His Highness Sheikh Maktoum Bin Rashid Al Maktoum, Ruler of Dubai, enacted on June 25, 2005, five laws and one set of regulations dealing with legal obligations, employment, security interests, and companies’ matters for the Dubai International Financial Center (DIFC), AMEinfo.com reported.
These laws and regulations are among the body of legislation dealing with non-regulated activities which Dubai International Financial Centre Authority (DIFCA) is charged with its administration under Law No. 9 of 2004 in Dubai.
The first law is the Employment Law No. 4 of 2005, which provides for minimum employment practices comparable to established international standards, so as to promote fair treatment of employees and employers.
The second law is the Law of Obligations No. 5 of 2005, which creates a framework for claimants to seek recovery for non-contractual claims, and sets out the rules as to when obligations arise and how disputes involving them are resolved.
As for the Implied Terms in Contract and Unfair Terms Law No. 6 of 2005, it provides for fairness and certainty in contracts governed by the laws of the DIFC, by providing terms and conditions not normally included in contracts, and assures the necessary framework for their enforcement
Moreover, Law of Damages and Remedies No. 7 of 2005 creates the structures necessary to assure the recovery of damages and other forms of relief to claimants within the DIFC.
Finally, Law of Security No. 9 of 2005 defines various forms of security interests as collateral for repayment of debts and prescribes the process for their perfection and enforcement.
The regulations consist of the DIFC Companies Regulations, which are issued by the Board of Directors of the DIFCA pursuant to the authority given to the board by Law No. 9 of 2004.
These regulations prescribe the processes and procedures to be followed for compliance with DIFC Companies Law No. 2 of 2004, with respect to the formation and administration of legal entities registered in the DIFC, the transfer of incorporation of legal entities to and from the DIFC, and set out the fees and other costs associated with such formalities.