Dubai’s decision to explore implementing common law within its free zones is expected to be a win-win scenario for new investors and businesses already in the emirate, according to experts.

Unifying the applicable law across free zones by adopting new legislation is an investor-friendly decision that will offer a boost to free zones in the city, they said.

The Dubai government is studying the introduction of a common law in free zones to enhance the city’s business environment and boost its economic appeal and efficiency, the Dubai Media Office said on Tuesday.

“The initiative supports the economic objectives outlined in the Dubai Economic Agenda D33, which aims to position Dubai among the top three global economic hubs,” it said.

Those regulations make English common law directly applicable in ADGM, and serve as the foundation of the civil and commercial law in the financial centre.

ADGM said the approach made it the preferred jurisdiction for international companies looking to establish their presence in the region.

“English common law is widely regarded as one of the most sophisticated regimes governing commercial arrangements in the world and is the governing law of choice for commerce,” ADGM said on Wednesday.

“Its inherent flexibility is especially well suited to business dealings, particularly in a financial context. The global business and legal community will be familiar with the mechanics and predictability of English common law as reflected in ADGM as it evolves from time to time.”

ADGM’s common law approach also reduces the upfront legal costs and chances of litigation. English common law already covers a wide range of scenarios, aiding commercial dealings where parties want as much detailed case law as possible.

Source: The National News