Law
No. (16) of 2013
Establishing
the
Dubai
Investment Development Agency[1]
ــــــــــــــــــــــــــــــــــــــــــــــ
We, Mohammed bin Rashid Al Maktoum,
Ruler of Dubai,
After perusal of:
Law No. (3) of 2003 Establishing the
Executive Council of the Emirate of Dubai;
Law No. (27) of 2006 Concerning
Management of the Government of Dubai Human Resources and its amendments;
Law No. (25) of 2008 Concerning the
Department of Economic Development;
Law No. (13) of 2011 Regulating the
Conduct of Economic Activities in the Emirate of Dubai;
Regulation No. (3) of 2006 Determining
Areas for Ownership by Non-UAE Nationals of Real Property in the Emirate of
Dubai and its amendments; and
The legislation regulating free zones
in the Emirate of Dubai,
Do hereby issue this Law.
This Law will
be cited as “Law No. (16) of 2013 Establishing the Dubai Investment Development
Agency”.
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. |
|
Executive
Council: |
The
Executive Council of the Emirate of Dubai. |
|
DED: |
The
Department of Economic Development. |
|
Director
General: |
The director
general of the DED. |
|
DIDA: |
The
Dubai Investment Development Agency. |
|
CEO: |
The chief
executive officer of the DIDA. |
|
Investor: |
A
natural or legal person investing in the Emirate in accordance with the
provisions of this Law and the legislation in force in the Emirate. |
|
Preferential
Privileges: |
The
incentives and exemptions granted to Investors and Investment Projects in
accordance with this Law, the resolutions issued in pursuance hereof, and the
legislation in force in the Emirate. |
|
Investment: |
The investment
of Capital in a licensed activity in accordance with the provisions of this
Law, the resolutions issued in pursuance hereof, and the legislation in force
in the Emirate. |
|
Capital: |
The
cash and non-cash assets and other valuable rights invested in the Emirate,
including: 1.
cash,
securities, and foreign negotiable instruments; 2.
machinery,
equipment, fittings, means of transport, raw materials, producer goods, and
other tangible assets allocated for Investment; 3.
moral
rights such as licences, intellectual property rights, patents, trade names,
and trademarks registered in the UAE; and 4.
profits
and revenue reserves resulting from investing Capital in Investment Projects,
where such profits and reserves are used for increasing the Capital,
expanding existing projects, or establishing new projects. |
|
Concerned
Entities: |
Government
entities, excluding free zone authorities, responsible for Investments and
Investors affairs, and for regulating Economic Activities. |
|
Investment
Project: |
Any Economic
Activity to which the provisions of this Law and the resolutions issued in
pursuance hereof apply. |
|
Investor
Services: |
The
services related to facilitating the completion of the transactions of
Investors including, but not limited to, obtaining visit, work, and residence
visas; coordinating with the Concerned Entities with respect to the
procedures for establishment of Investment Projects; and following up
official transactions with these entities. |
Pursuant to this Law, a public agency
named the “Dubai Investment Development Agency” is hereby established. The DIDA will
have legal personality and the legal capacity required to undertake all acts
and dispositions to ensure the achievement of its objectives. The DIDA will be
affiliated to the DED.
The head office of the DIDA will be
located in the Emirate. The DIDA may establish branches and offices within and
outside of the Emirate.
The DIDA will have the following objectives:
1. to promote the Emirate as an international economic hub with a view to
attracting various Investments to the Emirate;
2. to create an Investment climate suitable for the establishment of
Investment Projects in the Emirate; and
3. to build trust in the Investment environment in the Emirate and
promote Investment Projects and Investment opportunities in the Emirate.
