Rise of Specialized International Commercial Courts in the Gulf Cooperation Council

The following is a guest post by Muneera Al-Khalifa, scholar-in-residence, working with Foreign Law Specialist George Sadek at the Global Legal Research Directorate of the Law Library of Congress. This post is part of our Frequently Asked Legal Questions (FALQs) series.

The establishment of specialized international commercial courts in the Gulf Cooperation Council (GCC) reflects the region’s efforts to create a business-friendly legal environment. Driven by rapid economic growth, increased cross-border trade, and the rise of complex transactions, these courts address the limitations of general courts in handling sophisticated commercial and investment disputes. Specialized commercial courts in the GCC include the Abu Dhabi Global Market (ADGM) Courts, the Dubai International Financial Center (DIFC) Court, the Bahrain International Commercial Court (BICC), the Bahrain Chamber for Dispute Resolution (BCDR) Court, and the Qatar International Court and Dispute Resolution Centre (QICDRC). This blog post focuses primarily on the rise of International Commercial Courts in the GCC, particularly in the United Arab Emirates (UAE), Bahrain, and Qatar.

I. The United Arab Emirates

The UAE was the first country in the GCC to establish specialized commercial courts. In 2004, Article 121 of the UAE Constitution was amended to empower the Federation to enact legislation governing “Financial Free Zones” and to define their exemption from federal laws. Pursuant to this amendment, Federal Law No. (8) of 2004 on Financial Free Zones permits the establishment of financial free zones in any emirate of the UAE by federal decree. This law exempts these zones and the financial activities conducted within them from the application of federal civil and commercial laws; however, UAE criminal law still applies.

Accordingly, the ADGM and Dubai International Financial Center are empowered to establish their own specific legal and regulatory frameworks governing civil and commercial matters. I will begin with an overview of the ADGM Courts, followed by the Dubai International Financial Center (DIFC) Court.

1. The Abu Dhabi Global Market Court

The ADGM Courts were established in 2013 in accordance with Federal Decree No. (15) of 2013 and the founding law— Abu Dhabi Law No. (4) of 2013 (ADGM Law) — as amended. The ADGM Courts operate as an independent judicial body within the ADGM financial free zone and represent the first jurisdiction in the Middle East to directly apply English common law. The ADGM Courts are considered courts of the Emirate, and judgments are issued in the name of the Ruler of Abu Dhabi. (Art. 13(1), (2). Law No. (12) of 2020) The Court of First Instance, composed of a single judge, comprises a commercial and civil division, an employment division, a small claims division, and an appeals division. (Art. 13(7).) The Court of Appeal, composed of three judges, has exclusive jurisdiction to hear and determine appeals against judgments and orders issued by the Court of First Instance (Art. 13(10).) The Court of First Instance exercises exclusive jurisdiction over:

1. Civil or commercial claims and disputes involving the ADGM, an ADGM authority, or any of its establishments;
2. Civil or commercial claims and disputes arising out of or relating to:

• - a contract entered into, executed, or performed in whole or in part in the ADGM;
  • a transaction entered into or performed in whole or in part in the ADGM; or
  • An incident that occurred in whole or in part in the ADGM.

1. Any appeal against a decision or a procedure issued by any of the ADGM Authorities in accordance with the ADGM Regulations;
2. Any request, claim, or dispute that the ADGM Courts have jurisdiction to consider under the ADGM Regulations; and
3. Any matter concerning the interpretation of any provision of the ADGM Regulations. (Art. 13(7).) Furthermore, the ADGM Courts may hear and determine any civil or commercial claim or dispute where the parties have agreed in writing to submit such claim or dispute to the ADGM jurisdiction, whether such agreement is concluded before or after the claim or dispute arises. (Art. 13(8).) The parties may also agree to refer their claims or disputes to arbitration or may agree in their commercial contracts and transactions to submit to the jurisdiction of any other court other than the ADGM Courts of First Instance. (Art. 13(9).)

