Law No. (1) of 2012

Concerning the

 International Humanitarian City[1]

ـــــــــــــــــــــــــــــــــــــــــــــــ

We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,

After perusal of:

Law No. (6) of 2007 Establishing the International Humanitarian City;

Law No. (27) of 2006 Concerning Management of the Government of Dubai Human Resources and its amendments; and

Law No. (8) of 2010 Concerning the Financial Audit Department and its amendments,

Do hereby issue this Law.

Title of the Law

Article (1)

 

This Law will be cited as “Law No. (1) of 2012 Concerning the International Humanitarian City”.

 

Definitions

Article (2)

 

The following words and expressions, wherever mentioned in this Law, will have the meaning indicated opposite each of them unless the context implies otherwise:

 

UAE:

The United Arab Emirates.

Emirate:

The Emirate of Dubai.

Ruler:

His Highness the Ruler of Dubai.

Government:

The Government of Dubai.

IHC:

The International Humanitarian City.

IHCA:

The IHC Authority.

Chairperson:

The chairperson of the IHCA.

Board of Directors:

The board of directors of the ICHA.

CEO:

The chief executive officer of the ICHA.

Competent Entities:

Any local or federal government entity authorised under the applicable legislation to regulate Humanitarian Services.

Humanitarian Services:

Any humanitarian, charitable, environmental activity, or any other activity related to providing relief to others in response to humanitarian, natural, or environmental disasters and that is non-for-profit. 

Commercial Activity:

Any trade, professional activity, service, or any other activity which is intended to make profit and is authorised in the IHC in accordance with this Law.

Humanitarian Services Establishments:

Any non-for-profit legal entity which is established in the IHC and licensed by the IIHCA to conduct any Humanitarian Services through providing financial, moral support, or technical or administrative expertise. This includes branches of international organisations and agencies which perform such activities within the IHC.

Commercial Establishment:

Any for-profit legal entity which is established in the IHC and licensed by the IHCA to conduct a Commercial Activity. This includes, without limitation, establishments providing support and logistic services to Humanitarian Services Establishments.

IHC Establishments:

Humanitarian Services Establishments and Commercial Establishments.

 

Scope of Application

Article (3)

The provisions of this Law will apply to:

a.     the IHC established as a free zone pursuant to the above-mentioned Law No. (6) of 2007,  whose location, area, and boundaries are specified in the attached map, in addition to areas determined by the Chairperson;  and

b.    the IHCA, as a public corporation that has the legal personality, financial and administrative autonomy, and the full legal capacity required for the achievement of the objectives of the IHC.

 

Objectives of the IHC

Article (4)

 

The IHC aims to:

1.   position the Emirate as a hub for emergency humanitarian aid and disaster relief through providing the Humanitarian Services Establishments based in the IHC with the logistic, infrastructure, facilities, and services required to enable them to achieve their objectives across the world;

2.   support, encourage, and develop Humanitarian Services, as well as charitable and environmental services through inviting, attracting and licensing Humanitarian Services Establishments specialised in this area, to the extent that this does not conflict with the legislation in force in the Emirate;

3.   ensure prompt and effective response in case of disasters and emergency situations, and provide, whether directly by the Authority or through IHC Establishments, the necessary organised relief efforts to those in need of such relief at the international level; and

4.   create a favourable environment that supports humanitarian activities.

 

Functions of the IHCA

Article (5)

 

In order to achieve the objectives of the IHC, the IHCA will have the duties and powers to:

 

1.     set the regulations and bylaws required to regulate Humanitarian Services and Commercial Activities in the IHC;

2.      license Humanitarian Services Establishments and Commercial Establishments operating in the IHC;

3.     identify and classify the Humanitarian Services and Commercial Activities which may be conducted in the IHC, and develop and upgrade them to match humanitarian work needs at the international level;  

4.      to audit and inspect IHC Establishments;

5.     purchase, lease, sell, rent out, mortgage, and dispose of the land and facilities owned by the IHC;

6.     establish and manage the infrastructure and buildings of the IHC to the extent that this does not conflict with the standards and specifications approved by the Competent Entities in the Emirate; 

7.     cooperate and coordinate with the federal, local, regional, and international corporations and authorities engaged in the field of Humanitarian Services;

8.     obtain from local and international financial institutions the loans, funding, and financial facilities needed by the IHC to achieve its objectives;

9.     invest the Authority’s funds in the commercial, financial, and services sectors in accordance with the policy approved by the Board of Directors in this regard;  and

10.   perform any other duties required to achieve the objectives of the IHC.

Organisational Structure of the IHCA

Article (6)

The organisational structure of the IHCA will be comprised of:

 

1.     the Chairperson;

2.     the Board of Directors;

3.     the CEO; and

4.     the executive body.

