Middle East Disputes: Trends Tracker 2025

Traditionally, investment flows in the Middle East have concentrated around core energy and infrastructure industries. However, we are now seeing a shift towards investment into other industries such as crypto, technology, sport, and tourism. Those investments are being encouraged by the development of appropriate regulatory safeguards and robust dispute resolution frameworks.

This Trends Tracker evaluates the key emerging trends in dispute resolution in the Middle East, assesses their industry impact, and looks forward to the continuing transformation of the Middle East in 2025 and beyond.

Trend 1: Strategic growth & investment in core industries

Investment into core energy and infrastructure industries looks set to continue in 2025. In line with global trends and meeting relevant emissions targets, the region aims to become a future global hub for clean energy and sustainable construction.

Saudi Arabia is making progress towards its Vision 2030 with a focus on large-scale renewables and construction projects. These include increasing renewable energy production through initiatives such as the Sakaka Solar Power Plant consisting of 1.2 million solar panels and generating 900 GWh per year. Efforts are also being made to build 200 smart cities, including, Qiddiya using advanced environmental technologies to overcome the complex challenges of city living. There is also more focus on expanding healthcare through the implementation of the Health Sector Transformation Program.¹

As part of Vision 2030, Saudi Arabia also strives to power the USD 500 billion NEOM region entirely by renewable energies. Moreover, Masdar City, located in Abu Dhabi, is setting its sights on becoming one of the most sustainable cities in the world. It will include approximately USD 1 billion projects intended to integrate an energy mix of solar, wind, and other geothermal energies into building a smart city of sustainable technologies. Dubai's USD 30 billion investment into the Dubai Green Fund further demonstrates the Gulf's commitment to, and the financing of the clean energy transition. Additionally, Abu Dhabi aims to become the world's first 'fully AI-native government' targeting 100% AI integration into all governmental operations and digital services. According to the Abu Dhabi Government Digital Strategy 2025-2027, this AI integration will contribute over USD 6.5 billion to the Abu Dhabi GDP and create more than 5,000 jobs.

Innovative projects carry increased risks associated with the implementation of new and untested technologies. These risks, combined with the unfamiliarity of new market entrants to KSA with local laws and regulations and increased pressures on supply chains, could potentially give rise to complex disputes, which may inevitably require international arbitration to resolve. The Middle East is well-placed to facilitate the resolution of such disputes, particularly as its diverse offering of specialised dispute resolution forums continues to grow (see Trend 4). There is also increased regulatory risk, including in relation to potential bribery and corruption. To mitigate these risks within project procurement strategies, the region has implemented improved anti-bribery and corruption frameworks (see Trend 3).

Foreign investors will also benefit from increased investment protection in the Middle East going forward. In a bid to attract further foreign investment, the KSA introduced a new Investment Law, which entered into force in February 2025. This law consolidates protections against expropriation, simplifies foreign trade licence registrations, and allows investors to agree to submit to international investment arbitration in the event of a qualifying dispute. The signing of the UAE-India bilateral investment treaty in 2024 also signals an increased appetite to promote trade relations and provide protection for international investors operating within this important trading corridor. This trajectory will see the UAE expand its network of Comprehensive Economic Partnership Agreements (CEPAs) in 2025, positioning it to become a key global investment and trade hub. This pro-investment environment offers foreign investors reliable access to dispute resolution mechanisms and provides internationally recognised investment protections.

Tammam Kaissi:

"Effective foreign investment protection, through reliable access to dispute resolution mechanisms, mitigates investment risks, thereby lowering investment cost and contributing to the speed of economic growth in the region."

Trend 2: Diversification

The GCC continues to diversify and future-proof its investments away from traditional energy and infrastructure industries. In June 2024, in a move to facilitate cryptocurrency investment, the Central Bank of the UAE issued a new Payment Token Services Regulation intended to licence and supervise digital payment services. Further improving the regulation of cryptoassets, joint regulations between the Virtual Assets Regulatory Authority (VARA) and the Securities & Commodities Authority were released in September 2024. VARA is the first regulatory body of its kind in the UAE and will regulate virtual asset service providers operating in or from Dubai.

