Law
No. (3) of 2020
Concerning
the
Dubai
Multi Commodities Centre[1]
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We,
Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (3) of
2003 Establishing the Executive Council of the Emirate of Dubai;
Law No. (11) of
2006 Establishing the Investment Corporation of Dubai and its amendments;
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;
The Resolution Establishing the
Dubai Multi Commodities Centre,
issued on 1 May 2002, and its amendments; and
Regulation No.
(4) 2002 Regulating Work at the Dubai Multi Commodities Centre and its
amendments,
Do hereby issue
this Law.
This
Law will be cited as “Law No. (3) of 2020 Concerning the Dubai Multi Commodities Centre”.
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. |
|
Executive Council: |
The Executive Council of the Emirate
of Dubai. |
|
ICD: |
The Investment Corporation of Dubai. |
|
DMCC: |
The Dubai Multi Commodities Centre. |
|
DMCCA: |
The Dubai Multi Commodities Centre
Authority. |
|
Board of Directors: |
The board of directors of the DMCCA. |
|
Executive Chairman: |
The executive
chairman of the DMCCA. |
|
Commodities: |
Any natural substances; animal, agricultural, or
industrial products; gold; diamonds
and other precious stones; or other metals. |
|
DMCC Establishments: |
Sole proprietorships and all types of
commercial companies licensed to operate within the DMCC pursuant to this Law
and the resolutions issued in pursuance hereof. |
|
Activity: |
Any commercial, industrial, artisan, professional,
or service activity related to Commodities or to Services; or other activity authorised in
the DMCC in accordance with this Law and the resolutions issued in pursuance
hereof. |
This Law will apply to:
1.
the
DMCC established pursuant to the above-mentioned Resolution
issued on 1 May 2002 as a free zone. The Plans attached to this Law specifies the location, area, and
boundaries of the DMCC; and
2.
the
DMCCA, as a public authority having legal personality, financial and
administrative independence, and the legal capacity required to undertake all
acts and dispositions that ensure the achievement of the DMCC objectives. The DMCCA is hereby
affiliated to the ICD.
The DMCC aims to:
1.
promote
the Emirate as a regional and international hub for Commodities trading, and
for commercial and Islamic finance, in accordance with the legislation in force
in the Emirate and applicable to the DMCC;
2.
contribute
to implementing the strategic priorities of the Government with a view to enhancing the
economic growth of the Emirate;
3.
contribute
to attracting local and international investments and commercial companies and
corporations to set up business and invest in the DMCC; and
4.
boost
the competitive edge of the Emirate in the field of Commodities trading in general, and precious
metals trading in particular.
The DMCCA will supervise the DMCC. For
the purpose of achieving the objectives of the DMCC, the DMCCA will have the
duties and powers to:
1.
establish,
develop, and manage, in coordination with the concerned entities in the
Emirate, the infrastructure and administrative services within the DMCC; and
undertake the construction of residential, commercial, and hotel buildings and facilities whether
by itself or through real estate developers;
2.
determine
the Activities which are authorised within the DMCC, and establish the rules,
conditions, requirements, and procedures for licensing these Activities;
3.
license,
regulate, control, and supervise the
construction works performed within the DMCC;
4.
register
and license DMCC Establishments in accordance with the provisions of this Law
and the resolutions issued in pursuance hereof;
5.
regulate
the liquidation and bankruptcy of DMCC Establishments, including by prescribing the liquidation and bankruptcy procedures related to handling
assets, payables, liabilities, set-off, and close-out netting rights; as well as restructuring procedures;
6.
monitor
and inspect DMCC Establishments and their Activities to verify their compliance
with the provisions of this Law and the resolutions issued in pursuance hereof;
7.
establish
corporations and companies solely or in partnership with others, within or outside of
the DMCC;
8.
establish,
regulate, and operate physical and digital Commodities markets, in accordance
with the legislation in force in the Emirate;
9.
establish
professional associations and committees and organise events related to the
DMCC’s Activities;
10.
