Civil Law and UAE: Modernization of the Civil Justice System

1. Introduction

The modernization of the UAE civil justice system means the transformation of civil justice from a predominantly paper-based and court-centred model into a system that is digital, faster, specialised, accessible, technologically supported, and increasingly focused on alternative dispute resolution (ADR).

The modernization process is not limited to introducing electronic filing. It involves changes in:

• civil procedure;
• electronic litigation;
• remote hearings;
• digital evidence;
• mediation and conciliation;
• specialised courts and divisions;
• electronic enforcement;
• artificial intelligence;
• digital assets and blockchain disputes;
• cross-border jurisdiction;
• judicial case management; and
• updated substantive civil legislation.

The UAE Ministry of Justice describes its strategic objective as developing a flexible judicial system supported by advanced digital systems, specialised judges and modern litigation and settlement procedures.

The modernization is particularly significant in 2026 because the new Federal Decree-Law No. 25 of 2025 promulgating the Civil Transactions Law entered into force on 1 June 2026, replacing the previous 1985 Civil Transactions Law. The Ministry of Justice has expressly described the new law as part of the modernization of the UAE legislative framework.

2. Meaning of Modernization of Civil Justice

Modernization can be understood as:

The restructuring of courts, procedures, legislation, technology and dispute-resolution mechanisms so that civil justice can respond efficiently to modern economic, social and technological disputes while preserving due process and legal rights.

It therefore has two dimensions.

A. Procedural modernization

This concerns how disputes are resolved.

Examples:

• electronic filing;
• remote hearings;
• electronic notification;
• digital case files;
• electronic judgments;
• online mediation;
• electronic evidence;
• automated administrative processes.

B. Substantive modernization

This concerns what legal rules apply.

Examples:

• new Civil Transactions Law;
• rules dealing with modern transactions;
• digital economy;
• artificial intelligence;
• data and technology;
• modern commercial relationships;
• updated rules of liability and contract.

3. Major Features of UAE Civil Justice Modernization

3.1 Electronic Litigation

The UAE has progressively moved toward electronic litigation.

Civil proceedings can increasingly be conducted through digital systems involving:

1. electronic filing;
2. electronic submission of pleadings;
3. electronic service;
4. digital documents;
5. remote hearings;
6. electronic case management;
7. electronic judgments.

The Ministry of Justice has specifically identified remote litigation and electronic case-file management as important components of the federal judicial system.

The modernization principle is:

Physical court process → Electronic court process → Integrated digital justice

4. Remote Hearings

Remote hearings became particularly important in modernising access to justice.

A party may participate without physically attending court where the applicable procedural framework and court directions permit it.

The UAE Ministry of Justice has issued guidance dealing with technical interruptions, digital documentation, electronic pleadings and digital issuance of judgments. The guidance explains that remote litigation can reduce time and costs while improving access to justice.

Advantages

• reduces travel;
• assists overseas litigants;
• reduces administrative costs;
• allows faster scheduling;
• facilitates international participation;
• reduces dependence on physical documents.

Legal safeguard

Technology must not destroy:

• right to be heard;
• equality between parties;
• authenticity of evidence;
• confidentiality;
• judicial independence;
• procedural fairness.

Thus:

Digital justice ≠ justice without procedural safeguards.

5. Digital Evidence

Modern civil justice increasingly depends upon electronic evidence.

Examples include:

• emails;
• WhatsApp messages;
• electronic contracts;
• electronic signatures;
• blockchain records;
• digital photographs;
• databases;
• cloud records;
• metadata;
• electronic financial records;
• artificial-intelligence-generated material.

The Federal Decree-Law No. 35 of 2022 on Evidence in Civil and Commercial Transactions is therefore an important component of the modern procedural framework.

Digitalization requires courts to ask not merely:

“Is there a document?”

but also:

“Is the electronic information authentic, reliable and legally admissible?”

6. Mediation and Conciliation

One of the most important developments is the increasing use of ADR.

The UAE currently regulates mediation and conciliation through Federal Decree-Law No. 40 of 2023 on Mediation and Conciliation in Civil and Commercial Disputes. The official UAE Government platform describes mediation as an alternative method for resolving civil and commercial disputes.

The law gives legal significance to settlements.

Under Article 25, a ratified settlement agreement is binding and has the same probative force as a court judgment.

