The Commercial Court of England and Wales has signed a protocol with the Dubai International Financial Centre (DIFC) Courts in a bid to strengthen legal and trade ties between Dubai and the UK.

The memorandum, designed to help lawyers, investors and businesspeople who want to develop closer trade and investment links between the UK and UAE, has been drawn up in an effort to increase business confidence on both sides.

It clarifies existing agreements between the two courts, detailing further principles and practices to arrangements such as the mutual enforcements of judgments.

Mr Justice Cooke – judge in charge of the Commercial Court of England and Wales – and DIFC Courts chief justice Michael Hwang signed the memorandum in a taskforce meeting, also attended by Foreign Office minister for the Middle East and North Africa Alistair Burt and UAE minister of state for foreign affairs Anwar Gargash.

Cooke said: "A surprising number of people today are unaware of the reciprocity between courts. While reiterating the existing relationship between DIFC Courts and the Commercial Court in London, the Memorandum of Guidance sets out the basis upon which judgments of one court can be enforced in the other and helps to engender an atmosphere in which business can flourish."

Hwang added: "We greatly welcome this Memorandum of Guidance, which will bring clarity and confidence to the relationship between our two courts. Without a clear understanding of enforcement and judicial procedures across borders, businesses are unable to form and nurture the international trade relationships needed to fuel economic growth."

The DIFC, the English-language common law court set up in 2004, has its own governing legislation – based principally on UK legislation – and houses the majority of the international finance concerns operating in Dubai.

Although independent, it complements the UAE's Arabic-language civil law system, which is based on French, Roman, Egyptian and Islamic law.

Click here to view the memorandum.