Although
Dubai
Companies approved for operation in Jebel Ali Free Zone are granted one of the following types of licences, renewable annually for as long as the company holds a valid lease from the Free Zone Authority:- A General Trading Licence allows the holder to import, distribute and store all items as per Jafza rules and regulations.
- A Trading Licence allows the holder to import, export, distribute and store items specified on the licence.
- An Industrial Licence allows the holder to import raw materials, carry out the manufacture of specified products and export the finished product to anycountry.
- A Service Licence allows the holder to carry out the services specified in the licence within the Free Zone. The type of service must conform to the parent company's licence, issued by the Economic Department or Municipality of the relevant Emirate in the UAE.
- A National Industrial Licence is designed for manufacturing companies with an ownership or shareholding of at least 51% AGCC (Arabian Gulf Co-operation Council).
Such establishments must have a capital of at least AED1 million and liability will be limited to the amount of paid-up capital. A FZE need only have a single shareholder and is an independent legal entity.
Any company, organization or individual wishing to form a Free Zone Establishment must submit a completed application form to the FZE Department of the Free Zone Authority. A decision on whether permission has been granted will be given within 30 days of receipt of the application and any other information and documentation required.
If permission is granted, the Authority will record all relevant details in the FZE Register and issue a Certificate of Formation. This will specify the date of registration after which the FZE will be free to conduct any such business as is permitted in its Special License.
In mid-2008, over one-quarter of
The Dubai Internet City is regulated by a law passed in 2000, and is formally known as Dubai Technology, Electronic Commerce and Media Free Zone. The privileges offered to its occupants are very similar to those applying in Jebel Ali. In line with
The Dubai International Financial Centre (DIFC) was launched in 2003 and began operations in late 2004. lt was intended to fill a significant gap in the market for international Shariah banking, fund management and life assurance. The proposed regulatory framework was published for industry consultation in June, 2003. Philip Thorpe, chief executive of the DIFC Regulatory Authority, explained that: "We have...made good use of our freedom to create a single, logical framework - in contrast to older-established jurisdictions, who often have to make (do) and mend within existing frameworks which may gradually become more complex and less relevant."
In July, 2003, the UAE Federal Cabinet approved a Federal Decree allowing the DIFC a large degree of sovereignty. In addition to confirming the appointment of General Sheikh Mohammed bin Rashid Al Maktoum, UAE Defence Minister and then-Crown Prince of
The DIFC has a separate set of laws called the Commercial Code, comprising a comprehensive set of regulations like company law, legislation on property rights, including laws on security and collateral, title to goods and securities, commercial transactions and contracts, and insolvency.
In January, 2004, the Dubai Financial Services Authority (DFSA) announced that 12 new laws relating to operations within the Dubai International Finance Centre (DIFC) had been put in place. Chief executive officer of the DFSA, Philip Thorpe explained that:
"The 12 new laws have been drafted by the DFSA to world-class standards, using the best examples of legislation from around the globe. They are clear and concise, and will provide certainty as to the rights and obligations of the financial institutions and other companies who will operate in or from the DIFC."
The laws (to which the DFSA has provided access on its website) are:
Regulatory Law;
Companies Law;
Law on the Application of Civil and Commercial Laws in the DIFC;
Law Relating to the application of DIFC Laws;
Limited Liability Partnership Law;
Contract Law;
Insolvency Law;
Arbitration Law;
Data Protection Law;
Commercial Court Law;
General Partnership Law; and
Markets Law.
In June 2005, five new laws dealing with legal obligations, employment and security interests in relation to the Dubai International Financial Centre were enacted.
The new legislation comprised:
- Employment Law No. 4 of 2005. This law provides for minimum employment practices comparable to established international standards, so as to promote fair treatment of employees and employers;
- Law of Obligations No. 5 of 2005. This law creates a framework for claimants to seek recovery for non-contractual claims and sets out the rules as to when obligations arise and how disputes involving them are resolved;
- Implied Terms in Contract and Unfair Terms Law No. 6 of 2005. This law provides for fairness and certainty in contracts governed by the laws of the DIFC by providing terms and conditions not normally included in contracts and assures the necessary framework for their enforcement;
- Law of Damages and Remedies No. 7 of 2005. This law creates the structures necessary to assure the recovery of damages and other forms of relief to claimants within the DIFC; and
- Law of Security No. 9 of 2005. This law defines various forms of security interests as collateral for repayment of debts and prescribes the process for their perfection and enforcement.
