Law
No. (8) of 2006
Establishing
the
Dubai
Aviation Corporation in Jebel Ali[1]
ـــــــــــــــــــــــــــــــــــــــــــــــ
We, Mohammed bin Rashid Al Maktoum,
Ruler of Dubai, do hereby issue this Law.
This Law will be cited as “Law No.
(8) of 2006 Establishing the Dubai Aviation Corporation in Jebel Ali”.
The following words and expressions, wherever mentioned in this Law, will
have the meaning indicated opposite each of them unless the context implies
otherwise:
|
Emirate: |
The Emirate of Dubai. |
|
Ruler: |
His Highness the Ruler of the Emirate of Dubai. |
|
Government: |
The Government of Dubai. |
|
DACJA: |
The Dubai Aviation Corporation in Jebel Ali. |
|
Board of Directors: |
The board of directors of the DACJA. |
|
Chairman: |
The chairman of the DACJA. |
|
Affiliated Entity: |
A company or corporation which is licensed to
operate in the JAIAC and in which the DACJA holds no less than ten percent
(10%) of the capital. |
|
JAIAC: |
The Jebel Ali International Airport City whose boundaries
and
landmarks are demarcated in Plan
(1) attached to this Law. |
|
Airport: |
The JAIAC-based Jebel Ali International Airport. |
|
Free Zone: |
The free zone within the JAIAC, whose boundaries
and landmarks are
demarcated in Plan (2) attached to this Law. |
|
JAIAC Zones: |
The Airport, the Free Zone, and non-free zones within
the JAIAC. |
|
Sole Proprietorship or Company: |
A sole proprietorship or company licensed to operate
in the JAIAC. |
Chapter
Two
Establishment of the JAIAC, the Free
Zone, and the DACJA and
Objectives of the DACJA
Pursuant
to this Law, the following entities are established:
1. a city named as “Jebel Ali International
Airport City” divided into zones that include the Airport, the Free Zone, and
non-free zones as demarcated in the plans attached to this Law; and
2. a public corporation wholly owned by the
Government named as “Jebel Ali International Airport Corporation” established
for the purpose of owning, and managing the affairs of, the JAIAC. The DACJA
will have financial and administrative autonomy, and the full legal capacity to
conclude all contracts and undertake all dispositions. It may sue and be sued
in its own name, and may delegate any natural or legal person to represent it
or represent Affiliated Entities in judicial claims and proceedings. The DACJA
will conduct its business on a commercial basis.
The JAIAC aims to:
1. keep up with the continuing growth witnessed
by the Emirate in air traffic and navigation, and in international transport;
2. attract international air carriers to base
their regional and international operations in the JAIAC;
3. attract passenger air transport and air freight
to the JAIAC with a view to establishing the JAIAC as an international hub for
air transport and navigation;
4. establish the JAIAC as a leading centre for
education, training, and research in the field of air navigation and transport;
5. attract business and encourage investment in
the JAIAC and its zones to promote the JAIAC as a competitive air navigation centre;
6. establish the JAIAC as an active player in promoting,
diversifying, and boosting the economic development of the Emirate;
7. promote international air passenger transport
and air freight services in the Emirate; and
8. establish the Emirate and the JAIAC as an
international hub for multi-modal transport.
Powers and Management of the DACJA
The DACJA
may perform all the work and duties that will enable it to achieve the
objectives of the JAIAC, including to:
1. design, construct, and develop the
infrastructure of the JAIAC Zones and the services required for, or related to,
these zones;
2. design, construct, and develop the air
navigation infrastructure and provide the relevant services in accordance with
the international agreements and the laws in force in the UAE. Such services
will include, without limitation:
a. passenger and luggage services;
b. air cargo services;
c. private flight services;
d. helicopter services;
e. air freight services;
f.
airliner
operation services;
g. aviation engineering services;
h. aviation-related research, development,
education, and training services;
i.
land
cargo and shipping services between seaports and airports;
j.
jet
fuel procurement, storage, and supply services;
k. storage, supply, distribution, and
re-distribution services;
l.
power
generation, transmission, and distribution services;
m. cooling services;
n. real property and facility management
services; and
o. labour supply and procurement services.
