Law No. (10)
of 2015
Concerning
the
Dubai Aviation
City Corporation[1]
ـــــــــــــــــــــــــــــــــــــــــــــــ
We, Mohammed bin
Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (8)
of 2006 Establishing the Dubai Aviation City Corporation and its amendments;
Law No. (22)
of 2007 Establishing the Dubai Air Navigation Services Corporation;
Law No. (23)
of 2007 Establishing the Dubai Airports Corporation;
Law No. (24)
of 2007 Repealing the Order Establishing the Department of Civil Aviation;
Law No. (7)
of 2008 Concerning Public Debt Procedure;
Law No.
(35) of 2009 Concerning Management of the Public Funds of the Government of
Dubai and its amendments;
Law No. (19)
of 2010 Concerning the Dubai Civil Aviation Authority; and
Law No. (2)
of 2012 Establishing the Dubai Aviation Engineering Projects Corporation,
Do hereby issue this
Law.
This Law will
be cited as “Law No. (10) of 2015 Concerning the Dubai Aviation City
Corporation”.
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. |
Ruler: |
His Highness the Ruler of Dubai. |
Government: |
The Government of Dubai. |
DAC: |
The Dubai Aviation City. |
DACC: |
The Dubai Aviation City Corporation. |
Chairman: |
The chairman of the DACC. |
Board of Directors: |
The board of directors of the DACC. |
Executive Chairman: |
The executive chairman of the DACC. |
Affiliated Company: |
A company in which the DACC holds not less than ten percent (10%) of the
capital, and which conducts its business within the DAC or elsewhere. |
DAC Zones: |
This includes the Airport, the Free Zone, and non-free zones. |
Airport: |
The Dubai International Airport, the Al Maktoum International Airport,
or any other airport added to DAC Zones. |
Free Zone: |
The free zone within the DAC. |
Affiliated Corporation: |
Any public corporation affiliated to the DACC including the Dubai Air
Navigation Services Corporation, the Dubai Airports Corporation, the Dubai
Aviation Engineering Projects Corporation, and any other corporation
affiliated to the DACC pursuant to any legislation. |
a.
This Law will apply to:
1.
the Dubai Aviation City established
pursuant to the above-mentioned Law No. (8) of 2006; and
2.
the Dubai Aviation City Corporation as
a public corporation managed on commercial basis, which has legal personality,
financial and administrative autonomy, and the legal capacity required to
undertake all acts and dispositions that ensure the achievement of its
objectives.
b.
The location, boundaries, and area of
the DAC will be determined pursuant to a resolution of the Ruler. The
boundaries of the Free Zone and of non-free zones within the DAC will be
demarcated in maps approved by the Chairman. The DAC Zones will be managed by
the DACC and governed by its regulatory legislation. The resolutions issued by
the Chairman in this respect must be published in the Official Gazette of the
Government.
The head office of the DACC will be located in the Emirate, and
the DACC may establish
branches within and outside of the Emirate.
The DACC aims to:
1.
keep up to date
with the continuing growth witnessed by the Emirate in air traffic, aviation,
and all related activities;
2.
contribute to creating various economic and
commercial opportunities with a view to boosting economic development in the
Emirate;
3.
promote the
Emirate as an international hub for air transport, air freight, and related
services;
4.
support aviation
investments in commercial, real estate, services, and industrial fields; and
create a favourable environment to attract such investments to the Emirate; and
5.
contribute to
promoting the Emirate as a prime destination for hosting and organising aviation
exhibitions, conferences, and events at the local and international levels.
a. For the purposes of achieving its objectives, the DACC will have the duties and powers to:
1.
approve the
strategic plans required to develop the services and activities related to its
business, and coordinate among Affiliated Corporations to ensure that the
operational plans of each of these corporations are in line with the objectives
of the general strategic plan of the DACC;
2.
audit and supervise
Affiliated Corporations without prejudice to the functions of each of them, and
ensure that coordination and cooperation among them are achieved;
3.
in coordination
with concerned Government Entities, determine land and real property use within
the DAC Zones; allocate such land and real property for commercial,
professional, residential, and industrial use; and invest, manage, and dispose
of such land and real property in line with the objectives and activities of the
DACC;
4.
design and develop
the information technology, e-commerce, telecommunications, and media industries
within the DAC Zones;
5.