2. Dubai International Financial Center Courts

The DIFC Courts were established in 2004 pursuant to Federal Law No. (35) of 2004 that specifically established the DIFC as a financial free zone. Dubai Law No. (12) of 2004, as amended, which originally established the DIFC Judicial Authority and formed the DIFC Courts, has been superseded by Dubai Law No. (2) of 2025 (the “new DIFC Court Law”). In accordance with the new DIFC Court Law, the DIFC Courts have exclusive jurisdiction over:

1. Civil, commercial, and employment claims and applications:
   • involving the DIFC bodies or DIFC establishments or to which they are a party. (Art. 14(A)(1) Dubai Law No. (2) of 2025.)
   • arising from contracts concluded, performed, or to be performed wholly or partly within the DIFC. (Id. art. 14(A)(2).)
   • relating to incidents, transactions, or activities of DIFC entities or their employees occurring wholly or partly within the DIFC. (Id. art. 14(A)(3).)
2. Claims and applications arising out of or related to trust instruments established or registered in the DIFC, in addition to non-Muslim Wills registered with the DIFC Courts. (Id. art. 14(A)(4).)
3. Claims and applications for the ratification or recognition of Arbitral Awards under the DIFC Arbitration Law. (Id. art. 14(A)(5).)
4. Arbitration-related claims and applications where
   • the seat or legal place of arbitration is the DIFC;
   • arbitral proceedings take place within the DIFC, and the parties have not agreed on the seat or legal place of arbitration;
   • the parties agree to the jurisdiction of the DIFC Courts for disputes arising out of arbitration proceedings. (Id. art. 14(A)(6).)
5. The DIFC Courts have jurisdiction over claims and applications that fall under the DIFC Laws and Regulations, the laws in force in the Emirate, and any international treaty and convention to which the State has acceded or is a party to. (Id. art. 14(A)(7).)

• Additionally, the DIFC Courts have jurisdiction to hear and determine civil and commercial claims and applications if the parties expressly agree in writing to the DIFC Courts’ jurisdiction, whether before or after the dispute arises, provided that such agreement is explicit, clear, and specific. (Id. art. 14(B).)

The DIFC Courts may decline jurisdiction if the parties have agreed in writing to submit to another court’s jurisdiction, or where a final judgment has already been issued by another court and can be enforced within the DIFC. (Id. art. 14(C).)

II. Bahrain

In 2024, Bahrain established the Bahrain International Commercial Court (“BICC”) in accordance with Legislative Decree No. (9) of 2024. The BICC is an independent legal entity with exclusive jurisdiction over international commercial disputes, subject to the administrative supervision and oversight of the Minister of Justice and Islamic Affairs, or another minister appointed by decree. (Art. 3 Legislative Decree No. (9) of 2024.)

The BICC has jurisdiction over the following disputes, provided that the parties expressly agree to its jurisdiction:

1. International commercial disputes:

• - A dispute is considered international if one party is located outside Bahrain, or if a substantial part of the obligations or the location most closely connected to the dispute is outside the Kingdom of Bahrain.
  • A dispute is considered commercial if it involves relationships of a commercial nature, whether contractual or not. This includes but is not limited to:

  - supply or exchange of goods and services;

  • distribution agreements, commercial representation, or commercial agency;
  • rights management, hire-purchase agreements, and factory construction;
  • consulting, engineering, licensing, investment, and financing;
  • banking transactions, insurance, franchising agreements, joint ventures, and other forms of industrial or commercial cooperation; or
  • transportation of goods or passengers by air, sea, or land. (Id. art. 10(a)(1).)