3. designate zones, land, real property, and facilities
to commercial, professional, residential, or industrial purposes, and lease or
sell the same in accordance with the provisions of this Law;
4. design, develop, supply, and maintain the
information technology, e-commerce, telecommunications, and media industries. The DACJA may also, pursuant to a resolution
of the Board of Directors, conclude agreements with third parties to establish
companies or joint ventures; and
5. to the extent that investments do not conflict
with the main objective of the DACJA, invest the assets of the DACJA in
commercial, industrial, financial, or services activities, or in other activities
as the Board of Directors deems appropriate to increase such assets and
generate profit for the DACJA.
1. A Chairman, a chief executive officer (“CEO”),
and a Board of Directors will be appointed to the DACJA. The Chairman will be
appointed pursuant to a decree issued by the Ruler, and the CEO and the members
of the Board of Directors will be appointed pursuant to a resolution of the Chairman.
2. The Chairman will issue a regulation governing
the formation of the Board of Directors, its tenure, and the procedures for
holding its meetings and passing its resolutions.
The Chairman will have the duties to:
1. approve, and supervise the implementation of, the
strategic plans and general policy of the DACJA, and approve its development
plans;
2. approve the regulatory, administrative, and
financial bylaws of the DACJA and Affiliated Entities;
3.
supervise
the achievement of the objectives of the DACJA, and approve its work, projects,
and activities;
4. approve the draft general budget of the DACJA
submitted by the Board of Directors every financial year;
5. approve borrowing and obtaining finance by the
DACJA as required for performing its work and for achieving its objectives; approve
incurring any financial liabilities by the DACJA; or approve creating any interests,
rights, or encumbrances, including mortgages, in respect of the assets and
property of the DACJA and accept all relevant conditions; and
6. perform any other duties required for the proper
management of the DACJA.
1. The
Board of Directors will manage the DACJA under the supervision and control of
the Chairman.
2. The CEO of the DACJA will preside over the
Board of Directors and will undertake the executive management and
administration of the affairs of the DACJA in accordance with the bylaws and
regulations of the DACJA and the resolutions of the Board of Directors. The CEO
will represent the DACJA in all its dealings with third parties and before judicial
authorities, and will, upon request, provide the Chairman with all information
related to the DACJA, Affiliated Entities, or the JAIAC.
With respect to managing the affairs of the DACJA,
the JAIAC, and the Free Zone, the Board of Directors will have, without
limitation, the duties to:
1. DACJA Affairs:
a. develop the strategies, plans, policies,
and procedures required for the achievement of the objectives of the DACJA;
b.
develop and implement the rules and
regulations governing the work of the DACJA;
c.
develop the organisational,
functional, and financial structure of the JAIAC and Affiliated Entities;
d.
develop audit regulations and
systems, and the procedures required for operating the DACJA;
e.
prepare periodic and long-term
budgets, and submit these to the Chairman for approval;
f.
open and manage bank accounts within
and outside of the UAE, and obtain finance through available financing options.
For this purpose, the DACJA may conclude agreements with banks and financial
institutions; establish and hold shares in special-purpose vehicles to obtain
finance; and provide guarantees and undertakings or create mortgages as
required for such purpose;
g.
take appropriate measures and
conclude agreements with banks and financial institutions to protect the DACJA
against any financial risk resulting from fluctuations in interest and exchange
rates and in the price of goods or services;
h.
perform all transactions and
activities related to the DACJA’s business as required for the achievement of
its objectives, including engaging in commercial and industrial activities and
coordinating with local and federal government departments; international
organisations; and private organisations, entities, and companies in respect of
mutual interest matters with a view to achieving the objectives and goals of
the DACJA;
i.
establish corporations and companies
solely or with other persons; invest in, enter into partnership with, hold
shares in, forge mergers with, or acquire shares or stocks in, companies,
agencies, or institutions engaged in the same or similar activities as those of
the DACJA or in activities which help the DACJA achieve its objectives within
and outside of the UAE;
j.
establish branches and offices of the
DACJA within or outside of the UAE; and
k.
take any other measures required for
the achievement of the objectives of the DACJA.
