UAE's ADGM amends founding law; formalises dual licensing regime

Majority of amendments relate to the enhancement and strengthening of ADGM's dispute resolution framework

  
Investors speak as they monitor stocks at the Abu Dhabi Securities Exchange. Image for illustrative purposes

Investors speak as they monitor stocks at the Abu Dhabi Securities Exchange. Image for illustrative purposes

REUTERS/Stringer

Abu Dhabi's international financial freezone, Abu Dhabi Global Market (ADGM) has amended its founding law, highlighting its close and collaborative partnerships with governmental partners, in particular, the Abu Dhabi Judicial Department (ADJD) and the Department of Economic Development (DED).

The amendments to the founding law of Abu Dhabi Global Market will formalise the dual licensing regime set up with the DED, allowing ADGM-based entities to set up branches, subsidiaries or representative offices in the city without having to set up a separate onshore entity and strengthens the jurisdiction of ADGM Courts.

The majority of the amendments relate to the enhancement and strengthening of ADGM’s dispute resolution framework, particularly the jurisdiction of ADGM Courts.

Parties will be allowed to choose ADGM Courts as a jurisdiction for a hearing without any prior connection to ADGM. ADGM Courts and the Abu Dhabi Judicial Department will also enact a "reciprocal enforcement of judgements" between the two courts, but ADGM Courts judgements will not be used for the enforcement of non-ADGM judgments and arbitral awards in other jurisdictions.

Ahmed Ali Al Sayegh, Minister of State (UAE) and Chairman of ADGM, said: "These amendments reinforce ADGM’s position as a thriving international financial centre with a robust and progressive regulatory framework and a healthy track record in providing game-changing innovation. Our partners, businesses and investors can rely on us to seize every opportunity possible to foster their development and long-term growth.”

ADGM Courts have published a guide to the amendments and the policy behind them in order to provide a deeper understanding and appreciation of these amendments to ADGM’s dispute resolution framework.

(Writing by Seban Scaria, editing by Anoop Menon)

(seban.scaria@refinitiv.com)

#UAE #ADGM #LEGAL

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