establish
wholly-owned companies or hold shares in existing companies or in companies under
incorporation;
6.
invest its
property in commercial, industrial, or financial fields or in any other field from
which the DACC derives profits;
7.
conclude, in
coordination with Affiliated Corporations, the contracts and agreements
required for developing and supporting aviation activities and services in the Emirate,
and supervise the performance of such contracts and agreements;
8.
in coordination
with Affiliated Corporations, determine and collect fees and charges in return
for the services it provides within and outside of the DAC in accordance with
the legislation in force in the Emirate;
9.
approve its own
projects and those of Affiliated Corporations, and finance the implementation
of such projects through borrowing or any other available means or financial
instruments as appropriate for its activities. For this purpose, the DACC may
grant Affiliated Corporations the right to provide any security or effect any
mortgage or lien, in accordance with the approved means of finance and the
relevant legislation in force;
10.
audit the budgets
and performance of Affiliated Corporations and Affiliated Companies; and
11.
perform any other
duties required for the achievement of the objectives of the DACC.
b. The DACC may, pursuant to an agreement concluded in this respect which determines the rights and obligations of the parties, delegate any of the duties and powers stipulated in paragraphs (a)(3), (a)(4), (a)(5), (a)(6), and (a)(7) of this Article to any of the Affiliated Corporations.
The
organisational structure of the DACC will comprise:
a.
the Chairman;
b.
the Board of
Directors;
c.
the Executive
Chairman; and
d.
the executive
body.
a.
A Chairman will
be appointed to the DACC pursuant to a decree of the Ruler.
b.
The Chairman will
undertake the general supervision of the DACC and Affiliated Corporations, and for such purpose, he will have the
duties and powers to:
1.
approve the
general policy and the strategic and development plans of the DACC;
2.
approve the
resolutions regulating the administrative, financial, and technical work of the
DACC;
3.
approve the
services, works, projects, and activities that the DACC intends to perform;
4.
approve the
organisational structure of the DACC;
5.
approve the draft
annual budgets of the DACC and Affiliated Corporations, and submit these to the competent entities for final approval;
and approve the final accounts of the DACC and of Affiliated Corporations;
6.
approve the
general policy and the financing and borrowing plans and programmes required
for conducting the business of the DACC and of Affiliated Corporations, which are referred to him by the
Board of Directors; and
7.
approve the rules
required for establishing Affiliated Companies.
c.
The Chairman may
delegate any of his powers stipulated in paragraph (b)(3) of this Article to the
vice chairman or any member of the Board of Directors, or to the Executive
Chairman, provided that such delegation is specific and in writing.
a.
The DACC will be supervised by a Board of Directors.
The Board of Directors will be presided over by the Chairman, and will comprise
a vice chairman and at least five (5) other members from among experts and
specialists.
b.
The vice chairman
and members of the Board of Directors will be appointed pursuant to a
resolution of the Chairman for a renewable term of three (3) years.
c.
In the absence of
the Chairman, the vice chairman of the Board of Directors will act as the
Chairman, and will exercise all the Chairman’s functions under this Law.
a.
The Board of
Directors will have the duties and powers to:
1.
approve the
general policy and the strategic and development plans of the DACC, and submit them to the Chairman for final
approval;
2.
submit the draft annual
budgets and final accounts of the DACC and Affiliated Corporations to the Chairman for approval;
3.
approve the
organisational structure of the DACC and submit the
same to the Chairman for final approval;
4.
review the policies
and strategic and operational plans of Affiliated Corporations, and present the relevant recommendations to
the Chairman to take the appropriate action in this respect;
5.
approve the
resolutions regulating the administrative, financial, and technical work of the
DACC and submit the same to the Chairman for final
approval;
6.
approve the
services, works, projects, and activities that the DACC intends to perform, and
submit the same to the Chairman for final approval;
7.
form permanent
and temporary committees and work teams, and determine their duties and powers;
8.
develop the
general policy and the financing and borrowing plans and programmes required
for conducting the business of the DACC and Affiliated Corporations, and submit the
same to the Chairman for approval;
9.
develop the rules
required for establishing Affiliated Companies, and submit them to the Chairman
for approval;
10.
conduct periodic
reviews of the performance reports of the DACC and Affiliated Corporations, and submit
the relevant recommendations to the Chairman to take the appropriate action in
this respect; and
11.
perform any other
duties required for the achievement of the objectives of the DACC.
b.