2.
JAIAC Affairs:
a.
construct the infrastructure that
supports the work of Affiliated Entities and Sole Proprietorships or Companies;
b.
own and take lease of the movable
and immovable property as required for the achievement of the objectives of the
JAIAC;
c.
invest and dispose of property by
any legal disposition, including by executing sale and lease contracts for
land, real property, and units of the JAIAC;
d.
regulate work and activities within
the JAIAC;
e.
impose and collect fees and
commissions for the services provided in the JAIAC;
f.
organise or participate in
exhibitions, conferences, and other events related to air navigation; and
g.
provide all services that are
related to or in line with the objectives of the JAIAC.
3. Free Zone Affairs:
a.
develop and implement the rules and
regulations governing the work of Sole Proprietorships or Companies;
b.
develop the rules and conditions
governing the issuance of licences and the registration of Affiliated Entities
and Sole Proprietorships or Companies;
c.
audit and regulate the activities of
Affiliated Entities and Sole Proprietorships or Companies;
d.
upon request, provide establishments
within the Free Zone with personnel in accordance with this Law and the
regulations and bylaws issued in pursuance hereof;
e.
impose and collect fees for the
services provided in the Free Zone to Affiliated Entities and Sole
Proprietorships or Companies;
f.
impose fines and civil penalties on,
revoke the licences of, or deregister any Affiliated Entity or Sole
Proprietorship or Company that violates applicable laws, regulations, and
bylaws; and
g.
coordinate with other free zones to
achieve mutual interests.
Financial Resources of the DACJA
Article
(10)
The financial
resources of the DACJA
will consist of:
1. movable property allocated to the DACJA by the
Government;
2. revenue generated from the services and
facilities provided by the DACJA in the JAIAC;
3. proceeds from the lease or sale of the real
property of the JAIAC such as land and real property units;
4. registration, incorporation, and licensing
fees; renewal and variation fees of licences issued by the DACJA; and any other
fees or amounts collected by the DACJA in return for the services it provides
and the activities it performs;
5. profits generated by the DACJA, returns on its
investments, and profits and proceeds from the projects which it implements by
itself or through Affiliated Entities; and
6. financial support provided by the Government
or by third parties and approved by the Chairman which does not conflict with
the objectives of the DACJA and applicable laws.
The DACJA will be exempt from all taxes and
fees prescribed by the laws in force in the Emirate.
1.
The DACJA will have an independent budget
that reflects its actual financial position.
2.
In regulating its accounts and
records, the DACJA
will apply the rules and principles of commercial accounting in accordance with
recognised international standards.
3.
The accounts and records of the DACJA must be audited by a certified
audit firm appointed by the Chairman upon the recommendation of the Board of
Directors.
4.
The financial year of the DACJA will commence on 1 January and will
end on 31 December of each year.
5.
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.
The Financial Audit Department will audit the
accounts of the DACJA.
Chapter
Five
Free Zone
The location, boundaries, and landmarks of the
Free Zone established in the JAIAC pursuant to this Law are demarcated in Plan
(2) attached to this Law.
1.
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.
2.
Any legal entity referred to in
paragraph (1) of this Article will have a separate legal personality and an
independent financial liability. The liability of its owner will be limited to
the paid up capital.
1.
The name of a company established in
accordance with the preceding Article 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.
2.
In case of non-compliance with the
provisions of paragraphs (1) or (2) of this Article, the owner(s) of the
company will be personally liable to settle the company’s obligations from all
his/their
property.
An assignment of the licence issued by the DACJA
to any other party or entity will be null and void.
No bank or financial institution may conduct
any activity in the Free Zone unless so authorised and licensed by the UAE
Central Bank.
