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For the first time, the Courts of the Dubai International Financial Centre (“
DIFC”) have issued an anti-suit injunction in favour of a party to pending DIFC-LCIA arbitration proceedings restraining the Defendant from pursuing litigation proceedings in the “onshore” Dubai courts (the local courts outside the economic free zones within the Emirate of Dubai). The decision sends a clear and robust message that parties with contracts that provide for arbitration with a DIFC seat must respect this choice of forum and has been welcomed by the global arbitration community.
The judgment, handed down by Justice Al Sawalehi in November, not only prevents the Defendant from taking further steps in the Dubai courts but also requires the discontinuance of onshore proceedings which had already been commenced.[1]