Law No. (15) of 2014
Concerning
Creative Clusters in the Emirate of Dubai[1]
ـــــــــــــــــــــــــــ
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (1) of 2000 Establishing the Dubai Technology and Media Free Zone and its amendments;
Law No. (35) of 2009 Concerning Management
of the Public Funds of the Government of Dubai and its amendments;
Decree No. (12) of 2011 Amalgamating Land into
the Dubai Technology and Media Free Zone;
Decree No. (4) of 2013 Amalgamating a Land
Plot into the Dubai Technology and Media Free Zone;
Decree No. (22) of 2013 Amalgamating a Land
Plot into the Dubai Technology and Media Free Zone; and
The legislation regulating free zones in
the Emirate of Dubai,
Do hereby issue this Law.
This Law will
be cited as "Law No. (15) of 2014 Concerning Creative Clusters in the
Emirate of Dubai".
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 United Arab
Emirate. |
UAE: |
The Emirate of
Dubai. |
Emirate: |
His Highness the
Ruler of Dubai. |
Ruler: |
The Government
of Dubai. |
Government: |
The zone
established pursuant to the above-mentioned Law No.
(1) of 2000, and the areas amalgamated into it pursuant to the above-mentioned
Decree No. (12) of 2011, Decree No. (4) of 2013, and Decree No. (22) of 2013. |
Creative
Clusters: |
The Dubai Creative
Clusters Authority. |
DCCA: |
The chairman of
the DCCA. |
Chairman: |
The director
general of the DCCA. |
Director
General: |
Products and
services that involve creativity or innovation, and which are based on intellectual
capital as their primary element. These include, but are not limited to,
media, technology, educational, biotechnology, energy, design, and fashion products,
and all essentials of such products. |
Creative Products: |
Any of the sole establishments
and commercial companies licensed to operate in the Creative Clusters pursuant
to this Law and the resolutions issued in pursuance hereof. |
Corporation: |
Any craft,
professional, service, or other activity related to Creative Products which
is authorised within the Creative Clusters in accordance with the provisions
of this Law and the resolutions issued in pursuance hereof. |
Activity: |
Free zones established in
the Emirate, other than the Creative Clusters. |
Other Free Zones: |
Scope of Application
Article (3)
a.
The provisions of this Law will apply to the Dubai
Technology and Media Free Zone established pursuant to the above-mentioned Law
No. (1) of 2000.
b.
The name “Dubai Technology and Media Free Zone”,
wherever mentioned in any legislation in force in the Emirate, will be replaced
with “Creative Clusters in the Emirate of Dubai”.
c.
The name “Dubai Technology and Media Free Zone
Authority”, wherever mentioned in any legislation in force in the Emirate, will
be replaced with “Dubai Creative Clusters Authority”.
d.
The Creative Clusters, whose boundaries, area, and
locations are demarcated on the map attached to this Law, will be considered a
free zone.
e. The DCCA will have
legal personality, financial and administrative autonomy, and the legal capacity required
to undertake the acts and dispositions that ensure the achievement of the objectives
for which the Creative Clusters are established.
Objectives of the Creative Clusters
Article (4)
The Creative Clusters will have the following
objectives:
1. to promote the Emirate
as a regional and international hub for creative production;
2. to contribute to implementing
the strategic priorities of the Government which are aimed at enhancing the
economic growth of the Emirate.;
3. to create a favourable
work environment based on clear-cut and transparent regulatory rules, in order
to position the Emirate as a centre for Creative Products;
4. to boost the
competitive edge of the Emirate in the field of creative production, and
promote the growth of the companies working in this field; and
5. to support, promote,
and develop Creative Products in the Emirate by attracting and licensing Corporations and companies
specialised in this field.
