Mohammed bin Rashid issues the Dubai International Financial Center Law

Dubai Government Media Office - 06 May 2021: His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, may God protect him, in his capacity as Ruler of the Emirate of Dubai, issued Law No. (5) of 2021 regarding the Dubai International Financial Center, which replaced Law No. (9) of 2004 regarding the Dubai International Financial Center and its amendments.

In line with international best practices, the new law provides more clarity about the responsibilities and tasks of the center’s president, the governor and the center’s bodies. It also guarantees the center’s independence in operational, financial and administrative affairs, which is essential for the continued growth and success of the financial center in achieving its objectives, which in turn secures compliance requirements and commitment to the highest Principles of governance and accountability.

The new law provides for the expansion of the strategic objectives of the Dubai International Financial Center, which focus on strengthening Dubai's position as a global center for financial services and consolidating the values ​​of efficiency, transparency and integrity. These goals also include advancing Dubai's sustainable economic growth, developing and diversifying its economy and increasing the GDP contribution to the financial services sector. As well as encouraging investment in Dubai and attracting regional and international entities to establish and launch their operations and activities in the Dubai International Financial Center as a primary location for their business.

The Dispute Settlement Authority, which had legal personality under the previous law, will operate as two separate bodies under the new law in the form of the "DIFC Courts" and the "Arbitration Institution".

This will allow each agency the maximum opportunity for growth and the appropriate allocation of resources in relation to their mandate.

The new law also provides an explanation of what the DIFC institutions can do outside the center's geographical scope.

These institutions can provide services and products to clients outside the DIFC, provided that this is done primarily from their headquarters located in the financial center.

They can also do marketing and promotion of their activities outside the DIFC.

Moreover, the new law allows the President of the DIFC to exempt some federal and local government agencies, companies and other entities from applying any of the laws or regulations that apply to them when they are in the financial center, and in this case only the federal and local laws of the UAE apply to them. United Arab.

This is an important addition as it allows an increasing number of federal and local government authorities in the DIFC to exempt from some laws and regulations in the financial center that cannot be applied to them.

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