Establishing the
Dubai Integrated Economic Zones Authority[1]
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We, Mohammed bin Rashid Al Maktoum, Ruler of
Dubai,
After
perusal of:
Federal Law by Decree No. (13) of 2016 Establishing the Federal Tax
Authority and its amendments;
Federal Law by Decree No. (8) of 2017 Concerning Value Added Tax;
Cabinet Resolution No. (52) of 2017 Concerning the Implementing
Bylaw of Federal Law by Decree No. (8) of 2017 Concerning Value Added Tax and
its amendments;
Cabinet Resolution No. (59) of 2017 Concerning Designated Zones for
the Purposes of Federal Law by Decree No. (8) of 2017 Concerning Value Added
Tax;
Law No. (16) of 2005 Concerning the Dubai Silicon Oasis;
Law No. (11) of 2006 Establishing the Investment Corporation of
Dubai and its amendments;
Law No. (3) of 2009 Transferring the Ownership of the Dubai International
Airport Free Zone to the Investment Corporation of Dubai;
Law No. (4) of 2009 Transferring the Ownership of the Dubai Silicon
Oasis to the Investment Corporation of Dubai;
Law No. (25) of 2009 Concerning the Dubai International Airport
Free Zone;
Law No. (32) of 2015 Concerning the Official Gazette of the
Government of Dubai;
Law No. (1) of 2016 Concerning the Financial Regulations of the
Government of Dubai;
Law No. (8) of 2016 Regulating the Grant of Law Enforcement
Capacity in the Government of Dubai and its Implementing Bylaw;
Decree No. (4) of 2000 Appointing the Chairman of the Dubai
International Airport Free Zone Authority;
Decree No. (30) of 2005 Appointing the Chairman of the Dubai
Silicon Oasis Authority;
Decree No. (31) of 2005 Appointing the Vice Chairman of the Dubai
Silicon Oasis Authority; and
Law No. (32) of 2016 Amalgamating Two Land Plots into the Dubai
International Airport Free Zone,
Do hereby issue this Law.
This Law will be cited as “Law No. (16) of 2021 Establishing the
Dubai Integrated Economic Zones Authority”.
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. |
|
ICD: |
The Investment Corporation of Dubai. |
|
DIEZA: |
The Dubai Integrated Economic Zones Authority established under
this Law. |
|
Integrated Economic Zones: |
These include the Free Zone, the Administrative Zone, and other
zones supervised by DIEZA in accordance with this Law and the
resolutions issued in pursuance hereof. |
|
Chairman: |
The chairman of DIEZA. |
|
Executive Chairman: |
The executive chairman of DIEZA. |
|
DIEZA Establishments: |
The companies and corporations owned by DIEZA, or in which DIEZA
holds shares. |
|
Licensed Establishments: |
These include all kinds of sole proprietorships and companies licensed
to operate within the Integrated Economic Zones in accordance with the
provisions of this Law, the resolutions issued in pursuance hereof, and other
Legislation in force in the Emirate. |
|
Free Zone: |
The free zone established within the boundaries of the Integrated
Economic Zones in accordance with this Law. |
|
Administrative Zone: |
The administrative zone established within the boundaries of the
Integrated Economic Zones in accordance with this Law. |
Pursuant to this Law, a public authority named the "Dubai
Integrated Economic Zones Authority" is established. DIEZA will have legal
personality, financial and administrative autonomy, and the legal capacity
required to undertake all acts and dispositions required for the achievement of
its objectives. DIEZA will be wholly owned by the ICD.
a. The following Integrated Economic Zones will be subject to
supervision by DIEZA:
1. the Dubai Silicon Oasis established pursuant to the above-mentioned
Law No. (16) of 2005;
2. the Dubai International Airport Free Zone regulated pursuant to the
above-mentioned Law No. (25) of 2009, and the land plots
amalgamated into the Dubai International Airport Free Zone under the
above-mentioned Decree No. (32) of 2016; and
3. any other zone or land plot that becomes subject to supervision by
DIEZA pursuant to a resolution issued by the Ruler.
b. A Free Zone and an Administrative Zone are hereby established
within the Integrated Economic Zones; and the Chairman will
determine their locations, areas, and boundaries. The Free Zone and the
Administrative Zone will be managed by DIEZA 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 of Dubai.
