The Dubai International Financial Center (DIFC) on Monday hosted a seminar to highlight the federal laws and regulations of the United Arab Emirates that allow DIFC-based companies to own assets in the UAE. Senior DIFC officials, leading private sector legal experts and top investment bankers, discussed these laws and related developments during the “Going to the Market in the DIFC” seminar held at the DIFC Conference Center in Dubai. The experts referred to a federal bylaw that permits DIFC-registered holding firms to own companies that operate throughout the UAE, provided that the holding companies themselves abide by the UAE Commercial Companies Law. Passed in August 2007, the bylaw requires that the holding company is no less than 51 per cent UAE owned. Following the introduction of relevant regulations under the UAE Federal Laws, the DIFC and its regulatory body - the Dubai International Financial Services Authority (DFSA) - have recently amended their laws regulating listing criteria on the DIFX. Abdulla Al-Awar, managing director of the DIFC Authority, pointed out while opening the seminar that the DIFC's legal framework is constantly being refined and improved. He said the DIFC seeks to implement best global practices and works to address the ever-evolving business and legal environment. The legal framework in place at the DIFC is a Common Law framework - the same type of system in place in the United Kingdom and the United States. This is in contrast to the Civil Law legal system that is in place in the rest of the UAE and across the Middle East. “This difference in the legal systems can be confusing. Many people are unaware of the many implications - and benefits - to businesses that arise out of DIFC's decision to adopt the Common Law system and not the Civil Law system,” said Al-Awar. “For all these reasons we felt there was a tremendous opportunity to communicate with DIFC stakeholders, particularly UAE businesses and financial services firms, about the laws and regulations that govern activity in DIFC, as well as to discuss any new changes, revisions and additions to these laws,” added the DIFC managing director. Legal experts said the thrust of the developments in the Federal as well as the DIFC Laws was designed to help regional firms access global capital markets. __
