Third-party funding of litigation and arbitration in the UAE
Litigation funding is no longer a London-only conversation. DIFC and ADGM have frameworks that recognise third-party funding, with disclosure duties to the court or tribunal. Onshore UAE practice is more cautious: counsel must still consider professional conduct, confidentiality, control of the claim and the risk that a funding arrangement is characterised unfavourably.
What funders will ask
Funders want a clean theory of liability, recoverable defendants, and a realistic enforcement story — often assets in the DIFC, ADGM, or a New York Convention seat. Merits memos that ignore enforcement are not instructed.
What clients must watch
- Who controls settlement, and what happens if the client and funder disagree
- Privilege when a funder and its advisers sit on the file
- Adverse costs and security for costs applications
- Disclosure of the funding arrangement to the tribunal
Used well, funding lets a company pursue a claim without starving operations. Used carelessly, it creates a second dispute with the funder. We advise claimants, respondents and, where appropriate, funders on structure and disclosure. This article is general information, not legal advice.