2026 modernization

The Federal Judiciary Council introduced an integrated framework containing decisions dealing with:

• judicial and consensual mediation;
• mediator selection;
• mediator fees;
• confidentiality;
• settlement approval;
• enforceable settlement formulas;
• online mediation;
• remote mediation;
• mediator registration and discipline.

Decision No. 710 of 2025 also established controls for remote mediation and conciliation, including videoconferencing and identity verification.

Therefore:

Modern civil justice = litigation + mediation + conciliation + arbitration + digital processes.

7. Specialised Judicial Divisions

Modern justice is also becoming increasingly specialised.

Specialisation allows courts to develop expertise in complicated fields such as:

• construction;
• financial disputes;
• technology;
• digital assets;
• intellectual property;
• commercial disputes;
• employment;
• complex corporate transactions.

The clearest example is the DIFC Digital Economy Court (DEC).

DIFC Part 58 establishes the Digital Economy Court as a specialist division. Its jurisdiction can cover disputes involving areas such as digital assets, blockchain, smart contracts and other digital-economy technologies.

8. Digital Economy Court

The DIFC model demonstrates how courts can be designed for emerging technologies.

Part 58 deals with Digital Economy Claims and defines digital assets broadly to include matters such as cryptoassets, digital tokens and smart contracts.

This is significant because traditional civil procedure was designed primarily around:

persons + physical property + paper contracts + conventional businesses.

The digital economy introduces:

platforms + algorithms + tokens + smart contracts + blockchain + digital identities + virtual assets.

Specialised procedural rules therefore become increasingly important.

9. Artificial Intelligence and Civil Justice

AI is another major component of modernization.

Potential applications include:

• legal-document classification;
• case management;
• translation;
• scheduling;
• document review;
• legal research;
• identification of procedural issues;
• administrative automation.

The UAE Ministry of Justice has specifically explored accelerating AI integration into the legal and judicial system.

However, AI creates important legal questions.

Questions include:

1. Who is responsible for an AI-generated error?
2. Can parties rely on AI-generated legal authorities?
3. How should algorithmic bias be addressed?
4. How can confidential information be protected?
5. Should parties disclose their use of AI?
6. Can an AI system replace judicial decision-making?

The modern approach is therefore not:

“AI replaces the judge.”

It is closer to:

“AI assists the justice system, while legal responsibility remains with human institutions.”

10. Digital Power of Attorney and Digital Notarisation

Modernization also extends beyond court hearings.

The UAE Ministry of Justice launched a digital power-of-attorney service designed to support remote litigation. The system permits digital documents to be generated, authenticated and stored electronically, including through blockchain-related infrastructure.

In 2026, the Ministry reported that its Digital Agencies project had processed more than 125,000 transactions through the digital notary service and was using AI-based processes for fully digital issuance of certain agency types.

This illustrates a broader movement:

Paper document → electronic document → digitally authenticated document → automated legal service.

11. Modernization of the Civil Code

Procedural modernization must be supported by substantive modernization.

The new Federal Decree-Law No. 25 of 2025 on the Civil Transactions Law, effective from 1 June 2026, represents a major legislative development. The Ministry of Justice described it as a strategic step intended to keep the civil-law framework aligned with economic and social developments.

The significance is that the UAE is not merely changing its courts.

It is modernising the legal rules that courts apply.

12. Cross-Jurisdictional Modernization

The UAE contains different judicial environments, including:

• federal courts;
• Dubai Courts;
• Abu Dhabi judicial institutions;
• DIFC Courts;
• ADGM Courts;
• specialised tribunals and committees.

This creates a need for sophisticated rules governing jurisdiction.

Modern civil justice therefore requires mechanisms for handling:

• competing jurisdictions;
• forum disputes;
• enforcement;
• arbitration;
• cross-border judgments;
• parallel proceedings.

13. Important Case Laws

The following cases illustrate different aspects of UAE civil justice modernization.

Important note: Several authorities below are DIFC cases. They are UAE judicial authorities but operate within the DIFC's separate common-law jurisdiction. They should not automatically be treated as binding precedents of the UAE mainland courts.

Case 1: National Bonds Corporation PJSC v Taaleem PJSC & Deyaar Development PJSC

[2011] DIFC CA 001

This case concerned the relationship between the DIFC Courts and the wider Dubai judicial system.

The Court examined the meaning of contractual jurisdiction clauses and the relationship between governing law and jurisdiction.

