Law No. (15) of 2014

Concerning

Creative Clusters in the Emirate of Dubai[1]

ـــــــــــــــــــــــــــ

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

After perusal of:

Law No. (1) of 2000 Establishing the Dubai Technology and Media Free Zone and its amendments;  

Law No. (35) of 2009 Concerning Management of the Public Funds of the Government of Dubai and its amendments;

Decree No. (12) of 2011 Amalgamating Land into the Dubai Technology and Media Free Zone;

Decree No. (4) of 2013 Amalgamating a Land Plot into the Dubai Technology and Media Free Zone;

Decree No. (22) of 2013 Amalgamating a Land Plot into the Dubai Technology and Media Free Zone; and

The legislation regulating free zones in the Emirate of Dubai,

Do hereby issue this Law.

Title of the Law

Article (1)

This Law will be cited as "Law No. (15) of 2014 Concerning Creative Clusters in the Emirate of Dubai".

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:

The United Arab Emirate.

UAE:

The Emirate of Dubai.

Emirate:

His Highness the Ruler of Dubai.

Ruler:

The Government of Dubai.

Government:

The zone established pursuant to the above-mentioned Law No. (1) of 2000, and the areas amalgamated into it pursuant to the above-mentioned Decree No. (12) of 2011, Decree No. (4) of 2013, and Decree No. (22) of 2013.

Creative Clusters:

The Dubai Creative Clusters Authority.

DCCA:

The chairman of the DCCA.

Chairman:

The director general of the DCCA.

Director General:

Products and services that involve creativity or innovation, and which are based on intellectual capital as their primary element. These include, but are not limited to, media, technology, educational, biotechnology, energy, design, and fashion products, and all essentials of such products.

Creative Products:

Any of the sole establishments and commercial companies licensed to operate in the Creative Clusters pursuant to this Law and the resolutions issued in pursuance hereof.

Corporation:

Any craft, professional, service, or other activity related to Creative Products which is authorised within the Creative Clusters in accordance with the provisions of this Law and the resolutions issued in pursuance hereof.

Activity:

Free zones established in the Emirate, other than the Creative Clusters.

Other Free Zones:

Scope of Application

Article (3)

a.       The provisions of this Law will apply to the Dubai Technology and Media Free Zone established pursuant to the above-mentioned Law No. (1) of 2000.

b.       The name “Dubai Technology and Media Free Zone”, wherever mentioned in any legislation in force in the Emirate, will be replaced with “Creative Clusters in the Emirate of Dubai”.

c.       The name “Dubai Technology and Media Free Zone Authority”, wherever mentioned in any legislation in force in the Emirate, will be replaced with “Dubai Creative Clusters Authority”.

d.       The Creative Clusters, whose boundaries, area, and locations are demarcated on the map attached to this Law, will be considered a free zone.

e.       The DCCA will have legal personality, financial and administrative autonomy, and the legal capacity required to undertake the acts and dispositions that ensure the achievement of the objectives for which the Creative Clusters are established.

Objectives of the Creative Clusters

Article (4)

The Creative Clusters will have the following objectives:

1.       to promote the Emirate as a regional and international hub for creative production;

2.       to contribute to implementing the strategic priorities of the Government which are aimed at enhancing the economic growth of the Emirate.;

3.       to create a favourable work environment based on clear-cut and transparent regulatory rules, in order to position the Emirate as a centre for Creative Products;

4.       to boost the competitive edge of the Emirate in the field of creative production, and promote the growth of the companies working in this field; and

5.       to support, promote, and develop Creative Products in the Emirate by attracting and licensing Corporations and companies specialised in this field.

