Sunday, 14 December 2014 marked a milestone for the region with the enactment in the Dubai International Financial Centre (DIFC) of a new law recognising the effectiveness of close out netting provisions in contracts such as derivatives master agreements (the DIFC Netting Law). The DIFC Netting Law applies where either at least one of the parties is an entity registered in the DIFC or the contract is governed by DIFC law.

The DIFC is the first Gulf legal regime to enact a netting law.

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