Make the jurisdiction for your contracts to be the Dubai International Financial Centre (DIFC).
DIFC courts have the power, in matters where they have jurisdiction, to make any orders it considers appropriate and they have jurisdiction over civil and commercial matters only (not criminal)
The huge advantage, for SMEs, is their Small Claims Tribunal (SCT).
- This has the ability to hear claims up to AED500,000.
- The procedure is firstly a consultation, where both claimant and defendant represent themselves (ie without lawyers, unless the judge considers it necessary).
- Most cases are resolved at the consultation stage, but if there is no resolution, then the case may be referred to the Court of First Instance.
- Filing Fees are relatively low.
- 90% of claims are resolved within 4 weeks.
- Claims can be initiated online, via fax or in person
Companies do not have to be registered in the DIFC, but both parties must agree to agree to a hearing by SCT. The easiest way to do this is to define jurisdiction of a contract as being within DIFC. This should be a term of all contracts, T&Cs etc
There is also jurisdiction for employment claims if they are above AED500,000, and both parties elect for SCT.
Key point for SMEs- make sure all your contracts have the DIFC clause for contracts up to AED500,000.