Functions of the DCCA

Article (5)

For the purpose of achieving the objectives for which the Creative Clusters are established, the DCCA will have the duties and powers to:

1.       determine and regulate the works and Activities authorised within the Creative Clusters, and set their licensing rules, conditions, requirements, and procedures;

2.       conduct all transactions and acts related to Creative Products, including engaging, in coordination with local and federal government entities, in commercial and industrial business;

3.       approve the general plan of Creative Clusters, and license, regulate, and supervise all construction works undertaken in them;

4.       register and license Corporations, and collect the relevant charges and fees for registration, licensing, and other services rendered by the DCCA;

5.       audit and inspect Corporations and their Activities to verify compliance with the provisions of this Law and the resolutions issued in pursuance hereof;

6.       set up, either individually or in partnership with third parties, Corporations and companies, and invest in companies and Corporations that engage in Activities that are relevant to the Activities of the DCCA;

7.       constitute boards, committees, and associations and organise events to develop and promote Creative Products;

8.       authorise Corporations to import and store goods for purposes of re-exporting or bringing them into the customs zone in the Emirate in coordination with the concerned entities;

9.       authorise, in coordination with the concerned entities, Corporations to provide various commercial, banking, and insurance services within the Creative Clusters;

10.   purchase, take lease of, and own the movable and immovable property required for performing its duties, and invest or dispose of such property by all means of legal disposition;

11.   cooperate and coordinate with local, federal, regional, and international entities, including Other Free Zones in the field of creative production; and

12.   perform any other duties required for the achievement of the objectives for which the Creative Clusters are established.

Organisational Structure of the DCCA

Article (6)

The organisational structure of the DCCA will be comprised of:

a.       the Chairman;

b.       the Director General; and

c.       an executive body.

Appointment and Functions of the Chairman

Article (7)

a.       The Chairman will be appointed pursuant to a decree of the Ruler;

b.       The Chairman will undertake the general supervision of the DCCA, and will issue the resolutions required for its operation and management, and for the implementation of the provisions of this Law. For these purposes, the Chairman will have the duties and power to:

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

2.       supervise the achievement of the objectives for which the Creative Clusters are established, and approve the services, business, projects, and Activities undertaken by them;

3.       approve the organisational structure of the DCCA;

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

5.       establish any entities affiliated to the DCCA which are required for the achievement of the objectives for which the Creative Clusters are established; and

6.       approve the rules regulating the work of Corporations, such as the rules of media broadcasting and publication, and select specialised consultancy houses to determine any issues related to the implementation of these rules.

c.       The Chairman may delegate any of the powers stipulated in this Law to the Director General, provided that the delegation is specific and in writing.

d.       In the absence of the Chairman, the Director General will undertake the functions of the Chairman.

Appointment and Functions of the Director General

Article (8)

a.       The Director General will be appointed pursuant to a decree of the Ruler.

b.       The Director General will, under the supervision of the Chairman,  manage the DCCA in accordance with the provisions of this Law and the resolutions issued in pursuance hereof. For this purpose, the Director General will have the duties and powers to:

1.       propose the general policy, and strategic and development plans of the DCCA, submit these to the Chairman for approval, and take all procedures required for their implementation upon approval;

2.       approve the resolutions regulating the administrative, financial, and technical work of the DCCA;

3.       prepare the annual budget and final accounts of the DCCA, and submit these to the Chairman for approval;

4.       prepare the organisational structure of the DCCA, and submit it to the Chairman for approval;

5.       issue the resolutions required for maintaining records of Corporation licences and other records related to the work of the DCCA;

6.       coordinate with federal and local government entities, and Other Free Zones, to achieve the objectives for which the Creative Clusters are established;

7.       supervise the executive body of the DCCA, and monitor its administrative, technical, and financial performance;

8.       represent the DCCA before third parties, and enter into the contracts and agreements required for the achievement of the objectives for which the Creative Clusters are established;

9.       open and manage, in the name of the DCCA, accounts with banks within and outside of the Emirate subject to the approval of the Chairman;

10.   prepare annual reports on the effectiveness of the strategies adopted by the DCCA in positioning the Emirate as a centre for Creative Products, and submit these to the Chairman for approval; and

11.   perform any other duties required for exercising the functions of the DCCA, or assigned to him by the Chairman.

c.       The Director General may delegate any of his powers stipulated in paragraph (a) of this Article to any employee of the DCCA provided that the delegation is specific and in writing.