The Trust Law, DIFC Law No. 11 of 2005 followed closely the enactment in September of the Personal Property Law No. 9 of 2005, which defines the rights and obligations of parties in relation to property other than real estate (land and buildings) located in the DIFC, and the Law Relating to the Application of DIFC Laws (Amended and Restated) No. 10 of 2005.
In 2006, both the Companies Law and the Limited Partnerships Law were amended.
In February 2008, the new DIFC arbitration law was enacted by Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The new law facilitated the establishment of the the DIFC's Arbitration Centre and adopted the UNCITRAL Model Law, with amendments aimed at improving its provisions. The reform also widened the scope of arbitrations which the law governs, to include all types of arbitrations and parties opting to arbitrate at DIFC.
In November 2008, the DIFC released its proposed updates on Companies Law and Insolvency Law for public consultation.
The Companies Law has been updated to include the registration requirements laid down by the DIFC Registrar of Companies. The Insolvency Law has been updated to include changes in applications and procedures for winding up Protected Cell Company (PCC) structures used by insurers to provide an easy and cost-effective way for smaller organizations to establish captive insurance units.
Also in November 2008, the DIFC announced that it had enacted new regulations that enable companies within the financial district to quickly form Special Purpose Company (SPC) structures. The new regulations allow companies to create SPCs for facilitating both Islamic and conventional transactions as well as vessel registrations. Transactions that can be facilitated by the new law include acquisitions and financings. Under the law, Special Purpose Companies can be easily structured and incorporated, while enjoying exemptions from some filing and disclosure rules relating to conventional companies in DIFC.
Dubai
Amongst the incentives offered to companies operating within the Jebel Ali Free Zone, the DIC and the DIFC are:- Corporate Income Tax: No corporate income tax on profits. The exemption is for a period of 15 years with a guarantee of an extension for a further 15 years in the event that corporate income tax is introduced in
- Withholding Taxes: No withholding taxes.
- Import Duty: Exemption from all import duties on goods imported into the free trade zones. For all other imports, duties have been largely standardised at 5%.
Dubai
No personal income tax is deducted from wages and salaries paid to employees or on other income earned. See Domestic Personal Taxes for the general principles of individual taxation (or lack of it) in Dubai
There are no exchange controls in
Dubai
Citizens of GCC countries (Gulf Cooperation Council: The Dubai Naturalization & Residency Department (DNRD) issues different types of visas which are listed below.
1) 96 hour visa:
- Issued upon arrival at the airport
- Airline sponsored only
- Applicants should have onward booking
- Should have a minimum of 8 hour transit break
2.1 In case of Personal sponsorship:
- Fees: Dhs 100
- Entry permit application form with completed typed data
- Original Marriage certificate and copy of it, in case of wife sponsorship
- Salary Certificate; The monthly salary should not be less than Dhs. 4000 in case of wife
- sponsorship, and Dhs. 6000 in case of first relatives sponsorship.
- Copy of the Sponsor passport
- Copy of the Sponsored passport.
- Fees: Dhs 100
- Entry permit application form with completed typed data
- Establishment card and copy thereof
- Copy of the Sponsored passport.
- Fees: Dhs 100
- Original Entry Permit.
- Fees: Dhs. 500
- Original Entry permit
- Extension application form
- Original sponsored passport.
- Fees: Dhs. 120
- Establishment card
- Entry Permit Application form
- Copy of Sponsored passport.
- Fees: Dhs. 100
- Establishment card
- Statement of tourists data
A Residence Visa stamped on a passport proves the legal residence of an expatriate in the country. This visa is given to workers who have obtained work permits or for relatives living with them permanently, and additional documentation is required.