DIEZA will have the
objectives to:
1.
promote the Emirate
as a regional and international hub for all types of investment;
2.
contribute to
implementing the strategic priorities of the Emirate in respect of the Integrated Economic Zones, with a view to enhancing the economic
growth of the Emirate;
3.
contribute to the
development of the Emirate's economic road map, which drives its vision of establishing an economic market
characterised by diversified investment in all sectors, and ease of doing business;
4.
achieve integration
between the Integrated Economic Zones; enhance their role in supporting the
economy and building an economic system that serves all strategic sectors in
the Emirate;
5.
promote the Emirate
as a commercial, industrial, services, and professional hub; attract local and
international investments, companies, and corporations to set up business and investments in the Integrated Economic Zones;
6.
boost the
competitive edge of the Emirate in all economic sectors, particularly retail trade, modern technology,
Islamic economy, e-commerce, logistics services and industries, and shipping; and in delivering the services that support these sectors; and
7.
support small and
medium-sized enterprises; and sponsor creative ideas and projects.
DIEZA will supervise the Integrated Economic Zones to enable them
to achieve their objectives. In particular, DIEZA will have the duties and
powers to:
1. establish, develop, and manage the infrastructure and
administrative services within the Integrated Economic Zones, including the
areas designated for all industries within such zones;
2. determine land and real property use within the Integrated Economic
Zones; allocate such land and real property for commercial, professional,
industrial, residential, educational, health, tourist , and other uses; and
invest, manage, and dispose of such land and real property in accordance with
the Legislation in force in the Emirate, and in line with the objectives and
activities of DIEZA;
3. license, regulate, control, and supervise all construction works
performed within the Integrated Economic Zones;
4. manage and regulate, in accordance with security and customs
controls, the demarcated and fenced Integrated Economic Zones, for the purpose
of controlling the entry and exit of individuals and the movement of
commodities to and from these zones; and establish procedures and methods for
the safekeeping, storage, and processing of commodities, to ensure compliance
with the tax and customs Legislation in force in the UAE;
5. regulate the procedures for the import of
Goods and
their storage at the Integrated Economic Zones, whether for purposes of
re-exporting them outside of the UAE or bringing them into the
local markets, in coordination with the concerned entities in the Emirate;
6. determine and regulate the business and activities
authorised within the Integrated Industrial Zones, and set the rules,
conditions, requirements, and procedures for licensing such
business
and activities;
7. register and license companies, establishments, and other entities
within the Free Zone, in accordance with the provisions of this Law and the
resolutions issued in pursuance hereof;
8. register and license companies, establishments and other entities
within the Administrative Zone, in accordance with the Legislation in force in
the Emirate;
9. audit and inspect Licensed Establishments and their activities to
verify their compliance with the provisions of this Law,
the resolutions issued in pursuance hereof, and other Legislation in
force in the Emirate;
10. create a unified database of all the information related to the
Integrated Economic Zones, including the available investment opportunities and
the Licensed Establishments;
11. determine and collect fees and charges in return for the services
it provides within the Integrated Economic Zones in accordance with the
legislation in force;
12. perform all the transactions and work
related
to the activities of DIEZA and required for achieving its objectives, including
conducting commercial, industrial, services, professional business within and
outside of the UAE;
13. possess, own, and lease movable and immovable property
as required for performing its duties; and invest or dispose of such property
by in any legal manner, including sale, lease, or mortgage;
14. establish, solely or in partnership with other persons, companies
and establishments within and outside of the Integrated Economic Zones, and
establish and own investment funds, in accordance with the relevant regulations
and bylaws adopted by it and the Legislation in force in the Emirate;
15. provide Licensed Establishments, upon request, with technical and
administrative professionals, tradesmen, and any other personnel, as required
by the nature of their business and in accordance with the terms agreed upon by
DIEZA and these Licensed Establishments;
16. cooperate and coordinate with local, federal, regional, and
international entities, including other free zone authorities within and
outside of the UAE, in areas related to the business of DIEZA and as required to
ensure the achievement of its objectives;
17. finance DIEZA operations and projects through borrowing and through
providing
and issuing the necessary financial guarantees,
including mortgage security, and financial instruments, such as sukuk and
financial bonds, in accordance with the means of finance prescribed
by
the relevant Legislation in force
in the Emirate;
18. qualify and train Emirati technical staff in all fields that are
relevant to the functions of DIEZA;
19. manage and invest DIEZA's property within and outside of the
Integrated Economic Zones, and regulate the participation of investors in the
investment funds established by DIEZA;
20. hold trade exhibitions and events; conduct marketing activities;
organise conferences; and establish representative offices, within and outside
of the Emirate, with a view to promoting the Integrated Economic Zones; and
21. exercise any other duties or powers required for the achievement of
the objectives of DIEZA.