 

Appointment and Functions of the Chairperson

Article (7)

 

a.     The Chairperson will be appointed pursuant to a decree of the Ruler and will undertake general supervision of the work of the IHCA. For this purpose, the Chairperson will have the duties and powers to:

 

1.     approve the general policy and strategic and development plans of the IHCA;

2.     approve the regulations and regulatory, administrative, and financial bylaws of the IHCA;

3.     supervise the achievement of the objectives of the IHC, and approve the services, work, projects, and activities undertaken by the IHC;

4.     approve the draft general budget and final accounts of the IHCA; and

5.     establish any other entities as may be required to achieve the objectives of the IHC.

b.    The Chairperson may delegate any of his powers provided for in this Law to any member of the Board of Directors or to the CEO.

 

The Board of Directors

Article (8)

 

a.      The IHCA will be managed by a Board of Directors comprised of a chairman, a deputy chairman, and at least five (5) members appointed pursuant to a decree of the Ruler for a renewable term of three (3) years.

b.    The Board of Directors will convene at the invitation of the chairman at least once every three (3) months and where necessary. The meetings of the Board of Directors will be valid if attended by the majority of its members, provided that the chairman or his deputy is in attendance.

c.     The resolutions of the Board of Directors will be approved by majority vote, and in case of a tie, the chair of the meeting will have the casting vote. The resolutions of the Board of Directors will be recorded in minutes signed by the chair of the meeting and attending members.

 

Functions of the Board of Directors

Article (9)

 

The Board of Directors will have the duties and powers to:

 

1.     approve the annual budget, final accounts, and organisational structure of the IHCA, and submit these to the Chairperson for approval;

2.     review the policies, strategic and operational plans, bylaws, rules, and regulations of the IHC which are proposed by the CEO, and submit recommendations in respect of these to the Chairperson to take the action deemed appropriate in this regard;

3.     review and approve the rules and procedures proposed by the CEO for registration and licensing of IHC Establishments, and determine the services provided by the Authority and the fees payable for such services;

4.     appoint and determine the remuneration of auditors and specialist consultants in order to assist in determining the IHC’s initiatives and the budgets for their implementation;

5.     identify investment opportunities, undertake supervision, and build the infrastructure of the IHC;

6.     establish, solely or in partnership with third parties, corporations and companies affiliated to the IHCA within and outside of the Emirate; and

7.     perform any other duties assigned to it by the Chairperson.

 

The Executive Body

Article (10)

 

a.     The executive body of the IHCA will be comprised of a CEO and a number of administrative, financial, and technical officers.

b.    The CEO will be appointed and his remuneration and financial benefits will be determined by the Chairperson. The CEO will be directly responsible to the Chairperson for performing the duties assigned to him pursuant to this Law and the legislation applicable in the IHC, and the duties assigned to him by the Chairperson or the Board of Directors.

c.     Staff of the executive body of the IHCA will be appointed and their terms of service, dismissal, remuneration, duties, and other relevant issues will be determined by a regulation to be issued in this respect by the Chairperson.

 

Functions of the CEO

Article (11)

a.       The CEO will have the duties and powers to:

1.     propose policies and strategic and operational plans to the Board of Directors to approve them, and take the necessary action to implement such policies and plans after approval of the Chairperson;

2.     prepare the regulations and regulatory, administrative, financial, and technical bylaws required to regulate the work, activities, and services undertaken by the IHCA, and submit these to the Board of Directors for approval;

3.     prepare the annual budget and final accounts of the IHCA, and submit these to the Board of Directors for approval;

4.     prepare the organisational structure of the IHCA and submit it to the Board of Directors for approval; 

5.     issue the resolutions required for creating the licensing records of IHC Establishments and other records related to the work of the IHCA;

6.     supervise the organisation of conferences and events related to the objectives of the IHC;

7.     supervise the work, activities, and services performed by the IHC Establishments;

8.     coordinate with ministries, and federal and local authorities and departments for the purpose of achieving the objectives of the IHC;

9.     supervise the executive body of the IHCA;

10.  represent the IHCA before third parties, and sign for and on behalf of the IHCA all contracts, including conclusion of contracts with IHC Establishments for the lease of land and buildings in the IHC to enable them to conduct their activities;

11.  perform all the duties and powers stipulated in the applicable legislation of Government entities in the Emirate; and

12.  open and manage accounts with banks within and outside of the Emirate upon the approval of the Chairperson. 

b.    The CEO may delegate any of his powers stipulated in paragraph (a) of this Article to any      employee of the Authority.

 

Financial Resources of the IHCA

Article (12)

The financial resources of the IHCA will consist of:

 

1.     movable and immovable property allocated to the IHCA by the Government;

2.     fees and charges for the licences and services provided by the IHCA;

3.     returns on investment of the property of the IHCA;

4.     gifts and donations approved by the Board of Directors; and

5.     any other resources approved by the Chairperson to the extent that these do not conflict with  the objectives of the IHC and laws in force in the Emirate.

 

Budget and Accounts of the IHCA

Article (13)

 

a.     In regulating its accounts and records, the IHCA will follow the principles and rules of government accounting and the internationally accepted accounting principles.

b.    The financial year of the IHCA will commence on 1 January and will end on 31 December of each year.

