Law No. (5) of 2009
Establishing
Meydan City Corporation[1]
ـــــــــــــــــــــــــــ
We, Mohammed bin
Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (18) of 2006 Concerning Management and Realisation of the Public
Funds of the Government of Dubai; and
Law No. (11) of 2006 Establishing the Investment Corporation of Dubai
and its amendments,
Do hereby issue this Law.
This Law will be cited as "Law No. (5) of 2009 Establishing Meydan
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:
The Emirate of Dubai. |
Emirate: |
His Highness the Ruler of
Dubai. |
Ruler: |
The Government of Dubai. |
Government: |
Meydan City. |
City: |
The free zone in the City. |
Free Zone: |
Meydan City Corporation. |
Corporation: |
The board of directors of
the Corporation. |
Board of Directors: |
The chief executive officer
of the Corporation. |
CEO: |
Sole establishments and
companies licensed to operate in the Free Zone. |
Establishments: |
Establishment of the City,
the Free Zone, and the
Corporation
Article (3)
Pursuant to this Law,
the following are established:
1.
a city named "Meydan City" in which a free
zone will be established. The Site Plan attached to this Law specifies the
location, area, and boundaries of the City and the Free Zone; and
2.
a public Corporation wholly owned by the Government named
"Meydan City Corporation" with its head office in the City, for the
purpose of owning and managing the City. It will have financial and
administrative autonomy and the full legal capacity to enter into contracts and
undertake the legal dispositions required for the achievement of its
objectives. The Corporation will be managed on commercial basis, and will be
affiliated to the Investment Corporation of Dubai.
Objectives of the Corporation
Article (4)
The Corporation will have
the following objectives:
1.
to promote the Emirate as an international centre for
all types of equestrian sports, and to develop relevant scientific research and
studies;
2.
to encourage and participate in promoting and
developing equestrian sports at the local and international levels;
3.
to attract capital for investment in the equestrian
industry and sports;
4.
to attract companies and industries specialised in
equestrian sports to base their business in the City and the Emirate;
5.
to encourage the use of environment-friendly energy
sources and resources of the City through using natural resources which are not
harmful to the environment; and
6.
to attract exhibitions and conferences specialised in
equestrian sports.
Duties and Functions of the Corporation
Article (5)
For the purpose of
achieving its objectives, the Corporation will have the duties and functions to:
1.
subdivide areas, land, and real property; construct
buildings, utilities, and facilities for commercial, professional, residential,
industrial, media, sports, or entertainment purposes as well as retail outlets
to serve the equestrian industry; and lease out or sell the same in accordance
with the provisions of this Law;
2.
construct and develop the infrastructure required to conduct
the activities of the Free Zone, including grandstands, race tracks, training
areas, stables, breeding and fodder farms, hotels, health resorts, marinas,
golf courses, residential and commercial buildings, and audio-visual
broadcasting, press, and other media facilities;
3.
invest, operate, fund, purchase, sell, lease out, rent,
and manage the facilities relating to equestrian industry and sports;
4.
establish schools and centres specialising in
equestrian coaching, training, and qualification;
5.
organise and participate in holding exhibitions and
conferences specialised in equestrian sports;
6.
establish companies or acquire shares in existing
companies;
7.
license Establishments, regulate procedures and
matters relating thereto, and set the conditions and rules governing their
work;
8.
supply Establishments, upon their request, with
administrative staff, technicians, and craftsmen in accordance with regulations
issued pursuant to this Law, and in accordance with any conditions agreed upon
between the Corporation and these Establishments; and
9.
conduct any activities or provide any services,
whether directly or indirectly, that contribute to the achievement of the
objectives of the City or to generating profits.
Management of the
Corporation
Article (6)
The management of the
Corporation will be comprised of the Board of Directors, the CEO, and an
executive body.
Board of Directors of the Corporation
Article (7)
1.
The Corporation will be managed by a Board of
Directors comprised of a chairman, a vice chairman, and no less than three (3)
members who will be appointed, and their remuneration determined pursuant to a
decree issued by the Ruler.
2.
The Board of Directors will convene at the invitation
of the chairman, or the vice chairman in his absence, at least once every three
(3) months or where necessary. Meetings of the Board of Directors will be valid
if attended by the majority of its members provided that the chairman or vice
chairman is in attendance.
3.
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 a casting vote. Resolutions of the Board of Directors will be
recorded in minutes of meeting signed by the chair of the meeting and attending
members.
Duties of the Board of Directors
Article (8)
The Board of Directors
will have the duties and functions to:
1. set the strategies, plans, policies,
and procedures required for the achievement of the objectives of the
Corporation;
2. adopt the
organisational, administrative, and financial structure of the Corporation;
3. regulate business
and activities within the City, and approve regulations, bylaws, and regulatory
resolutions relating to work in the City;
4. set rules and
provisions relating to issuing licences and registration of Establishments;
5. propose fees and
determine charges for services provided by the Corporation and the Free Zone,
and submit these to the Executive Council of the Emirate for approval;
6. invest the funds
of the Corporation and dispose of them in any legal manner;
7. approve the draft annual
budget and the final accounts of the Corporation;
8. approve the annual report
on the activities and financial position of the Corporation, and its final accounts;
9. impose fines and civil
penalties, revoke licences, and deregister affiliated entities and
Establishments which violate the laws, regulations, and bylaws;
10. appoint auditors and
determine their remuneration at the beginning of each financial year; and
11. provide all types of
services which relate or conform to the objectives of the Corporation.
