Dubai Financial Market (DFM), the Gulf’s only listed stock exchange, today signed a landmark Memorandum of Understanding with Dubai Courts to establish a framework to facilitate the judicial cooperation by both parties, specifically with respect to the enforcement procedures and judgement actions taken by Dubai Courts with regard to DFM’s participants.
The deal, which formalises an ongoing cooperation, is an important step forward for DFM as it seeks to lure global financial institutions through reassuring potential members that they will operate in a familiar and high-standard legal structure. In Dubai, international connectivity and increased confidence in the ability to enforce court judgements has enhanced the attractiveness of the emirate as a secure environment to conduct business and resolve disputes.
The memorandum, while reinforcing the close ties between the two entities, also allows Dubai Courts to directly connect with the exchange’s electronic services platform, which will be the official channel for applications related to any judicial actions relevant to market participants.
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The MOU was signed by Taresh Eid Al Mansouri, Director General of Dubai Courts, and Essa Kazim, Chairman of DFM, in the presence of senior representatives from both sides.
The move also provides a bridge for implementing Dubai Courts rulings relevant to capital markets transactions including restriction, court release and court sell orders, as well as the distribution of cash dividends for investors whose shares are seized by the court.
Taresh Eid Al Mansouri, Director General of Dubai Courts, commented: “The joint convention lays a solid foundation for closer cooperation with DFM to establish clearer standards and guidelines for the protection of the financial investment community, which paves the way for us to continue in the efforts being led by Dubai Courts as an influential contributor and a pivotal player in placing the UAE as the first in ranking among Arab countries for the third year in a row and in the 31 countries within the World Bank report on the ease of doing business for 2016.”
“We are confident that the new move will have positive impact and tangible effects on the protection of the interests of investors and traders within DFM, which in turn will contribute to the move to achieve the goals of Dubai 2021, which focuses on making the Emirate a highly preferred investment destination,” he concluded.