For the purpose of achieving its objectives, the
DIDA will have the duties and powers to:
1. set the general policy and strategic plan of Investment and attract
and develop long-term Investment Projects, in line with the economic
development plan of the Emirate;
2. coordinate with the Concerned Entities on proposing the Preferential
Privileges that encourage the implementation of the programmes and initiatives
required to promote Investment in the Emirate;
3. monitor and analyse the Investment climate in the Emirate, and
identify available Investment opportunities and any obstacles hindering the
development of Investment;
4. identify economic sectors to which it is necessary to attract
Investment Projects, in line with the Strategic Plan of the Emirate;
5. create a database for existing Investment Projects in the Emirate and
update this database on a regular basis;
6. provide the required information, clarifications, and statistics to those
willing to invest in the Emirate, provide services to Investors to facilitate
completion of their transactions, and expedite the licensing and registration
procedures related to their Investment Projects;
7. consider and determine, in accordance with the relevant approved
regulations and policies and the legislation in force in the Emirate, the
applications submitted by Investors for obtaining the Preferential Privileges,
subject to the international treaties to which the UAE is a party;
8. follow up and assess, in coordination with the Concerned Entities, the
performance of the investment sector in the Emirate;
9. consider any problems that may arise between the Investor and the
Concerned Entities and seek to find suitable solutions for these problems in
coordination with the Concerned Entities;
10. promote, in coordination with the Concerned Entities, the Investment
Projects and investment opportunities available in the Emirate and provide the
Investors with information and data about these opportunities, through
participating in conferences, symposia, events, and festivals relating to the
work of the DIDA;
11. coordinate with international organisations and institutions in the
areas relating to direct Investment;
12. in coordination with the Concerned Entities, establish an Investment
portal to deal with Investors and provide them with outstanding and
preferential services;
13. issue periodicals and bulletins covering matters relating to the
Investment in the Emirate; and
14. perform any other duties required for the achievement of the objectives
of the DIDA.
a. A CEO will be appointed to the DIDA pursuant
to a resolution of the Chairman of the Executive Council.
b. The CEO will have the powers and duties to:
1.
propose the regulations and bylaws
regulating the administrative, financial, and technical affairs of the DIDA,
and submit the same to the Director General for approval;
2.
propose the policies and strategic and
operational plans relating to the work of the DIDA, submit the same to the
Director General for approval, and take the necessary actions to implement these policies and plans;
3.
propose the organisational
structure of the DIDA and submit the same to the Director General for approval
in order to present it to the Executive Council for final approval;
4.
prepare the draft annual budget
and final accounts of the DIDA and submit the same to the Director General for
approval;
5.
supervise the daily work of the
executive body of the DIDA, and appoint qualified and competent Employees;
6.
represent the DIDA before third
parties and enter into contracts and agreements as required to achieve its
objectives;
7.
achieve the targeted performance
outcomes and submit performance reports to the Director General; and
8.
perform any other duties
assigned to him by the Director General.
The
financial resources of the DIDA will consist of:
1. the financial support allocated to the
DIDA by the Government of Dubai in the annual budget of the DED;
2. any revenues generated by the DIDA
through conducting its activities and rendering its services; and
3. any other resources approved by the
Executive Council.
a. In regulating its accounts and records, the DIDA will apply the
relevant rules and standards of accounting approved by the Government of Dubai.
b. The financial year of the DIDA 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.
Law No. (27) of 2006 Concerning
Management of the Government of Dubai Human Resources and its amendments will
apply to the Employees of the DIDA.
The Executive Council will
approve the economic sectors in which Investments are sought, and the
Preferential Privileges that may be offered to Investors. Based on the
recommendations of the DED, The Executive Council will also approve the classification
of Investment Projects.
Preferential Privileges will be
granted to Investment Projects that are important to the economy of the Emirate
and that achieve sustainable development therein, in particular:
1. industrial and infrastructure projects;
2. social, educational, and medical projects;
3. projects relating to exploiting the natural resources of the Emirate;
4. projects relating to the transfer and adaptation of various areas of
technology and knowledge;
5. tourism and entertainment projects;
6. major Investment Projects; and
7. any other projects approved by the Executive Council.