Executive Body of the DCCA

Article (9)

An executive body will be appointed to the DCCA. The executive body will be comprised of administrative, financial, and technical employees. Employees of the executive body will be appointed, and their terms of employment, salaries, duties, termination, and all other matters relating to their employment will be determined pursuant to special regulations issued by the Director General in this respect.  

Financial Resources of the DCCA

Article (10)

The financial resources of the DCCA will consist of:

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

2.       charges and fees for licensing and other services provided by the DCCA;

3.       returns on investment of the property of the DCCA; and

4.       grants, donations, and any other financial resources approved by the Chairman.

Budget and Accounts of the DCCA

Article (11)

a.       The DCCA will have an independent budget which reflects its actual financial position.

b.       In regulating its accounts and financial records, the DCCA will apply the rules and principles of commercial accounting in accordance with internationally accepted standards.

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

Cooperation with the DCCA

Article (12)

All Government entities in the Emirate must fully cooperate with the DCCA to enable it to exercise the functions assigned to it.

Permitted Acts and Activities

Article (13)

Acts and Activities that may be performed within the Creative Clusters include:

1.       all acts and Activities related to designing, manufacturing, developing, and utilising Creative Products;

2.       establishing and providing the infrastructure necessary for Creative Products; and

3.       conducting all research and studies that will contribute to developing Creative Products.

Prohibited Acts and Activities

Article (14)

The following acts and activities will be prohibited within the Creative Clusters:

1.       any act or activity that contradicts the terms of the licence issued to the Corporation, or the regulations and resolutions applicable in the Creative Clusters; and

2.       any act or activity that conflicts with public order and morality.

Goods of the Creative Clusters

Article (15)

a.       Foreign and national goods, from all origins, will be allowed into the Creative Clusters;

b.       Notwithstanding the provisions of paragraph (a) of this Article, it is prohibited to bring the following products and goods into Creative Clusters:

1.       perished goods;

2.       goods violating commercial, industrial, literary, artistic, and intellectual property laws including the laws and rules related to trade marks, patents, copyrights and design rights;

3.       boycotted goods or goods imported from a boycotted country;

4.       goods featuring inscriptions, drawings, ornamentations, marks, or figures that conflict with doctrines, teachings, or beliefs of heavenly revealed religions;

5.       military goods and ammunition, except those authorised by a competent DCCA in the UAE in accordance with the relevant applicable legislation; and

6.       all goods, products, and services that are prohibited pursuant to the legislation in force in the Emirate.

Exemption from Customs Duties

Article (16)

a.       Goods which are brought into the Creative Clusters or manufactured, produced, or developed therein will be exempt from customs duties, and when exported outside the UAE, no customs duties will be levied on these goods.

b.       Goods which are stored in the Creative Clusters, or used in any process of manufacturing, designing, or developing Creative Products or any other related process, will be exempt from customs duties.

c.       Products exported from the Creative Clusters to the customs zone in the Emirate will be deemed as imported from abroad for the first time, and customs duties will apply to these products in accordance with the customs tariff provisions in force.

Tax Exemption

Article (17)

Corporations and their employees will be exempt from all taxes, including income tax, in respect of their operations in the Creative Clusters, and will be exempt from any restrictions on the transfer of share capital, profits, or wages in any currency to any destination outside the Creative Clusters. Exemption will apply for a period of fifty (50) years, renewable for the same period pursuant to a resolution of the Ruler. This period will commence on the day on which these Corporations or their employees commence work.

Immunity from Limitation of Ownership

Article (18)

Corporations, their property, and the property of their employees may not be subject to any nationalisation or limitation of private ownership measures throughout the period of their work in the Creative Clusters.

Employees of Corporations

Article (19)

Corporations may employ or hire any person to perform work in the Creative Clusters, provided that such person is not a national of any country which is politically or economically boycotted by the UAE.