The organisational structure of DIEZA will be comprised of:
1. the Chairman; and
2. the executive body.
a. DIEZA will have a Chairman appointed pursuant to a decree issued by
the Ruler.
b. The Chairman will undertake general supervision of DIEZA. For this
purpose, the Chairman will have the duties and powers to:
1. approve the general policy and the strategic plans of DIEZA;
2. approve the annual draft budget and Financial Statements of DIEZA;
3. approve fees and charges for the services provided by DIEZA, in
accordance with the Legislation in force;
4. approve the financing and borrowing plans
and programmes
required for running the business of DIEZA , subject to the
Legislation in force in the Emirate; and
5. exercise any other duties or powers assigned to him by the Ruler.
c. The Chairman may delegate any of the powers vested in him pursuant
to paragraph (b) of this Article to the Executive Chairman, provided that such
delegation is specific and in writing.
a. The executive body of DIEZA will be comprised of the Executive
Chairman and a number of administrative, finance, and technical employees.
b. The rights, duties, and terms of employment of the employees of the
executive body of DIEZA will be determined pursuant to the relevant regulation
issued by the Chairman for this purpose.
a. An Executive Chairman will be appointed to DIEZA pursuant to a
decree issued by the Ruler upon the recommendation of the Chairman.
b. The Executive Chairman will, under the supervision of the Chairman,
manage DIEZA in accordance with the provisions of this Law, the resolutions
issued in pursuance hereof, and the Legislation in force in the Emirate;
and supervise the achievement of the objectives for which DIEZA is established. In particular, the
Executive Chairman will have the duties and powers to:
1. propose the general policy and strategic plans of DIEZA; submit the
same to the Chairman for approval; and take all actions required for their implementation
upon approval;
2. approve the strategic and operational plans,
and the work programmes, of DIEZA;
3. propose, in coordination with the competent entities in the
Emirate, the master plan of the Integrated Economic Zones; and submit the
same to the Chairman for approval;
4. prepare the annual reports on implementation of the strategies,
plans, and objectives of DIEZA, including financial reports and performance reports; and
submit the same to the Chairman to issue the relevant directives as he deems appropriate;
5. approve the services, operations, projects, and activities of DIEZA;
6. approve the rules and procedures for the registration and licensing
of establishments within the Integrated Economic Zones;
7. approve fees and charges for the services provided by DIEZA, and
submit the same to the Chairman for final approval, in accordance with the
relevant Legislation in force;
8. prepare the draft annual budget and Financial Statements of DIEZA,
and submit the same the Chairman or approval;
9. approve the organisational structure of DIEZA;
10. appoint auditors and determine their remuneration;
11. approve the resolutions and bylaws regulating the administrative,
financial, and technical work of DIEZA;
12. supervise the executive body of DIEZA and audit its administrative,
technical, and financial performance;
13. propose the financing and borrowing plans and programmes required
for running the business of DIEZA, and submit the same to the Chairman for
approval;
14. open, manage, and close DIEZA accounts with banks and financial
institutions, in accordance with the Legislation in force in the Emirate;
15. represent DIEZA before third parties and conclude the contracts and
agreements required for the achievement of the objectives of DIEZA; and
16. exercise any other duties or powers required for the achievement of
the objectives of DIEZA, as assigned or delegated to him by the Chairman.
c. The Executive Chairman may delegate any of the powers vested
in him pursuant to paragraph (b) of this Article to any of the DIEZA employees,
provided that such delegation is specific and in writing.