The Board of
Directors may delegate any of the powers stipulated in paragraphs (a)(6), (a)(7),
and (a)(9) of this Article to any of its members or to the Executive Chairman,
provided that such delegation is specific and in writing.
a.
The Board of
Directors will be convened by the Chairman, or in his absence by the vice
chairman of the Board of Directors, at least twice a year or where required.
Meetings of the Board of Directors will be valid if attended by the majority of
its members, provided that the Chairman or vice chairman of the Board of
Directors is in attendance.
b.
Resolutions of
the Board of Directors will be passed by majority vote of attending members,
and in the event of a tie, the chair of the meeting will have the casting vote.
Resolutions of the Board of Directors will be recorded in minutes of meetings
signed by the chair of the meeting and attending members.
c.
The Board of
Directors may seek assistance from the experts and specialists it deems
appropriate to attend its meetings, but they will have no vote.
a.
An Executive
Chairman will be appointed to the DACC pursuant to a resolution of the Chairman.
b.
Under the
supervision of the Chairman, the Executive Chairman will manage the DACC and
run its affairs in accordance with the provisions of this Law and the
resolutions issued in pursuance hereof. For this purpose, the Executive
Chairman will have the duties and powers to:
1.
propose the
general policy and the strategic and development plans of the DACC, submit
these to the Board of Directors for approval, and take necessary action for
implementation of the same upon final approval;
2.
propose the
resolutions regulating the administrative, financial, and technical work of the
DACC, and submit the same to the Board of Directors
for approval;
3.
propose the
services, works, projects, and activities that the DACC intends to perform, and
submit the same to the Board of Directors for approval;
4.
prepare the draft
annual budget and the final accounts of the DACC, and submit the same to the Board
of Directors;
5.
review the annual
budgets and the final accounts of Affiliated Corporations, and submit his
relevant recommendations to the Board of Directors;
6.
prepare the organisational
structure of the DACC, and submit the same to the Board of Directors for approval;
7.
supervise the executive
body of the DACC and audit its administrative, technical, and financial
performance;
8.
represent the DACC
before third parties and conclude the contracts and agreements required for the
achievement of its objectives, in accordance with the resolutions approved by
the DACC in this respect;
9.
subject to
approval of the Chairman, open and manage bank accounts in accordance with the
legislation in force;
10.
ensure that the
strategic plans of Affiliated Corporations are in line with the strategic and
development plans of the DACC; and
11.
perform any other
duties assigned or delegated to him by the Chairman or the Board of Directors.
c.
The Executive
Chairman may delegate any of his powers stipulated in paragraphs (b)(3), (b)(7),
(b)(8), and (b)(9) of this Article to any of the DACC employees, provided that
such delegation is specific and in writing.
The
financial resources of the DACC will consist of:
1.
fees and charges collected in return for
the services provided by the DACC;
2.
returns on the investment of its property; and
3. gifts, donations, and any other
financial resources approved by the Chairman.
a.
The DACC will have
an independent budget which reflects its actual financial position.
b.
In regulating its
accounts and records, the DACC will apply commercial accounting rules and principles
in accordance with recognised
international standards.
c.
The financial
year of the DACC will commence on 1 January and will end on 31 December of each
year.
a.
Limited liability
legal entities wholly owned by one (1) natural or legal person, whether a UAE
national or a foreigner, may be established within the Free Zone.
b.
Each of the entities
referred to in paragraph (a) of this Article will have legal personality and Financial
Autonomy, and the liability of its owner will be limited to its paid up capital.
a.
The name of a
company established in accordance with Article (15) of this Law must, in all
its transactions, contracts, advertisements, invoices, correspondence, and
publications, be followed by an indication that it is established in the Free
Zone in accordance with this Law, and that it is a limited liability company.
b.
Where the owner
of a company fails to comply with paragraph (a) of this Article, he will be personally liable to settle his company’s obligations from all his moveable and immoveable
property.
An
assignment to any other party or entity of the licence issued by the DACC will
be deemed null and void if it is made without first obtaining the written
approval of the DACC.
a.
