Can two non-DIFC parties get a freezing order in the DIFC? The answer just changed — again.

What every business in Dubai needs to know about the DIFC Courts' expanding reach, and why your company's mainland registration may not protect you.

If your company is registered in mainland Dubai or anywhere outside the DIFC you might assume the DIFC Courts have nothing to do with you. That assumption is becoming increasingly risky. Here's what the law now says, in plain terms.

BACKGROUND

What is a freezing order, and why does it matter?

A freezing order (technically a "Worldwide Freezing Order" or WFO) is one of the most powerful weapons in commercial litigation. It stops a party from moving, selling, or hiding assets while a case is pending. Think of it as a legal padlock on someone's bank accounts and property — before any court has even decided who wins. In the UAE, the DIFC Courts can issue these orders because they operate under English common law principles, making them far more familiar — and credible — to international parties than onshore Dubai courts.

THE CURRENT POSITION

Yes — two fully non-DIFC parties, including mainland-registered companies, can apply for a freezing order in the DIFC Courts. The key hook is not who the parties are, but whether a future foreign judgment could be recognised and enforced through the DIFC. If Dubai-based assets are at risk of dissipation, the DIFC Courts will listen.

What does this mean in practice?

YOUR SITUATION DIFC FREEZING ORDER?

Both parties are mainland, and it is a purely local dispute with no foreign proceedings: Unlikely

Both parties are mainland, but litigation is active in London, Hong Kong, or Singapore: Possible

The opponent holds accounts with a DIFC-registered bank, such as an Emirates NBD branch in the DIFC: Stronger case

A foreign judgment has already been obtained and enforcement is being sought in the UAE: Yes — well established

The dispute is against a DIFC-licensed entity: Yes — direct jurisdiction

THE MAINLAND ANGLE

What if we're both mainland companies?

Being registered on the mainland doesn't shield you — or help you. The DIFC Courts care about where assets are and whether a future judgment can be enforced through them, not where your trade licence was issued. If your opponent has money in Dubai that could be moved overnight, the DIFC route is worth considering — even if neither of you has set foot inside Gate Avenue. That said, expect a jurisdictional challenge. Defendants will almost always contest this, and they have reasonable grounds, especially if the dispute is entirely domestic. The Conflicts of Jurisdiction Tribunal can also intervene to redirect the matter to onshore Dubai courts if there are parallel proceedings there.

Key takeaways for businesses and advisors

• The DIFC is now genuinely a global enforcement hub — not just for DIFC-connected parties.
• If you're in cross-border litigation and have assets (or an opponent with assets) in Dubai, the DIFC is a serious strategic option for interim relief.
• Mainland registration offers no automatic protection from DIFC freezing orders.
• The law in this area moved three times in two years — anyone advising on UAE enforcement strategy needs to be across the latest position.
• Speed matters. Freezing orders are often granted ex parte (without telling the other side first). By the time the opponent knows, the order is already in place.

This newsletter is for informational purposes only and does not constitute legal advice.

Hope this helps!

See you tomorrow !

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