Decree No. (1) of 2019

Regulating the

Establishment of Companies by Government

Entities in the Emirate of Dubai[1]

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

After perusal of:

Federal Law No. (2) of 2015 Concerning Commercial Companies and its amendments;

Law No. (5) of 1995 Establishing the Department of Finance;

Law No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;

Law No. (9) of 2004 Concerning the Dubai International Financial Centre and its amendments;

Law No. (25) of 2008 Concerning the Department of Economic Development;

Law No. (22) of 2015 Regulating Partnership between the Public Sector and the Private Sector in the Emirate of Dubai;

Law No. (1) of 2016 Concerning the Financial Regulations of the Government of Dubai;

Decree No. (22) of 2009 Concerning Special Development Zones in the Emirate of Dubai; and

The legislation establishing and regulating free zones in the Emirate of Dubai,

Do hereby issue this Decree.

Establishing Companies

Article (1)

a.       Notwithstanding the provisions of any other legislation, any Government Entity whose budget is included in the General Budget or the Supplementary Budget of the Government of Dubai and which wishes to establish, solely or in partnership with other persons, a Company of any legal form whatsoever, whether within or outside of the Emirate of Dubai, must, under the pain of nullity, obtain the written approval of the Executive Council of the Emirate of Dubai prior to establishing that Company.

b.       The rules and procedures that Government Entities to which paragraph (a) of this Article applies must follow, in applying for establishing any Company, will be prescribed by the relevant resolution issued by the Chairman of the Executive Council of the Emirate of Dubai upon the recommendation of the Department of Finance.

Exemption from Compliance with this Decree

Article (2)

The provisions of this Decree will not apply to the entities that are in charge of investing Government property pursuant to the legislation in force, or to the Companies established by free zone authorities, such as the Dubai International Financial Centre, and Special Development Zone authorities.

Implementation

Article (3)

The Department of Economic Development and the authorities regulating Special Development Zones and free zones, such as the Dubai International Financial Centre must, each within its own jurisdiction, take the necessary measures and actions to ensure compliance with the provisions of this Decree.

Commencement and Publication

Article (4)

This Decree 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 7 January 2019

Corresponding to 1 Jumada al-Ula 1440 A.H.



©2020 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.