1 DOING BUSINESS IN

2 3 DOING BUSINESS IN DUBAI

TITLE : DOING BUSINESS IN DUBAI Printing and Publishing rights of the book and subsequent editions reserved with the Publisher.

PUBLISHER: Morison Menon Corporate Services P. O. Box : 125365, Dubai, UAE Tel: +971 4 336 7000 Fax: +971 4 337 2525 Email : [email protected]

© All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior permission in writing from the Publisher.

DISCLAIMER: While every effort has been taken by the Publisher to avoid errors or omissions in this publication, any mistake or omission is not intended. The information given is liable to change without notice. It should be taken note of that neither the Publisher nor the Publishing team, will be responsible for any damage or loss, or any other consequences whatsoever, of any decision/investment/business set up etc. done based on the contents of this book.

Language : English Number of Pages : 142 Number of copies printed : 30,000 Series : Fifth Edition - Year 2013 Month of Publication : January 2013

The book is not for sale. The book is distributed complimentary by the Publisher and by other entities with the prior consent of the Publisher.

DESIGN : IPIX Solutions Pvt. Ltd. (A group entity of Morison Menon) Calicut, Kerala, India. Email: [email protected] www.ipixsolutions.com

4 HH Sheikh Khalifa Bin Zayed Al Nahyan President of the United Arab and the Ruler of Abu Dhabi

HH Sheikh Mohammed Bin Rashid Al Maktoum Vice President and Prime Minister of the and the Ruler of Dubai

HH Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum Crown Prince of Dubai and Chairman of the Dubai Executive Council

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6 FOREWORD

His Highness Sheikh Ahmed Bin Saeed Al Maktoum President of Dubai Civil Aviation Authority Chairman and CEO of the Emirates Airline and Group Chairman of Dubai Supreme Fiscal Committee With Dubai achieving so many momentous milestones in the past decade alone, writing a foreword to a book about ‘Doing Business in Dubai’ is anything but easy. The vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and the Ruler of Dubai, to always think beyond the present and ensure that Dubai stays ahead in creating world-class business environment for the people of the UAE and foreign investors, has few parallels in contemporary history.

The popularity of Dubai as the region’s best and ’s emerging global business hub has empowered the Emirate to create unique economic opportunities and value propositions that attract the best of global entrepreneurial and business leadership. Dubai government’s strong commitment to free market economy, fair competition and economic diversification are unparalleled in the region and compare with the best globally.

It gives me great satisfaction to see that Dubai has developed economic sectors as diverse as aviation, tourism, logistics, trade, health, education, technology, and media among others. In 2011, trade, tourism, aviation, logistics and transportation already constituted up to 60 percent of Dubai’s total GDP.

Thousands of international business entities are either headquartered in Dubai or have a major presence here, demonstrating the global credibility of the city, which is a second home to the hundreds of thousands of people from more than 200 countries who live and work here harmoniously.

‘Doing Business in Dubai’, published by Morison Menon, a global business consulting firm with a presence here since 1994, provides a glimpse of the vision which led to the transformation of Dubai and continues to shape its future, as well as an insight into the details of doing business and living in this dynamic city. The book also captures the essence of Dubai Strategic Plan 2015, explaining trade regulations and entry strategy for foreign investors, covering the financial sector, banks, and laws on holding property, as well as the role of government departments and judiciary. Importantly, for the thousands of tourists and prospective residents that flock to Dubai each year, the book provides information on opportunities in the tourism sector and the lifestyle that Dubai offers.

‘Doing Business in Dubai’ is a welcome addition to books on the subject and will benefit local and overseas investors in their business endeavours in Dubai. I wish Morison Menon and its team great success with the book.

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8 MESSAGE

His Excellency Mohammed Ibrahim Al Shaibani Director General of His Highness The Ruler’s Court - Dubai Executive Director & CEO – Investment Corporation of Dubai

The business opportunity that Dubai offers to established franchises as well as startup ventures is amazing and unrivalled. Businesses from all over the globe are racing to setup presence in Dubai as a part of their vision to operate in a highly lucrative environment.

The transformation of Dubai from being dependent on handful of business sectors to multi sector economy with each sector competing to outdo its rivals would not have been possible, but for the grand vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and the Ruler of Dubai, supported ably by setting up of advanced infrastructure and transparent corporate governance.

The Investment Corporation of Dubai, the government’s investment vehicle, has been playing a significant role in growth of Dubai through strategic investments in the areas of utilities, , transportation, industrial, real estate, hotel and leisure and assisting in realizing the vision of Dubai.

I am happy to know that Morison Menon has done detailed research to distill the rules and regulations and all other relevant aspects that would help any prospective global investor to establish business in Dubai and thus arrived at this new handbook titled ‘Doing Business in Dubai’. I hope this book helps the business community at large in getting required information about Doing Business in Dubai and adds as a catalyst to attract new investors.

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10 MESSAGE

His Excellency Sami Al Qamzi Director General Dubai Department of Economic Development

Globally, trade and economic activity are now moving towards destinations capable of energising and sustaining growth. Dubai in particular has become a destination of choice for investors and businesses looking to establish their presence in the GCC, eventually expanding further into the fast-growing markets in the Middle East, North Africa and South Asia.

The has made it a key element of its development strategy to enhance the benefits of doing business in Dubai. All infrastructure and policy initiatives in Dubai today are guided by the objective of positioning Dubai as the most competitive hub for business and investment as envisioned in the Dubai Strategic Plan 2015.

The Department of Economic Development (DED) is committed to remain a key driver of economic activity and create an environment for sustainable economic development and prosperity for Dubai and the UAE in line with the Dubai Strategic Plan 2015. Providing efficient services to local and international investors in identifying opportunities and supporting growth across key sectors is an integral component of our commitment.

The Department works on various fronts, in partnership with other government agencies and the private sector, to ensure that business processes are streamlined and concerns of the business community are duly addressed. DED licences and regulates business activities in Dubai, promotes consumer rights and fair trade practices, and encourages businesses to embrace best practices in quality, excellence and human development.

We believe that the focus areas we have identified and our efforts to further improve existing processes are critical to enhancing Dubai’s global ranking in competitiveness and the ease of doing business. DED is also eager to share information and knowledge on policies and practices relating to doing business in Dubai, wherever required.

Morison Menon is doing an excellent service by publishing the handbook on ‘Doing business in Dubai,’ which should help investors to get a glimpse of all the required information they need to know. I wish them all the best in this endeavour.

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12 Preface

CA. Raju Menon Chairman & Managing Partner Morison Menon

Morison Menon is pleased to launch the fifth edition of ‘Doing Business in Dubai’. My team takes great satisfaction in bringing this revised and updated version of the book, ‘Doing Business in Dubai’.

Dubai ‘the most happening city’ in the 21st century continues its march forward by setting global benchmarks in social and economic spheres for others to emulate.

The truly amazing business friendly schemes initiated by our visionary Ruler HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and the Ruler of Dubai, have put Dubai at a very high pedestal amongst the global business community and the results have been spectacular. Whether it is the global corporations or the brick and mortar type, leading banks and financial institutions or the new age information technology giants, all have chosen Dubai as the preferred destination not only for doing business in the Middle East but also as a gateway between the west and the east.

Dubai has in it all that makes a nation competitive globally; a stable and progressive regime, rule of law, excellent infrastructure, banking and financial system that is healthy, markets that are fiercely competitive, tax regime that is friendly and not strenuous on the business and human resources which are talented and international in outlook.

I take this opportunity to thank HH Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman and CEO of the Emirates Airline and Group, Chairman of Dubai Supreme Fiscal Committee and the team of His Highness Office, HE Mohammed Ibrahim Al Shaibani, Director General of His Highness The Ruler’s Court - Dubai, Executive Director & CEO – Investment Corporation of Dubai and His Excellency Office team, and HE Sami Al Qamzi, Director General of Dubai Department of Economic Development and the DED team for the support and patronage offered to Morison Menon during the publication of this book.

I sincerely expect ‘Doing Business in Dubai’ to be useful for all those businessmen planning to extend their business presence to Dubai. We have tried to assimilate all the information that is required for business to know in our publication. I earnestly hope this edition of the handbook receives wholehearted response as the previous editions and look forward to your valuable suggestions and feedback. 13 DOING BUSINESS IN DUBAI

CONTENTS

Foreword 7 Message 9 Message 11 Preface 13 UAE - A Brief Introduction 17

1. Dubai - Introduction 21 2. Choosing Dubai for Investment 22 3. Economic Policy and Strategy 24 • Dubai Strategic Plan 2015 25 4. Dubai Department of Economic Development 27 • Dubai Foreign Investment Office (Dubai FDI) 28 • Dubai SME 29 • Dubai Events and Promotions Establishment (DEPE) 29 • Dubai Export Development Corporation (Dubai Exports) 30 • Dubai Competitiveness Office (DCO) 30

Section- I : Dubai 31 5. Trading Regulations 31 • Entry Strategy for Foreign Investors 33 • General Partnership Company 33 • Partnership in-commendam (Limited Partnership) 33 • Public Joint Stock Company (PJSC) 33 • Private Shareholding Company (PSC) 35 • Joint Venture (Consortium Company) 35 • Limited Liability Company (LLC) 36 • Professional Companies [100% foreign ownership] 37 • Branch or Representative Office of Foreign Companies 37

14 • Establishments by GCC Citizens 38 • Setting up of Branch of GCC Companies in Dubai 39 • Specialized Entities 39 - Companies for Tourism Activities (Dubai Tourism & Commerce

Marketing – DTCM) 39 -Companies for Health Care Activities 40 -Companies for Architectural & Engineering Consultancy 40 -Companies for Shipping, Freight Forwarding and Logistics Activities 42 -Companies formed in Communities (Trakhees) 43 -Companies for Providing Educational Services 43 -Free Zone areas where Department of Economic Development

issues licences 45 -Activities require prior Approval 46 • Commercial Agencies 47 6. Industrial Sector in Dubai 49 • (DIP) 50 • Dubai Industrial City (DI) 51 7. Banking and Financial Institutions 52 8. Customs Procedures 62 9. Visa and Immigration Procedures 74 10. Judicial System in Dubai 80 11. Real Estate [Freehold Properties] 82 12. Major Government Organizations and Initiatives 91 • Dubai Executive Council 92 • Investment Corporation of Dubai (ICD) 92 • Dubai Government Media Office 92 • Dubai Economic Council 93 • Dubai Chamber of Commerce and Industry (Dubai Chamber) 93 • Dubai Press Club (DPC) 94 • Dubai Free Zones Council 94 • Definitely Dubai 95 • Dubai Real Estate Corporation (DREC) 95 • Wasl 95 • Meydan 95

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• Authority (DMCA) 96 • Drydocks World – Dubai 97 • Community Development Authority (CDA) 97 • Majid Bin Mohammed Innovation Centre – in5 98 • Dubai Film and TV Commission 98 13. Dubai Government Entities 99 Section- II : DUBAI FREE ZONES 105 1. Free Zone 106 • Jafza Offshore Company 107 2. Technopark 108 3. Dubai Airport Free Zone 109 4. Dubai Multi Commodities Centre 110 5. Lakes Towers Free Zone 111 6. Dubai Silicon Oasis 112 7. 113 8. 114 9. 115 10. Dubai Knowledge Village 116 11. Dubai Outsource Zone 117 12. Dubai Biotechnology and Research Park 118 13. 119 14. Dubai International Academic City 120 15. International Media Production Zone 121 16. Energy and Environment Park 122 17. 123 18. Gold and Diamond Park 124 19. Dubai Cars and Automotive Zone 125 20. Dubai Textile City 126 21. Dubai World Central • Logistics City 127 • Aviation City 128 22. International Humanitarian City 129 23. Dubai International Financial Centre 130

16 UNITED ARAB EMIRATES A BRIEF INTRODUCTION

The United Arab Emirates (the UAE) is a collectively known as the Trucial States, Federation of States at the Southeastern derived from a 19th century truce end of the Arabian Gulf. It is bordered by between local Sheikhs and the United Saudi Arabia to the west and Oman to Kingdom. Islam is the official religion. the north and south-east. UAE is known for its religious tolerance.

The UAE is a Federation of seven Arabic is the official language, although emirates: Abu Dhabi, Dubai, English is widely spoken, followed by Sharjah, Ajman, Umm Al Quwain, Hindi and Urdu. Ras Al Khaimah and Fujairah. According to ‘Abu Dhabi 2011 - The Oil Prior to its independence on 2nd & Gas Year’, the UAE possesses the December, 1971, the UAE was fifth largest oil reserves in the world.

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Country Facts: The United Arab Emirates

Although often ranked as an emerging Boundaries economy, the UAE is generally accepted Oman 410 Kms; Saudi Arabia 457 Kms to have one of the most developed economies in the MENA region. Climate Desert; cooler in eastern mountains. According to the CIA World Factbook, in 2011 the UAE had an estimated GDP at Population purchasing power parity of US$ 262.1 According to UAE National Bureau of billion, ranking 50th globally. Statistics, the population has recently been GDP per capita was estimated to be estimated at 8.26 million (comprises local US$ 48,500, equivalent to a ranking of population and expatriates from South 12th globally. Asia, Far East, Middle East, Europe, Australia and USA); Location [local population 0.95 million whereas Middle East expatriate population is 7.31 million].

