Law No. (3) of 2006
Establishing
Dubai World[1]
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We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai, do hereby issue this
Law.
This Law will be cited as “Law No. (3) of 2006
Establishing Dubai World”.
The following words and expressions, wherever
mentioned in this Law, will have the meaning indicated opposite each of them
unless the context implies otherwise:
|
Ruler: |
His Highness the Ruler of
Dubai. |
|
Government: |
The Government of Dubai. |
|
DW: |
Dubai World. |
|
Chairman: |
The chairman of DW. |
|
Board of Directors: |
The board of directors of DW. |
|
Subsidiaries: |
The companies in which DW
holds all or the majority of shares/stock. |
A public corporation named
“Dubai World” is hereby established and affiliated to the Government of Dubai.
It will have legal personality, and financial and administrative autonomy. It
may sue or be sued in its own name, and may appoint any person to represent it
in any judicial proceedings in which it or any of its Subsidiaries is involved.
DW will be managed on a commercial for-profit basis.
DW will:
1.
invest in, establish, and manage commercial projects;
2.
invest in, establish, and manage industrial projects;
3.
invest in, establish, and manage agricultural projects;
4.
invest in, sell, lease out, buy, manage, and develop
real property and land, and engage in general contracting and maintenance
business;
5.
invest in all types of services projects;
6.
invest in all financial business fields;
7.
establish, manage, operate, and develop airports and
seaports;
8.
establish, manage, operate, and develop free zones,
special industrial zones, and other zones;
9.
audit, supervise, and coordinate the work of the Subsidiaries;
and
10.
conduct any other activities which the Chairman or the
Board of Directors deems required for the achievement of the interests of DW.
DW will have the powers
to:
1.
cooperate, coordinate, and conclude agreements with
local and international entities in its own name and on behalf of its Subsidiaries;
2.
establish companies wholly owned by DW, hold shares in
existing companies or in companies under incorporation, and assign any
interests in any such companies;
3.
finance its projects or those of any of the Subsidiaries
through any financing options, including through borrowing or providing
guarantees, through issuing bonds and shares to the public, through issuing
Islamic bonds (sukuk) or Islamic partnership (Musharaka) sukuk,
or through trading in any other financial instruments issued by any source it
deems appropriate, and list such instruments in financial markets. For this
purpose, DW may, and may authorise its Subsidiaries to, provide any financial
security, concession, or guarantee or create any mortgage/ pledge to obtain
such finance;
4.
purchase, own, sell, and lease out land, real property,
and any other property;
5.
sell and lease out land on behalf of the Government;
6.
delegate any of its powers to the Subsidiaries or to
third parties;
7.
impose and collect fees in return for the services it
provides; and
8.
exercise any other powers which the Chairman or the
Board of Directors deems required for the achievement of the interest of DW.
The financial
resources of DW will consist of the net profits of its activities and those of the
Subsidiaries, and any other revenue generated from its activities or the work it
performs for the account of third parties.
The Chairman will
supervise the work of DW and the Subsidiaries, and may exercise the powers of DW.
The Chairman will, in particular:
1.
supervise, audit, and coordinate the work of DW and the
Subsidiaries;
2.
develop the work plans and programmes of DW and the Subsidiaries;
3.
prepare the draft budgets of DW and the Subsidiaries;
4.
develop the administrative and financial regulations
of DW and the Subsidiaries;
5.
approve purchasing contracts, tenders, and projects of
DW;
6.
invest the property of DW in any financial products;
7.
obtain finance and provide guarantees;
8.
sell, purchase, and lease out land and other property;
9.
endorse and draw any negotiable instruments such as
cheques, bills of exchange, and promissory notes;
10.
acquire intellectual property rights including rights
in patents, trademarks, or industrial drawings and designs, and sublicense the
same to the Subsidiaries or to other companies;
11.
establish companies solely or with other persons, and
own shares in any other company; and
12.
appoint senior staff members to DW.
A Chairman will be appointed
to DW pursuant to a decree of the Ruler.
The Chairman will form
the Board of Directors and determine its duties and terms of reference. He will
be responsible for the executive management of DW and for the administration of
its affairs in accordance with the bylaws and regulations of DW. The Chairman will
represent DW in its dealings with third parties and before judicial authorities,
and will, upon request, provide the Ruler with any data relating to DW and the Subsidiaries.
The head office of DW will
be located in the Emirate of Dubai. DW may establish branches, offices, or
agencies within or outside of the UAE.
The financial year of DW
will commence on 1 January and will end on 31 December of each year, except
that the first financial year will commence on the day on which this Law comes
into force and will end on 31 December of the following year.
The net profits of DW and
its Subsidiaries will be paid to the Government after deduction of the reserve amount
determined by the Board of Directors.
DW and its Subsidiaries
will be exempt from all fees and taxes, and from company registration fees.
An auditor from amongst
audit firms licensed in the UAE will be appointed to DW by the Chairman or the
Board of Directors for a renewable term of one (1) year.
The Government will
not be liable for any debts or obligations claimed from DW or its Subsidiaries.
Neither the Board of
Directors, nor its chairman, nor any of its members will, in the course of
managing DW and its operations, be liable to third parties for any act or
omission in respect of such management. DW will be solely liable to third
parties for such act or omission.
DW and its Subsidiaries
will be exempt from compliance with the Instructions Issued on 6 February 1988
Concerning the Arbitration Clause in Contracts Concluded by the Government of
Dubai and its Departments and Corporations, and with the Instructions Issued on
6 February 1988 Concerning the Contracts Concluded by the Government of Dubai
and its Departments and Corporations, as amended on 15 March 1988.
This Law will be
published in the Official Gazette and will come into force on the day on which
it is published.
Mohammed
bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 2 March 2006
Corresponding to 2 Safar 1427 A.H.
©2016 The Supreme Legislation Committee in the
Emirate of Dubai
[1] Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text will prevail.