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The ongoing development of the UAE’s capital markets received a boost today with the signing of an agreement giving companies listed on Dubai’s main bourse greater access to a broad range of commercial dispute resolution services.
The memorandum between the Dubai Financial Market (DFM) and DIFC Dispute Resolution Authority (DRA) creates a strategic partnership that will benefit the 60 DFM- listed companies, as well as the large number of issuers of Sukuk, bonds and funds, currently listed on the exchange.
The DRA administers justice and legal excellence within the Dubai International Finance Centre and is the gateway to a suite of services available to businesses. Its divisions, which include the DIFC Courts, DIFC-LCIA Arbitration Centre, DIFC Wills and Probate Registry, and Academy of Law, work in partnership with other departments in the Emirate to provide businesses with unparalleled choice about how to resolve their commercial disputes, while developing UAE legal talent and protecting individuals investing or living in Dubai.
The two organisations will collaborate closely to enable DFM and its member companies to fully utilise the DRA’s suite of services. They will also develop an international outreach programme to jointly promote DFM and DRA services to international investors and companies.
The agreement was signed by His Excellency Essa Kazim, Chairman of DFM, and Michael Hwang, Head of the Dispute Resolution Authority and Chief Justice of the DIFC Courts, during a ceremony at the Dubai bourse.
His Excellency Essa Kazim, Chairman of DFM welcomed the signing of this MoU saying: “This significant step underlines DFM’s relentless efforts to lay out the necessary framework for cooperation and jointly working with concerned institutions to further enhance Dubai’s favourable and attractive environment for investment. This will further enhance efforts aimed at achieving the strategic objectives of Dubai 2021 plan, reinforcing the dynamic role of the financial sector as one of the key drivers of the economy. According to the MoU, the two sides will outline areas of cooperation enabling the DFM and its members to utilize the dispute resolution, arbitration and tribunal services that DRA and DIFC Courts provide. This arrangement will further strengthen market participants’ confidence in DFM’s world-class business environment which plays an integral part in fortifying Dubai’s leading position as a dynamic international financial centre.”
Chief Justice Michael Hwang said: “Following the 2014 MSCI Emerging Markets Index upgrade, the UAE capital markets are now firmly in the international spotlight. The DRA looks forward to working with our colleagues at DFM to leverage the reputation of bodies like the DIFC Courts and DIFC-LCIA Arbitration Centre to attract international listings, while providing a whole suite of dispute resolution services to existing member companies.”
Outside of dispute resolution, DFM and the DRA will collaborate on areas such as the use of “smart” technology, implementing customer service best practice, sharing economic data and employee training.
The DFM team actively promotes the exchange to international investors and has held roadshows in New York and London since 2007. The most recent roadshow in New York in October enabled senior executives from 13 companies listed on DFM and Nasdaq Dubai to inform international fund managers about their growth strategies and recent developments.
The DRA is a regional leader in the provision of world-class judicial and legal services. Through a series of memoranda with overseas jurisdictions, the DIFC Courts have established one of the world’s strongest enforcement regimes, and in September they were chosen by Kazakhstan’s central bank to advise on establishing a world class commercial court system including an arbitration centre at the planned Astana International Financial Centre (AIFC).