Geographic Coordinates Government Type Between the latitudes of 220 and 260 30I Federation, with specific powers delegated North and longitude of 510 and 560 30I East. to the UAE Federal Government, with other powers exercised by the Rulers of Total Area the various emirates. The Federal National 83.6 thousand sq. kms (approximate) Council has a defined legislative role.

18 Capital Abu Dhabi

Legal System Combination of Shari’a (Islamic Law) and Civil Legislative Law.

Currency The UAE Dirham (Arab Emirates Dirham - AED). One Dirham equals 100 fils.

Inflation Rate The UAE National Bureau of Statistics estimated that inflation was 0.9% in 2011 for the country as a whole. It is projected at 1.5% in 2012 by the IMF.

For Dubai specifically, Dubai Statistics Center reported that inflation rates in 2012 was 0.52%.

Market Exchange Rate Fixed at US$ 1.00 = AED 3.67

Major Trading Partners India, China, USA, Germany, Japan, South Korea.

Major Export Products Crude Oil, Natural Gas, Re-Exports, Aluminium, Dried Fish, Dates.

Major Import Products Manufactured goods, Machinery, Foodstuffs, Transportation equipment.

Taxation No corporate, personal, or withholding taxation. Tourism taxes apply.

Customs Duty 5% Import Duty (on general products)

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20 1 DUBAI INTRODUCTION

The earliest mention of Dubai is in oil economy led to a massive influx of 1095, and the earliest settlement known foreign workers, quickly expanding the as Dubai dates from 1799. Dubai was city by 300% and bringing in international formally established in 1833 by H. H. oil interests. The modern emirate of Sheikh Maktoum Bin Buti Al Maktoum Dubai was created after the UK left the and it remained under the control of Al area in 1971. At this time Dubai, together Maktoums when the United Kingdom with Abu Dhabi and four other emirates, assumed the protection of Dubai in formed the United Arab Emirates. The 1892. Its geographical location made following year Ras Al Khaimah joined it an important trading hub and by the the federation while Qatar and Bahrain beginning of the 20th century, it was chose to remain independent nations. an important port. In 1966, the year oil In 1973, the monetary with Qatar was discovered, Dubai and the emirate was dissolved and the UAE Dirham was of Qatar set up a new monetary unit introduced throughout the UAE. to replace the then Gulf Rupee. The DOING BUSINESS IN DUBAI

2 CHOOSING DUBAI FOR INVESTMENT

Dubai’s success story as a world leader completed within the set limit. Dubai in enterprise and modernisation has blends a luxury environment, tradition, earned the city great international culture, market and an attractive climate distinction and made it an important together. It is a large hub of multipurpose business, trading and tourism hotspot. business centres and a prominent player Dubai is a dynamic, business-friendly in the global market. While businesses city with a great track record of have vast and expanding growth executing major projects. Since the opportunities in the UAE, Dubai has last few decades Dubai has become a remained the leading commercial hub in fertile ground for flourishing business the Middle East, largely on account of settlements. Leading projects are the following distinctive features: undertaken every year and are

22 • Dubai is better known as the commercial capital city of UAE • Dubai population is 2 million • Enjoys one of the highest per capita incomes in the world • No foreign exchange control, quotas or trade barriers • Competitive import duty (5%) with exemptions • A global business focal point • State policies permit full repatriation of profit and capital • No income tax, no corporate tax and no withholding tax • Vibrant and highly efficient economy • Most modern infrastructure • Presence of major multinational corporations • Mixed population from all over the world • Stable currency • Proximity to the Indian Sub- continent and Europe • It has one of the biggest airports in the world • Home to the largest man-made port in the world • The is the only driverless, fully automated metro rail network in the region

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3 Economic Policy and Strategy

The economic policy of Dubai is based the business activities. on safeguarding and respecting the Dubai government has laid out a long individual freedom in ownership of the term economic vision based on various means of production, practicing any type policies and strategies. The expectation of business activities and providing all is to create a long term roadmap for facilities. There are no restrictions on economic progress for the Emirate imports and exports except some minor through the establishment of a common customs and administrative duties. The framework aligning all policies and plans government plays a supervisory role and fully engaging the private sector in in issuing legislation, which organise their implementation. The initiative builds the functioning of the various economic upon the foundations laid by the Dubai sectors while causing no hindrance to Strategic Plan 2015.

24 Dubai Strategic • Sound financial performance and effectiveness Plan 2015 • Accountability and result-based Since the establishment of the UAE, culture Dubai developed a distinct identity as a modern and dynamic emirate. Dubai Much of Dubai’s current business now enjoys a global reputation as an success has been the result of its bold economic hub and an excellent location and visionary leadership. Economic for investment. Dubai government has growth was fuelled by private sector commissioned the development of the participation in developing sectors for Dubai Strategic Plan along five sectors which the government set the stage namely: by establishing a conducive business (1) Economic Development environment, coupled in many instances (2) Social Development with heavy investments to boost private (3) Infrastructure, Land and Environment sector confidence. (4) Security, Justice and Safety (5) Government Excellence.

The government has adopted a set of guiding principles for the various sectors that comprise the Dubai Strategic Plan:

• Adoption of free market economy principles • Innovation in launching initiatives • Speed and accuracy in project execution • Unique relationship with private sector partners • Protection of national identity, culture and way of life • Development of national human resources • Promoting social justice and equality • Openness to the world while maintaining uniqueness • Provision of world class infrastructure • Preserving environment in line with international standards • Transparency

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26 4 Dubai Department of Economic Development (DED)

The Department of Economic policy and regulations, providing efficient Development is responsible for services to local and international proposing the economic and commercial investors and businesses and identifying policy of Dubai and preparing the and supporting growth of key sectors. plans and programmes required for implementing this policy. DED aims to ensure consistent, relevant The Department provides commercial and timely customer communications licensing and trade name registration and outreach efforts, to improve and conducts the necessary studies customer services across DED Group to encourage and promote the private through automation, online offerings, sector. streamlining processes and better customer care systems, to ensure high DED fosters an environment for economic impact of key services such sustainable economic development as attraction of foreign investment, to enhance the economic welfare and promotion of entrepreneurship and prosperity of Dubai and the UAE by SMEs. developing and enhancing economic Dubai Export 27 DOING BUSINESS IN DUBAI

Dubai Foreign produce biofuels from used cooking oil. It has also worked with the global logistics Investment Office major DHL to set up the ‘DHL Service (Dubai FDI) Point 24/7’ in Dubai in 2011, the first Dubai FDI, an initiative of DED, is such facility outside Europe. committed to positioning Dubai as the preferred investment destination globally by offering investors unparalleled opportunities and support services blended with best practices. Dubai FDI aims to reach potential investors through a network of global support units and partnership with local, federal and private investment promotion agencies.

Dubai FDI promotes investment opportunities in Dubai and support international investors to establish a presence here whilst taking advantage of Dubai’s strategic location to access the MENASA region. Dubai FDI assists in the identification of sector specific opportunities, provide connections to a network of both government and non-government partners, and provide support throughout the investment lifecycle from setup to growth. The FDI office has built a growing network of international investment promotion agencies and business facilitators to reach out to investors worldwide, enabling them to be part of the remarkable transformation in Dubai. Investments facilitated by Dubai FDI have also contributed substantially to bringing in game-changing innovations and enterprise diversity to Dubai. For example, Dubai FDI was instrumental in setting up the region’s first Carbon Neutral warehouse and a facility to

28 Dubai SME The DED agency mandated to develop the small and medium enterprise (SME) sector, offers various programmes to inspire, mentor and support UAE entrepreneurs. Dubai SME’s unique contribution to the economy is in increasing number of quality of new businesses entering the market. Under its SME 5-year plan, Dubai SME has launched various initiatives to promote entrepreneurship and develop the sector. The agency is also focusing on encouraging and supporting UAE nationals to actively participate in the economic growth of Dubai, and facilitating the establishment of small & medium enterprises.

In 2011, Dubai SME launched the ‘Dubai SME100’ initiative, aimed at recognising outstanding SME performance and potential. The ranking initiative forms a critical component of the SME 5-year plan and identifies those role model SMEs that Dubai and the UAE can be proud of.

Dubai Events and Promotions Establishment (DEPE) DEPE, another DED initiative, is tasked with promoting Dubai as a year- round destination of events and retail promotions. The Establishment’s vision is to be the driving force in promoting Dubai as a unique global shopping tourism destination. DEPE develops, promotes, facilitates, and supports the

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retail and events sectors, ensuring year- competitiveness of UAE in general round attractions and reasons to visit and Dubai in particular on the regional the emirate, its festivals, malls, souks and international levels. The office will and high streets. The major events also develop and implement necessary DEPE currently organises include Dubai strategies to upgrade the capabilities Shopping Festival, Dubai Summer of and strengthen Dubai’s Surprises, Eid in Dubai etc. standing as an investment destination. In addition to coordination of government The Dubai Calendar is one of the main efforts towards competitiveness in initiatives of DEPE that aims to highlight the local and federal levels, the Dubai Dubai’s festivals, exhibitions, cultural Competitiveness Office will seek to and sport events for the entire year. spread awareness on the concept of competitiveness across all service Dubai Export sectors and implement medium and long term strategies to achieve Development its goals. DCO will also liaise with Corporation (Dubai other government departments and Exports) institutions in the UAE as mandated by the Dubai Executive Council to evolve As the official export promotion an integrated mechanism to leverage agency of the Dubai government, Dubai’s competitiveness. Dubai Exports’ role is to support local exporters to develop and diversify their overseas operations. Dubai Exports creates an enabling environment for exports by providing value added services, marketing & communications and competitiveness of exporters. Dubai Exports envisions being a world class model in supporting and facilitating exports by enhancing the competitiveness of Dubai as a preferred trading partner.

Dubai Competitiveness Office (DCO) DCO will consolidate efforts to create best practices and boost performance in the public and private sectors, thus improving Dubai’s ranking across global indices. DCO aims to enhance the

30 SECTION - 1 DUBAI 5 Trading Regulations

International manufacturers and Trade practices in UAE are in line with exporters may conduct business by normal international standards. As concluding transactions directly with a sophisticated market, full technical importers and traders who are already specifications should be provided established in Dubai. This type of with CIF UAE prices and Middle East arrangement may be suitable for references. UAE is a member of WTO. low-volume trade. However, for an Only importers who have appropriate ongoing business relationship, overseas trade licence can undertake imports into companies may well want to consider a UAE. more permanent form of representation. DOING BUSINESS IN DUBAI

32 Entry Partnership in-commendam Strategy (Limited for Foreign Partnership) It is a firm consisting of one joint Investors partner or more who is liable with all Before 1984, each emirate in the UAE his monies for the firm and another in- - Abu Dhabi, Dubai, Sharjah, Ajman, commendam partner or more who shall Ras Al Khaimah, Umm Al Quwain and not be responsible for the liabilities of Fujairah - followed its own procedures the firm except to the value of his share governing the operations of foreign in the capital. According to law, all joint business interests. The Federal Law No. partners in such type of firms should be 8 of 1984 and its amendment by Federal nationals of the UAE. Law No. 13 of 1988 - the ‘Commercial Companies Law” and its by-laws have since been issued. The law makes it Public JOINT STOCK conditional that the companies be wholly Company (PJSC) owned by nationals or that nationals Public Joint Stock Company is a own at least 51% of its share capital, company with a capital divided into equal while the remaining 49% may belong to negotiable shares. In such companies foreigners. a shareholder’s liability is limited by the number of shares held by him. Minimum The law provides that commercial capital required to form a Public Joint companies established in the UAE must Stock Company is AED 10 million with take any of the following legal forms: a nominal face value of AED 1 – 100, and for a banking entity it is AED 40 General million and insurance and investment companies is AED 25 million. Among the Partnership other requirements for the establishment Company of a public joint stock company is the It is a firm which consists of two or more preparation of a founders’ agreement, partners who are jointly and severally a prospectus or invitation for public responsible for all the firm’s liabilities. subscription supported by an overall Partnership companies are confined to business plan or feasibility study and UAE nationals only because partners an auditor’s certificate, a due diligence are responsible towards the liabilities of survey, a memorandum and articles the firm by all their assets, which may of association. A PJSC must have not be applied to foreigners as in most at least 10 founder members and its of the cases their assets are usually held management should be vested in abroad. a board of directors consisting of a

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minimum of three to a maximum of Application Procedure fifteen persons whose term of office A. may not exceed three years. The • Application Chairman and majority of the Directors • Memorandum of Association in a public shareholding company must • Feasibility Study of the Project be UAE nationals. In addition at least • Application to be submitted to the 51% of the shares of the PJSC should Ministry of Economy be held by UAE nationals. The founder • Permission from the Emirate where members may only hold 45% of the the company is intended to be share capital, as 65% is required to be established offered to the public. The Law stipulates • Suggested completion period of the that the companies engaged in banking, execution of the project to start its insurance or financial activities should be operations to be provided run as public shareholding companies. B. • The Ministry shall set up a committee to study the project Procedures to set up • The committee shall prepare a Public jOINT STOCK a report within 2 weeks of the Company (PJSC) application • The Ministry shall issue a decision within 60 days from the date of Basic Requirements: application. If the decision has not Name been issued within the period the To be derived from the purpose application is deemed rejected • If the application is rejected, the Capital applicants can contest before Civil AED 10,000,000 Court within 60 days

Duration of the Company Subscription To be decided by the founder members Founders 20% or above but less than 45%. Memorandum of Association Certificate from the bank to be provided To be prepared in consultation with the standard Memorandum of Association Subscription of Money available with the Ministry. 25% of the commercial value. Balance 75% within a period of maximum 5 Number of founding members years. However, subject to company’s Minimum 10 contract.

