DMCC and DIFC Courts expand partnership to strengthen dispute resolution framework

Melissa McLaren and Nour Aljaghoub of Pinsent Masons were commenting on the announcement by the Dubai Multi Commodities Centre (DMCC) and DIFC Courts of an extended memorandum of understanding (MoU) designed to strengthen the dispute resolution framework for DMCC businesses operating in Dubai.

The MoU, which builds on an already decade-long partnership between the two institutions, will strengthen the DIFC Courts position as an accessible forum of choice and enable disputes to be resolved under DIFC law before internationally recognised judges.

It will also give more businesses structured access to mediation through the DIFC Courts Mediation Services Centre, which was launched in 2025. Mediation is often viewed as a faster and lower-cost alternative to court proceedings, which could be advantageous for businesses navigating a range of supplier or partnership disputes or other commercial claims.

The enhanced cooperation will give more than 26,000 DMCC-registered companies structured access to the DIFC’s full suite of legal and dispute resolution services, including litigation, mediation, commercial and personal legal services. Businesses will also benefit from new access to the DIFC’s Digital Economy Court, which could provide a more suitable forum for companies engaged in disputes across the fintech, digital assets or technology sectors.

Commenting on the announcement, Dubai-based dispute resolution expert Melissa McLaren said the MoU was likely to alter how many DMCC-based businesses approach dispute resolution at a structural level. “By making DIFC Court access more embedded within the DMCC ecosystem, we expect to see a significant increase in contracts opting in to the DIFC jurisdiction as a default position, particularly for cross-border trade and investment arrangements,” she said.

Nour Aljaghoub, a commercial dispute resolution lawyer based in Dubai, said the partnership would give businesses greater flexibility in terms of when and which form of dispute resolution to undertake. “Dispute resolution is increasingly being determined at the contracting stage rather than after a dispute arises, with more emphasis on enforceability, neutrality and procedural familiarity,” she said. “We also anticipate a growing shift towards hybrid strategies, where mediation is used more actively alongside litigation, and increased use of specialist forums for technology-related disputes.”

The MoU also brings the DIFC Courts into closer alignment with DMCC’s international business community across the trade, commodities, finance and technology sectors. In doing so, it is expected to support Dubai’s ‘D33’ agenda – to double its economy by 2033 – by embedding world-class legal infrastructure within the DMCC ecosystem.

Aljaghoub said the development would be transformative both for businesses operating internationally out of Dubai and for those operating out of the DIFC or DMCC. “The enhanced partnership will reinforce the need to treat dispute resolution clauses as a strategic risk management tool rather than standard boilerplate,” she said.

McLaren said businesses should review dispute resolution clauses in both existing and upcoming contracts to assess whether opting into DIFC Courts’ jurisdiction might be advantageous for enforcement, neutrality and procedural familiarity. “In-house teams may wish to consider adopting standard DIFC Courts’ jurisdiction clauses where appropriate, particularly for cross-border agreements,” she added.