News from the DIFC
The memorandum between the Dubai Financial Market (DFM) and DIFC Dispute Resolution Authority (DRA) creates a strategic partnership that will benefit the 60 DFM– listed companies, as well as the large number of issuers of Sukuk, bonds and funds, currently listed on the exchange.
The two organisations will collaborate closely to enable DFM and its member companies to fully utilise the DRA’s suite of services. They will also develop an international outreach programme to jointly promote DFM and DRA services to international investors and companies.
The agreement was signed by His Excellency Essa Kazim, Chairman of DFM, and Michael Hwang, Head of the Dispute Resolution Authority and Chief Justice of the DIFC Courts, during a ceremony at the Dubai bourse.
Outside of dispute resolution, DFM and the DRA will collaborate on areas such as the use of “smart” technology, implementing customer service best practice, sharing economic data and employee training.
The DFM team actively promotes the exchange to international investors and has held roadshows in New York and London since 2007. The most recent roadshow in New York in October enabled senior executives from 13 companies listed on DFM and Nasdaq Dubai to inform international fund managers about their growth strategies and recent developments.
His Excellency Essa Kazim, Chairman of DFM welcomed the signing of this MoU saying, “This significant step underlines DFM’s relentless efforts to lay out the necessary framework for cooperation and jointly working with concerned institutions to further enhance Dubai’s favourable and attractive environment for investment. This will further enhance efforts aimed at achieving the strategic objectives of Dubai 2021 plan, reinforcing the dynamic role of the financial sector as one of the key drivers of the economy. According to the MoU, the two sides will outline areas of cooperation enabling the DFM and its members to utilize the dispute resolution, arbitration and tribunal services that DRA and DIFC Courts provide. This arrangement will further strengthen market participants’ confidence in DFM’s world-class business environment which plays an integral part in fortifying Dubai’s leading position as a dynamic international financial centre.”
Chief Justice Michael Hwang said, “Following the 2014 MSCI Emerging Markets Index upgrade, the UAE capital markets are now firmly in the international spotlight. The DRA looks forward to working with our colleagues at DFM to leverage the reputation of bodies like the DIFC Courts and DIFC-LCIA Arbitration Centre to attract international listings, while providing a whole suite of dispute resolution services to existing member companies.”
The DIFC Dispute Resolution Authority (DRA) with its ancillary body, the DIFC Wills and Probate Registry (WPR) today announced the signing of a memorandum of understanding (MoU) with the Department of Economic Development (DED) to ensure the rapid facilitation of probate court orders covering the Dubai assets of those who have registered their wills with WPR. The MoU marks an important step forward in the development of the DRA and WPR by officially outlining a process in conjunction with a major government department.
The memorandum outlines articles facilitating a clear flow of information between WPR, DIFC Courts and DED. The MoU complements existing legal and administrative processes in Dubai and sets out how information will be exchanged, including information relating to business licenses and shares, and how this information will be handled securely. It also outlines the specific roles and responsibilities of the parties involved in the sharing of this information.
The establishment of a joint committee between WPR and DED is also proposed in the memorandum’s articles. This will enable both parties to meet on a regular basis and discuss how the working relationship can be further refined.
His Excellency Sami Al Qamzi, Director General of DED, said, “Dubai continues to emerge as a global commercial and financial hub. To ensure transparency and investor trust, it is important that people feel confident that their Dubai-based assets will be transferred according to their wishes upon their death. The DRA’s ancillary body, the DIFC Wills and Probate Registry, is providing an important service and we are pleased to be working in conjunction with them for the continued success of Dubai.”
Michael Hwang, Head of the DRA and Chief Justice of the DIFC Courts, said: “The signing of the memorandum of understanding with the Department of Economic Development is an important milestone for the DRA and the DIFC Wills and Probate Registry. It gives clear guidelines for the process regarding distributing business shares and licenses registered with the DED in Dubai which have been gifted to beneficiaries for registered wills under the WPR. This will also encourage the facilitation of probate court orders, in line with current enforcement procedures via the Dubai Courts, at an important time for Dubai’s business and investment market. One of the key aims of the WPR is to provide legal certainty and a comprehensible inheritance solution for non-Muslims with assets in Dubai. This signing is an important step which initiates clear processes in partnership with key government bodies in order to achieve this goal.”
The first service of its kind in the region, the DIFC Wills and Probate Registry aims to provide individuals the ability to register English language wills that allow their Dubai-based assets to be transferred upon death according to their instructions. The rules governing the Registry reflect the spirit of existing UAE laws, which provide non-Muslims the right to choose the way in which their estates are distributed.