Committee to continue Period of Subscription 3 – 5 members from the founding 10 – 90 days members

34 Minimum Subscription Joint Venture 100% (Consortium General Assembly Company) The founding members shall invite A Joint Venture is a type of company the subscribers to a general assembly where two or more partners agree by meeting within 30 days of the close of contract to share the profits or losses subscription. of one or more commercial enterprises, which will be carried on in the name of Quorum one of the partners. Contract of Joint ¾ of the owners of the shares Ventures may be written or oral and not required to be notarized. Third parties If no quorum can recourse only to the partners with Second Meeting – After 30 days; quorum whom they deal. However, should the is half of the owners of shares Joint Venture is disclosed to the third Third Meeting – After 15 days; no parties, all the partners are liable to the quorum required. third parties. Existence of Joint Venture After the general assembly within 7 may be proved by any method of proof. days, application for declaration of company to be in existence to be provided to the Ministry. Ministry will issue a decree within 30 days regarding the establishment of the company.

Private Shareholding Company (psc) A Private Shareholding Company is incorporated by a number of persons not less than three. Unlike public shareholding company, a private shareholding company cannot invite the public for subscribing in its shares. The minimum share capital to form a private shareholding company is AED 2 million (US $ 544,959). The Chairman and majority of the Directors in a private shareholding company must be UAE nationals.

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Limited Liability Process of Company (LLC) Establishing LLC A Limited Liability Company (LLC) is • Obtain initial approval for name the most common form of business and activity from the Department of entity formed in Dubai for engaging in Economic Development. commercial activities. A limited liability • Obtain approval from relevant company can be formed by a minimum Ministry/Department in case the of two and a maximum of 50 persons activity is of special nature. whose liability is limited to their shares • Draw up company’s Memorandum in the company’s capital. The minimum of Association and have it notarised equity participation by UAE nationals from the courts. is 51%. Capital required for forming • Finalise office tenancy in a a limited liability company should be commercial building and get it enough to run the business without any attested by Real Estate Regulatory difficulties and can be contributed in Agency. cash or in kind. Profit or loss distribution • Obtain necessary approval from can be prescribed and responsibility of Dubai Municipality Planning management of an LLC can be vested Department. with national partners, foreign partners or • Submit applications and initial third party. The shares of such company approval along with notarised are not open for subscription by the copy of Memorandum of public and they do not issue negotiable Association, tenancy contract etc., shares. As per the Commercial to the Department of Economic Companies Law, LLCs may be licenced Development. to engage in a wide range of commercial • After scrutiny by the legal activities, except for banking, insurance department, the Company name and the investment of money for third will be entered in the Commercial parties unless they obtain prior approval Register and its Memorandum from the UAE Central Bank/appropriate of Association published in the authorities. An LLC can be used as Ministry of Economy Bulletin. the preferred vehicle for a joint venture The Department of Economic between a foreign party and a UAE party Development will then issue the (UAE national partner), if both the parties licence. have a common business objective to be • Registration of the Company with achieved in UAE. Ministry of Labour and Department [Currently DED has waived the of Immigration. requirement of producing capital • Registration with Dubai Customs confirmation from a local Bank.] Department and getting the Customs Code issued.

36 Professional the foreign company which opens a branch in the UAE may exercise freely Companies [100% the activities for which it is licenced foreign ownership] whereas a representative office may Unlike a commercial company which practice only promotional activities for requires 51% UAE national equity the products and services provided by participation, foreign investors who are the parent company. Unlike a foreign qualified, can set up a partnership firm branch a representative office cannot to practice a professional activity. The conduct business operation or market firm shall be regarded as a professional its product. In order to engage a foreign company which practices a profession. branch to conduct its operation in Dubai On this premises the professional it should obtain a licence from the companies are set up between Ministry of Economy prior to obtaining professionals or partisans to carry out the licence from the Department of non-commercial activities. The firms Economic Development. However, it registered as professional entities may is now allowed for foreign professional only practice the specific professional and service companies to open their activity and not any commercial activity. Branch in Dubai without Ministry of Such professional activities include Economy registration whereas foreign rendering management consultancy, companies registering their presence marketing consultancy, consulting on as a Representative Office must various other fields, organising and obtain registration with the Ministry of keeping accounting records or similar Economy. activities approved by DED from time to time. However, it is mandatory for such The main condition for opening a entities to appoint a UAE national as representative office or a branch of the Service Agent. (It is also permitted a foreign company in the UAE is to to practice such profession as a sole appoint a Service Agent who should proprietorship entity fully owned by a be a UAE national. A service agent foreign investor with a Service Agent)

Branch or Representative Office of Foreign Companies The Companies Law, in article (313) allows a foreign company to exercise its main activity in the UAE by opening a branch or a representative office. The difference between the two is that

37 DOING BUSINESS IN DUBAI

is not an empowered agent who can • Board Resolution calling for opening bind his principal as explained in the the branch and appointing the definition of the term “agent” in the Manager Commercial Companies Law. A service • Power of Attorney to the Manager agent is not responsible to undertake any financial obligations concerning Additional documentations shall be the activities of the company’s branch asked by the relevant authority(s) or representative office within the UAE depends on which activity segment the or abroad. He should not interfere in company seeks the registration. the matters related to the company’s management or activities. His duties Establishments by towards the company and others are confined to providing such services as GCC Citizens required by the principal. These services The states of the Gulf Cooperation usually include obtaining entry/residence Council (the UAE, Saudi Arabia, permits, acquiring the necessary Sultanate of Oman, Qatar, Kuwait and licences or facilitating the processing Bahrain) signed the United Economic of transactions with the government Agreement in Riyadh on 7th June authorities. The Service Agent is 1981, with a view to coordinate and remunerated in lump sum as agreed unify economic, financial, monetary, between him and the foreign company commercial and industrial legislations for the services rendered to the foreign and UAE endorsed this agreement in company. 1982. It is conditional as per the Federal Law No. 2 of 1989 concerning permitting Standard Documentation the GCC citizen to conduct a business operation in UAE that the investor should Requirements for registering be a natural person residing in UAE and a Foreign Company Branch practice the required activity by himself A foreign company is required to submit and have a licence to practice the the following documents (standard) to activity in his country of origin. the concerned authority(s) and obtain necessary approvals for registering the branch in Dubai.

• Memorandum of Association • Certificate of Incorporation • Good legal standing certificate – showing the parent company is validly existing at the county of registration

38 Setting up of Type of Permits Tour Boats, Travel and Tourism Branch of GCC services, Desert Camps, Entertainment Companies in Dubai Activities, Parties with tickets, Hotel A company registered in a GCC country Establishment Parties without Tickets, can open its branch in Dubai without Fashion show with and without tickets, obtaining prior approval from the Ministry Entertainment Activities for non-hotel of Economy. However, the branch must establishment, Permits for Tourism fulfill the requirement of obtaining prior conferences and exhibitions. approval from an external department if the licence procedure requires so. The Registration of Tourism GCC Company is not required to appoint Companies (LLC) – Approval a Service Agent. However, if there are shareholders who are not from the GCC Requirements A formal application has to be submitted in the mother company, such company to DTCM accompanied by the following shall be considered as a foreign documents: company and still required to register at • Passport copy of the applicant the Ministry of Economy in accordance [partners] and the manager with usual procedure. • Extract of family record [UAE national] Specialized • Qualification Certificate of the Manager duly attested till UAE Entities Embassy at the country of origin Companies for • Business Plan Tourism Activities • Partners’ and Manager’s profile detailing their experience in travel [Procedures with Dubai Tourism and and tourism industry Commerce Marketing (DTCM)] • Certificate of good conduct issued by local police department DTCM is empowered to issue relevant • No objection from Dubai Civil legislations and instructions to govern Aviation Authority (for issuing tourism industry in Dubai. DTCM is tickets) responsible for issuance of all kind • Approval of the entity’s trade name of tourism licences, classification of • Memorandum & Articles of hotels, hotel apartments and guest Association of the Company duly houses. DTCM is further responsible for notarized at Dubai Courts issuance of permits and control over the • Submission of unconditional and concerned establishments. irrevocable banking guarantee in

the name of DTCM issued by any of the local banks for a value of AED 100,000

39 DOING BUSINESS IN DUBAI

• Insurance Policy for covering The companies and professionals the risks that may encounter the must adhere to various regulations, tourism programs. The validity of procedures and codes of practice in the insurance policy should cover order to get the permission and practicing the whole term of the licence and licence. expired one month following the Licence expiry date. Upon successful completion of the (Note: the insurance policy is not required formalities with the DHA required in case the activity is and receipt of Initial Approval the limited to the issuing of air tickets investor shall proceed for completing only) the registration of the legal entity and • Tenancy contract duly authenticated obtain the final licence from DED. The by Dubai Real Estate Regulatory government now allows forming a limited Agency. liability company (LLC) as the approved Upon successful completion of the legal structure for practicing health care required formalities with the DTCM, related activities. the investor shall approach DED for obtaining the final licence upon payment of the fees. Companies for Architectural Though DTCM is the authority to issue & Engineering permission for hotels, other facilities in the hotel like kiosks, retail shops etc. are Consultancy licenced by DED directly. [Procedures with Dubai Municipality (DM)]

Companies for Engineering firms operating in Dubai Health Care shall adopt one of the following forms: • Local Engineering Firm Activities • Branch of a Foreign Firm [Procedures with Dubai Health Authority (DHA)]

DHA came into existence in 2007 to oversee Dubai’s complete health care sector and enhance a dynamic, efficient and innovative private sector engagement in this field. DHA issues permission for all health care facilities such as setting up hospital, medical clinics, and specialist clinics and licensing health care professionals.

40 Local Engineering Firm the Register of Practicing Engineers Partner/s must be a UAE national. and the maximum shareholding in Partners must hold university degree the capital allowed shall not exceed in engineering from a recognized 49%. university. Branch of a Foreign Firm • Proven experience in the Foreign Engineering Firm’s Branch specialization field not less than Office is defined as “the branch three years after qualifying. established in the Emirate by one of the • Membership in the Engineers’ foreign specialized engineering firms”. Association of the Country. Licensing of the same shall be limited to • Shall neither own contracting the fields of sophisticated specialization companies nor building materials not commonly provided by local trading companies. engineering firms.

Expatriate investor may, pursuant Conditions for granting to the following stipulations and licence: conditions provided for, apply The foreign engineering branch for registration in the register of office should be with high technical practicing engineers: qualifications and specialized in one or more of the sophisticated engineering • Exclusively dedicated to the field and existing in the native country for business of the Engineering Firm a period of not less than fifteen years. • Proven experience in the engineering field not less than 5 The management of the firm should be years after obtaining the university vested in a manager in charge, entered degree in the register of the practitioners of the • Expatriate engineer must reside in engineering consultancy profession, UAE not less than 9 months in a whose experience in the practice of the year. profession is not less than 15 years. A • One or more expatriates may join registered local engineer may also be the firm provided they are entered in

A local engineering firm may be classified as follows:

Number of Years of Experience

UAE national (not less than) Expatriate (not less than)

Category I 10 15

Category II 5 10

Category III 3 5

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assigned for the management of the firm, the standard documentations referred provided that he is totally devoted to the elsewhere in this book and obtain prior business of such a firm. approvals from the relevant authority in addition to the above documents while The head office of the firm in the mother registering its branch in Dubai. country should have carried out a number of projects [10 or more] of large Upon successful completion of the technical and financial value. When required formalities with the Dubai submitting the application for the licence, Municipality and receipt of initial approval a full statement of such projects shall be for Professional Partnership (51% UAE attached with supporting drawings and national and 49% foreign investor) or for documents, including confirmation from a Foreign Company Branch to engage the clients [these documents must be the activity ‘Architectural Consultancy’ duly legalized from UAE Embassy from the investor shall proceed for completing the country of origin]. the registration of the legal entity and The foreign engineering branch office obtain the final licence from DED. in the Emirate should have devoted technical staff of high qualifications as It is not allowed to form a limited liability follows: company as an approved legal structure for practicing architectural consultancy Each of the licenced fields of activity in Dubai. to be practiced should be lead by an engineer whose experience is not Companies for less than 15 years in sophisticated specialization and it is permissible to Shipping, Freight appoint one of the specialization heads Forwarding and as a resident office general manager. Logistics Activities [Procedures with Dubai Maritime City, The specialization head should be Dubai Civil Aviation Authority & Dubai assisted by a number of assistant Customs] engineers whose experience is not less than 7 years and that their number Companies providing sea cargo and should be consistent with the volume logistics services must obtain prior of the current works assigned to the approval from Dubai Maritime City. firm, and that the head office should Similarly if the company wants to engage undertake to appoint the number in air cargo, activity must be approved necessary to reside in the Emirate by Dubai Civil Aviation Authority throughout the period of carrying out the (cargo section). Also, in order to assist projects which require their presence. importers and exporters for clearing the goods at the ports, the company must The foreign company shall provide obtain customs broking permit from

