DIFC Announces Consultation for Amendments to DIFC Law on Application of Civil and Commercial Laws

Image Credit: Supplied
6 months ago

Dubai, UAE – Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East, Africa, and South Asia (MEASA) region, has proposed amendments to the DIFC Law on the Application of Civil and Commercial Laws in the DIFC (the “Application Law”). The amendments aim to provide statutory certainty to the source of DIFC Law and its interpretation.

Jacques Visser, Chief Legal Officer at DIFC Authority, stated that the success of DIFC over the last twenty years is rooted in the adoption of common law. DIFC laws are supplemented with reference to English Common Law and interpreted in accordance with both English common law and the laws of other established common law jurisdictions. The proposed amendments seek to provide statutory confirmation for practitioners and the Courts regarding the source of law in the DIFC and the way DIFC legislation may be interpreted.

Since DIFC’s inception, it has been understood by practitioners that DIFC Laws are supplemented by English common law. DIFC believes it is necessary to provide statutory certainty as to the source and interpretation of DIFC law, especially as DIFC often looks at global best practice on a much broader basis than what English statutory law provides for.

Jacques Visser, DIFC Chief Legal Officer. (Image Credit: Supplied)

The proposed amendments include the addition of a new Article 8A to the Law of Application. This article provides that DIFC Law is to be determined first by reference to DIFC statute. However, where a specific doctrine, cause of action, defense, or remedy has not been expressly included in DIFC statute, the “gap” may be filled by English common law. DIFC Courts are expressly constrained by the requirements that the finding be appropriate and subject to such modification and development as those circumstances require. DIFC Courts are also precluded from relying on an English common law doctrine, cause of action, defense, or remedy where it is expressly or impliedly excluded by a DIFC Statute.

A new Article 8B has also been added to the Application Law to clarify that interpretation of DIFC statute may be guided by principles developed in respect of analogous laws in established common law jurisdictions. Additionally, if a DIFC Statute is based on an international model law, its interpretation may also be guided by international jurisprudence interpreting and applying the international model law, as well as interpretative aids and commentary published by international bodies regarding the international model law.

The proposed amendments are intended to ensure that English common law, and developments in other established common law jurisdictions, continue to remain a central feature of DIFC’s legal system. Further details about the proposed amendments can be found in Consultation Paper No 1. of 2024. The consultation has been posted for a 30-day public consultation period with the deadline for providing comments ending on 1.06.2024.

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