In June 2024, in a landmark decision, the DIFC Court of Appeal confirmed digital assets are a third kind of legal property, capable of being owned and transferred, under DIFC laws. This landmark judgement follows the reasoning of the English Law Reform Commission Report of 2023 and is also consistent with the approach being taken in other common law jurisdictions. This judgment, coupled with the DIFC Digital Assets Law introduced in March 2023, is a significant step towards integrating digital currencies into the mainstream financial and legal system. However, it does also bring new challenges of regulatory, compliance, and tax considerations. As the UAE crypto framework develops, specialist legal advice will be necessary to navigate this novel regulatory landscape.

Advancing data technologies and the growing Middle Eastern populations are contributing to an increasing demand for data. Active data centre projects in the UAE alone are estimated to be worth USD 1.2 billion, with a future project pipeline of a further USD 433 million. In KSA there is a total of 36 data centres up and running to date, with over 40 co-location facilities under construction.

As demand for data centres continues to build, their construction and operation will inevitably give rise to a range of disputes. Like all other projects, data centres can be exposed to delays, payment disagreements, force majeure and other construction-related disputes. However, more uniquely, due to the sophisticated data centre technology, there can be significant quality-related issues. Particularly where installed data equipment and technology do not meet the needs of the end-user. Technology systems failures can also lead to data outages and data breaches. Such disputes are complex and involve many different stakeholders, including data centre operators, tenants and their customers. This challenging mix of construction, technology and regulation will require significant legal investment from stakeholders to manage this risk strategically and effectively.

The Middle East has also injected significant investment to grow its global sporting industries. Qatar kicked off (no pun intended) this trend by hosting the FIFA World Cup in 2022 with KSA set to follow suit in 2034. There is a unified GCC effort to become a renowned global sporting hub attracting top talent from all over the world. The F1 series takes place year after year in Abu Dhabi, KSA, Qatar, and Bahrain, the latter having hosted its first race in 2004. This trend looks set to continue with Middle Eastern audiences being increasingly exposed to other sports such as golf, boxing, and tennis. The State-backing of these sports is particularly indicative of the strength of this trend, notably KSA sovereign wealth fund PIF's financing of the LIV golf tournament.

Notably, there is a growing body of sports specialist arbitration centres in the region, such as the Saudi Sport Arbitration Centre and the UAE Sports Arbitration Centre which launched in 2015 and 2023 respectively. These arbitral centres are uniquely equipped to align their procedures with international standards set by bodies such as the Court of Arbitration for Sport and host internationally credible, consistent, and specialised sports arbitrations. With the growing number of international sporting endeavours in the Middle East, sports arbitration centres will play a pivotal role in fostering a competitive, yet fair, playing field.

The Gulf's sporting pursuits are underpinned by its foundational tourism industries. The KSA Vision 2030 aims to invest USD 1 trillion into hotel infrastructure across the Kingdom. Bahrain is also continuing its own ecotourism strategy to attract foreign investment. This financial backing will certainly enhance these already popular tourist destinations and undoubtedly strengthen bilateral investment relationships, further encouraging inbound and outbound opportunities for growth. Similar to Trend 1, outbound and inbound foreign investors will rely heavily on investment protection frameworks provided through an international web of bilateral and multilateral investment treaties and their supportive arbitral dispute resolution mechanisms.

Keely Muston:

"In navigating new data technologies and cryptocurrency industries it is critical that stakeholders proactively manage their regulatory and contractual exposure to mitigate against the risk of costly and complex disputes in this space."

Trend 3: Regulatory proliferation

As the Middle East looks to the future, it is continuing to set robust AML and CTF frameworks demonstrating its commitment to combatting and preventing financial crime. Earlier in February 2024, in recognition of its strengthened AML and anti-terrorist financing regulations, the UAE was removed from the FATF grey list. This development will likely inspire greater confidence and flow of capital to the Emirates. In parallel, there will be an uptick in enforcement actions from the relevant regulators (i.e., the DFSA in the DIFC, the FSRA in the ADGM, and the UAE Central Bank in onshore UAE) targeting AML violations following FATF's clear recommendation in its Mutual Evaluation Report 2020 that relevant UAE regulatory bodies need to take more dissuasive enforcement or remedial action in combatting financial crime.