42 Dubai Customs Department. It is a pre- Type of Licences provided requisite to submit a bank guarantee of by Trakhees CLD: AED 50,000 to the customs department Licences as per Dubai Laws (local laws) for obtaining customs broker permit. Licences as per Free Zone Laws

Upon obtaining the approvals from Dubai Maritime City, Dubai Civil Licences as per Dubai Laws Aviation Authority and Dubai Customs (local laws) Department, the investor shall proceed A proposed entity in Dubai World for completing registration process and Communities may adopt any of the obtaining the licence from DED. legal structures prescribed by the UAE Commercial Companies Law and with due compliance to the procedures Companies formed adopted by the Department of Economic in Dubai World Development, Dubai for licensing such Communities entities. (Trakhees) Trakhees was established by the Ports, Licences as per Free Zone Customs and Free Zone Corporation Laws with the aim of integrating licensing and An investor(s) may set up a Free Zone compliance functions, already performed Establishment, Free Zone Company by the Civil Engineering Department or Branch of a Foreign Company in and Environment, Health and Safety Dubai World Communities subject to Department. The Commercial Licensing the prevailing rules and regulations of Division (CLD) of Trakhees issues Economic Zones World applicable to that licences for the entities within Dubai particular community. World Communities, such as Nakheel, Limitless and Istithmar. CLD is an Companies integrated licensing and government services provider of Trakhees to the for Providing clients from various segments of Educational commercial, professional, industrial, Services tourism etc. who wish to establish within Dubai World Communities. CLD Knowledge and Human has established strategic alliances Development Authority with Dubai’s government authorities (KHDA) to strengthen its position as a new The KHDA is a Dubai government governmental regulatory authority having authority that oversees education, both agreements with DED, DNRD, Free private and public, in Dubai. The KHDA Zone Authority, DTCM etc. aims to develop both the education and human resource sectors in Dubai.

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KHDA is a regulatory authority of the Association, Board Resolution etc. Government of Dubai and is responsible • Appointment Letter of the Principal for the growth, direction and quality of with passport copy private education and learning in Dubai. • Attested and stamped annual Licensing of all educational institutes in calendar of current academic year Dubai (including those located in free • Valid contract with permitted clinic zones in Dubai) is governed by the or hospital if there is no resident KHDA. doctor appointed • Undertaking Letter School Permits • Certificate of Authorization for Following are the procedures for administrative staffs obtaining an educational services permit • Certificate of fitness from Dubai which allows the educators to establish a Municipality School in Dubai: • Certificate of Environment, Health and Safety from Dubai Civil (i) Academic Plan Defense Submission of Academic Plan along with • Copy of completion certificate of the drawing of the proposed site plan and building formal KHDA Application Form. KHDA shall issue preliminary approval to the Higher Education application after evaluating the plan KHDA issues permits for new higher education institutions as well as branch (ii) Incorporation of an entity campuses of international universities. Educators shall proceed for establishing a legal entity depending on the location Training Institutes (mainland or free zone). The entity Following are the procedures for in mainland can be a limited liability obtaining an educational services permit company with 51% UAE national which allows the investor to establish equity participation and 49% by foreign Training Institute in Dubai national. The shareholders of the entity can either be natural person(s) or 1. Preliminary Approval: corporate(s). The investor must obtain preliminary approval for the activity (iii) Issuance of Educational Services and trade name from Department Permits of Economic Development (DED) or • Subject to other relevant from Free Zone Authority departments’ approval and upon 2. Submission of Business Plan submission of the following 3. Registration of the Entity documents KHDA shall issue the 4. Issuance of Educational Services final Education Services Permit. Permits • Memorandum & Articles of Subject to other relevant

44 departments’ approval and upon submission of the following documents KHDA shall issue the final Education Services Permit: • Copy of Commerical Licence issued by DED or Free Zone Authority • Copy of lease agreement of the premises • Certificate of Environment, Health and Safety from Dubai Civil Defense • Premises location map

Free Zone areas where Department of Economic Development (DED) issues licences

Though licences are issued predominantly by the respective Free Zone Authorities, there are certain Free Zone areas where DED also issues licences as per the local and federal laws such as:

TECOM - A & B DED issues licences to companies who opt to operate in TECOM A & B subject to TECOM approval. Dubai Silicon Oasis Companies licenced by DED may choose to operate out of freehold buildings in Dubai Silicon Oasis by obtaining a special permit from DSO Authority. Dubai Flower Centre Companies specializing in perishable items like floriculture, horticulture, fruits and vegetables can operate out of Dubai Flower Center Dubai World Communities (Trakhees) Entities in Dubai World Communities may adopt any of the legal structures prescribed by the UAE Commercial Companies Law and with due compliance to the procedures adopted by the DED

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Activities require prior APproval Licence to practice majority of the activities are directly issued by the Department of Economic Development. However, certain activities require prior approval from the relevant Ministry/Department such as:

Financial institutions, banks, money Central Bank exchanges New industrial project, expansion Ministry of Industry

Publishing, printing, newspaper, advertis- National Media Council ing, video film, photography Tourism Department of Tourism and Commerce Marketing Health care Dubai Health Authority

Agriculture, veterinary, environmental Ministry of Environment and Water consultants Customs clearance, freight forwarding, sea Department of Ports and Customs cargo Air Cargo, Travel agent Department of Civil Aviation

Construction companies, restaurants, Municipality clinics, engineering firms Telecommunication equipment Ministry of Telecommunication

Registration of ships, boats, yachts Ministry of Communication

Branch of foreign company (distribution), Ministry of Economy insurance company, insurance agents

46 Commercial Agencies A foreign company wishing to supply goods and services from abroad, but without establishing a physical presence in Dubai may find it advantageous to appoint a commercial agent. The UAE Commercial Agencies Law, Federal Law No. 18 of 1981, as amended by Federal Law No. 14 of 1988, and Federal Law No. 13 of 2006 (the “2006 Amendments”), and Federal Law No. 2 of 2010 (the “2010 Amendments”) regulates and governs the appointment of registered commercial agents in the UAE. The Commercial Agency Law is supplemented by, inter alia, the UAE Commercial Transactions Law, Federal Law No. 18 of 1993 (the “Commercial Code”), implementing regulations, custom and practice. Together, the Commercial Agency Law and the Commercial Code provide the primary regulatory framework for agency relationships through which foreign businesses provide products and services in the UAE.

• Commercial agents are entitled to receive commissions on sales in their designated territory irrespective of whether such sales are made by or through the commercial agent, unless otherwise agreed. • Commercial agents are entitled to prevent products subject to their agency from being imported into the UAE if the commercial agent is not the consignee, unless the UAE Council of Ministers has

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exempted the subject products Due to the restrictive provisions in from application of the Commercial the Commercial Agency Law, the Agency Law. foreign investors do not prefer this • A principal may not terminate or route to set up business in UAE fail to renew the agency agreement unless it is mandatory to appoint a unless there is a material reason commercial agent to distribute their justifying such termination or non- products as per the laws. renewal. Either party is entitled to claim compensation for damages suffered and losses incurred due to termination or non-renewal of a registered commercial agency. In practice, this is a benefit to the commercial agent only. Furthermore, commercial agents are not limited to seeking remedies under the Commercial Agency Law. For example, a registered commercial agent might also claim damages for improper termination or for non-renewal pursuant to the Commercial Code. • A registered commercial agent can preclude the foreign principal from appointing a replacement registered agent even if the registered agency was for a fixed term and expired, unless the former agent consents or the principal obtains a favorable decision from the specialized agency disputes committee or a proper court in the UAE. • Commercial Agency Law provides that commercial agency agreements shall be governed exclusively by UAE law notwithstanding any provision to the contrary in the agency agreement.

48 6 Industrial Sector in Dubai

Dubai’s manufacturing sector is one of order to boost the manufacturing sector, the major economic sectors, besides Dubai government has established two construction, trading and services, on dedicated industrial zones viz., Dubai which Dubai is counting for its drive of Investments Park and Dubai Industrial economic diversification. It is estimated City in addition to the existing industrial that Dubai’s industrial production areas. contributes almost 13% of its GDP. In

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DUBAI INVESTMENTS PARK (DIP)

A subsidiary of Dubai Investments PJSC, DIP is divided into three distinct zones – each setting the benchmark for high quality projects in a well planned, fully-integrated master community development. It is well connected to Dubai’s key business districts and can be accessed from both Sheikh Zayed Road and Emirates Road. As a premier residential and business destination, DIP redefines the concept of living and work making it one-of-a-kind development in Dubai.

Location Dubai • Divided into three zones – Residential, Operation since 2004 Commercial and Industrial, Dubai Investments Park is the most thoughtfully Legislation Law No. 1 of 2000 conceived self-sustained development Owned by Dubai Investments PJSC where each zone complements the other to offer a complete solution in terms of Regulations In DIP, Federal Law No. 8 of 1984 is manufacturing, housing, trade, research, applicable. This law stipulates that all development, education, distribution and companies have at least one national logistics. Dubai Investments Park is a partner holding minimum 51% of the mixed-use development, which has a share capital strong focus on industrial sector but also Segments Manufacturing, Assembly, Warehousing has the Green Community residential development. Type of Legal Limited Liability Company • Freehold areas are allowed in Dubai Entities Investments Park: Dubai Govt has Minimum AED 300,000 issued Regulation No. 2 of 2012 Capital earmarking freehold real estate ownership No. of Minimum One and Maximum Fifty for non-UAE citizens in some of the areas Shareholders of Dubai Investments Park. According to the regulation issued by His Highness Shareholding Natural Person(s) and/or Corporate(s) Sheikh Mohammed Bin Rashid Al Structure Maktoum, Vice President and Prime Facilities Commercial Office Spaces, Warehouse/ Minister of the UAE and the Ruler of Offered Light Industrial Unit/ Land Dubai, after considering the provisions of Size of Land: Various Sizes Law No. 7 of 2006 regarding real estate Facilities Warehouses: 500 sq. meters and above registration in the Emirate and Regulation Office Space: Different sizes No. 3 of 2006 specifying the areas where non-UAE nationals may own real estate Lease Period: 30 to 50 years properties in Dubai and its amendments, Rental Office : AED 650 - 850 non-citizens are allowed to acquire the (per sq meter) Warehouse,LIU : AED 220 - 300 usufruct right (life interest) for a period not Land: Commercial : AED 45 exceeding 85 years for property located Industrial : AED 35 on pieces of lands in Dubai Investments Park 1 and 2. Fees As decided by Department of Economic Development and Ministry of Industry No. of Visas As per Ministry of Labour norms

50 DUBAI INDUSTRIAL CITY (DI)

Dubai Industrial City is an industrial cluster designed to attract and support the growth of light to medium industries. It also offers the largest logistics operations in one location within the UAE. DI provides excellent connectivity by road, air and sea to all major markets in the Middle East and North Africa and the Indian Subcontinent.

Location Dubai • Warehouses in DI are designed for cold, chemical and general storage, as well as for light industrial Operation since 2004 use. DI has 7 million sq.ft of warehouses that come Legislation Law No. 1 of 2000 in two units:, 5,000 and 10,000 sq.ft. There are also Owned by TECOM Investments 122 retail showrooms of 10,000 and 15,000 sq.ft in size that are equipped with back side storage allowing Regulations In DI, Federal Law No. 8 of 1984 is applicable. retailers more storage space for displaying products. This law stipulates that all companies have at • Plots of Land are allotted for: least one national partner holding minimum • Industrial Land is available from 25,000 sq. 51% of the share capital meters for long term lease with stable supply of Segments DI features six distinct industrial zones: Food utilities and easy access to major roads, ports, and Beverage, Chemicals, Minerals, Machinery and airports and Equipments, Base Metals and Transport. • Commercial Offices: Plot with GFA varies from Type of Legal Limited Liability Company (LLC) 8,200 sq. meters to 200,000 sq. meters are Entities available

Minimum AED 300,000 [However, capital may vary • Residential: Plot with GFA varies from 7,700 Capital according to value of project] sq. meters to more than 8,400 sq. meters are available No of Minimum One and Maximum Fifty • Hotels: Plots of land for hotels and other Shareholders commercial properties are available in different Shareholding Natural Person(s) and/or Corporate(s) sizes Structure • Open Storage Yards: DI offers 3 million sq.ft of open Facilities Industrial and Commercial Land, Warehouses, yards for storage of construction equipment, materials Offered Labour Accommodation, Office Space, Open and automobiles. The yard is fully fenced, tarmaced Storage Yards and with 24 hour onsite security in place. A series of labor cities offer business Size of Facilities Land: 25,000 sq. meters and above • Labor Villages: owners affordable, high quality labour accommodation Warehouses: 500 sq. meters and above managed and operated at very high standards. The Office Space: Different sizes accommodation is built to house both skilled and Lease Term Up to 49 years un-skilled workers. Rental Land: AED 25 • Taasees at DI is a one-stop shop to address all (per sq meter) Warehouses: AED 170 government related issues including licensing, Office Space: AED 850 registration, permits and visas. In addition, the DI Labour Village: AED 330 per bed per month Permits Department assists companies with their inclusive of utilities + facility management cost proposals for construction of industrial facilities and commercial developments, a single window approach Fees As decided by Department of Economic to expedite developments. The Permits Department Development and Ministry of Industry reviews the architectural designs, permit requests, No. of Visas As per Ministry of Labour norms construction plans and infrastructure requirements for adherence to local and statutory requirements.

