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