Dubai International Financial Centre (DIFC) is set to make significant amendments to the DIFC Law on the Application of Civil and Commercial Laws in the DIFC, aiming to provide clarity on the source of DIFC Law and its interpretation. The proposed changes come as DIFC continues to solidify its position as the leading global financial center in the Middle East, Africa, and South Asia region.
Jacques Visser, Chief Legal Officer at DIFC Authority, emphasized the importance of these amendments, stating that they are intended to provide statutory confirmation for practitioners and the Courts regarding the source of law in the DIFC and the manner in which DIFC legislation should be interpreted. He highlighted the role of common law in DIFC’s success, noting that DIFC laws are supplemented by English Common Law and interpreted in accordance with both English common law and the laws of other established common law jurisdictions.
One of the key aspects of the proposed amendments is the clarification of the source of law in DIFC. It has been a longstanding understanding that DIFC Laws are supported by English common law. The amendments seek to provide statutory certainty on this issue, especially as DIFC often looks at global best practices beyond what English statutory law provides for. The addition of a new Article 8A to the Law of Application addresses this by stipulating that DIFC Law is to be determined first by reference to DIFC statute, with English common law filling any gaps where specific doctrines, causes of action, defenses, or remedies are not expressly included in DIFC statute.
Furthermore, the amendments also introduce a new Article 8B to the Application Law, which clarifies that the interpretation of DIFC statute may be guided by principles developed in analogous laws in established common law jurisdictions. This provision also allows for the interpretation of DIFC statutes based on international model laws to be guided by international jurisprudence and interpretative aids from international bodies.
The proposed amendments aim to ensure that English common law and developments in other established common law jurisdictions remain integral to DIFC’s legal system. The details of the proposed changes can be found in Consultation Paper No 1 of 2024, which is available for a 30-day public consultation period. Stakeholders and interested parties have until 1.06.2024 to provide their comments on the proposed amendments.
Overall, the amendments to the DIFC Law on the Application of Civil and Commercial Laws signify DIFC’s commitment to enhancing legal certainty and clarity within its jurisdiction. By solidifying the source of law and providing guidelines for interpretation, DIFC aims to further strengthen its position as a leading global financial center in the MEASA region.