Dubai's decision to explore implementing common law within its free zones is expected to be a win-win scenario for new investors and businesses already in the emirate, according to experts.
Unifying the applicable law across free zones by adopting new legislation is an investor-friendly decision that will offer a boost to free zones in the city, they said.
The Dubai government is studying the introduction of a common law in free zones to enhance the city’s business environment and boost its economic appeal and efficiency, the Dubai Media Office said on Tuesday.
“The initiative supports the economic objectives outlined in the Dubai Economic Agenda D33, which aims to position Dubai among the top three global economic hubs,” it said.
Abu Dhabi Global Market, the UAE capital city’s financial hub, is the first and only jurisdiction in the Middle East to adopt the direct application of English common law, and specifically by the Application of English Law Regulations 2015, according to a representative.
Those regulations make English common law directly applicable in ADGM, and serve as the foundation of the civil and commercial law in the financial centre.
ADGM said the approach made it the preferred jurisdiction for international companies looking to establish their presence in the region.
“English common law is widely regarded as one of the most sophisticated regimes governing commercial arrangements in the world and is the governing law of choice for commerce,” ADGM said on Wednesday.
“Its inherent flexibility is especially well suited to business dealings, particularly in a financial context. The global business and legal community will be familiar with the mechanics and predictability of English common law as reflected in ADGM as it evolves from time to time.”
ADGM’s common law approach also reduces the upfront legal costs and chances of litigation. English common law already covers a wide range of scenarios, aiding commercial dealings where parties want as much detailed case law as possible.
“Under the application regulations, all of this case law will have automatic precedential value in the ADGM,” the representative said.
“ADGM, through direct application of common law, offers a wide range of legal structures that can be used to hold, invest, secure and manage assets and operations.”
English common law is widely regarded as one of the most sophisticated regimes governing commercial arrangements in the world and is the governing law of choice for commerce
ADGM representative
The Dubai International Financial Centre, which is governed by English common law, declined to comment.
Established in 2004, the DIFC Courts is Dubai’s international English-language common law judicial system and forms a key part of the legal system of the UAE.
The onshore financial centre is home to some of the world’s biggest financial institutions, banks, investment firms, wealth managers and insurers.
Common law is a definition of the laws that are usually used in the Anglo Saxon countries like the UK, the US and Australia. It is based on using precedent and evaluation of judges, and using similar matters that happened in the past to apply in the future, according to Hani Naja, corporate and commercial partner at law firm Baker McKenzie.
The use of common law is a little different than the current legislations in the UAE that are based on civil law, which are codes that are followed to the letter, and where the precedents and interpretation of judges are not always relevant or taken into consideration, he said.
“The Dubai Media Office announcement is important for two reasons. It not only uses the common law principles, but it’s also trying to unify the applicable law across different free zones,” Mr Naja said.
“The UAE has multiple free zones, including [in] Dubai, which has the biggest number of free zones in one city in the world. And those have been set up at different stages to cater for different needs.
“The DIFC already follows common law principles and they have proven that they are very successful and very attractive to foreign investors.”
At the moment, the level of legislation in each free zone is different.
For example, the DIFC has a detailed elaborate legislation versus other free zones that have few regulations and fall back on the Dubai laws and federal laws, Mr Naja said.
Not all free zones in the UAE have their own legislation. Some have a very basic company regulation, but do not have the full breadth of laws that are needed. For example, one will not find a civil transaction law, penal code, data law or a particular arbitration rule, he said.
The move is relevant for investors.
When the commercial company ownership law recently allowed foreign ownership in the UAE, a lot of people started questioning the need for free zones.
“But with this update, which is adopting a new set of legislation that is investor-friendly, I think free zones will get another boost,” Mr Naja said.
“This is a welcome change. Dubai is doing the right thing to both attract foreign investment and make sure that companies already in the country get an equal chance.”
Meanwhile, David Daly, a partner at the Gulf Tax Accounting Group in the UAE, said that common law’s “great commercial gift is precedence”.
A ruling on a matter can be drawn upon in deciding future cases, creating some certainty as to the legal position being contended, he said.
“Certainty is good for businesses. This is an exploratory process that will be widely welcomed,” Mr Daly said.
The UAE has different tiers of law such as free zone law, Emirate law and federal law, which trumps all, according to an industry source.
“Bringing in the common law gives you the law of precedence, where at least you know that for a given situation, the decision will be this for a tier of court,” the source said.
“It’s good to have an environment where you deal with smaller squabbles between parties. If you get precedence, you get certainty, which is important for businesses. It’s why the likes of London and New York have done well, because you can depend on the courts and you have consistency.”
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The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
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Sole survivors
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How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.
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Key facilities
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- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
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- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
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Winners
Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
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Kopa Trophy (Best player under 21 – Men’s)
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Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