The financial resources of DIEZA will consist of:
1. movable and immovable property allocated to DIEZA by the
Government;
2. the fees and charges collected by DIEZA in return for the
activities it conducts and the services it provides;
3. returns on investment of the property of DIEZA; and
4. grants, gifts, donations, and any other resources approved by the
Chairman.
a. DIEZA will have an Independent Budget which reflects its actual
financial position.
b. In managing its accounts and financial records, DIEZA will apply
the rules and principles of commercial accounting in accordance with the
relevant internationally recognised standards.
c. The Financial Year of DIEZA will commence on 1 January and will end
on 31 December of each year, except that the first Financial Year will commence
on the date on which this Law comes into force and will end on 31 December of
the same year.
All Government Entities in the Emirate must fully cooperate with
DIEZA to enable it to perform the duties assigned to it under this Law, the
resolutions issued in pursuance hereof, and other Legislation in
force in the Emirate.
The following acts and activities are prohibited within the
Integrated Economic Zones:
1. any act or activity that conflicts with the terms of the
licences issued to Licensed Establishments or with the Legislation in force in
the Emirate; and
2. any act or activity that conflicts with public order or morality.
a. All commodities of whatever origin, whether national or foreign,
will be admitted to the Integrated Economic Zones.
b. Notwithstanding the provisions of paragraph (a) of this Article, it
is prohibited to bring the following commodities, or to trade in them, in the Integrated
Economic Zones:
1. spoiled commodities;
2. commodities violating commercial, industrial, literary, artistic,
and intellectual property protection laws, including the laws and rules related
to trademarks, patents, copyrights, and design rights;
3. commodities prohibited by the UAE or the Government;
4. commodities 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;
5. military commodities and ammunition, except those in respect of
which a permit is issued by the competent authority in the Emirate; and
6. commodities, services, and products in which trading is prohibited
in the UAE pursuant to the legislation in force.
a. Commodities 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 commodities.
b. Commodities kept or stored in the Free Zone, and those used in any process
within the Free Zone, will be exempt from customs duties.
c. Commodities exported from the Free Zone to the customs zone in the
Emirate will be deemed as if imported from abroad for the first time, and
customs duties will apply to such commodities in accordance with the provisions
of the relevant customs tariff in force.
Without prejudice to the federal tax legislation in force in the
UAE, Licensed Establishments operating in the Free Zone, and their respective
employees, will be subject to zero (0) tax rate for fifty (50) years from the
effective date of this Law. The said period will be renewable for the same
period pursuant to a resolution of the Ruler. The zero (0) tax rate will apply
to:
1. all taxes, including income tax, in relation to their operations within the Free Zone; and
2. taxes imposed on the transfer of assets, profits, salaries, or
wages to any party outside of the Free Zone; and the profits generated from the
merger, demerger, or change of legal form of the Licensed
Establishments.
Without prejudice to applicable legislation and
the
international treaties and conventions to which the UAE is a party or an
acceding party, the DIEZA Establishments, the Licensed
Establishments operating in the Free Zone, and their employees
will be exempt from all restrictions on the transfer of share capital, profits,
or wages in any currency to any destination outside the Free Zone. 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
effective date of this Law.
Neither Licensed Establishments, 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
Integrated Economic Zones.
Licensed Establishments may, at their own discretion, employ or
hire any person to perform their work, provided that this person is not a
subject of any country which is politically or economically boycotted by the
UAE.
