The following was contributed by Obaid Saeed Bin Mes’har, Managing Director of WinJustice.
WinJustice is the first litigation funding firm in the UAE, empowering businesses and individuals to access justice without financial strain. The UAE’s unique legal landscape, divided into onshore and offshore jurisdictions, offers a dynamic environment for litigation funding. As a trailblazer in this space, WinJustice is committed to making justice accessible and affordable for all.
Understanding the UAE’s Legal Landscape
Onshore Jurisdictions
In the UAE’s onshore courts, the legal framework is based on federal laws and elements of Sharia law. While there are no explicit rules prohibiting litigation funding, the absence of clear regulations requires careful navigation. Key considerations include:
- Principles of Good Faith: Parties must ensure that funding agreements align with the core principles of UAE law and avoid speculative transactions (Gharar).
- Sharia Compliance: Agreements must balance financial interests with the broader public good (Maslaha), enabling parties to pursue valid claims ethically.
Offshore Jurisdictions
Offshore jurisdictions, including the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), offer a more structured environment for litigation funding. These jurisdictions follow common law principles and have implemented specific guidelines:
- DIFC Practice Direction No. 2 of 2017: Requires disclosure of funding agreements to promote transparency and grants courts the authority to impose cost orders on funders.
- ADGM Funding Rules 2019: Ensures that funded parties receive independent legal advice and fosters ethical practices in third-party funding.
WinJustice operates across both onshore and offshore jurisdictions, leveraging its expertise to guide clients through the complexities of litigation funding in the UAE.
How Litigation Funding Benefits UAE Businesses
Litigation funding provides a lifeline for businesses facing high-stakes legal disputes, particularly in sectors like construction, real estate, and finance. Key benefits include:
- Access to Justice: Enables businesses to pursue claims without worrying about upfront legal costs.
- Risk Mitigation: Shifts the financial burden to the funder, allowing clients to focus on their core operations.
- Leveling the Playing Field: Empowers smaller businesses to compete with larger opponents in complex disputes.
The Role of Arbitration in Litigation Funding
Arbitration is a preferred dispute resolution method in the UAE, governed by the Federal Arbitration Law No. 6 of 2018 and updated regulations in the DIFC and ADGM. Notably:
- Both DIAC Arbitration Rules 2022 and arbitrateAD guidelines emphasize transparency by requiring disclosure of third-party funding agreements.
- Arbitration proceedings offer a flexible and confidential framework, making them ideal for cases involving third-party funding.
WinJustice specializes in funding arbitration cases, ensuring our clients have the financial support needed to achieve favorable outcomes.
Why WinJustice is the Right Choice
As the pioneer in UAE litigation funding, WinJustice offers:
- Expert Guidance: Decades of combined experience in navigating UAE’s legal systems.
- Custom Solutions: Tailored funding arrangements to meet the unique needs of each client.
- Ethical Standards: Commitment to transparency, fairness, and compliance with UAE regulations.
Whether you are pursuing a commercial dispute, arbitration claim, or high-value litigation, WinJustice provides the financial resources and expertise to secure justice.
Conclusion
Litigation funding is transforming the UAE’s legal landscape, and WinJustice is proud to lead this change. By bridging the gap between justice and affordability, we are enabling businesses and individuals to take control of their legal challenges with confidence.
Visit WinJustice to learn more.