The case demonstrates an important feature of UAE justice:

Modern UAE justice requires coordination between different judicial jurisdictions rather than assuming that one court has universal jurisdiction.

The Court carefully examined the contractual and transactional context to determine the intended jurisdiction.

Importance

It illustrates:

• jurisdictional complexity;
• choice of court;
• interaction between DIFC and Dubai courts;
• contractual jurisdiction;
• legal certainty.

14. Investment Group Private Limited v Standard Chartered Bank

[2015] DIFC CA 004

This case involved proceedings before the DIFC Courts and parallel proceedings in Sharjah.

A major issue was whether the DIFC Courts could decline jurisdiction on the basis of forum non conveniens in favour of another UAE court.

The DIFC Court of Appeal rejected the application to stay the proceedings on that basis and explained the special character of jurisdictional relationships between courts within the UAE.

Modernization significance

The case demonstrates that modernization requires:

• clear jurisdictional boundaries;
• coordination between judicial institutions;
• predictable jurisdiction;
• avoidance of conflicting judicial authority.

15. Ledger v Leeor

[2022] DIFC CA 013

This case concerned arbitration and proceedings brought before the Dubai Courts.

The DIFC Court of Appeal considered an application for interim anti-suit relief relating to proceedings in the Dubai Courts and an arbitration agreement.

The appeal was dismissed.

Importance for modern justice

The case demonstrates the increasingly complicated relationship between:

courts + arbitration + contractual dispute-resolution mechanisms.

Modern civil justice therefore requires courts to respect and coordinate with ADR mechanisms rather than treating litigation as the only method of dispute resolution.

16. KPMG LLP v DFSA

[2022] DIFC CFI 008

This case concerned judicial review of regulatory decision-making involving the Dubai Financial Services Authority.

The DIFC Court considered the legal standards applicable to regulatory decision-making and judicial review.

Modernization significance

Modern civil justice is not merely about resolving private contractual disputes.

It also requires judicial mechanisms capable of reviewing:

• regulators;
• financial institutions;
• administrative decisions;
• specialised regulatory systems.

This supports the development of specialised judicial review in sophisticated economic environments.

17. Klesta Eshja & Hair Creators Salon LLC v Salah Masri & Others

CFI 066/2024, DIFC

This is particularly relevant to the modernization of justice through AI.

In 2026, the DIFC Courts dealt with proceedings in which AI-assisted material was alleged to contain inaccurate or misleading legal references. The Court's orders illustrate the continuing importance of lawyers' responsibility for material placed before the court even when technology is used in its preparation.

Modernization significance

The lesson is:

Technology may assist legal work, but it does not transfer professional responsibility from the lawyer to the machine.

This is essential for AI-era civil justice.

18. Ganesan Muthiah v Abdul Rahman Mohammad

[2026] DIFC CA 007

This is a particularly important recent authority concerning judicial coordination.

The case involved the operation of Dubai Decree No. 29 of 2024 and the Conflict of Jurisdiction Tribunal concerning conflicts between the DIFC Courts and Dubai judicial entities.

The DIFC Court of Appeal considered whether a jurisdictional determination could retrospectively affect orders previously made by the DIFC Court and also considered procedural fairness. The appeal was allowed and earlier orders were set aside.

Modernization significance

The case demonstrates that modern UAE justice requires:

• jurisdictional coordination;
• procedural fairness;
• clear allocation of judicial authority;
• mechanisms for resolving conflicts between courts.

It is an excellent example of how the UAE legal system is adapting to a multi-jurisdictional judicial environment.

19. Oheo Bank v Parker

[2025] DIFC CA 006; judgment 2026

This case involved appellate consideration of a DIAC arbitration award and issues concerning procedural fairness and the scope of the parties' submission to arbitration.

The DIFC Court of Appeal judgment was issued on 24 April 2026.

Importance

The case demonstrates the interaction between:

• courts;
• arbitration;
• arbitral awards;
• procedural fairness;
• appellate supervision.

This reflects the modern UAE model in which arbitration is integrated into the wider justice system rather than operating entirely separately from courts.

20. Case-Law Summary Table

21. Advantages of Modernization

A. Faster justice

Electronic filing and remote hearings can reduce procedural delays.

B. Greater accessibility

A person outside the UAE may participate in proceedings without always travelling physically.

C. Lower administrative costs

Digital records reduce paper handling and physical administrative processes.