It is encouraging to see that enforcement is high on the agendas of the regulators. Eight enforcement decisions were rendered by the DFSA last year with fines issued of around USD 2.5 million. Further indication of the strength of this trend can be seen through the issue of a fine of USD 1.6 million by the UAE Central Bank against a foreign bank in September 2024 for its failure to address AML and CFT concerns identified during a regulatory review.

Other developments in this space include the introduction of amendments to AML legislation such as the 2024 amendment of Federal Decree Law no. 20 of 2018 on AML, CFT, and Financing of Illegal Organisations, aimed at improving the effectiveness of combatting financial crime in the UAE. Key amendments include the formation of a National AML Committee and Supervising Committee tasked with proposing draft laws and executing the UAE AML strategy (amongst other duties). In a similar fashion, in 2021, the Dubai Executive Office of AML and CFT was established, which includes a specialist public prosecution team with ambitions to strengthen enforcement of the UAE's anti-financial crimes framework.

Hand in hand with the region's increased efforts to stamp out financial crime is a renewed emphasis on preventing and prosecuting instances of bribery and corruption. Continuing the trend of fraud prevention, the KSA introduced its new anti-corruption Nazaha law of July 2024. This established detailed procedures for prosecuting those giving and receiving bribes including public officials who amass wealth that cannot be explained and are connected to corrupt activities.

Increasingly, whistleblowers are offered improved protections when giving relevant disclosures. In 2024, the ADGM introduced its Whistleblower Protection Regulations which provides a framework for making protected disclosures on (amongst other things) suspected fraud, money laundering or other misconduct in relation to financial crimes. Under this new protection, whistleblowing employees can report concerns both internally or externally, to relevant authorities without fear of retaliation. The KSA also introduced a new law on the Protection of Whistleblowers, Witnesses, Experts and Victims to strengthen transparency and accountability in the Kingdom. Under the new law, protected persons can benefit from a Protection Programme supported by the KSA Public Prosecution. Protections include increased security, the concealment of personal data, transfer to new employment, legal and psychological support, and other financial assistance as necessary.

To this extent, entities operating in the Middle East face stricter mandatory compliance obligations and increased scrutiny against misconduct from regulators following the introduction of strengthened legislative frameworks. The UAE in particular is keen to show the FATF that it is taking its preventative measures against fraudulent and corrupt activities very seriously to avoid being returned to the grey list.

Emma Tormey:

"Regulatory and compliance obligations are continuing to develop in the UAE. Following its removal from the FATF Grey List in 2024, the UAE has taken significant steps to strengthen its financial regulatory framework, which directly impacts those doing business in the Emirates. Effective risk and compliance procedures in response to the changing regulatory framework will be key."

Trend 4: Increased choice for disputes

The Middle East is fast becoming a hub for commercial dispute resolution. Nowhere is this more apparent than in the growth of its arbitral institutions. ArbitrateAD, the ADGM's new arbitration centre, was launched at the start of 2024, joining the ranks of Dubai's DIAC, KSA's SCCA, and Qatar's QICCA. Its new rules came into force on 1 February 2024 and provide for expedited procedures and a default seat within the ADGM. The launch of arbitrateAD rejuvenates Abu Dhabi's onshore arbitral institution ADCCAC and follows in the footsteps of the consolidation of DIFC-LCIA into DIAC in 2021.

International recognition of DIAC continues to grow. Although seeds of uncertainty have surrounded the enforceability of DIAC arbitrations following the 2021 consolidation of the DIFC-LCIA into DIAC, it appears this may subside over the course of 2025. A decision of the Louisiana Court in 2023 suggested that parties may not be bound to arbitrate a legacy DIFC-LCIA arbitration agreement under the DIAC Rules. The Court reasoned that DIAC is not the same forum as the DIFC-LCIA and that it was not the intention of parties with a DIFC-LCIA arbitration clause to arbitration under DIAC Rules. Similar reasoning was also expressed in a decision of the Grand Court of the Cayman Islands in August 2024 (albeit in obiter, non-binding comments). However, in a recent turn of events, in January 2025 the United States Court of Appeals for the Fifth Circuit reversed the 2023 Louisiana Court judgment. Greater clarity on the enforceability of these arbitration agreements brings welcome certainty for users seeking to enforce DIAC awards internationally. Nevertheless, it would still be prudent to amend outdated references to DIFC-LCIA arbitration clauses to avoid any room for future uncertainty.