Neither DIEZA nor Licensed Establishments will, in relation to
their operations in the Free Zone, be subject to the Legislation, authority, or
powers of the Dubai Municipality or the Department of Economic Development. This
will not apply to the Legislation related to public health and safety, the
environment, and food control; or to the Legislation that expressly stipulates
that it is applicable to free zones.
Sole proprietorships and commercial companies will be established
within DIEZA pursuant to the regulations and resolutions adopted
by
DIEZA. These establishments and companies may be owned by one
or more natural or legal persons, regardless of whether these persons are UAE
or non-UAE nationals.
a. No persons or entities may conduct any Activity within the Free Zone
unless they are licensed by DIEZA to conduct that Activity.
b. Establishments will be licensed to operate in the Free Zone; all
the rules regulating their business, including their incorporation,
registration, and governing requirements and rules, will be determined; the
regulations governing their liquidation will be established; and any other
relevant matters will be determined, pursuant to the relevant regulation
approved by the Chairman.
c. The branches of companies and
establishments will be licensed to operate in the Free Zone,
and
all the rules regulating their business will be determined, pursuant to the
relevant regulation approved by the Chairman.
a. The name of a Licensed Establishment operating in the Free Zone
must, in all its transactions, contracts, advertisements,
invoices, correspondence, and publications, end with an indication that it is a
free zone establishment and a statement of its legal form.
b. Where the owner of a Licensed Establishment operating in the Free
Zone fails to comply with paragraph (a) of this Article, he will be personally
liable to settle the obligations of the Licensed Establishment from all his
movable and immovable property.
No Licensed Establishment may assign the licence issued to it by
DIEZA to any other party or entity without first obtaining the written approval
of DIEZA.
a. Neither the Government nor the ICD will be liable to third parties
for any debts or obligations claimed from DIEZA or DIEZA Establishments. DIEZA
will be solely liable for such debts or obligations.
b. Neither DIEZA nor its authorised representatives will be liable to
third parties for the obligations of Licensed Establishments or of their
employees.
Except in cases of fraud and gross fault, neither the Chairman, nor
the Executive Chairman, nor any of the employees of the executive body of DIEZA
will, in the course of managing DIEZA and its operations, be liable to third parties
for any act or omission committed by him in connection with this management. DIEZA will
be solely liable to third parties for any such act or
omission.
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 DIEZA. This
bylaw will also determine the entity authorised to impose and enforce these
penalties.
a. DIEZA employees nominated pursuant to a resolution of the Executive
Chairman 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 monitor and supervise Licensed
Establishments and their employees, and the activities and
business conducted within the Integrated Economic Zones; issue the necessary
violation reports; and, where necessary, seek the assistance of police
personnel.
b. The law enforcement capacity, referred to in paragraph (a) of this
Article, will be granted in accordance with the provisions of the
above-mentioned Law No. (8) of 2016 and the resolutions issued in pursuance
thereof.
DIEZA may delegate any of its functions under this Law to any
public or private entity pursuant to an agreement concluded with that entity in
this respect. This agreement will determine the rights and obligations of the parties
thereto, and will include any other relevant
provisions.
a. DIEZA is hereby deemed the legal successor of the Dubai
International Airport Free Zone Authority and the Dubai Silicon Oasis Authority. All the rights and
obligations of the Dubai International Airport Free Zone
Authority and the Dubai Silicon Oasis Authority are hereby
transferred to DIEZA, particularly:
1. all the functions assigned to the Dubai International
Airport Free Zone Authority and the Dubai Silicon Oasis Authority under the
Legislation applicable to them;
2. the ownership of
their
real property, movables, assets, equipment, devices, and other movable and
immovable property, including granted land; bank deposits and
accounts; bonds; term deposits; trust and loan accounts; all ownership
and
other property rights; lease contracts;
the guarantees related to land use and development (Musataha) agreements; undertakings; all other contracts,
agreements, and memoranda of understanding concluded with third
parties, inclusive of the rights and
obligations stipulated therein; and all shares, reserves, and revenues. DIEZA
may, in accordance with the relevant rules adopted by it, transfer the said
rights and obligations to any of DIEZA Establishments; and
3. all the work undertaken by the Dubai International
Airport Free Zone Authority and the Dubai Silicon Oasis Authority; and all the
commodities and services required for the continuity of operations within the
Integrated Economic Zones This includes licences, buildings,
machinery, equipment, and ongoing contracts and agreements,
inclusive of the rights and obligations in respect of the same.