CEO
Article (9)
A CEO will be
appointed to the Corporation pursuant to a resolution of the Board of Directors.
The CEO will have the duties and powers to:
1.
manage the Corporation and submit the relevant periodic
reports to the Board of Directors;
2.
implement the strategic plan of the Corporation, apply
its policies, and propose development plans and projects;
3.
prepare the draft annual budget and final accounts of
the Corporation, and submit the same to the Board of Directors for approval;
4.
prepare the regulatory, administrative, and financial
bylaws, and submit the same to the Board of Directors for approval; and
5.
enter into the contracts and agreements required for the
achievement of the objectives of the Corporation.
Appointment of Members of the Executive Body
Article (10)
Employees of the executive
body of the Corporation will be appointed and the terms of their employment,
dismissal, salaries, duties, rights, and all other matters relating to them will
be determined pursuant to a special regulation issued by the Board of Directors.
Financial Resources of the Corporation
Article (11)
The financial
resources of the Corporation will consist of:
1.
movable and immovable assets allocated to the
Corporation by the Government;
2.
proceeds of charges for services provided by the
Corporation;
3.
proceeds of the lease or sale of real property of the
City;
4.
profits and proceeds of investments undertaken by the
Corporation and projects in which it participates directly or through entities
fully or partly affiliated with it; and
5.
any other financial resources approved by the Board of
Directors and not conflicting with the objectives of the Corporation and the
laws in force.
Budget and Accounts of the Corporation
Article (12)
1.
The Corporation will have an independent budget which
reflects its actual financial position.
2.
In regulating its accounts and records, the
Corporation will apply the rules and principles of commercial accounting, in
accordance with internationally recognised standards.
3.
Accounts and records of the Corporation will be audited
by an approved audit firm appointed by the Board of Directors.
4.
The financial year of the Corporation 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.
Financial Audit
Article (13)
The Financial Audit
Department will audit the accounts of the Corporation.
Exemption from Customs Duties
Article (14)
Goods which are brought
into the Free Zone; manufactured, produced, developed, stored, or used therein;
or used in manufacturing any product in the Free Zone, will be exempt from
customs duties.
Products Exported to the Customs Zone
Article (15)
Products brought from
the Free Zone into the customs zone in 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 in force.
Supervisory Powers of the Corporation
Article (16)
The Corporation will
be responsible for the supervision and inspection of the activities of
Establishments which are suspected of violating the provisions of this Law or
of any other legislation. Within the Free Zone, the Corporation will, in
cooperation with the competent Government entities in the Emirate, have the
power to audit, investigate, and record violations in respect of goods,
products, and activities which contravene intellectual property laws.
Exemptions and Exceptions
Tax Exemption
Article (17)
Establishments, individuals,
and workers based 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 Establishments, individuals,
or workers commence their work in the Free Zone.
Exemption from Compliance with Certain Laws
Article (18)
With the exception of environment
laws and regulations, neither the Corporation, nor the Free Zone, nor any
natural or legal person will, in respect of their operations in the Free Zone,
be subject to the laws, regulations, authorities, and powers of Dubai
Municipality or the Department of Economic Development.
Exemption of the Government from Liability
Article (19)
The Government will
not be liable to third parties for any debts or obligations claimed from the Corporation or the
entities affiliated to it. The Corporation will be solely liable for such debts
or obligations.
Establishing Legal Persons
Article (20)
1.
Limited liability companies or Establishments with
legal personality may be established in the Free Zone whether they are wholly
owned by a UAE or non-UAE national natural or legal person.
2.
The companies or Establishments mentioned in paragraph
(1) of this Article will have an independent legal personality and financial autonomy,
and the liability of their owners will be limited to the paid up capital.
Limited Liability Companies
Article (21)
1.
A name of a company established pursuant to the preceding
Article must, in all transactions, contracts, advertisements, invoices,
correspondence, and publications, end with an indication that it is established
in the Free Zone pursuant to this Law and that it is a limited liability
company.
2.
Failure to comply with the provisions of paragraph (1)
of this Article will render the owner or owners of the company personally liable
without limit for the obligations of the company.
Exemption from Liability
Article (22)
Except in cases of
fraud and gross fault, neither the members of the Board of Directors nor the CEO
will, in the course of managing the Corporation and its operations, be liable
to third parties for any act or omission relating to such management and operation.
The Corporation will be solely liable to third parties for such act or
omission.
Prohibited Goods
Article (23)
All goods, products,
and services prohibited pursuant to the laws in force in the Emirate will also
be considered prohibited in the Free Zone. The Corporation will have the power
to specify or amend the list of prohibited goods and services under the
legislation in force in the Emirate, and will also have the power to grant exemption
from such prohibition.
Sanctions and Penalties
Article (24)
The Board of Directors
will issue a bylaw determining the civil penalties prescribed for violation of any
of the provisions of this Law, the regulations and bylaws issued in pursuance
hereof, or any of the terms of licences issued by the Corporation. The bylaw will
also specify the entity authorised to implement such penalties.
Repeals
Article (25)
Any provision in any
other legislation will be repealed to the extent that it contradicts the
provisions of this Law.
Commencement
Article (26)
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 24 February 2009
Corresponding
to 29 Safar 1430 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.