Sunday, Apr 24, 2011
Gulf News
Dubai: The Dubai International Financial Centre’s (DIFC) drive to become a global financial centre received a boost yesterday as amendments to the DIFC law provide greater legal clarity and transparency, complying with the highest levels of good governance and best practices.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No 7 of 2011 which includes amendments to a number of articles in Law No 9 of 2004 (Original Law) that established the DIFC as the first financial free zone in the UAE.
Law No 7 of 2011, which incorporates the first ever amendments made to the Original Law, was enacted on April 4, and published on Thursday, April 21, 2011 in the Official Gazette in both Arabic and English. It is in force with immediate effect.
The new law comes as part of the government of Dubai’s ongoing strategic commitment to diversify the emirate’s economy by supporting the growth of the banking and financial services sector through DIFC.
Three bodies
Following the government’s review of governance structures, the new law provides for the creation of a Higher Board comprising representatives of the three DIFC bodies — DIFC Authority, the Dubai Financial Services Authority and DIFC Courts.
This Higher Board will be presided over by the DIFC President, Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai.
The DIFC Higher Board will ensure that the three DIFC bodies operate in harmony and unity of purpose by strengthening the levels of coordination without affecting their independence. “The amendments to Law 9 provide greater legal clarity and improve the corporate governance of DIFC. These changes further strengthen DIFC’s legal and financial infrastructure as a whole, and reinforce the government’s commitment to the independence of each of the centre’s bodies. This is an important step forward in the growth of DIFC as a global financial hub and complements the centre’s continuous efforts to develop its services and increase its contribution to the UAE’s economy,” said Ahmad Humaid Al Tayer, governor of DIFC.
The new law includes an article that defines the manner of appointment and the role of the governor.
Dubai The new law also clarifies the application of all Dubai laws to DIFC including governmental, financial and legal arrangements. This clarification creates many opportunities for future collaboration between DIFC and other government bodies, fostering cooperation and open dialogue thus enhancing the growth of banking and financial services, ancillary services and commercial and financial activities and strengthens its role in the region.
Changes to the Original Law include a number of provisions that are specific to DIFC Authority (DIFCA). These confirm DIFCA’s independence and put in place a corporate structure of a board, CEO and executive body.
The new law has provisions clarifying that DIFCA is now responsible for establishing, regulating and developing the centre’s payment systems. DIFCA will coordinate with the UAE Central Bank in regulating, supervising, operating and using wholesale, large-value payment systems, including a multi-country, multi-currency Real Time Gross Settlement System, allowing the clearing and settlement of payments in foreign currencies in the DIFC.
David Eldon, Chairman of DIFCA said; “The new law will assist DIFC’s continuous evolution and underlines its position as one of the world’s top international financial centres. By emphasising the centre’s independence, the new law assures companies looking to establish a presence in the region that DIFC offers both a modern infrastructure and a world-class business environment.”
A Dubai Financial Services Authority (DFSA)-related article in the new law clarifies the roles and powers of the DFSA’s board and CEO, reinforcing the autonomy and authority of the DFSA’s board.
The chairman of the DFSA board of directors, Abdullah M Saleh, commented; “DFSA welcomes the new law as a further positive step in the development of the centre. DFSA will continue its commitment to protect the integrity of DIFC and to realise the vision of president.”
The amendments made to DIFC Courts-related provisions further reinforce the Government of Dubai’s commitment to the independence of DIFC Courts, by guaranteeing its funding and authorising the Chief Justice to determine the Courts’ rules, procedures, staffing and operation.
Michael Hwang, Chief Justice of DIFC Courts, said, “The revisions to the law further reinforce the autonomy and independence of DIFC Courts. A fair, efficient and transparent judicial system operating independently is a critical component of DIFC’s offering.”
Staff Report
t© Gulf News 2011. All rights reserved.
Gulf News
Dubai: The Dubai International Financial Centre’s (DIFC) drive to become a global financial centre received a boost yesterday as amendments to the DIFC law provide greater legal clarity and transparency, complying with the highest levels of good governance and best practices.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No 7 of 2011 which includes amendments to a number of articles in Law No 9 of 2004 (Original Law) that established the DIFC as the first financial free zone in the UAE.
Law No 7 of 2011, which incorporates the first ever amendments made to the Original Law, was enacted on April 4, and published on Thursday, April 21, 2011 in the Official Gazette in both Arabic and English. It is in force with immediate effect.
The new law comes as part of the government of Dubai’s ongoing strategic commitment to diversify the emirate’s economy by supporting the growth of the banking and financial services sector through DIFC.
Three bodies
Following the government’s review of governance structures, the new law provides for the creation of a Higher Board comprising representatives of the three DIFC bodies — DIFC Authority, the Dubai Financial Services Authority and DIFC Courts.
This Higher Board will be presided over by the DIFC President, Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai.
The DIFC Higher Board will ensure that the three DIFC bodies operate in harmony and unity of purpose by strengthening the levels of coordination without affecting their independence. “The amendments to Law 9 provide greater legal clarity and improve the corporate governance of DIFC. These changes further strengthen DIFC’s legal and financial infrastructure as a whole, and reinforce the government’s commitment to the independence of each of the centre’s bodies. This is an important step forward in the growth of DIFC as a global financial hub and complements the centre’s continuous efforts to develop its services and increase its contribution to the UAE’s economy,” said Ahmad Humaid Al Tayer, governor of DIFC.
The new law includes an article that defines the manner of appointment and the role of the governor.
Dubai The new law also clarifies the application of all Dubai laws to DIFC including governmental, financial and legal arrangements. This clarification creates many opportunities for future collaboration between DIFC and other government bodies, fostering cooperation and open dialogue thus enhancing the growth of banking and financial services, ancillary services and commercial and financial activities and strengthens its role in the region.
Changes to the Original Law include a number of provisions that are specific to DIFC Authority (DIFCA). These confirm DIFCA’s independence and put in place a corporate structure of a board, CEO and executive body.
The new law has provisions clarifying that DIFCA is now responsible for establishing, regulating and developing the centre’s payment systems. DIFCA will coordinate with the UAE Central Bank in regulating, supervising, operating and using wholesale, large-value payment systems, including a multi-country, multi-currency Real Time Gross Settlement System, allowing the clearing and settlement of payments in foreign currencies in the DIFC.
David Eldon, Chairman of DIFCA said; “The new law will assist DIFC’s continuous evolution and underlines its position as one of the world’s top international financial centres. By emphasising the centre’s independence, the new law assures companies looking to establish a presence in the region that DIFC offers both a modern infrastructure and a world-class business environment.”
A Dubai Financial Services Authority (DFSA)-related article in the new law clarifies the roles and powers of the DFSA’s board and CEO, reinforcing the autonomy and authority of the DFSA’s board.
The chairman of the DFSA board of directors, Abdullah M Saleh, commented; “DFSA welcomes the new law as a further positive step in the development of the centre. DFSA will continue its commitment to protect the integrity of DIFC and to realise the vision of president.”
The amendments made to DIFC Courts-related provisions further reinforce the Government of Dubai’s commitment to the independence of DIFC Courts, by guaranteeing its funding and authorising the Chief Justice to determine the Courts’ rules, procedures, staffing and operation.
Michael Hwang, Chief Justice of DIFC Courts, said, “The revisions to the law further reinforce the autonomy and independence of DIFC Courts. A fair, efficient and transparent judicial system operating independently is a critical component of DIFC’s offering.”
Staff Report
t© Gulf News 2011. All rights reserved.