51 DOING BUSINESS IN DUBAI

7 Banking and Financial Institutions

Role of UAE Central Bank distinctly categorised into: The regulatory framework for banking in • Commercial Banks the United Arab Emirates is contained • Restricted Licence Banks in the Federal Law No. (10) of 1980. • Investment Banks Under the Law, the Central Bank was • Finance Companies established, which regulates the banking • Financial Investment Companies and monetary systems operating or • Banking, Financial, Investment wishing to operate in the country. Consultation Activities • Monetary Intermediaries The Central Bank is authorised to issue • Financial Intermediaries licences and regulations for banks and • Representative Offices of Foreign other financial institutions which are Financial Institutions

52 From the ambit of the law are excluded are locally registered banks and 26 are Statutory Public Credit Institutions, branches of foreign banks. Government Investment Institutions, Development Funds, Private Savings & Pension Funds and the Insurance Restricted Licence Banks A Restricted Licence Bank is a Sector. The Representative Offices of commercial bank, which is not the foreign banks are expressly barred authorized to accept deposits from from conducting the banking activities. residents in local currency, but may receive deposits in foreign currencies. Commercial Banks – Such bank may also extend credit [locally incorporated and facilities to residents and non-residents. branch of foreign banks] There is only one restricted licence bank operating in the country at present, Banks in the UAE are divided into two namely, Banca Commerciale Italiana. major categories: locally incorporated banks which are public shareholding companies licenced in accordance with Investment Banks the provisions of Union Law No. (10) of The Union Law No. (10) of 1980 defined 1980, and branches of foreign banks Investment Bank as a bank that does which have obtained Central Bank’s not accept deposits whose maturities licence to operate in the country as per are less than two years, but may borrow provisions of the said Law. Historically, from its head office, from local or foreign national banks (with majority national banks, or from financial markets. There shareholding) and foreign banks existed are two investment banks operating in prior to the establishment of the former the UAE at present, namely United Arab Currency Board and, hence, before Emirates Investment Bank (PJSC), and the Central Bank was created and HSBC Financial Services (Middle East) commenced its operations. Within such Limited. historical circumstances the number of banks and their branches in the country Finance Companies and abroad increased very rapidly on Finance companies may conduct one or obvious disproportion with the capacity more of the following principal business of the local market, hence, provoking activities: the monetary authority at that time to • Extending advances and/or personal withhold issuance of licences to any loans for personal or other consuming new bank and set about reducing the purposes. number of branches of a foreign bank to • Financing small trade and small a maximum of eight branches. businesses, as well as opening letters of credit and issuing guarantees on In the United Arab Emirates currently, behalf of customers. 47 banks are operating of which 21 • Participating in the capital of projects

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54 and/or in the issuance of shares or company during its first 2 years of bonds and/or Certificates of Deposit. operations. Thereafter, approval may • The finance company cannot conduct be sought from the Central Bank to any other additional business activities allow the value of accepted deposits without the prior approval of the Board to increase to 200% of paid-up share of Directors of the Central Bank; such capital and reserves; up to 300% after activities cannot be amended without 4 years; and up to 500% after 7 years. the approval of the Board of Directors • The founding members of the of the Central Bank. finance company must meet the necessary requirements with regard Major Conditions for to personal integrity and professional qualifications as deemed appropriate Granting a Licence by the Central Bank. • The legal status of the company must be in one of the forms stipulated in Federal Law No. 8 of 1984 regarding Financial Investment commercial companies. However, if Companies the company takes the form of Limited In order to organise and promote Liability Company (LLC), then its the business of financial investment paid-up share capital must not be less companies to the appropriate than AED 50 million. internationally recognized standards and • The company must provide a ‘letter protect investors, the Board of Directors of guarantee’ issued in favour of the of the Central Bank issued Resolution Central Bank for an amount being the No. 164/8/94 dated 18.4.1995. The equivalent of the whole of its minimum resolution defines financial investment required paid-up share capital. companies as those conducting one • The applicant must demonstrate or more than one of the following that not less than 12 of its principal businesses: founding shareholders are financially capable and have not previously failed their financial commitments either as individuals or companies. • The number of company’s board members should not be less than 5, all of which have not previously failed their financial commitments. At least 60% of the board members should be knowledgeable in finance/banking business. • The value of accepted deposits should be limited to 100% of the paid-up capital and reserves of the

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• Opening investment accounts 60% of the board members should and managing portfolios on behalf be knowledgeable in finance/banking of others, whether individuals or business. companies. • The company must obtain Central • Preparing feasibility studies for Bank approval for its proposed projects and marketing allotments and organization structure which should stocks of shareholding companies. be appropriate and balanced, showing • Establishing and/or managing the main departments, sections, investment trust funds. lines of reporting, authority and • Establishing and/or managing other responsibilities. investment funds and act as trustee • The founding members of the of funds entrusted to it by a trust to finance company must meet the manage on behalf of a beneficiary. necessary requirements with regard • Subscribing to companies’ capital and to personal integrity and professional participating in syndicated loans. qualifications as deemed appropriate by the Central Bank. Major Conditions for Granting a Licence • The legal status of the company must be in one of the forms stipulated in Federal Law No. 8 of 1984 regarding commercial companies. However, if the company takes the form of Limited Liability Company (LLC), then its paid-up share capital must not be less than AED 50 million. • The company must provide a ‘letter of guarantee’ issued in favour of the Central Bank for an amount being the equivalent of the whole of its minimum required paid-up share capital. • The applicant must demonstrate that not less than 12 of its principal founding shareholders are financially capable and have not previously failed their financial commitments either as individuals or companies. • The number of company’s board members should not be less than 5, all of which have not previously failed their financial commitments. At least

56 Banking, Financial, of banking services or investment programs. Investment Consultancy • Issuing periodical or non-periodical Activities reports with limited circulation As per the UAE Central Bank Board of regarding the banking system, or Directors’ Resolution No. 164/8/94, a available banking services or services natural or juridical person licenced to which may become available in the offer banking, financial and investment future; or regarding securities or any consultations against a fee, may conduct other financial instruments which one or more of the following main include, among other things, an activities: analysis of and a promotion for such • Preparing feasibility studies regarding instruments. investing in banking, financial or investment projects in financial Major Conditions for markets and various securities. • Designing various strategies, which Granting a Licence aim at improving the performance • The legal status of the company can level of existing banking, financial and be a sole proprietorship concern investment projects. owned by a UAE citizen or in one of • Providing advice or opinion to a the forms stipulated in Federal Law natural or juridical person, directly No. 8 of 1984 regarding commercial or in writing or through publications, companies. However, if the company regarding the value of securities takes the form of Limited Liability or any other financial instruments, Company (LLC), then its paid-up or regarding any banking services share capital must not be less than available in the country or expected to AED 50 million. be provided in the future. • The applicant must provide the • Recommending to a natural or Central Bank with the curriculum juridical person, directly, in writing vitae of the manager-in-charge, or through publications, to carry out and managers of the main sections banking activities or to benefit from together with other relevant banking services, provided by banking documents and certificates for institutions, or to invest or show prior approval. The Central Bank interest in securities or any other may decide to interview proposed financial instruments, or to purchase staff through a special central bank or sell such securities or instruments. committee to evaluate their technical • Looking for technical investment and administrative qualifications and methods with a better return, and abilities. providing general instructions or • The contract of the manager-in- directives regarding the development charge, who is also an authorised signatory, should contain an article

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58 stipulating that any violation on his • The applicant must provide the part shall be considered a criminal Central Bank with the curriculum offence for which he shall be vitae of the manager-in-charge, punished, if it is proven that what he and managers of the main sections signed is untrue or misleading. together with other relevant documents and certificates for Money Exchanges prior approval. The Central Bank Money Exchange is a thriving business may decide to interview proposed in the UAE owing to its demographic staff through a special central bank structure, which contains large number committee to evaluate their technical of expatriates regularly transferring and administrative qualifications and remittances to their families and relatives abilities. in their home countries. The number • The contract of the manager-in- of moneychangers operating in the charge, who is also an authorised country and volume of their transactions signatory, should contain an article increased rapidly in recent years. stipulating that any violation on his part shall be considered a criminal offence for which he shall be Major Conditions for punished, if it is proven that what he Granting a Licence signed is untrue or misleading. • The legal status of the company can be a sole proprietorship concern owned by a UAE citizen. Financial and Monetary • The minimum paid-up capital of the Intermediaries [Financial/ concern must be AED 1 million for Stock Brokers] currency trading and AED 2 million if As per the UAE Central Bank Board the scope of activity includes issuance of Directors’ Resolution No. 126/5/95 of drafts and pay orders. and 153/5/97, a Financial/Monetary • The proposed entity may adopt other Intermediary means any natural or legal forms stipulated in Federal juridical person, other than the financial Law No. (8) of 1984 (as amended) institutions, licenced to conduct the regarding commercial companies. business of financial and monetary However, if the entity takes the form brokerage activities. The business of Limited Liability Company (LLC), carried out by the intermediary shall be then its paid-up share capital must not confined to intermediating in the sale be less than AED 50 million. and purchase of domestic and foreign • The company must provide a letter stocks and bonds, currencies and of guarantee, issued in favour of the commodities, as well as intermediating in Central Bank for an amount being the money market transactions. equivalent of the whole of its minimum required paid-up share capital.

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Major Conditions for relating to economic developments in Granting a Licence the country. • Providing customers of the licenced The paid-up capital or the capital funds financial institution with information on allocated for brokerage activities should the local market. not be less than AED 1,000,000 (One • Providing data to local agency, Million Dirhams) if the licence is confined which intends to develop its business to brokerage in dealing domestic stocks at countries wherein the licenced and bonds; AED 2,000,000 (Two Million institution conducts its business. Dirhams) if the licence is required for • Providing customers with banking, brokerage in dealing foreign stocks and financial and investment consultation bonds; AED 3,000,000 (Three Million services. Dirhams) if the licence is required for brokerage in dealing currencies and commodities as well as intermediating in Conditions for Granting a money market transactions. Licence • The applicant should be a bank And in case the licence is required or another financial establishment for two or more types of brokerage incorporated outside the country. activities, the capital shall then be • The applicant should have completed increased by adding up the amount a period of not less than ten (10) specified for each activity. continuous years of conducting the business in the country of origin. Representative Offices • The bank applicant’s paid-up capital of Foreign Financial and reserves should not be less than AED 83.7 Million. Institutions (The Board of Directors of the central The Representative Offices should bank shall decide on the capital of the represent a bank or any other financial financial establishment in view of the institution incorporated outside the size of its business and the kind of its country. A Representative Office can activity.) undertake the following activities in the UAE:

• Representing the financial institution licenced to deal inside the country, including contacts on its behalf with concerned agencies as well as promoting its services in the local market. • Providing the head office of the licenced financial institution with data

60 • The relevant authority, to whose • Bank of Sharjah PSC supervision the applicant is subject • United Arab Bank PJSC to, should exercise the required • Invest Bank PLC control on the banking and/or financial • National Bank of Ras AI Khaimah system in the country of incorporation (RAK Bank) of the applicant. Furthermore, this • Commercial Bank International authority should issue an approval • National Bank of Fujairah PSC or no-objection letter to opening a • National Bank of Umm AI Quwain representative office in the country. • First Gulf Bank However, in cases where the relevant • Abu Dhabi Islamic Bank authority does not issue such letter, it • should state this clearly in its official • Noor Islamic Bank documents, or confirm it in writing. • Al Hilal Bank • Ajman Bank Financial Institutions not subject to Central Bank’s Branch of Foreign Banks Licensing • Arab Bank PLC These include any remaining financial • Banque Misr institutions; specialized banks (the • Credit Agricole - Corporate and Industrial Bank and the Real Estate Investment Bank Bank), Investment Institutions (Abu • Bank of Baroda Dhabi Investment Authority and • BNP Paribas Abu Dhabi Investment Company), • Janata Bank Development Institutions (Abu • HSBC Bank Middle East Limited Dhabi Development Fund and UAE • Arab African International Bank Development Bank), Insurance • Al Khaliji (France) S. A. Companies, etc. • Al Ahli Bank of Kuwait • Barclays Bank PLC • Habib Bank Ltd. Banks in Dubai • Habib Bank A.G Zurich Locally Registered Banks • Standard Chartered Bank • National Bank of Abu Dhabi • Citi Bank N.A. • Abu Dhabi Commercial Bank • Bank Saderat Iran • Al Masraf Bank • Bank Melli Iran • Union National Bank • Blom Bank France • Commercial Bank of Dubai • Lloyds TSB Bank PLC • Dubai Islamic Bank PJSC • The Royal Bank of Scotland N.V. • Emirates NBD • United Bank Ltd. • Emirates Islamic Bank • Doha Bank • Bank PSC • Samba Financial Group • Sharjah Islamic Bank • National Bank of Kuwait

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8 Customs Procedures

Dubai Customs implements simple Import for Re-Export: and easy procedures for customs Goods may be imported into the country transactions and clearing the goods. The for the purpose of re-exporting to other procedures are fine tuned to regional countries. The importer shall pay the and international laws, legislations, customs duty in the form of a deposit agreements and in a manner fitting with which will be refunded upon presenting a internationally adopted best practices. proof of re-export of the goods.