Functions of the DCCA
Article (5)
For the purpose of achieving the
objectives for which the Creative Clusters are established, the DCCA will have
the duties and powers to:
1. determine and regulate the
works and Activities authorised within the Creative Clusters, and set their
licensing rules, conditions, requirements, and procedures;
2. conduct all transactions and
acts related to Creative Products, including engaging, in coordination with
local and federal government entities, in commercial and industrial business;
3. approve the general plan of Creative Clusters, and license,
regulate, and supervise all construction works undertaken in them;
4. register and license Corporations,
and collect the relevant charges and fees for registration, licensing, and
other services rendered by the DCCA;
5. audit and inspect Corporations
and their Activities to verify compliance with the provisions of this Law and
the resolutions issued in pursuance hereof;
6. set up, either individually or
in partnership with third parties, Corporations and companies, and invest in
companies and Corporations that engage in Activities that are relevant to the Activities
of the DCCA;
7. constitute boards, committees,
and associations and organise events to develop and promote Creative Products;
8. authorise Corporations to
import and store goods for purposes of re-exporting or bringing them into the customs
zone in the Emirate in coordination with the concerned entities;
9. authorise, in coordination with the concerned entities, Corporations to provide
various commercial, banking, and insurance services within the Creative
Clusters;
10. purchase, take lease of, and
own the movable and immovable property required for performing its duties, and
invest or dispose of such property by all means of legal disposition;
11. cooperate and coordinate with
local, federal, regional, and international entities, including Other Free Zones
in the field of creative production; and
12. perform any other duties required
for the achievement of the objectives for which the Creative Clusters are established.
Organisational Structure of
the DCCA
Article (6)
The organisational structure of the DCCA
will be comprised of:
a.
the Chairman;
b.
the Director General; and
c. an executive body.
Appointment and Functions of the Chairman
Article (7)
a. The Chairman will be appointed
pursuant to a decree of the Ruler;
b. The Chairman will undertake the
general supervision of the DCCA, and will issue the resolutions required for
its operation and management, and for the implementation of the provisions of
this Law. For these purposes, the Chairman will have the duties and power to:
1.
approve the
general policy, and strategic and development plans of the DCCA;
2.
supervise the
achievement of the objectives for which the Creative Clusters are established, and approve the services, business, projects, and Activities
undertaken by them;
3.
approve the organisational
structure of the DCCA;
4.
approve the
draft general budget and final accounts of the DCCA;
5.
establish any entities affiliated to the DCCA which are required for the
achievement of the objectives for which the Creative Clusters are established;
and
6. approve the rules regulating the work of Corporations, such as the
rules of media broadcasting and publication, and select specialised consultancy houses to
determine any issues related to the implementation of these rules.
c.
The Chairman
may delegate any of the powers stipulated in this Law to the Director General,
provided that the delegation is specific and in writing.
d. In
the absence
of the Chairman, the Director General will undertake the functions of the Chairman.
Appointment and Functions of the Director General
Article (8)
a.
The Director General will be appointed pursuant to a decree
of the Ruler.
b. The Director General
will, under the supervision of the Chairman, manage the DCCA in accordance with the
provisions of this Law and the resolutions issued in pursuance hereof. For this
purpose, the Director General will have the duties and powers to:
1.
propose the general policy, and strategic and development plans of the DCCA, submit these
to the Chairman for approval, and take all procedures required for their implementation upon approval;
2.
approve the
resolutions regulating the administrative, financial, and technical work of the
DCCA;
3.
prepare the
annual budget and final accounts of the DCCA, and submit these to the Chairman
for approval;
4.
prepare the
organisational structure of the DCCA, and submit it to the Chairman for
approval;
5.
issue the
resolutions required for maintaining records of Corporation licences and other
records related to the work of the DCCA;
6.
coordinate
with federal and local government entities, and Other Free Zones, to achieve the objectives for which the Creative Clusters are established;
7.
supervise
the executive body of the DCCA, and monitor its administrative, technical, and
financial performance;
8.
represent
the DCCA before third parties, and enter into the contracts and agreements
required for the achievement of the objectives for which the Creative Clusters are established;
9.
open and manage,
in the name of the DCCA, accounts with banks within and outside of the Emirate subject
to the approval of the Chairman;
10.
prepare
annual reports on the effectiveness of the strategies adopted by the DCCA in
positioning the Emirate as a centre for Creative Products, and submit these to the Chairman for approval; and
11. perform any other
duties required for exercising the functions of the DCCA, or assigned to him by
the Chairman.
c. The Director
General may delegate any of his powers stipulated in paragraph (a) of this
Article to any employee of the DCCA provided that the delegation is specific
and in writing.
