News DeskDubai, UAE – The Dubai International Financial Centre (DIFC), renowned as a leading global financial hub in the Middle East, Africa, and South Asia (MEASA) region, has announced significant amendments to several key laws and regulations aimed at fortifying its legal framework in line with international standards. These changes, enacted following a comprehensive period of public consultation in 2023, signify DIFC’s commitment to maintaining robust regulatory practices while catering to the evolving needs of its stakeholders.
Chief Legal Officer at DIFC Authority, Jacques Visser, emphasized the importance of these legislative updates, stating, “DIFC’s world-class legal and regulatory framework is based on international standards and principles of common law. The latest legislative updates…ensure the Centre’s laws continue to meet global best practice while catering to the unique needs of the region.”
Amendments to the Employment Law
DIFC has introduced amendments to its Employment Law, particularly focusing on enhancing provisions related to the treatment of GCC national employees. Employers are now required to make additional contributions into a Qualifying Scheme for their GCC national employees, ensuring parity in end-of-service benefits. Furthermore, adjustments have been made to accommodate situations where sanctions prohibit contributions to such schemes.
Amendments to the Trust Law and Foundations Law
Changes to the Trust Law and Foundations Law aim to bolster DIFC Courts’ jurisdiction over the administration of trusts and foundations within the Centre, safeguarding against potential circumvention by foreign entities or courts. Additionally, Registered Agents now have an expanded role, enabling them to fulfill compliance duties on behalf of foundations, aligning with existing practices for corporate service providers.
Amendments to the Operating Law and Operating Regulations
Updates to the Operating Law address OECD requirements regarding record retention post-entity winding up and refine the definition of “Privileged Communication” to ensure alignment with international standards. Notably, amendments to the Operating Regulations grant enhanced powers to the Registrar of Companies (RoC) to regulate late-night operations of bars and restaurants within DIFC, mitigating potential disturbances to other tenants.
These legislative changes underscore DIFC’s unwavering commitment to fostering a conducive environment for financial services, innovative technologies, and related industries to thrive while upholding legal certainty as a paramount priority. With these amendments, DIFC continues to solidify its position as a preeminent global financial center, poised to support the diverse needs of its stakeholders effectively.