In the Free Zone,
all commercial, financial, industrial, and professional activities may be
conducted, all services may be provided, and all goods may be produced or
imported, except the following:
1.
perished goods;
2.
services,
products, activities, and goods violating commercial, industrial, literary,
artistic, and intellectual property laws, including the laws and rules related
to trademarks, patents, copyrights, and design rights;
3.
services, goods,
and products that feature inscriptions, drawings, ornamentations, marks, or
figures that conflict with the doctrines, teachings, and beliefs of heavenly
revealed religions; or that breach public order or morality;
4.
products,
services, and goods prohibited by the legislation in force in the UAE, or which
are provided, produced, or imported in breach of the legislation in force in
the Free Zone;
5.
any activities or
processes which are illegal or performed in breach of the legislation in force
in the Free Zone; and
6.
military goods
and ammunition, except those in respect of which a permit is issued by the
competent authority in the UAE.
b.
The Board of
Directors will, from time to time, issue an updated list of activities and
goods which are prohibited under the legislation in force.
The
DACC will be responsible for monitoring and
inspecting the
activities of Free Zone corporations which are suspected of violating the
provisions of this Law and the legislation in force in the DAC Zones. Within the Free Zone, the DACC will, in cooperation with the concerned
entities in the Emirate, have the audit, investigation, and law enforcement powers in respect of goods, products, and activities which
contravene intellectual property laws.
a.
Goods brought
into the Free Zone, or manufactured, produced, or developed therein will be
exempt from customs duties; and when exported outside of the UAE, no customs
duties will be levied on these goods.
b.
Products stored
in the Free Zone, or used in any process within the Free Zone, will be exempt
from customs duties.
c.
Products exported
from the Free Zone to the customs zone within the Emirate will be deemed as if
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 (21)
Natural
and legal persons working in the Free Zone will be exempt from all taxes,
including income tax, in respect of their operations in the Free Zone, 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
natural or legal persons commence their work in the Free Zone.
Neither
corporations nor companies licensed within DAC Zones, nor their property, nor
the property of their employees may be subject to any nationalisation or
limitation of private ownership measures throughout the period of their work
within the DAC Zones.
Exemption from Compliance with Certain Laws
Article (23)
a.
With the
exception of laws and regulations relating to public health and safety, food
control, and the environment, neither DAC Zones, nor any natural or legal
person working therein will, in respect of their operations in the DAC Zones,
be subject to the laws, regulations, authorities, and powers of Dubai
Municipality or the Department of Economic Development.
b.
Sole
establishments and companies operating within the DAC and the Free Zone will
conduct their activities in accordance with the licences issued to them pursuant
to the regulations and resolutions issued by the Chairman for this purpose.
Liability
Article (24)
The Government will not be liable to third parties for
the debts or obligations of the DACC,
Affiliated Corporations, or Affiliated Companies. The DACC will not be liable
for the debts or obligations of Affiliated Corporations or Affiliated
Companies.
Exemption from Liability
Article (25)
Except in
cases of fraud or gross fault,
neither the Chairman, nor the vice chairman of the Board of Directors, nor any
member of the Board of Directors, nor the Executive Chairman, nor any employee of
the executive body of the DACC will be personally liable for any obligations
arising from any act or omission related to exercising his powers under this
Law. The DACC will be solely liable to third parties for such acts or omissions.
All
Government Entities in the Emirate must cooperate with the DACC to enable it to achieve its
objectives and perform the duties assigned to it under this Law and the
resolutions issued in pursuance hereof.
The
Chairman will issue a bylaw determining the administrative penalties prescribed
for violating this Law, the resolutions issued in pursuance hereof, or any of
the terms of the licence issued by the DACC. This bylaw will also determine the
entity authorised to impose and enforce these penalties.
Pursuant
to this Law, the ownership of moveable and immovable assets owned by Affiliated
Corporations will be transferred to the DACC. The DACC may, after the transfer
of ownership or possession of assets, reallocate such assets to any of the
Affiliated Corporations in accordance with the rules approved by the Chairman
in this respect.
The
Chairman will issue the resolutions required for the implementation of this
Law.
a.
This Law
supersedes the above-mentioned Law No. (8) of 2006. Any provision in any other
legislation will also be repealed to the extent that it contradicts the
provisions of this Law.
b.
The regulations and resolutions issued
in pursuance of the above-mentioned
Law No. (8) of 2006 will continue in force, to the extent that they do not
contradict this Law, until new superseding regulations and resolutions are
issued.
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 11 April 2015
Corresponding to 22 Jumada al-Thaniyah 1436 A.H.
©2015
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.