The United Arab Emirates (UAE) is comprised of multiple distinct legal jurisdictions, each with its own legal framework. These include laws governing freezones, as well as Emirate Law and Federal Law. Several freezones exist throughout the UAE, with some relying on Federal Laws as opposed to maintaining their own distinct legal framework.
One such freezone is the Abu Dhabi Global Market (ADGM) which is a financial freezone established in 2013 and situated in Al Maryah Island, Abu Dhabi. The ADGM has established itself as a competitive global financial hub, quickly moving up the competitiveness ladder, as reported by the Global Financial Centres Index.
The ADGM has positioned itself as a prominent centre in the global financial landscape, and has the potential to further drive economic growth in the Emirate. With Al Maryah Island at a 95% occupancy rate, the recent announcement expanding the jurisdiction and territory of the ADGM to Al Reem Island is a clear indication of the strength of the ADGM brand and appetite for financial and support firms to set up. This expansion results in a tenfold increase in the area of land of the ADGM, making it one of the largest financial districts in the world, as far as the territory is concerned.
The ADGM offers a robust common law framework that provides international businesses, investors and relevant stakeholders with the confidence and security to conduct transactions, and security in resolving disputes. This framework comprises of the following independent authorities – the ADGM Courts, the Registration Authority, and the Financial Services Regulatory Authority (FSRA).
The FSRA’s rules and regulations have been developed to international standards, providing a reliable, transparent, and fair regulatory environment. Additionally, the ADGM has adopted the common law system that applies a consistent precedent-based approach to resolving disputes. The ADGM and FSRA are also subject to oversight through the Administrative Law. Under Administrative Law, issues are dealt with by special tribunals, that have their own set of rules, with judges as the final arbiters of fairness and decision making. Oversight of ensuring that the FSRA’s decisions observe due process and procedural fairness, is carried out by a Regulatory Committee and appeals panel, comprising of members that are independent to the ADGM and who are subject to their own conflict of interest rules. Having this structure of a rule-based system that makes officials equal with the law, gives confidence to stakeholders and investors operating within the ADGM ecosystem.
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