Litigation Funding FAQ

Litigation funding is third-party finance for the costs of pursuing a legal claim. The funder receives an agreed return from a successful recovery under the funding agreement; it is not a loan with ordinary monthly repayments. Funding is subject to review.

No. Dubai Legal Funding is a team-run funding service, not a law firm. Independent qualified counsel provides legal advice and representation; this website provides general information only.

Businesses, individuals and insolvency stakeholders with economically viable claims may consider funding. It can preserve working capital or make a claim affordable. Eligibility depends on the evidence, budget and realistic recovery prospects.

We typically consider claims of USD 2 million (approximately AED 7.3 million) and above. Funding budgets generally range from USD 250,000 to USD 5 million per matter. Larger budgets and portfolios are considered case by case.

Yes, we consider commercial claims in the DIFC Courts, ADGM Courts and onshore UAE courts, subject to review. The funding structure and procedural requirements depend on the forum. Counsel must assess the applicable law.

We consider DIAC and international commercial arbitration connected to the UAE. Institutional rules, the seat and the location of assets matter. Funding and award enforcement are assessed together.

Law-firm arrangements and portfolios may be considered case by case. A portfolio review considers the claims together, conflicts, budget and recovery timing. No standard portfolio terms or approval are promised.

Yes, enforcement-only funding may be considered. The debtor must have identifiable, reachable assets and a credible recognition or execution route. A judgment or award alone does not establish collectability.

Under the agreed non-recourse structure, you pay nothing to the funder if the case is lost. This does not automatically eliminate liabilities to an opponent or other third parties. Counsel should review adverse costs, exclusions and breach provisions in the agreement.

Agreed budgets may cover lawyers, court or tribunal fees, experts, translations, notarisation, service and enforcement. Coverage is documented, not assumed. Dubai Legal Funding does not offer cover or insurance for an opponent’s legal costs.

Terms are negotiated case by case before commitment. General market references include 2–4x deployed capital, 20–40% of net recoveries or the greater of the two, sometimes increasing over time. These are not quoted rates or an offer.

The agreed waterfall determines how the recovery is distributed. A partial recovery may leave the claimant with substantially less than expected after other liabilities and the funder’s entitlement. Ask counsel to model downside scenarios before signing.

The initial answer is within 3–5 business days, not final approval. Due diligence typically takes 3–6 weeks, and a term sheet follows within 1–2 weeks after diligence. Complexity, missing documents and agreement conditions may affect timing.

Urgent matters can be fast-tracked where possible. Limitation deadlines and freezing applications remain your responsibility and require immediate legal advice. Do not postpone protective action while awaiting funding.

Start with a concise chronology, key contracts, correspondence, claim estimate and counsel’s budget. We also need information about the defendant and assets. Privileged documents should be shared only after counsel approves confidentiality and privilege safeguards.

Yes, we work alongside your chosen counsel. Experienced counsel and a credible budget form part of the review. The claimant and lawyers retain responsibility for the case.

The claimant and counsel control litigation strategy. The agreement can require reporting and consultation on spending or settlement, so those rights should be understood before signing. Independent legal advice remains important.

Review discussions are confidential and conducted under NDA. An NDA does not by itself guarantee that every document remains legally privileged. Your lawyer should decide what can be shared and on what terms.

DIFC and ADGM have express litigation-funding frameworks, and DIAC’s 2022 Rules address third-party funding. Onshore arrangements require separate analysis rather than assuming those rules apply. Counsel should assess enforceability and regulatory treatment of the specific onshore structure.

Disclosure requirements depend on the court, arbitral rules and procedural orders. DIFC, ADGM and DIAC each address funding-related notifications or disclosure. Counsel should confirm recipients, information and timing before the agreement is concluded.

Collected proceeds are distributed under the agreed waterfall. A judgment or award is not the same as cash recovery; enforcement may still be needed. The agreement should explain fees, deductions, timing and reporting.

Termination rights depend on the agreement. Ask what happens if merits change, budgets increase or a condition is breached, and who pays outstanding costs. Obtain independent advice on the consequences before signing.