Importation of Goods Temporary Admission: Import for local market: Goods may be imported from outside Goods are being imported to the local the country for use in exhibitions, market from other countries against seasonal markets and similar events or the payment of Customs duty or duty in construction projects and scientific exempted whichever is applicable. researches and has to be returned in the same condition at which they have been imported.

62 General Provisions from the exhibition’s organising 1. The importer must have obtained agency including a deposit a valid importer code from Customs. shall be required. 2. Goods must be in conformity with 4. The goods may be subject to the activity of the licenced company. inspection prior to their final release. 3. Special Cases: • Restricted Goods: Import Import of Goods permission from the competent The declarant shall: authority shall be required. The • Present the customs representative authority varies depending on card upon reporting to customs the type of the goods. offices. • Incomplete Arrival of Goods: • Submit the documents required. Import goods declaration and • Pay the customs duties accrued to the customs declaration as well the goods. as the Port conformity report • Collect copies of the declaration shall be required (declarant copy, entry point copy • Goods imported by Industrial and claims copy). Licences: e-exemption request • Take over the goods after approved by the Ministry of completing all procedures with the Finance and Industry with competent agencies (DPA and a copy of a valid industrial DNATA) including Emirates Airline. production licence shall be required. • Imports for Non-dutiable Sea Transportation • Any goods imported into the country Authorities and Organizations: by sea shall be registered in the Customs duties exemption manifest. request bearing the appropriate • A single manifest for the whole stamp or a letter from the load signed by the shipmaster shall exempting or supervising be made which shall contain the agency shall be required. following information: • Diplomatic Goods: A diplomatic • Name and nationality of the exemption from the Ministry ship and its registered load. of Foreign Affairs, either from • Types of goods, total weight customs duties or inspection or thereof and weight of the both shall be required. bulk goods, if any. If goods • Used Personal Effects: A copy are prohibited, their actual of the passport bearing the description shall be mentioned. residence stamp as well as • Number of packages and the inspection report shall be pieces, description of packing, required. marks and numbers thereof. • Exhibitions Goods: A letter

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• Names of the consignor and Transit consignee. Such a type of declaration is processed • Seaports where the goods are for goods being imported from outside shipped from (ports of loading). the country for the benefit of an importer from outside the country as well ad- Documents Required dressed in his name or the name of a • Import goods declaration. licenced carrier agent by a competent • Delivery order. authority on behalf of the importer. The • Original bill of lading. goods shall only be registered, since it • Original authenticated invoice. is transiting the territories of the country • Original approved certificate of to a final destination. A deposit amount origin. equivalent to the total value of goods • Packing list with HS codes. shall be collected to ensure exit of goods outside the country within 30 days from Air Transportation the date of the transactional processing. • Import goods declaration. • Delivery order. • Original bill of lading. • Original or copy of the invoice. • Original or copy of the certificate of origin. • Packing list with HS codes (not required for personal effects).

Land Transportation • Import goods declaration. • Original manifest. • Original bill of lading. • Original invoice. • Certificate of origin. • Packing list with HS codes.

Personal Effects No need of any original documents, instead the items will be inspected and if it contain identical items of more than one piece, the duty will be imposed.

64 Transit Procedures: Transshipment The declarant shall: Such type of declaration is processed • Produce the customs representative upon arrival of goods in the country’s card upon reporting to customs port of entry and intended to be transited offices. in cases of ship-shore-ship or air to air. • Submit the documents required. The declaration shall only be processed • Pay the deposit accrued to the by registering such goods due to their goods. transiting to a final destination without • Collect copies of the declaration transiting the territories of the country or (declarant copy, entry point copy leaving the customs zone. and claims copy). • Goods shall be inspected and Transshipment examined by inspection officers. Goods shall then be stamped Procedures: by customs seal, which has to The declarant shall: be recorded in the customs exit/ • Submit the documents required. entry certificate so that customs • Pay the transshipment registration authorities at the port of exit or entry fees. can endorse such certificate and • Contact Dubai Ports Authority confirm that goods have actually or DNATA to complete other departed UAE and arrived in the formalities. country of destination, upon which Dubai Customs can refund the Documents Required: deposit. • Original delivery order from the • Customs exit/entry certificate. shipping agent. • Copy of the bill of lading. Documents Required: • Delivery order from the shipping Export agent addressed in the name of In economics, an export is any good the foreign importer or his carrier or commodity, transported from one agent authorized by local licensing country to another country in a legitimate agencies in UAE. way, typically for use in trade. Export is • Bill of lading (mentioning the an important part of international trade. expression of transiting the No customs duty is involved if the country). goods are locally purchased or locally • Copy of the invoice. manufactured. • Transit permit from the competent If sale of goods by a licenced company agencies for restricted goods. in the country to an importer outside the • Customs exit/entry certificate. UAE or operating under an approved

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customs system with the customs Procedures: administration, no customs duties shall The declarant shall: be collected since the goods are being • Submit documents required. exported from local markets or are • Pay the temporary export locally manufactured. declaration registration fees. • Receive the temporary export Export Procedures: declaration. The declarant shall: • The inspection section at the • Submit documents required. respective customs office shall • Pay the export declaration approve the goods invoices or list registration fees. (copy of the customs declaration). • Receive the customs declaration. Documents Required Documents Required: • Exported goods clearing • Instructions of the Declaration of declaration. Goods Application (IDG) or an • Original commercial invoice. export declaration approved in the • Packing list with the HS codes. name of a licenced company by a • Original export permit from the licensing agency in the country (for competent agencies in the event of airport customs point of entry). exporting restricted goods. • Export permit from the competent • A formal letter from the company agencies in the event of exporting requesting temporary export. restricted goods. • Sale invoice from a licenced Ex-Free Zone Import for company in the country addressed to a company outside the country Re-Export Sale of goods by a free zone licensee or operating under an approved to an importer outside the country customs system showing total operating under an approved customs quantity, description and total and system with an approved delivery advice detailed value of each individual from the licensee for the purposes of item. exporting the goods to another country • Goods clearing declaration. or customs system excluding GCC States. A deposit amount equivalent Temporary Export to the total value of the goods shall be Such type of declaration is processed collected for such type of transaction upon export of goods for the purposes except for duty exemption cases. of maintenance, repair or display in exhibitions or use in projects and return in the same condition at which they have Procedures: The declarant shall: been exported. • Submit documents required.

66 • Pay registration fees and the Procedures: deposit amount. The declarant shall: • Receive the customs declaration. • Submit documents required. • Pay declaration registration fees Documents Required: and customs duties and taxes in • Goods clearing declaration. the event of re-exportation under • Approved delivery advice in the guarantee. name of a licenced company. • Affix set off stamp on to the • Import permit from the competent transaction. agencies in the event of taking • Receive the declaration. goods out into the local market. • Sale invoice from the free zone Documents Required: licensee addressed to a licenced • Goods clearing declaration. importer in the country detailing • Copy of the import declaration total quantity, goods description, (after payment of customs duties currency and detailed total value of at the port of entry) or attaching each individual item. the certificate of origin if the cargo • Detailed packing list as per weight, is originating in UAE or other GCC method of packing and the HS code States. for each individual article contained • True copy of the invoices containing in the shipment. the actual value of the imported • Copy of the commercial licence of goods. the free zone company.

Inter-GCC States Statistical Declaration Such type of declaration is processed for goods intended to be moved between GCC States and regarded as part of a consignment for which customs formalities have been completed at the port of entry. Such goods are called incomplete consignment and their final destination is a GCC State. The statistical declaration shall be processed similar to the aforementioned import declaration, but in the event of exportation:

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Export Manifest Import into Free Zone Documents Required: Free Zone licencees are allowed to • Export declaration import goods or equipments into the • Original invoice free zone from a foreign country without • Certificate of origin from the payment of customs duties. Such goods Chamber of Commerce in case the may be stored for an unlimited period goods are originating in a foreign of time depending upon the type of country. goods and the validity of the Free Zone • Certificate of origin from the Ministry Licence. of Economy, if goods are originating in UAE. Documents Required: • Packing list • Delivery order from the shipping agent or Airline agent addressed to Free Zones a licenced company by the licensing Free Zones are part of the country’s management in the free zone. territories but considered to be outside • Delivery Note by the Free Zone the customs territory and subject to company confirming the acceptance customs control other than normal of goods, if the shipment is moved customs procedures. This is applicable by land or from other Free Zone to all free zones in Dubai. areas. • Second copy of the bill of lading if it is by sea, original airway bill for Air General Provisions shipment and road manifest for land • The importer must have obtained shipment. a valid importer code from the • Import permit from the competent Customs. agencies in the free zone for • Goods must be in conformity with restricted goods. the activity of the licenced company. • Sale invoice from the free zone • Goods must arrive in the free zone licencee addressed to a licenced within 72 hours from the date of the importer in the country detailing customs declaration. • The licencee shall not open, alter or dispense of the goods prior to their arrival in the free zone and customs endorsement. • Goods shall be inspected whilst entering the free zone or transferred to the stores.

68 total quantity, goods description, by the buyer (Importer – local currency and detailed total value company) and the seller (Exporter – of each individual item. Original Free Zone Company). & detailed item wise invoice with • Original & Detailed invoice by item HS Codes classification from the wise with HS Code Classification shipper addressed to the Free Zone and Free Zone BOE Reference Licencee. Number by item wise from Free • Certificate of origin approved by Zone Company. the Chamber of Commerce in the • Original packing list from Free Zone country of origin indicating the origin Company. of goods. • Import Goods Declaration Form. • Detailed packing list as per weight, • Trade licence copy of the seller and method of packing and the HS code buyer. for each individual article contained • An NOC from the concerned in the shipment. competent authority, ministry or departments are required in Import from Free Zone into case the goods are restricted or prohibited. UAE/GCC • Online Duty Exemption Approval This type of bills are processed for from the relevant authorities, allowing Free Zone Licensee to sell their ministries or departments. Request commodities to the local companies letter & application are required if in the UAE or in the GCC Countries the UAE importer is exempted from operating under valid Commercial/ paying customs duty. Industrial licences from the concerned authorities within the UAE or in GCC. Based on submission of following General Provisions • The declarant must have obtained documents from the Free Zone a commercial licence from the Companies to Customs by the local competent authorities of the country or GCC Importer or their appointed or a GCC State and goods should Clearing Agents, Free Zone Transit Out be in conformity with the licenced (Ex-FZ Import Bill) shall be issued upon activity. payment of applicable Customs Duty • The declarant must have obtained as per the customs tariff. Free Zone a valid importer code from the Licensee has to deliver the goods only Customs. upon receiving the copies of the Ex-FZ • Goods must be taken out from the Import Bill from the importer. free zone within 30 days, which can be extended for a similar period Documents Required: after the customs declaration is • Delivery Advice from the Free Zone issued. Company – should be stamped • Goods shall be subject to inspection prior to final release.

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Import for Re-export from • Trade licence copy of the seller and Free Zone (FZ Transit Out) buyer. This type of bills are processed for allowing Free Zone Licensees to Deposit Refund & sell their commodities to the local Guarantee Release companies in the UAE operating under valid Commercial Licences from Documents Required: the concerned regulatory authorities • An Exit Certificate certified by the within UAE on Import for Re-Export Customs at the exit point. basis. This facility will grant the UAE • A cargo manifest if the cargo is left Importer a grace period to export the by sea or land. goods purchased from the Free Zone • Copy of original export A/W Bill, Licensees within 180 days from the B/L if the cargo has left the country bill date. A customs deposit equivalent through Airport or other Sea Ports. to the duty tariff of the invoice value is collected from the UAE Registered Remark: A partial export of the cargo is Company against these transactions. accepted provided, the importer submit Refund of the deposit is made fully proof of export, whereby the equivalent or partially if the proof of export is deposit amount of the value of the submitted within the time frame allocated exported cargo is refunded. for this type of bills. Ex-Free Zone Export Bill Documents Required: (FZ Transit Out) • Delivery Advice – should be This type of bill allows the FZ Licensee stamped by the buyer (Importer to export goods out of GCC by sea, land – local company) and the seller and air. (Exporter – Free Zone Company). • Original & Detailed invoice by item Documents Required: wise with HS Code Classification • Delivery Advice – should be and Free Zone BOE Reference stamped by the seller (Exporter – Number by item wise from Free Free Zone Company). Zone Company. • Original & Detailed invoice by item • An NOC from the concerned wise with HS Code Classification competent authority, ministry and Free Zone BOE Reference or departments are required in Number by item wise from Free case the goods are restricted or Zone Company. prohibited. • Original packing list from Free Zone • Original Packing List from the Free Company Zone Company. • Exit/entry certificate • Import Goods Declaration Form.

