Introduction
The United Arab Emirates was founded in 1971 and now consists of seven emirates including Abu Dhabi, Dubai, Ajman, Ras Al Khaimah, Sharjah, Fujairah, and Umm Al Quwain. Abu Dhabi being the capital and the largest emirate in the UAE and has the highest judicial authority called the Federal/Union Supreme Court of UAE which is headed by the President of the Supreme Court. The courts here use a dual system for implementation of laws where the primary source of law is sharia and use civil law system for procedures. The main language used in the court is Arabic, but a translator is provided for non-Arabic speakers.
Types of Legal System
The constitution of UAE establishes a federal court system for all the emirates and gives freedom to all the emirates to have their own local judicial system. Article 94-109 of the UAE’s Constitution determines the general principles of the federal and local judicial system. The main difference between the federal and local judicial systems is the highest court.
There are three types of legal system in the UAE based on territorial & subject matter jurisdiction.
Federal Judicial System – It also consists of a three-tier court system. The highest judicial authority in the federal system is the Federal Supreme Court of UAE. Federal judiciary is also a part of the UAE government as per Article 45 of the constitution. The Ministry of Justice oversees courts and department of prosecution at federal level. Article 105 of the constitution states that all/part of local emirate jurisdiction to be part of the jurisdiction of federal court of first instance. Fujairah, Umm Al Quwain, Sharjah & Ajman follow only the federal court system.
Local Judicial System – Abu Dhabi, Dubai & Ras Al Khaimah have their own local judicial department such as Abu Dhabi Judicial Department and Dubai Court in Dubai. They also operate on a three-tiered court system, but unlike having the Supreme Court, they have the Court of Cassation in the three emirates mentioned earlier.
Mixed Legal System – In the UAE, special jurisdictions like the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market Court (ADGM) operate under Federal Law No. 4 & 8 of 2004 (Financial Free Zone Law) respectively. These courts handle civil and commercial cases according to English or common law. Established through constitutional amendments and federal laws, the DIFC and ADGM Courts govern civil and commercial affairs in line with English legal principles within the UAE.
Three Levels of Courts
There are three levels of courts in the UAE. i) Court of First Instance ii) Court of Appeal iii) Court of Cassation iv) Federal Supreme Court
Court of First Instance – This court enjoys the first right to hear all kinds of litigation related to criminal, civil, commercial, personal status, labor, and administrative lawsuits.
Court of Appeal – The orders passed by the lower court can be challenged by the litigants within 30 days of issuance of the order and 10 days in urgent case except in the cases law provides otherwise.
Court of Cassation – This court can only be found where the local judicial system is implemented such as in Abu Dhabi, Dubai & Ras Al Khaimah. The ruling of court of appeal can only be challenged here within 60 days on the grounds of law such as error in application of law or error in interpretation of law, in cases where the pecuniary value is above 200,000 AED or cannot be evaluated. The ruling of this court is final, binding & cannot be challenged further.
Federal Supreme Court – This court can only be found at the Federal level. It has a president and 5 judges, and their judgement is final & binding on all courts. It exclusively handles the matters mentioned below –
- Disputes between the two or more-member emirate or federal government.
- Examine the constitutionality of federal or local law/legislation.
- Constitutional interpretation if requested by any emirate or federal entity.
- Interrogation of ministers & senior federal officials.
- Crimes affecting the interests of the federation.
- Conflict of jurisdiction between judicial authority in two emirates and straighten out the principles based on federal law.
Court Circuits
Every level of court has a judicial circuit to look into matters according to their specialty, expertise, and jurisdiction such as personal status, civil, commercial, labor, real estate, and criminal etc. These circuits are divided into major and minor circuits depending upon the value of the case, type of case, and number of judges.
Minor Circuit – In this circuit a single judge hears and issues first instance judgements on cases whose value is below 500,000 AED except counterclaims (no limit of value) and reviews actions on personal status, division of common property, and wages. If the case’s value is below 20,000 AED, then this court’s decision will be final and cannot be challenged.
Major Circuit – This circuit is formed of three judges and the cases which does not fall under the jurisdiction of minor circuit and is related to civil, commercial, labor, real estate, administrative, bankruptcy etc. fall under the jurisdiction of major circuit.
Other Courts
Labor Courts
Labour courts oversee disputes arising in the private sector. They typically address issues like unpaid wages, end-of-service benefits, denied leave, and compensation due to unfair termination. Workers filing claims under AED 100,000 are exempt from litigation fees.
Personal status court (Sharia)
Personal status court handles all family cases related to matters such as marriage, divorce, alimony, guardianship, custody and visitation, proof of maturity, proof of lineage and inheritance. Sharia Law shall apply to all UAE nationals except Non-Muslims. In a Non-Muslim’s case they shall be governed by special rules relating to their specific creed or sect.
The Family Guidance Section usually handles personal status cases free of charge before they are referred to trial at the Court of First Instance. If both parties fail to reach an amicable agreement, the dispute will be referred to the Court of First Instance after the payment of the court fee, if applicable.
Civil Courts
Civil courts handle cases related to the financial rights of individuals and legal entities such as government departments, companies, and institutions. The cases can be related to disputes about validity, implementation, cancellation or termination of contracts, intellectual properties, land, and mortgages.
The major circuit of the Court of First Instance is responsible for hearing cases with a claimed value of more than AED 100,000, while cases below this value are brought before the minor circuit. Federal Law No. 5 of 1985 applies to civil cases. Commercial courts handle commercial contracts, commitments, banking processes, commercial papers, bankruptcy, and reconciliation issues.
Criminal Courts
These courts handle criminal cases initiated by the federal or local prosecution in each emirate. The case shall be brought through the police and the charges shall be pressed within 14 days.
Conclusion
The courts in the local and federal system both have courts of first instance and court of appeal, but the difference comes in the third tier of the court. They follow the sharia and civil law system. The judicial circuits at every level of court are made to decide specific type cases by judges with expertise in that subject for fast and smooth disposal.
The jurisdiction of the DIFC and ADGM Courts within the UAE’s mixed legal system pertains specifically to civil and commercial matters and uses English or common law. Their authority extends to cases where prior agreements have been made involving these courts, and certain conditions have been met, in accordance with their respective regulations and established conditions.
There are labor courts, personal status, civil, and criminal courts amongst other courts to deal with specific matters. It is crucial to ensure to select and file it in an appropriate court, so that the claim can be processed smoothly and hassle free. It is not necessary to go to court in the case of every dispute because most of the disputes can be solved through Alternative Dispute Resolution procedures. If you need any legal consultancy regarding a dispute, we are here to help at every stage. Contact us help@daralhaqooq.com