D. Better case management

Electronic case-management systems can allow courts to organise large volumes of litigation more efficiently.

E. Specialisation

Specialised courts can develop expertise in technically complicated disputes.

F. Better ADR integration

Mediation and conciliation can resolve disputes without a complete trial.

G. Response to technological disputes

Digital courts can address:

• blockchain;
• cryptoassets;
• smart contracts;
• AI;
• digital platforms;
• electronic transactions.

22. Challenges of Modernization

Modernization also creates legal risks.

1. Cybersecurity

Digital courts contain highly sensitive information.

2. Privacy

Electronic case files may contain financial, personal and commercial information.

3. AI errors

AI can produce inaccurate legal authorities or unreliable analysis.

4. Algorithmic bias

Automated systems may reproduce biases contained in training data.

5. Digital exclusion

Not every litigant possesses the same technological capability.

6. Authentication

Courts must establish whether electronic evidence is genuine.

7. Procedural fairness

Remote proceedings must not disadvantage a party.

8. Jurisdictional conflicts

Digital transactions can involve parties located in different jurisdictions.

23. Principles for a Modern UAE Civil Justice System

A modern system should therefore be based on the following principles:

Principle 1 — Access to justice

Technology should make justice more accessible, not more complicated.

Principle 2 — Speed

Digital procedures should reduce unnecessary delay.

Principle 3 — Fairness

Technology must not compromise the right to be heard.

Principle 4 — Transparency

Parties should understand significant technological processes affecting their cases.

Principle 5 — Human judicial responsibility

AI may assist courts and lawyers, but judicial responsibility must remain properly allocated.

Principle 6 — Security

Digital information must be protected.

Principle 7 — Specialisation

Complex technological and commercial disputes may require specialised judicial expertise.

Principle 8 — ADR

Mediation, conciliation and arbitration should complement litigation.

Principle 9 — Cross-border coordination

Different UAE courts and international jurisdictions must have mechanisms for managing jurisdictional conflicts.

Principle 10 — Continuous legislative reform

Civil legislation must keep pace with technological and economic developments.

24. Relationship Between Technology and Justice

The modernization process can be represented as follows:

Traditional model

Paper → Physical filing → Physical hearing → Judgment → Physical enforcement

Modern model

Electronic filing → Digital evidence → Remote hearing → Online mediation → Digital judgment → Electronic enforcement

Future-oriented model

Digital filing + AI assistance + specialised courts + digital evidence + ADR + automated case management + cross-border cooperation

But the final objective remains:

Technology serves justice; technology does not become the source of justice.

25. Overall Legal Significance

The modernization of UAE civil justice represents a movement from a court-centred litigation model toward an integrated justice ecosystem.

That ecosystem can be expressed as:

Legislation + Courts + Digital Infrastructure + ADR + Specialisation + AI + Evidence + Enforcement + Cross-Border Cooperation

The UAE's 2026 developments demonstrate that modernization is occurring simultaneously at several levels:

1. substantive law — new Civil Transactions Law;
2. procedure — modern civil-procedure framework;
3. technology — remote and electronic litigation;
4. ADR — mediation and conciliation;
5. specialisation — Digital Economy Court and other specialised institutions;
6. AI — exploration and regulation of AI-assisted legal processes;
7. jurisdiction — mechanisms for managing competing judicial jurisdictions.

The Ministry of Justice's current strategy expressly focuses on flexible legislation, specialised judicial systems, modern technology and faster, more transparent justice.

26. Conclusion

Modernization of the UAE civil justice system is much broader than converting paper documents into electronic documents. It represents a structural transformation of how civil rights are created, disputed, adjudicated and enforced.

The most important developments are:

• electronic litigation;
• remote hearings;
• digital evidence;
• electronic notarisation;
• mediation and conciliation;
• specialised courts;
• digital-economy adjudication;
• AI-assisted legal services;
• improved jurisdictional coordination;
• modern substantive civil legislation.

The case law shows that modernization must operate alongside jurisdictional certainty, procedural fairness, human responsibility, ADR and judicial supervision.

Therefore, the modern UAE civil justice model can be summarised as:

“Digital, specialised, ADR-oriented and technologically capable justice, operating within a legally controlled and procedurally fair judicial framework.”

This represents an important transition from traditional court administration toward an integrated and adaptive civil justice system capable of dealing with contemporary commercial, technological and social disputes.