b. Prior to the transfer of the rights and obligations referred
to
in paragraph (a) of this Article, DIEZA must register with the Federal Tax
Authority for purposes of the Value Added Tax, in accordance with the
conditions and requirements stipulated in the above-mentioned Federal Law by
Decree No. (8) of 2017, Cabinet Resolution No. (52) of 2017, and the
resolutions issued in pursuance thereof.
c. The Dubai International Airport Free Zone and Al Qusais Industrial
Area will continue to operate as Designated Zones in accordance with the
above-mentioned Federal Law by Decree No. (8) of 2017, Cabinet Resolution No.
(52) of 2017, and Cabinet Resolution No. (59) of 2017; and the resolutions
issued in pursuance thereof. The succession and transfer stipulated in this
Article may not affect the business of these two zones.
d. All employees of the Dubai International Airport Free Zone
Authority and the Dubai Silicon Oasis Authority will be transferred
to DIEZA. The Executive Chairman may, in accordance with the applicable
regulations, second any of these employees to any of the DIEZA Establishments
without prejudice to the employees’ existing rights.
e. Effective as of the date of issuance of this Law and until its effective
date, the Dubai International Airport Free Zone Authority and the Dubai
Silicon Oasis Authority will continue to exercise the duties and powers
vested
in them, including sovereign and non-sovereign
acts,
for purposes of satisfying all procedures, requirements, and rules relating to succession
and transfer under this Article.
f. As of the effective date of this Law, DIEZA will, based
on the principle of business continuity and non-interruption, exercise the duties and powers
vested
in it under this Law; and undertake the sovereign and non-sovereign acts, the duties, the rights, and the obligations in
respect of which DIEZA has succeeded the
Dubai International Airport Free Zone Authority and the Dubai Silicon Oasis
Authority. DIEZA must comply with the rules, procedures, and requirements
stipulated in the above-mentioned Federal Law by Decree No. (8) of 2017,
Cabinet Resolution No. (52) of 2017, and the resolutions issued in pursuance
thereof.
The Chairman will issue the resolutions required for the
implementation of the provisions of this Law.
a.
Pursuant to this Law,
the following Legislation is repealed:
1. Law No. (16) of 2005 Concerning the Dubai Silicon Oasis;
2. Law No. (3) of 2009 Transferring the Ownership of the Dubai International
Airport Free Zone to the Investment Corporation of Dubai;
3. Law No. (4) of 2009 Transferring the Dubai Silicon Oasis to the
Investment Corporation of Dubai;
4. Law No. (25) of 2009 Concerning the Dubai International Airport
Free Zone;
5. Decree No. (4) of 2000 Appointing the Chairman of the Dubai
International Airport Free Zone Authority;
6. Decree No. (30) of 2005 Appointing the Chairman of the Dubai
Silicon Oasis Authority;
7. Decree No. (31) of 2005 Appointing the Vice Chairman of the Dubai
Silicon Oasis Authority; and
8. Decree No. (32) of 2016 Amalgamating Two Land Plots into the Dubai International
Airport Free Zone.
b.
Any provision in any
other Legislation will be repealed to the extent that it contradicts the
provisions of this Law.
c.
The resolutions,
bylaws, and regulations issued in implementation of the Legislation mentioned
in paragraph (a) of this Article will continue in force, to the extent that
they do not contradict this Law, until new superseding resolutions, bylaws, and
regulations are issued.
This Law will be
published in the Official Gazette and will come into force on 1 January 2022.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai
on 14 September 2021
Corresponding to 7 Safar 1443 A.H.
©2021 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.