Executive Body of the DCCA
Article (9)
An executive body will
be appointed to the DCCA. The executive body will be comprised of
administrative, financial, and technical employees. Employees of the executive
body will be appointed, and their terms of employment, salaries, duties, termination,
and all other matters relating to their employment will be determined pursuant to
special regulations issued by the Director General in this respect.
Financial Resources of the DCCA
Article (10)
The financial
resources of the DCCA will consist of:
1.
movable and immovable property allocated to the DCCA by
the Government;
2.
charges and fees for licensing and other services
provided by the DCCA;
3.
returns on investment of the property of the DCCA; and
4. grants, donations, and any
other financial resources approved by the Chairman.
Budget and Accounts of the DCCA
Article (11)
a.
The DCCA will have an independent budget which
reflects its actual financial position.
b.
In regulating its accounts and financial records, the DCCA
will apply the rules and principles of commercial accounting in accordance with
internationally accepted standards.
c. The financial year of the DCCA will
commence on 1 January and will end on 31 December of each year.
Cooperation with the DCCA
Article (12)
All Government entities in the Emirate must
fully cooperate with the DCCA to enable it to exercise the functions assigned
to it.
Permitted Acts and Activities
Article (13)
Acts and Activities
that may be performed within the Creative Clusters include:
1.
all acts and Activities related to designing,
manufacturing, developing, and utilising Creative Products;
2.
establishing and providing the infrastructure necessary
for Creative Products; and
3. conducting all
research and studies that will contribute to developing Creative Products.
Prohibited Acts and Activities
Article (14)
The following acts and
activities will be prohibited within the Creative Clusters:
1.
any act or activity that contradicts the terms of the licence
issued to the Corporation, or the regulations and resolutions applicable in the
Creative Clusters; and
2. any act or activity that
conflicts with public order and morality.
Goods of the Creative Clusters
Article (15)
a. Foreign and national
goods, from all origins, will be allowed into the Creative Clusters;
b. Notwithstanding the provisions
of paragraph (a) of this Article, it is prohibited to bring the following products and goods
into Creative Clusters:
1. perished goods;
2. goods violating
commercial, industrial, literary, artistic, and intellectual property laws
including the laws and rules related to trade marks, patents, copyrights and
design rights;
3. boycotted goods or
goods imported from a boycotted country;
4. goods featuring inscriptions,
drawings, ornamentations, marks, or figures that conflict with doctrines,
teachings, or beliefs of heavenly revealed religions;
5. military goods and
ammunition, except those authorised by a competent DCCA in the UAE in
accordance with the relevant applicable legislation; and
6. all goods,
products, and services that are prohibited pursuant to the legislation in force
in the Emirate.
Exemption from Customs Duties
Article (16)
a.
Goods which are brought into the Creative Clusters or
manufactured, produced, or developed therein will be exempt from customs duties,
and when exported outside the UAE, no customs duties will be levied on these
goods.
b.
Goods which are stored in the Creative Clusters, or used
in any process of manufacturing, designing, or developing Creative Products or
any other related process, will be exempt from customs duties.
c.
Products exported from the Creative Clusters to the customs
zone in the Emirate will be deemed as 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 (17)
Corporations and their
employees will be exempt from all taxes, including income tax, in respect of
their operations in the Creative Clusters, and will be exempt from any
restrictions on the transfer of share capital, profits, or wages in any
currency to any destination outside the Creative Clusters. Exemption will apply
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
Corporations or their employees commence work.
Immunity from Limitation of Ownership
Article (18)
Corporations, their
property, and the property of their employees may not be subject to any
nationalisation or limitation of private ownership measures throughout the
period of their work in the Creative Clusters.
Employees of Corporations
Article (19)
Corporations may employ
or hire any person to perform work in the Creative Clusters, provided that such
person is not a national of any country which is politically or economically
boycotted by the UAE.