 

Financial Audit

Article (14)

 

The Financial Audit Department will audit the accounts of the IHCA.

 

Obligation of Government Entities to

Cooperate with the IHCA

Article (15)

All Government entities in the Emirate will fully cooperate with the IHCA to enable it to achieve its objectives.

 

 

Exemption from Fees and Taxes

Article (16)

a.     IHC Establishments and persons working in the IHC Establishments will be exempt from all types of taxes, including income tax and customs duties, in relation to their operations within the IHC.

b.    The property and activities of the IHC Establishments will not be subject, during their operation in the IHC, to any nationalisation or limitation of private ownership measures.

 

Exemption from Compliance with Certain Laws

Article (17)

a.   The IHC and the IHC Establishments or any person working therein, in relation to their operations in the IHC, will not be governed by the legislation, authority, or powers of Dubai Municipality or the Department of Economic Development, except for the legislation related to health, public safety, and the environment.

b.   The IHCA may, at its discretion, seek assistance from Government entities in the Emirate and benefit from their available programmes and systems to license the IHC Establishments. Such programmes and systems will be used in accordance with the bylaws in force in the IHC. Licences issued to IHC Establishments in collaboration with Government entities will be deemed issued by the IHCA itself.

Exemption of the Government from Liability

Article (18)

The Government will not be liable to third parties for any debts or obligations incurred by the IHCA or its affiliated entities. The IHCA will be solely liable for such debts or obligations.

 

Exemption from Liability

Article (19)

In the course of managing the IHC and its operations, neither the Chairpersons, nor the members of the Board Directors, nor the CEO will be liable, except in cases of fraud and gross fault, to third parties for any act or omission relating to such management and operation. The IHCA will be solely liable to third parties for such act or omission.

 

Licensing the IHC Establishments

Article (20)

a.     No person or entity may conduct any Humanitarian Activity or Commercial Activity within the IHC unless the relevant licence is obtained from the IHCA.

b.    The IHC Establishments will be licensed in accordance with the relevant rules and conditions approved by the IHCA, the legislation in force in the Emirate, and the exigencies of public interest.

c.      In licensing Humanitarian Services Establishments and their fund-raising activities, the legislation in force in the Emirate will be complied with.

Licensing Rules for the IHC Establishments

Article (21)

The establishment, registration, certification, liquidation, control, and supervision of IHC Establishments; the regulation of all procedures and matters related to them; and the determination of their licensing conditions, requirements, and fees will be in accordance with the regulations and bylaws issued by the IHCA in this respect.

 

 

Obligations of the IHC Establishments

Article (22)

 

In all activities, contracts, advertisements, invoices, correspondences, and printed material of IHC Establishments, the name of the Establishment will indicate its legal type and that it is a free zone company/establishment, failing which the owner of establishment will be liable to third parties for its obligations.

Liability of the IHCA

Article (23)

 

The IHCA will not be liable to third parties for any obligations arising from the performance of the IHC Establishments or their employees of their work.

 

Prohibited Activities

Article (24)

 

The following activities will be prohibited within the IHC:

1.    any activity that conflicts with the licence issued to the IHC Establishment, or with the regulations and bylaws in force in the IHC;

2.    any activity that involves unfair competition; and

3.    any activity that conflicts with the legislation in force in the Emirate or is contrary to  public order and morality.

 

Assignment of Licence

Article (25)

 

Owners of IHC Establishments may not assign the licence issued to them by the IHCA to any entity without first obtaining approval of the IHCA.

 

Penalties and Sanctions

Article (26)

 

The Board of Directors will issue a bylaw specifying the administrative penalties for violating any of the provisions of this Law and the regulations and bylaws issued in pursuance hereof, or for violating any of the terms of the licence issued by the IHCA.

           

 

Law Enforcement

Article (27)

 

The employees of the IHCA nominated by a resolution of the Chairperson will have the capacity of law enforcement officers to record the acts committed in breach of the provisions of this Law and the regulations and bylaws issued in pursuance hereof. For this purpose, they may issue the relevant violation reports. In performing their duties, they may seek assistance from the concerned Government authorities, including police personnel.

 

 

Delegation of Powers

Article (28)

 

The IHCA may delegate any of its powers stipulated in this Law to any other entity pursuant to an agreement concluded in this respect.

 

 

Issuing Implementing Bylaws

Article (29)

 

The Chairperson will issue the regulations and bylaws required for the implementation of this Law.

 

 

Repeals

Article (30)

 

a.     This law will supersede Law No. (6) of 2007 Establishing the International Humanitarian IHC.

b.    Any provision in any other legislation will be repealed to the extent that it contradicts the provisions of this Law.

 

Publication and Commencement

Article (31)

 

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 5 January 2012

Corresponding to 11 Safar 1433 A.H.

 

 

 

 



©2015 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.