1. Disputes arising from any matter related to arbitration, including those concerning interim measures, the appointment or challenge of arbitrators, setting aside of arbitral orders and awards, or the enforcement and recognition of arbitral orders and awards. (Id. art. 10(a)(2).) Additionally, the BICC has jurisdiction over a dispute if it is submitted to the court and the other party accepts its jurisdiction, either through explicit agreement or by implied consent, provided that the dispute falls within the scope of ‘international commercial disputes.’ (Id. art. 10 (b).)

The parties to a dispute may agree on the law governing the dispute. In the absence of such an agreement, or where the chosen law is contrary to the public policy of Bahrain, the Dispute Resolution Tribunal shall determine the applicable law in accordance with the conflict of laws rules it deems appropriate for the dispute. (Id. art. 14.)

Judgments issued pursuant to Legislative Decree No. (9) of 2024, are considered judgments issued by a competent authority in the Kingdom of Bahrain and are subject to immediate enforcement. However, the Dispute Resolution Tribunal or the Appellate Tribunal hearing the appeal may, at the request of the parties, suspend provisional execution if enforcing the judgment could cause serious harm and the grounds of appeal raise a reasonable possibility that the judgment may be set aside. (Id. art. 15.)

The Bahrain Chamber for Dispute Resolution (BCDR), on the other hand, was established in 2009, and functions both as a legislatively mandated court — the BCDR Court — with defined jurisdiction, and as an arbitration and mediation center.  The BCDR Court was established by Legislative Decree No. (30) of 2009, as amended in 2014 and 2021. The BCDR Court has jurisdiction over disputes in which the claim exceeds BHD 500,000 (approx. US$1.3 million), and the dispute is:

• of an international commercial nature (Art. 9 (2) Legislative Decree No. (30) of 2009);
• between financial institutions licensed by the Central Bank of Bahrain, or between these institutions and other institutions, companies, and individuals (Id. art. 9 (1));
• between commercial companies licensed under the Bahraini Commercial Companies Law, relating to obligations arising from the commercial relationships. (Id. art. 9 (3)); or
• real estate disputes under the Real Estate Regulation Law No. (27) of 2017. (Art. 8.) Furthermore, the BCDR Court also has jurisdiction over disputes relating to trusts that are governed by Legislative Decree No. 23 of 2016.

III. Qatar

The Qatar International Court and Dispute Resolution Centre (QICDRC) was established in 2009 pursuant to the Qatar Financial Centre (“QFC”) Law No. (2) of 2009, as amended. It serves as an independent judicial body within the QFC framework. The QICDRC consists of:

• a court specialized in the resolution of civil and commercial disputes for entities operating in or connected with the QFC; and

• a regulatory tribunal, tasked with hearing appeals raised against decisions issued by the QFC Authority, the QFC Regulatory Authority, and other QFC institutions.
  The First Instance Circuit of the QICDRC Court has jurisdiction over civil and commercial disputes arising:

• from transactions, contracts, arrangements, or events taking place in or from the QFC between entities established therein.

• between QFC authorities or institutions and entities established in QFC.

• between entities established in the QFC and its contractors or employees, unless the parties agree otherwise.

• from transactions, contracts, or arrangements between entities established within the QFC and residents of the State, or between entities established in the State but outside the QFC, unless the parties agree otherwise.

• between other entities, assigned to the QICDRC Court by law. (Art. 8 (3)(c) Law No. (2) of 2009, as amended.)
  In addition, Law No. (15) of 2021, which amends Law No. (34) of 2005 concerning the Qatar Free Zones, confers jurisdiction on the court to resolve all civil and commercial disputes arising in connection with the Qatar Free Zones. (Art. 44.) Parties may also expressly agree to designate the QICDRC Court as the “Competent Court” for an arbitration seat in Qatar, in accordance with Law No. (2) of 2017, issuing the Arbitration Law in Civil and Commercial Matters. (Art. 1.)

Additional sources on Bahrain, Qatar, and UAE

For additional information on Bahrain, Qatar, and UAE, visit our Global Legal Monitor or contact the Law Library using our Ask a Librarian service.

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