oversee
rough diamond trade in coordination with the concerned local and federal
authorities and in accordance with the provisions of international agreements
and conventions to which the UAE is a party;
11.
examine,
certify, and calibrate diamonds, gold, and precious stones; and verify the
authenticity of the relevant certificates and documents;
12.
authorise
DMCC Establishments 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;
13.
amicably
settle labour disputes and the disputes related to the operations of DMCC Establishments;
14.
enter
into agreements and memoranda of understanding with dispute resolution centres;
15.
allow
DMCC Establishments, in coordination with the concerned federal entities and in
accordance with the legislation in force in the Emirate, to provide commercial,
media, banking, and insurance services within the DMCC;
16.
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;
17.
cooperate
and coordinate with local, federal, regional, and international entities,
including other free zones’ authorities, to ensure achievement of the DMCC
objectives; and
18.
exercise
any other duties or powers required for the achievement of the DMCC objectives.
The
organisational structure of the DMCCA will be comprised of:
1.
the
Board of Directors; and
2.
the
executive body.
The DMCCA will have a Board of Directors
comprised of a chairman, a vice chairman, and a number of experienced and
specialised members appointed pursuant to a decree of the Ruler.
a.
The
Board of Directors will undertake general supervision of the DMCCA. For this
purpose, the Board of Directors will have the duties and powers to:
1.
approve,
and supervise the implementation of, the policies and strategic and operational plans of the
DMCCA;
2.
approve
the services, business, projects, and Activities that the DMCCA intends to
undertake;
3.
approve
borrowing and financing programmes proposed by the Executive Chairman, subject
to the legislation in force in the Emirate; and submit the same to the
competent entity in the Emirate for final approval;
4.
approve
the organisational structure of the DMCCA;
5.
appoint
auditors and determine their annual remuneration;
6.
approve
the draft annual budget and financial statements of the DMCCA; and submit the
same to the competent entity in the Emirate for final approval;
7.
approve
fees and charges for the services provided by DMCCA, and submit the same to the
competent entity in the Emirate for final approval;
8.
approve
the resolutions and bylaws regulating the administrative, financial, and
technical work of the DMCCA;
9.
approve
the rules and procedures for licensing and registration of DMCC Establishments;
10.
approve
the regulations related to the liquidation
and bankruptcy of DMCC Establishments, and the regulations required for
facilitating the trade
and exchange of Commodities;
11.
conduct
annual reviews of the performance reports of the DMCCA, and take the necessary
action in respect thereof;
12.
approve
investment and expansion plans, and submit the same to the ICD to take the action
it deems appropriate in respect thereof; and
13.
exercise
any other duties or powers assigned to it by the Ruler or the Chairman of the
Executive Council.
b.
The
Board of Directors may delegate any of the powers stipulated in sub-paragraphs (a)(7), (a)(8),
(a)(9), and (a)(10) of this Article to the Executive Chairman, provided that such
delegation is specific and in writing.
a.
The
Board of Directors will convene at the invitation of its chairman, or vice chairman if the chairman is
absent, at least once every month, and where necessary. Meetings of the Board
of Directors will be valid if attended by the majority of its members, provided
that its chairman or vice chairman is in attendance.
b.
Resolutions
and recommendations 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.
c.
Meeting proceedings, resolutions, and recommendations of the Board
of Directors will be
recorded in minutes signed by the chair of the meeting and attending members.
d.
The
chairman of the Board of Directors will appoint, from among the DMCCA
employees, a rapporteur to the Board of Directors. The rapporteur will be responsible
for sending meeting invitations, preparing meeting agendas, recording minutes
of meetings, following up the implementation of the Board of Directors
resolutions and recommendations, and performing any other duties assigned to
him by the chairman of the Board of Directors.
e.
The
Board of Directors may invite experts and specialists, as it deems appropriate,
to attend its meetings. These experts and specialists will not have a vote in
the deliberations of the Board of Directors.
f.