Disputes are similarly supported at a judicial level throughout the UAE. There are a growing number of commercial courts available to parties throughout the Gulf. In the UAE alone, there are onshore courts located throughout the Emirates. The DIFC Courts and the ADGM Courts are both well-established English language common law courts in the UAE (with the former now being operational for over 20 years). The QFC Courts in Qatar provide another common law court for dispute resolution in the region.

More recently, Bahrain's strategy to become an international hub for commercial dispute resolution is gaining traction. The Bahrain International Commercial Court (BICC) was established in March 2024. Modelled on the Singapore International Commercial Court (SICC), the BICC has a multinational bench of judges sitting in Arabic and English with rights of appeal directly to the SICC.

It is clear commercial disputes and arbitrations are increasingly facilitated throughout the Gulf in accordance with standards seen in other dispute resolution hubs such as London, Paris and Singapore. Across the Gulf, parties now have direct access to an extensive range of internationally credible arbitral institutions and commercial courts where they can choose the appropriate forum and set of rules most suited to their needs.

Cameron Cuffe:

"The Gulf offers an increasingly accessible and diverse range of dispute resolution forums, providing end-users with specialist frameworks that can be adapted to their bespoke needs."

Trend 5: Pro-enforcement ecosystem

International legal proceedings continue to be supported in the UAE. A significant decision by the DIFC Court of Appeal in the Carmon Reestrutura case of November 2024 confirmed that the DIFC Courts have freestanding jurisdiction to grant worldwide freezing orders in support of foreign proceedings. Notably, even where there is no nexus to the DIFC. This decision follows the earlier SKAT judgement where the DIFC Court confirmed that, unlike the English Courts which do not have this power, it had the power to grant Norwich Pharmacal information orders in support of foreign proceedings. This is a significant demonstration of the DIFC Courts' desire to be seen as the go-to jurisdiction for international commercial litigation. See also: A Global Guardian: DIFC Court of Appeal Confirms Freestanding Jurisdiction to Grant Injunctive Relief.

This trend looks set to continue throughout 2025 and beyond. Recent DIFC Court of Appeal case law upholding a USD 1.6 billion ICC arbitral award suggests that objections to the enforcement of arbitral awards on grounds of public policy must be very narrowly and exceptionally construed. It is therefore clear that there are strong and effective safeguards in place for those seeking justice to enforce their international legal rights in the UAE. Parties will continue to benefit from robust and supportive UAE enforcement mechanisms.

This trend has not been confined to the common law courts in the UAE and we have also seen a positive pro-enforcement stance taken in the onshore UAE Courts. In particular, the onshore Dubai Courts are taking a leading approach to enforcing foreign judgments in the absence of an enforcement treaty. In 2024 alone, a decision from the English High Court, a summary judgment from the Canadian Courts, and a judgment from the Polish Courts were all held to be enforceable in Dubai. The latter of these decisions, made by the Dubai Court of Cassation, is of particular note as the Court held that, to resist enforcement of a foreign judgment in the UAE, it is no longer enough to show that the UAE Courts would have had mere jurisdiction to hear the dispute – parties must now show that the onshore

UAE Courts would have had exclusive jurisdiction over the underlying dispute. This development marks a significant shift towards a more robust enforcement ecosystem.

Shane Jury:

"There is a tectonic shift afoot towards the enforcement of foreign judgments and awards in the UAE. This applies not only to the common law courts in the DIFC and ADGM but also to the onshore UAE Courts, which historically would not enforce foreign judgments in the absence of a Treaty. This trend will reassure and encourage those seeking to enforce their legal rights in the UAE or seeking to enforce domestic judgments and awards abroad."