In the UAE, the question of which court has jurisdiction to hear the challenge of an arbitration award seated in the Dubai International Financial Centre (DIFC) has been a point of contention with, in some instances the DIFC courts recognising jurisdiction to hear the challenges of arbitration awards and in other instances the Dubai courts recognising that is vested with such jurisdiction.

The Dubai Court of Cassation in a recent judgment dated 25 March 2025 settled the matter and concluded that where the legal seat of arbitration is the DIFC, the DIFC Courts have exclusive jurisdiction over any set-aside application or any challenge or proceedings relating to the arbitral award, provided that such seat is expressly stated in the arbitration clause or evident from the award itself.

Furthermore, the Court of Cassation emphasised that the issuance of Decree No. 34 of 2021 dissolving the DIFC-LCIA Arbitration centre does not affect the jurisdiction of the DIFC courts since this decree did not abolish the DIFC as a jurisdiction nor did it eliminate the DIFC Courts. Rather, the Decree only dissolved the DIFC-LCIA Arbitration Centre. As such, the DIFC Courts remain operational and continue to exercise their jurisdiction in accordance with the applicable legal framework. The Court of Cassation therefore confirmed that the dissolution of the arbitration institution does not affect the jurisdiction of the DIFC Courts over arbitration-related matters seated in the DIFC.

Accordingly, if it is established that the legal seat of arbitration is the DIFC — whether by virtue of the arbitration clause or the content of the arbitral award — then the exclusive jurisdiction to hear challenges (set-aside) of arbitration awards is with the DIFC Courts. Filing such claim before the onshore Dubai courts violates the rules of jurisdiction.