Dubai Emirate is considering the adoption of Common Law within all of its many free zones to level the playing field for all free zones and enhance their appeal after the relaxation of rules for onshore companies where the UAE allowed 100 per cent ownership of companies in the mainland. Currently, each free zone has its own rules and regulations responsible for governing and regulating activities within the zone, in addition to Dubai and UAE Federal laws. This may lead to confusion for foreign investors who may not be used to these many differing laws. By implementing Common Law across all free zones, Dubai aims to attract more foreign investment and businesses looking for a familiar legal environment.
Common Law is a law based on judicial precedents, created by judges while ruling over disputes that are presented to them. As Common Law courts look to the past decisions of courts for legal principles (precedents), Common Law provides predictability and is a preferred choice for international trade and commerce.
Common law’s benefits include a transparent legal system with established dispute resolution procedures. Additionally, it is likely to attract more foreign investment and lead to greater efficiency and consistency in legal decisions across Dubai’s free zones. By adopting Common Law, Dubai aims to support its economic objectives set out in Dubai Economic Agenda D33, including doubling the size of the city’s economy over the next decade and positioning itself among the top three global cities.
Is your business registered under one of many free zones in Dubai? Interested to know how the implementation of common law affect your company? Drop us an email (office@alphaprimedwc.ae) or give us a call (+971 58 515 2374).
