Changes include the introduction of restructuring and merger schemes to accommodate increasing partnerships in the market
Ruler of Dubai and Vice President and Prime Minister of the UAE Sheikh Mohammad Bin Rashid enacts has enacted changes to DIFC’s legal framework, including abolishing limited liability companies and introducing new categories of public and private companies.
The changes also include the introduction of restructuring and merger schemes to accommodate increasing partnerships in the market.
Moreover, it includes new regulations for mistakes related to complex corporate arrangements such as those associated with listed entities, mergers and debt restructurings.
The changes are in line with a revamp of DIFC companies and operating regulations in order to facilitate ease of doing business and comply with the latest requirements on transparency of beneficial ownership and anti-money laundering requirements by the Financial Action Task Force and the Organisation for Economic Co-operation and Development.
In addition, changes to the Real Property Law and Strata Title Law include an updated system that offers better protection for owners and mortgage holders of DIFC properties, as well an off-plan register and escrow requirements for developers.
Eisa Kazim, chairman of the Board of Directors at DIFCA said, “In addition to elevating transparency standards and protecting purchasers and investors, the changes will continue to enhance our business environment and reduce barriers to entry, while increasing the cost-efficiency and flexibility of small businesses, which constitute an increasing number of companies operating within DIFC.”
As part of the modifications to the law, the Registrar of Real Property (RORP) will have more power to govern parties that are in breach of their obligations. It will allow DIFC Courts to hear directly from the involved parties, allowing for disputes to be dealt with efficiently.