The Dubai International Finance Centre (DIFC) has recently announced the enactment of key amendments to the Law on the Application of Civil and Commercial Laws in the DIFC (DIFC Law no. 3 of 2004). The purpose of these amendments is to provide clear statutory guidance regarding the sources and interpretation of DIFC Law, confirming that the DIFC statutes are supplemented by English common law as well as the common law of other jurisdictions.
Article 8A
The new Article 8A clarifies that DIFC Law is primarily determined by reference to DIFC statutes and the Judgments of the DIFC Courts that interpret and apply these statutes.
Furthermore, since DIFC Law is not designed to be strictly statutory, Article 8A specifies that it is supplemented by common law principles (including the principles and rules of equity). In interpreting common law for the DIFC, the Courts may refer to the common law of England and Wales as well as other common law jurisdictions.
The new Article 8A is reproduced hereinbelow:
“(1) The following provisions apply where DIFC Law is the law applicable to a civil or commercial matter pursuant to Article 8 above.
(2) The content of DIFC Law shall be determined by any applicable DIFC Statute, and any DIFC Court Judgments interpreting and applying the applicable DIFC Statute in a manner consistent with this Law.
(3) The common law (including the principles and rules of equity) supplements the DIFC Statute except to the extent modified by this Law or any other DIFC Law. The DIFC Courts, in determining the common law for the DIFC in any case, may have regard to the common law of England and Wales and other common law jurisdictions.
(4) The common law of the DIFC (including the principles and rules of equity), as determined by the DIFC Courts, must not be inconsistent with the DIFC Statute.”
Article 8B
The new Article 8B states that the interpretation of DIFC statutes may draw upon principles established for similar laws from recognized common law jurisdictions.
Furthermore, if a DIFC statute is modeled on an international model law, its interpretation may also be guided by international jurisprudence that interprets and applies that model law, along with interpretative aids and commentary from international organizations pertaining to the model law. These amendments aim to ensure that both English Common Law and advancements in other well-established common law jurisdictions remain integral to the legal framework of the DIFC.
The new Article 8B is reproduced hereinbelow:
“(1) The interpretation of DIFC Statutes may be guided by: (a) jurisprudence from common law jurisdictions regarding the interpretation and application of analogous laws; and (b) the rules and principles of statutory interpretation from common law jurisdictions.
(2) Article 8B(1) applies to all DIFC Statutes, regardless of whether the relevant DIFC Statute is based on an international model law or another non-common law source.
(3) 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.”
These amendments provide clarity to DIFC Court practitioners and lay out a solid foundation for further development of jurisprudence in DIFC.
SK Legal Expert Guidance on DIFC Law Amendments
Stay ahead in the ever-evolving legal landscape of the DIFC with SK Legal. Our expert team is well-versed in the latest amendments to DIFC laws. We at SK Legal make sure that your business remains compliant and benefits from the clarity these changes bring.
Whether you need guidance on statutory interpretation, common law application, or navigating international model laws, we provide tailored solutions to protect your interests.
Contact SK Legal today for comprehensive advice and strategic support in the DIFC jurisdiction, or send your queries to info@sklegalfirm.com for personalised assistance and guidance.
Disclaimer
This publication does not provide any legal advice and it is for information purposes only. You should not rely upon the material or information in this publication as a basis for making any business, legal or other decisions. Therefore, any reliance on such material is strictly at your own risk.
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Sameer A. Khan
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