Law No. (1) Of 2000

Of Dubai Technology, Electronic
Commerce & Media Free Zone

ـــــــــــــــــــــــــــــــــــــــــــــــــــــ

 

We, Maktoum Bin Rashid Al Maktoum, The Ruler of Dubai,

 

do hereby enact the following Law:

 

Article (1)

 

This Law may be cited as Dubai Technology, Electronic Commerce and Media Free Zone Law. No. (1) of 2000.

 

Article (2)

 

The following words and phrases shall have the respective meaning assigned to each of them, unless the context requires otherwise:

 

The Ruler:

H. H. The Ruler of Dubai.

The Government:

The Government of Dubai.

The Emirate:

The Emirate of Dubai.

The State:

The United Arab Emirates.

Free Zone:

Dubai Technology and Electronic Commerce and Media Free Zone.

Authority:

The Free Zone Authority.

President:

The President of the Authority.

Director General:

The Director General of the Authority.

Electronic Commerce:

business which is conducted by an electronic medium predomi­nantly on the Internet.

Technology:

All aspects of computing, data recording, television, video, telecommunications, storing, retrieval and sending of  information by the use of technology, computer equipment, computer hardware and software, telecommunications systems and networks, including, without limitation, those referred to in Article 10 herein.

Media:

Human and technological meth­ods available for the communica­tion and distribution of printed or digital, audio and visual informa­tion to specified or unspecified parties, including without limita­tion, cable and satellite television broadcasting, and television pro­duction.

Products:

All goods including, without lim­itation, materials, equipment and merchandise of all types whatsoever.

Free Zone Establishment:

Any natural or corporate person licensed to carry on business in the Free Zone pursuant to this law and the by-laws issued in re­lation thereto, including all kinds of commercial companies.

Other Free Zones:

Jebel Ali Free Zone, Dubai International Airport Free Zone, and any other zone or zones estab­lished in the Emirate.

 

 

Article (3)

 

There shall be established by this Law:

a)        A Free Zone to be known as Dubai Technology , Electron­ic Commerce and Media Free Zone, which location, area and boundaries shall he as set out in the map attached to this Law.

b)        A corporate entity known as Dubai Technology; Electron­ic Commerce and Media Free Zone, which shall be finan­cially and administratively independent and may sue or be sued in this capacity. Its headquarters shall be in the Free zone, and it shall be a government body.

 

 

Article (4)

 

The Free Zone Authority shall be constituted of:

a)   A president.

b)   A director general.

c)    An executive body.

 

Article (5)

 

The President shall be appointed by decree to be issued by the Rules, and shall undertake the supervision of the Free Zone. The President shall have the power to issue rules and by-laws necessary for the operation and administration of the Free Zone, and for the implementation of this Law.

 

Article (6)

 

The Director General shall be appointed by decree to be is­sued by the Ruler, and shall undertake the administration of the Free Zone, under the supervision of the President in accor­dance with the provisions of this Law and the rules and by­laws issued in relation thereto and shall represent the Authori­ty towards third parties.

 

Article (7)

 

The President shall issue a special by-law governing the re­cruitment and appointment of employees of the Authority's Executive Body, and the terms and conditions of their em­ployment, dismissal, salaries, duties, rights and other matters relating to them.

 

 

Article (8)

 

The objects of the Authority shall be:

 

a)        To draw up strategies and policies, and methods of imple­mentation thereof, in order to promote Dubai as a center for Technology, Electronic Commerce and Media.

b)        To prepare researches and advise the Government in rela­tion to laws appropriate to the regulation and encourage­ment of Technology, Electronic Commerce and Media in the Emirate, including but not limited to:

1)        Data protection.

2)        Protection of intellectual property right.

3)        Control of Electronic Commerce crimes.

c)         To establish, own and develop, either solely or with oth­ers, establishments in the Free Zone, including but not limited to, a University and a Research Centre.

d)        To co-ordinate with the other Free Zones in relation to matters of mutual interest.

 

 

Article (9)

 

To achieve its objects, the Authority shall undertake the fol­lowing functions and responsibilities:

 

1)     Procure infrastructure, buildings, management and any oth­er services required to achieve the Authority's objects.

2)     Regulate business and activities within the Free Zone.

3)     Provide telecommunications and Internet services.

4)     Authentication of Internet and Electronic Commerce sites and issuing the necessary terms and conditions in relation thereto. The Authority may also license other establish­ments within the Free Zone to authenticate such sites.

5)     Establish and license establishments in the Free Zone.

6)     Regulate commerce between establishments in the Free Zone and any other parties outside the Free Zone.

7)     Enter into agreements with other Free Zones to enable the Free Zone establishments to carry on business in such other zones.

8)     Provide the Free Zone establishments, upon request, with executives, managers technicians, craftsmen and other workers in accordance with the provisions of this Law and the by-laws issued in relation thereto, subject to any terms and conditions agreed upon by the Authority and these establishments.

9)     Enter into leases of plots and buildings in the Free Zone for a period up to (50) years, with any establishment in the Free Zone, to enable it to carry on its activity accord­ing to terms and conditions agreed upon.

10)  Provide all kinds of services.

11)  Charge and levy fees for the services provided by the Au­thority.

12)  Establish an investment fund for providing capital to the Free Zone establishments, and for investing the Authori­ty's funds in the manner and method, and in the activities and projects, which the Chairman deems fit.

 

Article (10)

 

The business and activities carried on the Free Zone shall in­clude the following:

 

1)       The design, development, use and maintenance of every­thing relevant to Information Technology.

