ADGM Courts System: A Comprehensive Guide to Jurisdiction, Structure, and Case Registration 

The Abu Dhabi Global Market (ADGM) Courts are a pioneering judicial system in the Middle East, established to provide a robust legal infrastructure for businesses operating within ADGM. These courts play a crucial role in resolving civil and commercial disputes efficiently and offer a sophisticated and transparent legal environment for companies and individuals alike. 

ADGM Courts follow three fundamental principles: A fully digital approach, Direct application of English Common Law, and a distinguished panel of judges. 

ADGM is the first jurisdiction in the Middle East to adopt the direct application of English Common Law. The Application of English Law Regulations 2015 makes English Common Law directly applicable in ADGM. The ADGM Courts are regulated by the ADGM Courts, Civil Evidence, Judgments, Enforcements and Judicial Appointments Regulations 2015 (the ADGM Courts Regulations, 2015). 

Court Structure: 

1. The Court of First Instance (consisting of a single judge) has exclusive jurisdiction pursuant to Article 13(7) of Abu Dhabi Law No. 12 of 2020 and includes: 

• Commercial and Civil Division, 

• Employment Division, 

• Small Claims Division, and 

• Appeals to Civil Division. 

2. The Court of Appeal (consisting of three judges) has exclusive competence to hear and settle appeals against judgments or orders issued by the Court of First Instance. 

Judgments of the ADGM Courts are issued in the name of the Ruler of Abu Dhabi. The Courts have a President and a Board of Directors responsible for appointments and administrative matters. Judges are appointed by resolutions issued by the Board of Directors upon the proposal of the President of the Courts. 

Legislations Governing ADGM Courts: 

ADGM was established pursuant to Federal Legislation and Abu Dhabi Law No. 4 of 2013 as a financial free zone. Abu Dhabi Law No. 12 of 2020 provides for the establishment and management of ADGM Courts.  

The ADGM Courts Regulations 2015 and supporting rules were enacted by ADGM’s Board of Directors and the Chief Justice on 17 December 2015. 

Pursuant to section 187 of the ADGM Courts Regulations 2015, the Chief Justice has made court procedure rules for ADGM Courts. They are cited as ADGM Court Procedure Rules 2016 and came into force on 30 May 2016. 

Pursuant to a delegation of power from the Board of Directors of Abu Dhabi Global Market to the Chief Justice of Abu Dhabi Global Market Courts under section 228 of the ADGM Courts Regulations 2015, the Chief Justice has made the ADGM Courts Conduct Rules 2016. These Rules came into force on 30 May 2016. 

Jurisdiction Of ADGM Courts: 

1. Pursuant to Article 13(7) of Abu Dhabi Law No. 12 of 2020, the ADGM Court of First Instance has exclusive jurisdiction over: 

• Civil or commercial claims and disputes involving ADGM, an ADGM authority or an ADGM licensed entity. 

• Civil or commercial claims and disputes arising out of: 

• a contract entered into, executed or performed in whole or in part in ADGM; 

• a transaction entered into or performed in whole or in part in ADGM; or 

• an incident that occurred in whole or in part in ADGM. 

Additionally: 

2. Article 13(8) provides that parties with no connection to ADGM may agree in writing to refer their civil or commercial claims and disputes to ADGM Courts. 

3. Article 13(9) permits parties to opt for arbitration or refer disputes to other courts outside ADGM. 

Expansion Of ADGM’s Geographical Jurisdiction: 

Cabinet Resolution No. 41 of 2023 expanded ADGM’s geographical jurisdiction to include Al Reem Island, effective from 24 April 2023. ADGM Courts now have exclusive jurisdiction over matters listed in Article 13(7) concerning both Al Maryah and Al Reem Islands. The Abu Dhabi Judicial Department has since declined jurisdiction in certain cases involving Al Reem Island parties. 

Any jurisdiction Clause that refers to the “Courts of Abu Dhabi” shall refer to and include the Courts of ADGM, which are also the courts of the Emirate. [In NMC Healthcare Ltd and Associated Companies [2022] ADGMCFI 0003 (04 April 2022)] 

Also note that, Abu Dhabi Judicial Department has declined to accept jurisdiction in certain cases involving Al Reem parties that have come before it since Cabinet Resolution No. 41 of 2023 came into effect, irrespective of when the cause of action arose. 

Registering A Case With ADGM Courts: 

• A case should be filed in the relevant division:  

• Small Claims Division; if the value of your claim is USD 100,000 or less and it does not relate to an employment matter. To start your case, you must complete the claim form using Form CFI 2.  

• Employment Division; if your claim is made under the ADGM Employment Regulations 2019 or if it relates to any other employment matter that falls within the jurisdiction of the Court. To start your case, you must complete the claim form using Form CFI 3. 

• Commercial and Civil Division; if the value of your claim exceeds USD 100,000 and it does not relate to an employment matter. To start your case, you must complete the claim form using Form CFI 1 (or Form CFI 6 if your claim is unlikely to involve a substantial dispute of fact). 

• The required claim forms are available on the ADGM website.  

• Before filing a claim, parties should refer to:  

• Practice Direction 3 for claims in the Small Claims Division;  

• Practice Direction 4 for employment claims; or  

• Practice Direction 2 for claims in the Commercial and Civil Division. 

• The Court Registry cannot provide legal advice or assist a party with completing a form. 

• All claims must be submitted for filing on the ADGM eCourts Platform. A guide for filing a claim on the eCourts Platform is available on the website itself.  

• Claims must be filed electronically through the ADGM eCourts Platform, and the applicable filing fee must be paid. If a party cannot afford the fee, they may apply for a waiver or deferral, subject to approval by the Court Registry. 

Referring To Mediation 

ADGM Courts provides a free court-annexed mediation service. Under this scheme, an internationally accredited mediator is provided to the parties at no cost to assist them with resolving their dispute. If you wish to refer a dispute to mediation, the process is as follows: 

• Parties must complete and sign a ‘Request for Mediation’ which can be found on the Portal; 

• The ‘Request for Mediation’ must be sent by email to the Court Registry at their official mail id; and 

• If the request is approved, the Registrar of the Court will appoint a mediator as soon as practicable. 

Information on the court-annexed mediation scheme is set out in Part 36 of the ADGM Court Procedure Rules 2016 and Practice Direction 13. 

Conclusion: 

ADGM Courts stand out in the region for their direct application of English Common Law, fully digital operations, and a specialized judicial panel. With an expanded jurisdiction now covering Al Reem Island, ADGM continues to reinforce its role as a leading financial free zone with an efficient and transparent dispute resolution system. Understanding the court structure, jurisdiction, and case registration process is essential for businesses and individuals operating within ADGM. At ABS Partners Legal Consultants, we offer expert guidance on navigating ADGM’s legal framework, ensuring unified dispute resolution and compliance with its regulations.