Abu Dhabi Global Market’s Courts have issued the Litigation Funding Rules. They have come into effect immediately. They are the first of their kind in the region and are designed to provide parties and funders with greater certainty on the enforceability of funding arrangements in proceedings for resolving disputes.
They have been issued following growing interest in third party funding of parties to manage their litigation and arbitration proceedings. Amongst other things, the Rules state a Funder’s principal business must be in funding proceedings to which the Funder is not a party and the Funder must have qualifying assets of at least $5 million. In addition, the Litigation Funding Agreement must contain some minimum terms including to ensure there are no conflicts of interest, the Funder’s involvement in the settlement of proceedings and the Funder’s obligations about dealings with lawyers.
Updated anti-money laundering rules are also now in force in the Global Market as well. It comes ahead of an assessment of the UAE by the Financial Action Task Force this summer. The updated rules also cover anti-terrorist financing.
The Litigation Funding Rules are now available on Lexis Middle East : https://www.lexismiddleeast.com/regulatory/AbuDhabiGlobalMarket/ADGM_ADGM_Litigation_Funding_Rules_2019/