2)       Business of Electronic Commerce.

3)       Telecommunications and media services.

4)       Providing services through the Internet or through any other medium including banking, financial services, insu­rance, education, call centers, marketing operations, in­formation and recreation services.

5)       Integrated marketing and public relations services.

6)       Assembly and packaging of products manufactured within or outside the Free Zone.

7)       Import, export and storage of products.

8)       Development and manufacture of products.

9)       Warehousing, logistics, distribution and redistribution ser­vices.

 

 

Article (11)

 

Subject to the provisions of Article (23) of this Law and the by-laws issued in relation thereto, the Free Zone shall be open to all kinds of products from all sources, whether national or foreign.

 

 

Article (12)

 

The products brought, manufactured, produced or developed in the Free Zone shall be exempt from customs duties, and shall not be subject to any customs duties or any other fees when exported.

 

Article (13)

 

Products kept in the Free Zone, used in any process, or inte­grated in the manufacturing of any product in the Free Zone shall be exempt from customs duties.

 

Article (14)

 

Products imported from the Free Zone to the "Customs Zone" in Dubai shall be deemed to have been imported from abroad for the first time, and shall be subject to custom duties, in ac­cordance with the applicable customs tariff.

 

Article (15)

 

Free Zone establishments and employees shall be exempt from all taxes including income tax with regard to their opera­tions within the Free Zone. They shall also be excluded from any restrictions on transfer of capital, profits or wages in any currency to any place outside the Free Zone for a period of (50) years. This period may be renewed for further similar pe­riods by a resolution issued by the Chairman. Such period shall be calculated from the date of the beginning of work of such establishments or employees.

 

Article (16)


Assets or activities of the Free Zone establishments shall not be subject to nationalization or any measures restricting private ownership, throughout the period of their activities in the Free Zone.

 

Article (17)

 

Free Zone establishments may employ or hire whomsoever they choose in their operations in the Free Zone, provided that such employees are not subject to any countries politically or economically boycotted by the State.

 

Article (18)

 

The employees and establishments of the Free Zone, shall not be subject, in so far as their operations in the Free Zone are concerned, to the laws and regulations of Dubai Municipality, the Department of Economic Development of the Government of Dubai, or the powers and authority falling within their jurisdiction.

 

Article (19)

 

Companies with limited liability may be incorporated in the Free Zone in accordance with the Free Zone By-laws, and shall be considered as Free Zone establishments.

These companies may have one or more shareholders, wheth­er natural or corporate persons, national or foreign.

 

Article (20)

 

The Authority shall have the power to approve the establish­ment and registration of the Free Zone establishments, and to regulate all procedures and matters relating thereto, including incorporation and registration of companies referred to in Ar­ticle (19), levying registration fees, setting out terms and rules governing such companies, by-laws regarding their liquida­tion or any other matters as the Authority deems necessary for the proper supervision and control of such companies.

 

Article (21)

 

Every limited liability company incorporated in accordance with Article (19) of this Law, shall set out beside its name, in all its activities, contracts, notices, invoices, correspondence and publications the following:

a)        That the company is incorporated in accordance with this Law, and that it is a limited liability company.

b)        That it is a Free Zone company.

 

In case where clause (a) and/or clause (b) of this Article are not mentioned, the company's owner or owners shall be personally liable for the obligations of the company.

 

Article (22)

 

The President, the Director General or the employees and workers of the Authority shall not be liable to any third party for the operations or obligations of the Free Zone Establish­ments or their employees, or workers.

 

Article (23)

 

The following products, goods and services shall be prohibit­ed in the Free Zone:

a)   Goods and services in violation of intellectual property law, including those in violation of laws and rules relevant to trademark, patent, copyright and design rights.

b)   Products boycotted by the UAE.

c)    All goods, products and services prohibited under the laws in force in the Emirate and/or the UAE.

The Authority shall have power to specify or amend the list of prohibited products and services in accordance with the laws of the Emirate, as well as the power to grant exemptions from such prohibitions.

 

Article (24)

 

The following activities shall be prohibited within the Free Zone:

 

a)      Any unlicensed activity by any natural or corporate person, within the Free Zone which requires a license under this Law.

b)     any activity contrary to the Free Zone by-laws.

c)      Any willful activities designed to disrupt computer net­ works & software, including but not limited to, creation and distribution of computer viruses.

 

Article (25)

 

The Assignment to another party of the license issued by the Authority is prohibited without the prior written consent of the Authority.

 

Article (26)

 

The Authority shall have the power to control and inspect the activities of Free Zone establishments which are suspected to be in breach of the provisions of this Law or any other by-law.

 

 

Article (27)

 

The Ruler may establish a court and/or an arbitration tribunal with the jurisdiction of hearing claims and suits arising out of, or in connection with, activities carried on by Free Zone Es­tablishments within the Free Zone, including claims and suits between these establishments and any other parties outside the Free Zone.

 

Article (28)

 

The Director General may in accordance with a special by-law to be issued by the president, impose civil penalties on any person who is in breach of any provision of this Law or the By-laws thereof, or in breach of the terms and conditions of the license issued by the Authority.

 

 

Article (29)

 

Any provision of any other law or legislation is hereby re­pealed to the extent it is in conflict with the provisions hereof.

 

Article (30)

 

This Law shall be published in the Official Gazette and shall come into force on the date of its publication.

 

 

Maktoum Bin Rashid Al Maktoum

Ruler of Dubai

 

 

Issued in Dubai on 31st  January 2000

Corresponding to 25th  Shawwal 1420 AH