DIFC Enacts Amendments to the Real Property Law and Prescribed Company Regulations
Dubai, UAE; 3 November 2022: Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East, Africa and South Asia (MEASA) region, has enacted amendments to the Real Property Law, DIFC Law No. 10 of 2018 (“Real Property Law”) and DIFC Prescribed Company Regulations, further enhancing the legislative framework within DIFC and providing new structuring options for businesses operating in or from the Centre.
Real Property Law
The amendments relate to Part 9 of the law – dealing with default remedies for mortgagees – bringing it in line with current common law practice. The key aspects of the changes to the Real Property Law include the removal of a mortgagee’s right of foreclosure in its entirety, which extinguishes the equity of redemption principle in favour of a mortgagor; and clarifying the rights and obligations of a mortgagee with regard to the exercise of its statutory power of sale in the event of a default by a mortgagor.
DIFC Prescribed Company Regulations
The key amendments in the regulations include consolidating and expanding the definitions of Qualifying Applicant and Qualifying Purpose, further extending the corporate structuring options in DIFC. In particular, the regulations introduce several new structures, including a DIFC holding structure, a maritime structure, an innovation holding structure and an intellectual property structure.
Other minor clarificatory amendments have been made to the Prescribed Company Regulations and to align the regime with the standards of Organisation for Economic Co-operation and Development (OECD), an international organisation that works to develop policy standards to promote sustainable economic growth. The Real Property Law and DIFC Prescribed Company Regulations can be accessed here.
The amendments reflect the Centre’s commitment to maintaining a transparent and robust legal and regulatory framework aligned with global best practice.