In the Free Zone, all commercial, financial,
industrial, and professional activities may be conducted,
all services may be provided, and all products and goods may be imported or
manufactured, except the following:
1.
services, products, activities, and goods violating intellectual, industrial,
literary, or artistic
property laws;
2.
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 morality;
3.
services, goods, and products which are boycotted or
prohibited in accordance with the laws in force in the UAE, or which conflict
with the bylaws and regulation of the Free Zone; and
4.
any activities or processes that
involve unfair competition or violate the laws and regulations in force in the
Free Zone.
The Board of Directors will, from time to
time, issue an updated list of the prohibited activities and goods under the legislation
in force.
The DACJA will be responsible for monitoring
and inspecting the activities of Free Zone establishments which are suspected
of violating the provisions of this Law or of any other legislation. Within the
Free Zone, the DACJA will, in cooperation with the competent departments, have
the audit, investigation, and law enforcement powers in respect of goods,
products, and activities that contravene intellectual property laws.
Goods brought into the Free Zone, or manufactured,
produced, developed, stored, or used therein, and those used in the manufacturing
of any product in the Free Zone, will be exempt from customs duties.
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.
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. They will also be exempt from any limitations on
capital, profit, or wage transfer in any currency and to any destination
outside of the Free Zone. This exemption will apply for a period of fifty (50)
years renewable once for the same period pursuant to a resolution of the Ruler.
Such period will commence on the day on which these natural or legal persons
commence their work in the JAIAC.
Throughout the period of their work within the
Free Zone, the property and activities of any natural or legal person working
in the Free Zone will not be subject to any nationalisation or confiscation
measures.
Chapter Six
Governing
Law and Competent Courts
1.
JAIAC Zones will be subject to this Law and any other laws in force in
the Emirate.
2.
With
the exception of laws and regulations relating to the environment, neither the
Free Zone nor any natural or legal entity working in the Free Zone may, with
respect to their operations in the Free Zone, be subject to the laws,
regulations, authorities, and powers granted to Dubai Municipality, the
Department of Economic Development, or the Rent Committee in the Emirate. The Chairman
may issue the regulations governing the exceptions stipulated in this Article.
3.
Free
Zone establishments will conduct their activities in accordance with the laws
in force in the Free Zone and in accordance with the licences issued to them under
these laws and regulations. Free Zone establishments may operate outside the
Free Zone for a period not exceeding four (4) years from the date this Law
comes into force, and in accordance with the terms and restrictions set by the DACJA.
For the purposes of this Article, the operations and activities performed
outside of the Free Zone will be deemed as if performed inside the Free Zone,
and will be subject to the laws and regulations in force in the Free Zone.
Dubai Courts will have exclusive jurisdiction to
hear claims arising out of, or in connection with, this Law.
Chapter Seven
Exemptions from Liability
The Government will not be liable for any
debts or liabilities of the DACJA or Affiliated Entities. The DACJA will not be
liable for any debts or liabilities of Affiliated Entities.
Neither the Chairman, nor the CEO, nor any
member of the Board of Directors will be personally liable for any obligations
arising from any act or omission related to exercising the powers vested in him
under this Law. The DACJA will be solely liable to third parties for such act
or omission.
Chapter Eight
General Provisions
All Government or semi-government departments,
corporations, and authorities in the Emirate, including the Dubai Municipality,
the Department of Economic Development, the Dubai Ports and Customs Corporation,
the Free Zone, and the Dubai Electricity and Water Authority, must fully
cooperate with the DACJA to enable it to achieve its goals and objectives.
The Chairman will issue a bylaw determining
the civil penalties prescribed for violating this Law, the regulations and
bylaws issued in pursuance hereof, or the terms of the licences issued by the
Authority. This bylaw will determine the entity authorised to impose and enforce
such penalties.
Any provision in any other local legislation
will be repealed to the extent that it contradicts the provisions of this Law.
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 March 2006
Corresponding to 14 Safar 1427 A.H.
Plan (1)
Plan (2)
©2016 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.