70 The Customs bills are cleared against releasing the shipment. payment of deposit equivalent to 5% • Original & detailed item wise invoice of CIF value of the consignment and from Free Zone Company. the refund claim should be submitted • Packing list. within 59 days from the bill date, but • Letter from exhibitor confirming the the cargo must be exported within 30 participation in exhibition. days from the bill date. If the client has • Job card or the contract copy failed to submit the claim within the between the Free Zone Company prescribed period, the deposit will be and the repairer against the repair forfeited along with an additional 10% of work with the licence copy of the consignment CIF value collected as repairer company. penalty. • Free Zone licence copy.

Upon presenting the documents listed Deposit Refund & earlier at the Customs Centers, an Ex Free Zone Export Bill (FZ Transit Out) Guarantee Release shall be issued. If the consignment is • A proof of entry back into the Free in FCL status, the container shall be Zone certified by the Customs loaded in the presence of the Customs Inspectors on site. Inspectors and required sealing by them. • Refund will be granted if the claim is For all exports, the customs department submitted within 120 days. at the destination will require certificate • Failure to submit the proof of return of origin issued by Dubai Chamber of within the time frame will result in Commerce and Industry. forfeiting the deposit. • In addition to the clause No. 3, a 10% penalty on the consignment Free Zone Temporary value will be collected if the goods Admission cleared on these bills are not This type of customs bills are prepared returned back to their facility in the in the event of facilitating the entry of Free Zone. goods through customs zones into the country on temporary basis for the purposes of exhibition or repairs and maintenance of equipment and machineries. A deposit equivalent to customs tariff on total value of goods shall be collected against such type of transactions. Documents Required: • Delivery advice. • Request letter from the Free zone company stating the justification for

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• 50% of the deposit will be forfeited if subsequently, the Free Zone licensee the claims are submitted within 120 has to file a Free Zone Bill of Entry (FZ to 150 days. Transit Bill).

Free Zone Internal Documents Required: Transfer See the procedures and documents This type of Customs bills are prepared required for export. in the event of sale of goods internally • Delivery order from a licenced by a Free zone licensee to another company by the licensing free zone licensee having same type of management in the Free Zone. activity; upon approval and consent of • Copy of the delivery advice to the the seller and buyer. free zone. • Import permit from the competent agencies for restricted goods. Documents Required: • Sale invoice from the local vendor • Delivery Advice – should be addressed to the free zone licensee stamped by the buyer and the detailing total quantity, goods seller. description, currency and detailed • Original & detailed invoice by item total value of each individual item. wise with HS Code Classifications • Detailed packing list as per weight, and Free Zone BOE Reference method of packing and the HS code Number by item wise from Free for each individual article contained Zone Company. in the shipment. • Original packing list from the seller. • Trade licence copy of the seller and buyer. General Information • Transfer of ownership letter • No customs duty is involved with prepared by the Seller as per the import of cargo into the Free the Customs Format and signed Zone, provided Free Zone bills & stamped by the authorized of Entry have been processed in signatory of both seller and buyer. the name of JAFZ licence holder and the cargo has been physically brought into the Free Zone and Export of Goods from the entry of goods has been Local Market through Free authenticated by the Customs Zone (FZ Transit In) Inspectorate. This type of facility shall allow Free • The Free Zone licensee can keep Zone licensees to buy goods from the their cargo in the Free Zone as long UAE local market for export purposes. as their licence is valid without any In order to validate the entry of goods customs duty. into the Free Zone, the local exporter • Transfer of ownership of cargo has to file a local export declaration and between JAFZ clients are allowed

72 subject to the JAFZ licence activity of entries against the goods imported clause, provided proper declaration from overseas or purchased from is made to customs and necessary Free Zone clients and the subsequent customs approved documents are deliveries to their clients on ex-FZ bills processed. (FZ Transit Out) by referring those • Goods imported to Free Zone can free zone/transfer bills of entries. be transferred to another Free These inventories should be produced Zone or customs bonded facility to customs on request for inventory within Dubai, subject to customs reconciliation with customs records. documentation and deposit requirements. Companies in • Retail Sales are not permitted within should not import/export fake products the Free Zone. and goods stated in Section VII, Chapter • All transaction to be declared to IV, Article 80 of “Common Customs Law Customs and obtain necessary of the GCC States” into or out of JAFZ customs approved bills at the time and should not sell branded products of arrival & departure of goods. into UAE or GCC for which, the brand • No goods can be imported into name is already registered with Ministry the Zone unless the Free Zone of Economy having an authorized local consignee has officially registered agent in UAE or GCC countries. its name with customs against a valid licence issued by the Free Customs reserves the right to conduct Zone Authority to obtain Importer/ inspection on Free Zone clients’ Exporter code. premises and hold their codes at any • The law for the import of prohibited time without prior notice in the event and restricted goods, concerned of failure to comply with the above to the local companies will be procedures or misuse of the system. applicable to Free Zone Companies too.

Note All types of bills are subject to customs inspection before release & permitted to import/export subject to its activity clause appearing on the Free Zone licences.

All Free Zone companies have to maintain a fully computerized, thoroughly auditable and accountable inventory control system based on Free Zone or internal transfer customs approved bills

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9 VISA AND IMMIGRATION PROCEDURES

All the companies in Dubai must be registered with the Ministry of Labour Citizens of 32 countries shall obtain and Department of Immigration to bring visa on arrival valid for 30 days foreign nationals for work or to invite and extendable for 30 days with an business persons to visit Dubai under additional 10 days grace period: their sponsorship. Business traveler Andorra, Australia, Austria, Belgium, is allowed to visit Dubai generally to Brunei, Denmark, Finland, France, engage or attend exhibitions, auctions, Germany, Greece, Hong Kong, Iceland, shows, events, business meets, training, Ireland, Italy, Japan, Liechtenstein, seminars, conference and discussion. Luxembourg, Malaysia, Monaco, New Zealand, Norway, Portugal, San Visa on Arrival: Marino, Singapore, South Korea, Spain, Except the citizens of 32 countries Sweden, Switzerland, The Netherlands, listed below, all travelers are required to United Kingdom, US and Vatican. arrange a valid visa prior to their visit to Dubai. 74 Residents of GCC Countries Foreign residents in Gulf Cooperation Council (GCC) countries who have had a valid GCC residence visa for at least 180 days and who are on high level professions can receive a visa on arrival valid for 30 days and extendable for 30 days with an additional 10 days grace period.

Visa before arrival: • Single entry short term visit visa allows 30 days of stay in the UAE and the visa holder must enter the country within 60 days from the date of issue. These type of visas are arranged through the sponsorship of UAE based company. • Single entry long term visit visa allows 90 days of stay in the UAE, and the visa holder must enter the country within 60 days from the date of visa issuance. • Multiple entry visit visa is valid for a total of 180 days with 14 days stay after each entry. For obtaining this visa business traveler must enter the country on a short term visit visa sponsored by host company and apply for multiple entry visit visa in the UAE.

Visa for Work Purpose Application for Visa for employing foreign nationals must be first approved by the Ministry of Labour. Every company should have registered and obtained the Establishment Card from the Ministry of

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Labour prior to applying for employment visas. Upon satisfactory clearance of the application, the Dubai Department of Immigration shall issue the Entry Permit. The employee shall visit Dubai and must undergo for a medical checkup. Once the employee has been cleared with the medical report, the visa shall be affixed on his passport and the same shall be valid for 2 years.

Subsequently, the company must apply for a Labour Card for the employee, only then the employee shall be allowed to work for the company.

Visa for Employees in Free Zones Immigration rules are common in Dubai although there are slight variations with the regulations of Free Zone authorities. Companies in the Free Zone need not be registered with the Ministry of Labour or with the Immigration Department. It is the Free Zone authority which sponsors the employees and seconds them to the companies. The companies should provide appropriate bank guarantee to the Free Zone in addition to the applicable fees for availing the visa facility.

Investor Visa Partner of a Limited Liability Company (LLC) or professional firm is eligible for obtaining investor visa which is directly issued by the Immigration Department and no need of approval from the Ministry of Labour.

76 Visa for Dependents Investors of LLC or professional firm and the employees who earn sufficient salary are eligible to sponsor their dependents – spouse, unmarried daughter, sons under 18 years, step children and adopted children (under certain conditions) and parents. In order to sponsor spouse and children, marriage and birth certificates, duly legalized till UAE Embassy, are required to be submitted.

Wages Protection System In line with the UAE government efforts and its development and modernization plans which aim at improving government performance and providing better and faster services to the public, the Ministry of Labour has implemented the Wages Protection System. This system is an important step towards ensuring and protecting the rights of workers, and towards establishing trust between establishments and their employees.

Companies are now obliged to transfer the salaries of their employees through the new system within a period not exceeding nine months. Companies that fail to abide by the decision will be subject to punishments and fines, and will not be able to obtain work permits.

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10 Judicial System in Dubai

Islamic Shari’a law constitutes the The flow of regional and international guiding principle and the source of law commercial and industrial enterprises in Dubai. However, it also adopts civil to Dubai and the UAE over the last 30 law principles having close proximity to years has resulted in an expanding Egyptian laws. scope of adopting and implementing various forms of federal codes of law.

80 There are federal codes of law which accordingly. Dubai also has a Labour apply in Dubai as well as in other Court, which deals exclusively with emirates dealing with civil, commercial, disputes between employers and civil procedure, companies, intellectual employees, and a Property Court which property, immigration, maritime, deals exclusively with real property industrial, banking and employment law. disputes. At the same time the Dubai Government has enacted various local laws and Matters coming before Dubai’s courts decrees which shall govern mainly the are heard by one or more judges. operation of various commercial entities Further, unlike in some western in Dubai. jurisdictions, there is no system of precedent in Dubai. However, judgments Although the UAE federal constitution of some higher courts are published, permits each emirate to have its own not because they are binding on lower judicial authority, all emirates other than courts, but to provide useful evidence of Dubai and Ras Al Khaimah have brought future judicial interpretation and practice. their judicial systems into the UAE Federal Judicial Authority.

Dubai has retained its own independent courts (and judges), which are not a part of the UAE Federal Judicial Authority. Dubai’s courts will first apply federal laws, such as the Companies Law or the Civil Code, as well as the laws and decrees enacted by the Ruler of Dubai, where federal law is absent or silent.

Dubai’s courts comprise a Court of First Instance, a Court of Appeal and a Court of Cassation. Each of these courts has a civil division, a criminal division and a Shari’a division. The civil division hears most civil claims, the criminal division deals with most criminal cases arising in Dubai and the Shari’a division hears civil matters for Muslims, most of which relate to family matters such as divorce and inheritance. Non-Muslims also are required to respect Shari’a law in Dubai and should conduct themselves

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11 Real Estate [Freehold Properties]

In May 2002, the Ruler of Dubai issued real estate market. In the MENA the decree to allow foreign nationals to region, Dubai real estate market is still invest in on freehold considered more advanced, however, ownership. The properties were initially more to go as compared with western grouped under three government owned markets. Implementation of various entities - ‘ PJSC’, laws and regulations and establishment ‘Nakheel’ and ‘Dubai Properties. In of Real Estate Regulatory Agency are the year 2006 the Land Registration viewed very useful. The Escrow Law, Law was enacted to legalize freehold Landlord and Tenant Law, Strata Law, ownership of land and property for the Mortgage Law, Pre-Registration Law UAE and GCC citizens, while awarding etc., were welcomed by investors to a the same rights to non-GCC nationals in large extent. At the same time, because pre-designated areas that are approved Dubai is currently facing a position of by the Ruler of Dubai. Since then, Dubai over-supply, demand-side stimulus must has taken considerable advancements to be balanced against the risk of creating become a sophisticated and acceptable artificial or unsustainable demand.

82 leasing property against remuneration. Licensing of The licencee should have completed Real Estate Real Estate Practitioner Course if he is a graduate and diploma in Real Estate Activities course if he is non-graduate.