In June, 2004, the
"At present there is no federal law to govern foreign freehold ownership of property in
The DCCI deputy director general went on to announce that: "As part of our commitment to regulate the real estate sector, the
In March 2006, the long-awaited
In August 2006, the Dubai International Financial Centre Authority (DIFCA) published draft legislation that will allow foreign freehold ownership of property in the DIFC.
The laws published included the DIFC Real Property Law 2006 and the Strata Title Law 2006. The Real Property Law guarantees ownership of freehold land and interest in land within the DIFC. It will allow for foreign companies and individuals to hold freehold ownership of real estate within the Dubai International Financial Centre.
The Strata Title Law establishes a system of guaranteed freehold title to units in buildings in the DIFC. It is based on the system originally developed in
Consultation on the proposed laws ended in September 2006, and both laws were enacted in June 2007.
Dubai
The Jebel Ali Free Zone (JAFZ) was established in 1985 with the specific purpose of facilitating investment. Accordingly, the procedures for setting up in the zone are relatively simple. Its legal status is quite distinct: companies operating there are treated as being "offshore", or outside the UAE for legal purposes.The option of setting up in Jebel Ali is therefore most suitable for companies intending to use
100% foreign ownership is permitted in the JAFZ. There is exemption from all import duties and 100% repatriation of capital and profits is guaranteed.
There is freedom from corporate taxation for a period of 50 years, a concession which is renewable. There is a high level of administrative support from the Free Zone Authority. In addition, there are no import or re-export duties, no personal income taxes, no currency restrictions, and no restriction on hiring foreign employees.
Companies approved for operation in Jebel Ali Free Zone are granted one of the following types of licences, renewable annually for as long as the company holds a valid lease from the Free Zone Authority:
- A General Trading Licence allows the holder to import, distribute and store all items as per Jafza rules and regulations.
- A Trading Licence allows the holder to import, export, distribute and store items specified on the licence.
- An Industrial Licence allows the holder to import raw materials, carry out the manufacture of specified products and export the finished product to anycountry.
- A Service Licence allows the holder to carry out the services specified in the licence within the Free Zone. The type of service must conform to the parent company's licence, issued by the Economic Department or Municipality of the relevant Emirate in the UAE.
- A National Industrial Licence is designed for manufacturing companies with an ownership or shareholding of at least 51% AGCC (Arabian Gulf Co-operation Council).
Any company wishing to set up a project in Jebel Ali Free Zone must first complete a simple questionnaire. The license application process then takes place and will include a meeting to discuss and finalise the project details. If everything is satisfactory, the Authority will issue conditional approval for the project. Thereafter, a lease agreement and, if required, a personnel secondment agreement will be prepared by the Authority for signature by the company.
At the time of signing, the applicant will be required to provide the insurance policies called for in the agreements and should pay the agreed rental and licence fee prior to collection of the licence.
If the company wishes the Free Zone Authority to sponsor employees on its behalf, applications for entry permits may be submitted once the licence has been issued. The bank guarantee called for in the personnel secondment agreement will be required at this stage together with visa charges.
If the company's project involves the erection of a structure, detailed plans must be submitted after the lease has been signed. When the plans have been agreed, a building permit will be issued.
Administrative work, such as importing equipment or engaging labour for installation of equipment, may proceed in parallel with construction work. But application for entry permits for operatives to be sponsored by the Free Zone Authority will not normally be accepted until a completion certificate for the construction has been issued.
A Free Zone Establishment - or FZE - is an establishment formed and registered in Jebel Ali and regulated solely by the Free Zone Authority.
Such establishments must have a capital of at least AED 1 million and liability will be limited to the amount of paid-up capital. A FZE need only have a single shareholder and is an independent legal entity.
Any company, organisation or individual wishing to form a Free Zone Establishment must submit a completed application form to the FZE Department of the Free Zone Authority. A decision on whether permission has been granted will be given within 30 days of receipt of the application and any other information and documentation required.
If permission is granted, the Authority will record all relevant details in the FZE Register and issue a Certificate of Formation. This will specify the date of registration after which the FZE will be free to conduct any such business as is permitted in its Special Licence.
