The Dubai International Financial Centre Authority (DIFCA) announced on Sunday 14 December 2014, that the Vice-President and Prime Minister of the UAE, and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, has signed into DIFC law a new statute that provides for the effectiveness under DIFC law of the netting of obligations under contracts such as derivatives master agreements.
During 2014, the DIFCA’s staff, Legislative Committee and a working group of practitioners drawn from DIFC firms has been able to agree the terms of a statute which, following a public consultation, the Ruler of Dubai has now signed into law.
Clifford Chance acted as counsel to the DIFCA in the preparation of the law, and Habib Motani, a partner in Clifford Chance, worked in conjunction with Dr Peter Werner, Director of Policy at ISDA (the International Swaps & Derivatives Association) on the preparation of the DIFC’s netting law, which is based on ISDA’s model netting law.
Habib Motani said “Clifford Chance is delighted to have assisted the DIFC in taking such an important step forward so soon after marking its tenth anniversary.”
Dubai International Financial Centre (DIFC) is the first Middle East legal regime to enact a netting law.