 2016 increased by 38 percent from AED16.5 million to AED22.7 million.

The workload of the DIFC Courts’ Small Claims Tribunal (SCT), fell in the first half of 2016, from 108 cases to 79. However, the total value of claims increased from AED 7 million to AED 9 million year-on-year, suggesting the claimants are responding to the new higher AED 1 million threshold for case values.