DIFC Authority enacts legislative amendments to clarify the role of the common law in the DIFC

On 21 November 2024, the Dubai International Financial Centre (DIFC) announced that it was enacting amendments to the DIFC Law on the Application of Civil and Commercial Laws in the DIFC, with a view to confirming in express terms that DIFC Law is supplemented by reference to English common law, and the common law of other common law jurisdictions.

These important amendments provide statutory confirmation, for legal practitioners, commercial clients, and the Courts, regarding the source of law in DIFC and the way in which DIFC legislation may be interpreted.

In summary, a new Article 8A establishes that DIFC Law is to be determined first by reference to DIFC statute, and DIFC Court judgments interpreting and applying DIFC statute. Then, as DIFC law is not intended to be strictly statutory, Article 8A provides 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.

A new Article 8B 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.

Further information is available here.