The free zone is the base for thousands of leading international firms, including many Fortune global companies from various sectors.
The Free Zone and Dubai Ports Authority (DPA) are inextricably linked, they are led by one chairman and share a strong, symbiotic relationship. The Free Zone is built around the DPA's Jebel Ali terminal, enabling customers to take full advantage of the port's ISO-certified container and general cargo operations. Specialized unloading facilities and purpose-built storage such as the cool and cold stores are also at the disposal of Free Zone companies. Jebel Ali terminal offers efficient cargo handling, and with rates among the lowest in the world, the prospect for exporting is good.
In February 2000
Legal and fiscal privileges in the DIC are similar to those applying in the Free Zone.
The physical location of the
- World class technical infrastructure: high bandwidth, low cost telecom infrastructure and secure, high speed support infrastructure;
- State-of-the-art urban infrastructure: cost competitive, flexible office space and world class housing, medical and education facilities;
- Access to talent pool: large pool of high skill, low cost knowledge workers;
Straight-forward laws and regulations: easy and fast company registration laws, hassle-free immigration process and straight forward legal procedures; - Supportive environment: Government backed e-business initiatives, business incubators, venture capital funds and e-education programs;
Gateway to markets: access to regional markets in Middle East, North Africa, Indian Subcontinent and CIS.
Dubai
Dubai Ports Authority (DP World) is known for its ability to provide a superior level of service to shipping lines in
Core Services offered by DP World include:
- Container cargo handling
- General cargo handling
- Bulk cargo handling
- Berthing for Ro/Ro vessels
- Monitoring, maintenance and repair of reefer vessels
- Facilities for commercial trucks
- Facilities for passengers.
In 2004, the port handled a throughput of 6.42 million TEUs ("Twenty Foot Equivalent Unit" steel ocean shipping containers), representing an increase of 24.6% on its 2003 figures, and making it the 10th largest but also the third fastest growing port.
Also in 2004, Dubai Ports signed a memorandum of understanding with Abu Dhabi Sea Port Authority and Ports Authority of Fujairah to develop joint strategies for both the ports authorities.
In September 2006, DP World became the first global company in the transport and logistics industry to gain certification to an international standard for its security management systems and operations.
Lloyds Register Quality Assurance (LRQA), an independent international certification body, audited DP World for compliance with the international standard ISO/PAS 28000:2005 at both the corporate head office in
As a consequence of DP World’s adoption and implementation of the standard, its network of ports has the ability to effectively implement mechanisms and processes to address any security vulnerabilities at strategic and operational levels, as well as establish preventive action plans.
Meanwhile, in August 2005, the Dubai Maritime Authority announced plans to launch the first shipping registry in the
The move was welcomed by the Emirate's shipping industry.
"The primary function of the registry will be to maintain the specific requirements of the government related to the ship owning company or the ship itself."
"As the first purpose built maritime cluster, we are pleased to be involved in the setting of groundbreaking new industry standards to benefit maritime businesses in the region. We aim to ensure that the highest possible standards are maintained to make it attractive for ship owners and liner operators to register with us."
DMC is the world's largest maritime development, on a man made peninsula measuring 25 million square feet. Located between
- Marine Services
- Management
- Product Marketing
- Research & Education
- Recreation
- Ship Design and Manufacturing
Mr Sudhir Deoras, chairman of International Trade and Export Sub-Committee of CII (and managing director of Tata International), while inaugurating the seminar said that the world’s perception about
Focusing on the significance of Jafza, Mr Al Banna added that the non-oil GDP of Dubai has grown from $11.3 billion in 1997 to $16.2 billion in 2001. Of this 18 per cent comes from trading, 17 per cent from manufacturing and 11 per cent from financial sector.
During his introductory speech, AC Patankar, principal advisor, CII, highlighted the fact that eight CII delegations have been to the Gulf region in just 12 months. Delegations are now expected from
Jafza was established in 1985 and offers world-class facilities to set up business. It allows 100 per cent foreign ownership, tax exemptions and repatriation of profits.
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