Upon granting Preferential
Privileges to an Investment Project, the following criteria must be observed:
1. the extent of conformity of the proposed Investment Project to the
objectives of the Strategic Plan of the Emirate;
2. the extent of exploiting of local resources available in the Emirate;
3. the contribution of the Investment Project to increasing the gross
national product and the work opportunities for UAE nationals;
4. the contribution of the Investment Project to increasing exports and
reducing imports;
5. the extent of using modern equipment and technologies that meet the requirements
of the economy of the Emirate; and
6. any other relevant criteria approved by the Executive Council.
a. Subject to the legislation in force in the Emirate, a foreign Investor
may invest in the Emirate through ownership, partnership, or shareholding in
accordance with the relevant resolutions issued by the Executive Council. These
resolutions will determine the economic sectors in which investment is a
priority, the maximum share or percentage of shareholding foreign Investors may
have in these sectors, and the areas where ownership by foreign Investors is
permitted.
b. An Investor will have the absolute right to, as he deems appropriate, manage
his Investment Project and to appoint persons to undertake this management in accordance
with the legislation in force in the Emirate.
For the purpose of enabling the DIDA
to perform its duties under this Law, the Concerned Entities will, in
cooperation and coordination with the DIDA, implement the approved policies,
plans, and regulations related to attracting local and foreign Investments to
the Emirate, and will expedite and facilitate the transactions of Investors to
ensure the competitiveness of the Emirate.
The DIDA must consult and
coordinate with the authorities and agencies supervising free zones regarding
all matters relating to Investments within these zones.
An Investor whose Investment
Project will be granted Preferential Privileges pursuant to this Law, must:
1. notify the DIDA in writing of the dates of initiation and completion
of the implementing procedures and actions necessary for the commencement of
the Investment Project;
2. notify the DIDA in writing of the commencement of actual production or
operation of the licensed Investment Project no later than thirty (30) working
days from the date of such production or operation;
3. provide the information, data, statistics, and documents requested and
deemed necessary by the DIDA for the application of this Law and the
resolutions issued in pursuance hereof; and
4. comply with the legislation in force in the Emirate, and with the
instructions related to security, and public health and safety, and those
related to the protection of the environment and public order and morals.
Subject
to the approval of the Concerned Entities, if the ownership of an Investment
Project is transferred from one owner to another, the new owner will continue
to enjoy the Preferential Privileges and investment services granted to the
Investment Project in accordance with this Law and the resolutions issued in
pursuance hereof.
a. Without prejudice to any stricter
penalty stipulated in any other legislation, any person who violates the
provisions of this Law or the resolutions issued in pursuance hereof will be
punished by a fine of not less than one thousand Dirhams (AED 1,000.00) and not
more than one hundred thousand Dirhams (AED 100,000.00). Upon repetition of the
same violation within one (1) year from the date of the previous violation, the
amount of the fine will be doubled A fine must not exceed five hundred thousand
Dirhams (AED 500,000.00). The Chairman of
the Executive Council will determine prohibited acts and their corresponding
fines that must be imposed upon violators in a resolution he issues in this
respect.
b. In addition to the penalty of a fine
referred to in paragraph (a) of this Article, the DIDA may cancel all or any of
the Preferential Privileges.
c. The DIDA may reconsider its decision to cancel the Preferential
Privileges granted to an Investor, if the Investor remedies the violation he
committed within sixty (60) days from the date of the violation.
The
Chairman of the Executive Council will issue the resolutions required for the
implementation of the provisions of this Law.
Any provision in
any other legislation will be repealed to the extent that it contradicts the
provisions of this Law.
This Law comes into force on the day on which it is issued, and will be published in the Official Gazette.
Mohammed bin
Rashid Al Maktoum
Ruler
of Dubai
Issued in Dubai on 23 December 2013
Corresponding to 20 Safar
1435 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.