Exemption from Compliance with Certain Laws
Article (20)
a.
With respect to their operations in the Creative
Clusters, the DCCA and Corporations will not be governed by the laws and
regulations of Dubai Municipality or the Department of Economic Development, and
will not be subject to the authority and powers that are within the functions
of either department (except for the legislation related to health and public
safety, food and environment control, and the legislation which expressly
provides that it applies to free zones).
b.
The DCCA may seek the assistance of Government
entities in the Emirate and Other Free Zones, and benefit from their programmes
and systems, as the DCCA deems appropriate, for purposes of licensing
Corporations. Implementation of such programmes and systems will be in
accordance with the bylaws in force in the Creative Clusters. Licences issued
to Corporations in cooperation with concerned Government entities will be
deemed as if issued by the DCCA.
Establishing Corporations
Article (21)
Limited liability
companies may be established in the Creative Clusters pursuant to the
regulations in force in the Creative Clusters. These companies will be deemed
as Corporations and may be owned by one or more natural or legal persons,
regardless of whether these persons are UAE or non-UAE nationals.
Licensing Corporations
Article (22)
a.
No person or entity may conduct any Activity in the Creative
Clusters without a licence from the DCCA.
b.
Corporations will be licensed and all rules regulating
their work, including their establishment, registration, governing rules and terms,
liquidation, and any other related matters will be stipulated in a special
regulation approved by the Chairman in this regard.
Obligations of Corporations
Article (23)
a.
A name of a Corporation must, in all transactions,
contracts, advertisements, invoices, correspondence, and publications, end with
an indication that it is a free zone company in addition to its legal form.
b.
Failure to comply with the provisions of paragraph (a)
of this Article will render the owner of the Corporation personally liable to
settle the obligations of the company from his movable and immovable property.
Liability
Article (24)
a.
The Government will not be liable to third parties for
any debts or obligations owed by the DCCA or its affiliates. The DCCA will be
solely liable for such debts or obligations.
b.
Neither the DCCA nor its authorised representatives
will be liable to third parties for any obligations owed by the Corporations or
their employees.
Exemption from Liability
Article (25)
Except in cases of
fraud and gross fault, neither the Chairman, nor the Director General, nor the employees
of the executive body of the DCCA will, in the course of managing the DCCA, be
liable to third parties for any act or omission committed in connection with this
management. The DCCA will be solely liable to third parties for such act or
omission.
Assignment of Licence
Article (26)
A Corporation may
not assign a Licence issued to it by the DCCA to another entity without first obtaining
the written approval of the DCCA.
Penalties
Article (27)
The Chairman will
issue a bylaw determining the administrative penalties prescribed for violation
of any of the provisions of this Law, the resolutions issued in pursuance
hereof, or any of the terms of the licences issued by the DCCA. The bylaw will
also specify the entity authorised to impose and enforce such penalties.
Law Enforcement
Article (28)
The employees and
inspectors of the DCCA nominated by a resolution of the Director General will
have the capacity of law enforcement officers to record the acts committed in breach
of the provisions of this Law and the resolutions issued in pursuance hereof.
In this capacity, they may audit and supervise Corporations and their business and
Activities, issue the necessary violation reports, and where necessary, seek the
assistance of police personnel.
Delegation of Authority
Article (29)
The DCCA may delegate
any of the powers stipulated in this Law to any public or private entity in
accordance with an agreement to be executed in this regard.
Issuing Implementing Resolutions
Article (30)
The Chairman will
issue the resolutions required for the implementation of the provisions of this
Law.
Repeals
Article (31)
a.
This Law supersedes the above-mentioned Law No. (1) of
2000. Any provision in any other legislation will also be repealed to the
extent that it contradicts the provisions of this Law.
b. The resolutions issued
in pursuance of the above-mentioned Law No. (1) of 2000 will remain in force to the
extent that they do not contradict the provisions of this Law, until other
resolutions are issued to supersede them.
Publication and Commencement
Article (32)
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 27 October 2014
Corresponding to 3 Muharram 1436 A.H.
© 2014 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.