The
vice chairman of the Board of Directors will act as its chairman where the chairman is absent or
becomes incapable of performing his duties.
a.
The
executive body of the DMCCA 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 the DMCCA will be determined pursuant to the relevant regulation issued by
the Board of Directors for this purpose.
a.
An
Executive Chairman will be appointed to the DMCCA pursuant to a resolution of
the Chairman of the Executive Council.
b.
The
Executive Chairman will, under the supervision of the Board of Directors,
manage the DMCCA 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 strategic and operational plans, of the DMCCA; submit the same
to the Board of Directors for approval; and take all actions
required for their implementation upon approval;
2.
propose
the services, business, projects, and Activities that the DMCCA intends to
perform; and submit the
same to the Board of Directors for approval;
3.
propose
the organisational structure of the DMCCA, and submit the same to the Board of
Directors for approval;
4.
propose
fees and charges for the services provided by the DMCCA, and submit the same to
the Board of Directors for approval;
5.
prepare
the draft annual budget and financial statements of the DMCCA, and submit the
same to the Board of Directors for approval;
6.
propose
resolutions regulating the administrative, financial, and technical work of the
DMCCA; and submit the same to the Board of
Directors for approval;
7.
approve
rules and procedures for the registration and licensing of the DMCC
Establishments, and submit the same to the Board of Directors for approval;
8.
propose
the regulations related to the liquidation
and bankruptcy of DMCC Establishments, and the regulations required for
facilitating the trade
and exchange of Commodities;
and submit the same to the Board of Directors for approval;
9.
propose
the borrowing programmes required to obtain the financing that enables the DMCC
to achieve its objectives, and submit the same to the Board of Directors for
approval;
10.
issue
the resolutions required for maintaining a register for the licensing of DMCC
Establishments and any other
registers that are relevant to the work of the DMCCA;
11.
supervise
the work of the DMCCA executive body employees;
12.
open
and manage bank accounts subject to the legislation in force in the Emirate;
13.
represent
the DMCCA before third parties, and conclude the contracts and agreements
required for the achievement of the objectives of the DMCC; and
14.
exercise
any other duties or powers required for the achievement of the objectives of
the DMCC, as assigned or delegated to him by the Board of Directors.
c.
The
Executive Chairman may delegate any of his powers under sub-paragraphs (b)(10) and (b)(13) of this
Article to any of the DMCCA employees, provided that such delegation is
specific and in writing.
The financial resources of the DMCCA
will consist of:
1.
movable
and immovable property allocated to the DMCCA by the Government;
2.
fees
and charges collected by the
DMCCA in return for the Activities it conducts and the services it provides;
3.
returns
on investment of the property of the DMCCA; and
4.
gifts,
donations, and other resources approved by the Board of Directors.
a.
The
DMCCA will have an independent budget which reflects its actual financial
position.
b.
In
organising its accounts and financial records, the DMCCA will apply the rules
and principles of commercial accounting in accordance with the relevant
internationally accepted standards.
c.
The
financial year of the DMCCA will commence on 1 January and will end on 31
December of each year.
All Government Entities in the Emirate
must fully cooperate with the DMCCA to enable it to perform the duties assigned
to it under this Law and the resolutions issued in pursuance hereof.
The following activities will be prohibited
within the DMCC:
1.
any
activity that conflicts with the terms of the licences issued to DMCC
Establishments or with the legislation in force in the Emirate; and
2.
any
activity that conflicts with public order or morality.
a.
All
Commodities of whatever
origin, whether national
or foreign, will be admitted to the DMCC.
b.
Notwithstanding
the provisions of paragraph (a) of this Article, it is prohibited to bring the
following Commodities into the DMCC or to trade in them within the DMCC:
1.
spoilt
commodities;
2.
commodities
violating commercial, industrial, literary, artistic, and intellectual property
protection laws, including the laws and rules related to trade marks, 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 DMCC, 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
stored in the DMCC, or used in any operations
within the DMCC, will be exempt from customs duties.
c. Commodities exported from the
DMCC 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 Commodities
in accordance with the customs tariff provisions in force.
