As announced by the Dubai International Financial Centre
(“DIFC”) on 14 December 2014, His Highness Sheikh
Mohammed bin Rashid Al Maktoum has enacted the DIFC Law Number 2 of
2014 (the "DIFC Law"), in his
capacity as the Ruler of Dubai. This legislation came into power as
a UAE Federal Law as well - Law Number 10 of 2018 (the
“Law”) as of 31 October
2018. Provisions of this Law applies to all Qualified
Financial Contracts, Collateral Arrangement and Netting Agreements
which are entered in the UAE by any person, provided that the Law
lists these abovementioned arrangements. The DIFC Law passed by the
DIFC draws upon the International Swaps and Derivatives Association
(ISDA) Model Netting Act 2006 and integrates the features of best
international practice. It is most likely that this DIFC Law will
bring about significant changes to those involved in the commercial
and commodity markets both in the UAE as well as
internationally.
