With the aim of providing greater legal clarity and transparency, the Dubai International Financial Centre (DIFC) has proposed a number of amendments to its Original Law that established it as the first Financial Free Zone in the UAE. The changes should also provide stronger support to the DIFC’s drive to become a global financial centre, complying with the highest levels of good governance and best practices.
Law No (7) of 2011 was enacted on April 4, and published on April 21 in the Official Gazette in both Arabic and English. It takes effect with immediate effect, and comes as part of the Government of Dubai’s ongoing strategic commitment to diversify the Emirate’s economy by supporting the growth of the banking and financial services sector through the DIFC.
The new law results from a consultative and collaborative process between the three DIFC bodies – the DIFC Authority (DIFCA), the Dubai Financial Services Authority (DFSA) and the DIFC Courts, as well as various Dubai government bodies, including the Legal Affairs Department of the Government of Dubai.
It provides for the creation of a Higher Board comprising representatives of the three DIFC bodies. This Higher Board will be presided over by the DIFC President, Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai, and will be meeting at least twice a year. The DIFC Higher Board will ensure that the three DIFC bodies operate in harmony and unity of purpose by strengthening the levels of coordination without affecting their independence.
The new law includes an article that defines the manner of appointment and the role of the Governor of the DIFC. The Governor is appointed by the Ruler of Dubai upon the proposal of the DIFC President for a four-year term that may be renewed.
It also clarifies the application of all Dubai laws to the DIFC including governmental, financial and legal arrangements. This clarification creates opportunities for future collaboration between the DIFC and other government bodies, fostering cooperation and open dialogue thus enhancing the growth of banking and financial services, ancillary services and commercial and financial activities and strengthens its role in the region.
Michael Hwang, Chief Justice of DIFC Courts, said: "The revisions to the law further reinforce the autonomy and independence of DIFC Courts. A fair, efficient and transparent judicial system operating independently is a critical component of the DIFC’s offering as a world-class financial centre. We remain committed to uphold the laws of the DIFC to the highest international standards, and the new law supports this commitment."
LAWANDTAX-NEWS.COM
