ADGM Courts gain wider recognition in Abu Dhabi's legal system

Judgements handed down in the financial free zone will apply across the emirate, and vice versa

A view of the Abu Dhabi Global Market. The emirate registered 434,647 Customs transactions in the first five months Alamy

Changes to the law governing Abu Dhabi's financial free zone, Abu Dhabi Global Market, will strengthen the jurisdiction of its courts by allowing for the reciprocal enforcement of judgements across the wider Abu Dhabi legal system.

The amendments to the founding law of Abu Dhabi Global Market will formalise the dual licensing regime set up under the Ghadan 21 initiative, allowing for ADGM-based entities to set up branches, subsidiaries or representative offices in the city without having to set up a separate onshore entity and strengthens the jurisdiction of ADGM Courts.

Parties will be allowed to choose ADGM Courts as a jurisdiction for a hearing without any prior connection to ADGM. ADGM Courts and the Abu Dhabi Judicial Department will also enact a "reciprocal enforcement of judgements" between the two courts, but ADGM Courts judgements will not be enforceable outside the emirate.

"These amendments reinforce ADGM’s position as a thriving international financial centre with a robust and progressive regulatory framework," said Ahmed Al Sayegh, UAE minister of state and chairman of Abu Dhabi Global Markets.

"These changes to the Founding Law record our acceptance as a judicial system that is respected, transparent, reliable and accessible," said Lord David Hope, Chief Justice of ADGM Courts. "In a very short space of time we have earned a reputation as international common law commercial courts that have transformed the delivery of judicial services through the innovative and unique use of technology."

ADGM Courts has published a guide to the amendments to give people a better understanding of what it means for those who want to use its dispute resolution framework.