Without prejudice to applicable
legislation in the UAE, DMCC Establishments and their employees will be exempt
from all taxes, including income tax, in respect of their operations in the
DMCC; and will be exempt from any restrictions on the transfer of share
capital, profits, or wages in any currency to any destination outside the DMCC.
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 establishments or their employees commence work.
Neither DMCC 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 DMCC.
DMCC 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.
a.
Neither
the DMCC nor DMCC Establishments will, in relation to their operations in the DMCC, be governed by 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.
b.
The
DMCCA may, as it deems appropriate, seek assistance from Government Entities in the Emirate and other free
zones, and benefit from their programmes and systems in licensing DMCC
Establishments. These programmes and systems will be implemented in accordance
with the bylaws applicable within the DMCC. Licences issued to DMCC
Establishments in cooperation with the concerned Government Entities will be
deemed as if issued by the DMCCA.
Sole proprietorships and commercial
companies will be established within the DMCC pursuant to the regulations and resolutions that are
applicable in the DMCC. DMCC Establishments may be owned by one or more natural
or legal persons, regardless of whether these persons are UAE or non-UAE
nationals.
a.
No
person or entity may conduct any Activity within the DMCC unless it is licensed
by the DMCCA to conduct that
Activity.
b.
DMCC
Establishments will be licensed in accordance with a regulation approved by the
Board of Directors in this regard. This regulation will prescribe all rules
governing the business of DMCC Establishments, including their incorporation
and registration; and will stipulate all requirements and rules applicable to
them. It will also regulate the liquidation of DMCC Establishments as well as
any other matters related to them.
a.
In
all its transactions, contracts, advertisements, invoices, correspondence, and
publications, the name of a DMCC Establishment must end with an indication that
it is a free zone establishment, and must state its legal form.
b.
Where
the owner of a DMCC Establishment fails to comply with paragraph (a) of this
Article, he will be personally liable to settle the DMCC Establishment’s obligations from all his
moveable and immoveable property.
a.
Neither
the Government nor the ICD will be liable to third parties for any debts or
obligations claimed from the DMCCA or its affiliates. The DMCCA will be solely
liable for such debts or obligations.
b.
Neither
the DMCCA nor its authorised representatives will be liable to third parties
for the obligations of DMCC Establishments or of their employees.
Except in cases of fraud and gross
fault, neither the Board of Directors, nor the Executive Chairman, nor any of
the employees of the DMCCA executive body will be liable to third parties for
any act or omission they commit in the course of managing the DMCCA and its
operations. The DMCCA will be solely liable to third parties for such an act or
omission.
No
DMCC Establishment may assign the licence issued to it by the DMCCA to any
other party or entity without first obtaining the written approval of the
DMCCA.
The
Board of Directors 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
DMCCA. The bylaw will also specify the entity authorised to impose and enforce
such penalties.
a.
DMCCA
employees and inspectors 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
DMCC Establishments and their activities and business; 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.
The DMCCA 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. This agreement will determine the
rights and obligations of the parties thereto.
Subject to liability, the records and
information of DMCC Establishments will be treated as confidential, and may not be divulged or disclosed to
third parties unless pursuant to the legislation in force in the UAE and
the regulations, bylaws, and resolutions adopted by
the DMCCA.
The Board of Directors will issue the
resolutions required for the implementation of the provisions of this Law.
a.
The
above-mentioned Resolution
issued on 1 May 2002 and Regulation No. (4) of 2002 are hereby repealed. Any
provision in any other legislation will also be repealed to the extent that it
contradicts the provisions of this Law.
b.
The
resolutions, bylaws, and regulations applicable to the DMCC 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 the day on which it is
published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 14 February 2020
Corresponding to 20 Jumada al-Thaniyah 1441 A.H.
©2020 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.