Exemption from Compliance with Certain Laws

Article (20)

a.       With respect to their operations in the Creative Clusters, the DCCA and Corporations will not be governed by the laws and regulations of Dubai Municipality or the Department of Economic Development, and will not be subject to the authority and powers that are within the functions of either department (except for the legislation related to health and public safety, food and environment control, and the legislation which expressly provides that it applies to free zones).

b.       The DCCA may seek the assistance of Government entities in the Emirate and Other Free Zones, and benefit from their programmes and systems, as the DCCA deems appropriate, for purposes of licensing Corporations. Implementation of such programmes and systems will be in accordance with the bylaws in force in the Creative Clusters. Licences issued to Corporations in cooperation with concerned Government entities will be deemed as if issued by the DCCA.

Establishing Corporations

Article (21)

Limited liability companies may be established in the Creative Clusters pursuant to the regulations in force in the Creative Clusters. These companies will be deemed as Corporations and may be owned by one or more natural or legal persons, regardless of whether these persons are UAE or non-UAE nationals.

Licensing Corporations

Article (22)

a.       No person or entity may conduct any Activity in the Creative Clusters without a licence from the DCCA.

b.       Corporations will be licensed and all rules regulating their work, including their establishment, registration, governing rules and terms, liquidation, and any other related matters will be stipulated in a special regulation approved by the Chairman in this regard.

Obligations of Corporations

Article (23)

a.       A name of a Corporation must, in all transactions, contracts, advertisements, invoices, correspondence, and publications, end with an indication that it is a free zone company in addition to its legal form.

b.       Failure to comply with the provisions of paragraph (a) of this Article will render the owner of the Corporation personally liable to settle the obligations of the company from his movable and immovable property.

Liability

Article (24)

a.       The Government will not be liable to third parties for any debts or obligations owed by the DCCA or its affiliates. The DCCA will be solely liable for such debts or obligations.

b.       Neither the DCCA nor its authorised representatives will be liable to third parties for any obligations owed by the Corporations or their employees.

Exemption from Liability

Article (25)

Except in cases of fraud and gross fault, neither the Chairman, nor the Director General, nor the employees of the executive body of the DCCA will, in the course of managing the DCCA, be liable to third parties for any act or omission committed in connection with this management. The DCCA will be solely liable to third parties for such act or omission.

 

Assignment of Licence

Article (26)

A Corporation may not assign a Licence issued to it by the DCCA to another entity without first obtaining the written approval of the DCCA.

Penalties

Article (27)

The Chairman will issue a bylaw determining the administrative penalties prescribed for violation of any of the provisions of this Law, the resolutions issued in pursuance hereof, or any of the terms of the licences issued by the DCCA. The bylaw will also specify the entity authorised to impose and enforce such penalties.

Law Enforcement

Article (28)

The employees and inspectors of the DCCA nominated by a resolution of the Director General will have the capacity of law enforcement officers to record the acts committed in breach of the provisions of this Law and the resolutions issued in pursuance hereof. In this capacity, they may audit and supervise Corporations and their business and Activities, issue the necessary violation reports, and where necessary, seek the assistance of police personnel.

Delegation of Authority

Article (29)

The DCCA may delegate any of the powers stipulated in this Law to any public or private entity in accordance with an agreement to be executed in this regard.

Issuing Implementing Resolutions

Article (30)

The Chairman will issue the resolutions required for the implementation of the provisions of this Law.

Repeals

Article (31)

a.       This Law supersedes the above-mentioned Law No. (1) of 2000. Any provision in any other legislation will also be repealed to the extent that it contradicts the provisions of this Law.

b.       The resolutions issued in pursuance of the above-mentioned Law No. (1) of 2000 will remain in force to the extent that they do not contradict the provisions of this Law, until other resolutions are issued to supersede them.

Publication and Commencement

Article (32)

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 27 October 2014

Corresponding to 3 Muharram 1436 A.H.


© 2014 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.