DIFC Announces Amendments to Key Legislation
The Dubai International Financial Centre (DIFC) has enacted significant amendments to its legislation through DIFC Law Amendment Law No. 1 of 2024. These changes, initiated by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, UAE Prime Minister, and Ruler of Dubai, aim to align the Centre's regulations with international best practices while catering to regional needs.
Overview of the Amendments:
Employment Law Amendments
DIFC employers are now required to make "top-up" payments into qualifying schemes like the DEWS Scheme for GCC national employees. This is to ensure their contributions match what non-GCC nationals would receive under the Employment Law. These amendments to Part 10 of the Employment Law are effective immediately.
Trust Law and Foundation Law Amendments
The amendments enhance the DIFC Courts' jurisdiction over the administration of DIFC trusts and foundations, ensuring compliance with DIFC laws even when foreign courts are involved. The changes also expand the responsibilities of Registered Agents, allowing them to work with the Registrar of Companies (RoC) on compliance-related tasks.
Operating Law and Regulations Amendments
Key updates include:
– Record Retention: Aligning with OECD requirements for entity wind-ups.
– Privileged Communication: Narrowing the definition to communications related to professional legal advice, removing overly broad terms.
The Operating Regulations now grant the RoC authority to manage late-night operations of bars and restaurants to prevent disturbances to other DIFC tenants.
Implementation Dates:
– Legislative Changes: Enacted on March 8, 2024.
– Operating Regulations: Effective from December 27, 2023.
Impact and Assistance:
These updates demonstrate DIFC's commitment to maintaining a robust and transparent legal environment aligned with international standards.
Conclusion:
The recent amendments to DIFC legislation mark a significant step towards ensuring that the Centre remains at the forefront of international legal standards while addressing local business needs. These changes underscore DIFC's commitment to maintaining a transparent and robust legal framework, fostering a business environment conducive to growth and stability.
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