Boost for reputation of DIFC justice system.
Last month, a landmark ruling was handed down by a court in Dubai International Financial Centre (DIFC) that found a Swiss bank liable for mis-selling $200 million (Dh734 million) of investment products to Kuwait's prominent Al Khorafi family. While the court's decision is still under appeal, it does represent a significant milestone for the authority and prestige of the free zone arbitration and justice system.
Since DIFC was established in 2006, it has risen to become an internationally recognised centre for administration of finances. And the courts system it has established -- by working closely with the finest legal minds from around the world -- is also recognised as a credible and significant arbitrator of fiscal and regulatory disputes.
Indeed, more and more business contracts and memorandums of understanding write in clauses that opt for arbitration of disputes -- should they arise -- to be decided by DIFC.
Since the DIFC courts system was established, it has steadily grown in stature. While courts in New York and London are still the preferred settlement options, DIFC has decided more than 500 cases. And what is significant is that the vast majority -- about 95 per cent -- are settled before the trial stage.
This growing reputation enhances Dubai's standing as a global hub in trade, finance and commerce. And officials at DIFC should be proud that their hard work and efforts are bearing fruit.
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