The Dubai International Financial Court also made amendments to its Application Law
Dubai's International Financial Court (DIFC) made amendments to its Application Law, also know as the Application of Civil and Commercial Laws in DIFC.
The financial centre also announced that it would be making certain amendments to the DIFC Real Property Law and Real Property Regulations. These include a new mortgage registration fee of 0.25 per cent of the value of mortgage being registered by a purchaser of real property.
DIFC has also extended the period of registration of off-plan sales from the current 30-day period to 60 days, to better accommodate the timetable for off-plan unit purchases, from launch stage to production of a final off-plan sales agreement.
The extension provides purchasers of off-plan units more time to register such transactions and pay the freehold transfer fee.
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The amendment laws were enacted on November 14 and came into effect on November 21, 2024.
Under the amendments to the Application Law, a new article has been added. Titled Article 8A, this clause establishes that DIFC Law is to be determined first by reference to DIFC statute, and DIFC Court judgements interpreting and applying DIFC statute.
Then, as DIFC law is not intended to be strictly statutory, Article 8A says that DIFC Statute is supplemented by the common law (including the principles and rules of equity). The DIFC Courts in determining the common law for DIFC may have reference to the common law of England and Wales and other common law jurisdictions.
These changes clarify that the DIFC Courts, like any leading common law courts, have the power to consider comparative jurisprudence from a variety of jurisdictions in developing or modifying common law rules and principles of equity on a case by case basis, but that they do not have broader legislative or policy making powers.
The article confirms that interpretation of DIFC statute may be guided by principles developed in respect of analogous laws in established common law jurisdictions. Additionally, 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.
The amendments are intended to ensure that both English Common Law, and developments in other established common law jurisdictions, continue to remain a central feature of DIFC’s legal system.
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