Real Estate Buying and Pre Conditions/Restrictions Selling Brokerage • Licences are issued only in the Includes firms dealing with buying and name of UAE or GCC nationals. selling of property by acting as brokers • Real Estate practitioner course for between the owners and buyers. The degree holder and Diploma in Real licencee should have completed Real Estate course for non-graduate. Estate Practitioner Course if he is a • Expatriate manager must hold visa graduate and diploma in Real Estate under this company. course if he is non-graduate. • Certificate of good conduct from Criminal Investigation Department. • Owners’ and staffs’ details to be Pre Conditions/Restrictions: registered with Broker Department • Licences are issued only in the and obtain broker ID. name of UAE or GCC nationals. • Owners are not allowed to have • Real Estate practitioner course for more than one licence. degree holder and Diploma in Real • Can open branch office if there are Estate course for non-graduate. minimum 15 sales brokers in the • Expatriate manager must hold visa main office. under this company. • Annual Fee: AED 5,000. • Certificate of good conduct from Criminal Investigation Department. • Owners’ and staffs’ details to be Self-owned Property registered with Broker Department Leasing and Management and obtain broker ID. • Owners are not allowed to have Services Includes firms engaged in managing more than one licence. commercial, residential, industrial • Can open branch office if there is buildings owned by the owner and minimum 15 sales brokers in the his first and second degree relatives. main office. It also includes handling contractual • Annual Fee: AED 5,000. arrangements with the firms in charge of maintenance, security and issuing Real Estate Leasing tenancy contracts. Brokerage Includes firms which act as a link Pre Conditions/Restrictions: between the landlords and tenants for • Expatriate investor can also join

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with the company as partner. Real Estate Management • Expatriate partner’s visa must be under this company. Supervision Services • The value of properties, the investor Include firms specialized in managing owns must not be less than and supervising properties as regarding AED 8 million. contracting with the firms in charge of • The firms are not allowed to maintenance, cleaning and security practice real estate brokerage services, handling the administrative activity. issues for the property’s owner, • Must register all the properties with coordinate with lease brokers to find RERA. tenants for vacant units in the building. • Annual Fee: AED 5,000. Pre Conditions/Restrictions: Leasing and Management • Bachelor degree or diploma. • Expatriate partner or manager must of other people’s property hold visa under this company. Include firms engaged in managing • Undertaking for not practicing in commercial, residential, industrial real estate brokerage or sub-leasing buildings through contracting with activities. the owner in order to re-lease on • All the properties being supervised subcontracting bases also, handling must be registered with RERA. contractual arrangements with the firms • Annual Fee: AED 5,000. in charge of maintenance, security as well as issuing tenancy contracts.

Pre Conditions/Restrictions: • Bank Guarantee of AED 5 million to be provided to the Land Department. • Expatriate partner or manager must hold visa under this company. • All the properties being managed must be registered with RERA. • Branch office may be allowed if the company has 20 or more administrative employees. • Annual Fee: AED 15,000. • The company is not allowed to practice Leasing Brokerage.

84 Owners’ Association Renting of Residential Management Services Units on Time-Sharing (Professional Licence) Basis Includes firms specialized in managing Includes firms specialized in offering and supervising the properties that furnished flats and cabins in residential are jointly owned and run by owners’ resorts and commercial complexes associations with the responsibilities of for rent on time-sharing basis. It also contracting, managing and supervising includes making renting available on the firms in charge of maintenance, membership basis. cleaning, security services and other specialized service providers; as well Pre Conditions/Restrictions: as handling the administrative issues • Bank Guarantee of AED 1 Million and the record of the building and • Expatriate partner or manager must association submitting periodical reports be sponsored under this licence to the association. • Certificate of registration in a global organization Pre Conditions/Restrictions: • Projects from out of the country • Not allowed to practice selling or must produce title deeds of the purchasing or leasing brokering units and resorts to be marketed • Practitioner course for owners’ and it should be certified by association management for owner official authorities, UAE embassy and manager and Ministry of Foreign Affairs. • Bachelor degree certificate for Properties in the UAE must provide owner and manager title deed and completion certificate • Minimum of 2 years experience in from the relevant UAE authority. the Real Estate industry for UAE • Undertaking not to market any nationals & 3 years for foreign incomplete project. nationals • Certificate of good conduct from Criminal Investigation Department (all parties). • Foreign partner must be sponsored under this licence. • Other activities can’t be included together. • Annual Fee AED 10,000 The licencee & all employees permitted to specialize in real estate regulations should have RERA registration before practicing their activity.

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• Undertaking not to sell a single unit • Certificate of Real Estate to more than 51 people. practitioner course • Letter to specify how many units will • Minimum of 2 years experience in be used for time-share. the Real Estate industry for UAE • Obtaining permission from the nationals & 3 years for foreign promotion section in RERA before nationals marketing any project. • Expatriate investor must be • Registration of the staff at the sponsored under this licence. broker department and obtaining • Annual Fee: AED 5,000 broker ID card. • Not allowed to sell incomplete Branch of Foreign Company project. It is allowed to set up branch of foreign • Time-share units located in company to engage this activity subject Dubai will be blocked in the land to the rules and regulations of Dubai department government. However, the company • Annual Fee: AED 25,000 must be in existence for minimum two years of operation in real estate Real Estate Mortgage mortgage consultancy services. Consultancy (Professional Licence) Mortgage Broker Includes personal and corporate brokers Includes firms specialized in offering who advise and assist borrowers in advisory on how to mortgage property obtaining the best borrowing conditions to get loans from financial institutions from lenders and commercial banks to for financing freehold property, including acquire or build properties, such service selection of a financial institution, how is against commission without exercising to mortgage and release a property, direct lending to borrowers. preparation and submission of documents, the implications of breaking financing and mortgaging in midterm, Pre Conditions/Restrictions: refinancing and mortgaging fully paid • Bachelor degree (In finance, properties, re-mortgaging and transfer to Economics or Accounting). another financier, evaluation of financing • Certificate of Real Estate rates, such firms are not allowed to practitioner course. seek or carry out any mortgaging for • Minimum of 2 years experience in themselves. the Real Estate industry for UAE nationals & 3 years for foreign nationals. Pre Conditions/Restrictions: • Expatriate investor must be • Bachelor degree (in Finance, sponsored under this licence. Economics or Accounting) • Annual Fee: AED 5,000.

86 Branch of Foreign Company It is allowed to set up branch of foreign company to engage this activity subject to the rules and regulations of Dubai government. However, the company must be in existence for minimum two years of operation providing mortgage broking services.

Property Inspection Services (Professional Licence) Includes firms specialized in the inspection of housing and commercial properties providing comprehensive, objective and professional reports for proprietors, sellers, buyers, real estate agents in order to facilitate negotiations and transactions, and to provide buyers, sellers with reports and remarks ahead of the completion of buying and selling stating the condition of the property and indicating any technical flows.

Pre Conditions/Restrictions: • Bachelor degree in Civil Engineering or Diploma in Construction Engineering. • Minimum of 3 years experience in the Real Estate industry for UAE nationals & 5 years for foreign nationals • Expatriate investor must be sponsored under this licence. • Annual Fee: AED 10,000

Branch of Foreign Company It is allowed to set up branch of foreign company to engage this activity subject

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to the rules and regulations of Dubai government. However, the company must be in existence for minimum two Real Estate Development This refers to companies established for years of operation providing property the development and founding of real inspection services. estate projects which include housing and commercial complexes, tourism Real Estate Valuation projects, and the development of the Services (Professional infrastructure and leisure facilities for Licence) such projects. It also covers the selling of the property or projects as per the free This includes the appraisal and hold ownership law of property whether assessing the value of fixed property owned by the licence holders or another such as plots of land and building party through a contract signed between for various reasons at the request of the developer and the land owner and specialized surveyors or by official registration of the contract in the Escrow authorities. Accounts Department ahead of the commencement of the project. Pre Conditions/Restrictions: • Bachelor Degree or Diploma Pre Conditions/Restrictions: • Minimum of 2 years experience in • No other real estate activities can the Real Estate industry for UAE be included in this licence. nationals & 5 years for foreign • Project must be registered in the nationals Escrow Accounts Department after • Real estate evaluation certificate the licence is issued. from RERA (for both UAE national • Prior approval must be obtained and expatriate) from RERA to market any project. • Certificate of membership in an • Expatriate investor must be international real estate appraisal sponsored under this licence. association – for expatriate • Annual Fee: AED 25,000. • Certificate of good conduct from Criminal Investigation Department (all parties) Real Estate Consultancy • Expatriate investor must be (Professional Licence) sponsored under this licence Includes offices which offer real estate • Must be registered with RERA and consultancies in return for money. These should hold real estate evaluator ID consultancies are relevant to data, • Annual Fee: AED 10,000 information and prices of all types of real

88 estates. The services of these offices do not include facilitating contacts between parties or the undertaking of selling and buying procedures.

Pre Conditions/Restrictions: • Bachelor Degree (in Business Administration, Real Estate or Finance). • Certificate of Real Estate practitioner course. • Minimum of 3 years experience in the Real Estate industry for UAE nationals & 5 years for foreign nationals. • Expatriate investor must be sponsored under this licence. • Annual Fee: AED 5,000.

Branch of Foreign Company It is allowed to set up branch of foreign company to engage this activity subject to the rules and regulations of Dubai government. However, the company must be in existence for minimum two years of operation providing real estate consultancy services.

Real Estate Representative Office Office established by an international company or enterprise to represent it in UAE in order to market and promote the property that it owns outside the UAE, or facilitate commercial deals between the mother company and its customers.

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Pre Conditions/Restrictions: must be in existence for minimum • Not allowed to sell & buy any five years of operation providing properties (information office only). property surveying service and should • Office shall be established pursuant demonstrate list of sufficient projects to regulations applicable for Foreign executed. Company Representative Office. • Annual Fee: AED 5,000. Buying and Selling of Real Estate Real Estate Survey Includes firms which work in the Services purchase of real estate, such as Includes firms engaged in surveying residential and non-residential buildings buildings and dwellings, as regarding and commercial land for selling. number of floors and joint spaces, However, such firms are not allowed this process involves lands, buildings to practice the activity “ Real Estate and units, vertical and dimensional Development”. surveying, joint spaces in buildings lands surveying, preparation of maps and Pre Conditions/Restrictions: sketches of real estate units. • If the company has been formed with a foreign partner, the company Pre Conditions/Restrictions: can own properties in free hold • Bachelor Degree. areas only. • Practitioner Surveyor Course (Dubai • Expatriate partner or manager must Real Estate Institute). be sponsored under this licence. • Minimum of 2 years experience in • Annual Fee: AED 5,000 the Real Estate industry for UAE nationals & 5 years for foreign Visa facility for Freehold nationals. • Expatriate manager must be Property owners: sponsored under this licence. Owners of freehold properties in Dubai • Companies must be registered valued over AED 1 million and having in the surveyor section in land no mortgage can obtain two years department before commencing residence visa subject to the prevailing operation. immigration rules and conditions. Unlike • Annual Fee: AED 5,000. normal employment or residence visa, the application for entry permit and other formalities are processed at the Branch of Foreign Company dedicated immigration counter in RERA It is allowed to set up branch of foreign office. company to engage this activity subject to the rules and regulations of Dubai government. However, the company

90 12 Major Government Organizations and Initiatives

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Dubai Executive Council Investment Corporation of The Dubai Executive Council Dubai (ICD) is responsible for supporting Investment Corporation is an important implementation of the Government and key initiative of the Government of of Dubai’s strategic plans. Dubai Dubai to streamline and coordinate its Executive Council formulates and various assets. ICD has an important implements local regulations and laws, role to play as the principal investment prepares development plans, and arm for the Government of Dubai. The monitors performance by government portfolio companies that currently reside departments. Dubai Executive Council under ICD are symbols of Dubai’s provides support service to the Council successes in achieving excellence and Government Authorities in projects in the sectors in which Dubai has relating to the achievement of the chosen to participate. ICD portfolios Dubai Strategic Plan 2015. The Council are comprised of wholly and partly established the following commissions/ owned government businesses. ICD’s committees to support the functioning: mandate is to generate a superior return on investment, in a way that will benefit • Economic Development the regional financial community. ICD Commission has achieved this through strategic • Security and Justice Commission investments in companies that have • Environment and Infrastructure achieved global excellence and have Committee defined the industrial, retail and financial • Social Development Commission landscape of Dubai. The ICD investment • Health and Safety Committee portfolios are ranging from finance & investment sector to transport, energy The commissions/committees aim to and industry, real estate to retail and achieve the following objectives: other holdings. • Support Executive Board in

optimizing the assigned roles • Strengthen policy and decision Dubai Government Media making in various government Office sectors Dubai Government Media Office has • Review the programs and studies been established to enhance the for the development of various channels of communications with the government sectors local, Arab and international media • Coordinate the works of various community and mobilise resources for government agencies and other conveying an accurate image of events committees in Dubai and delivering the message in a clear, objective and effective style,

92 on par with the highest of international tremendously over the years especially standards. Dubai Press Club, Falcon with the expansion and investment in and Associates, and Dubai Media its human capital. Consequently, EPRC Affairs Office (Brand Dubai) will also has steadily attained higher output come under the umbrella of the Dubai targets, both in the production of policy Government Media Office. Brand Dubai evaluation reports and creation of was created to preserve Dubai’s image suitable environments for effective policy while Falcon and Associates, created debate. to establish and own media-related commercial institutions. All these units Dubai Competitiveness Center (DCC) will join forces to ensure coordination in DCC, has been created with the auditing information and standardizing vision to enhance Dubai’s global media messages. It will be a dynamic competitiveness and create sustainable official channel and serve as a focal development. It aims to align Dubai’s point for local, regional and international laws, regulations and policies to the media outlets for information regarding best practices in the world for promoting the Ruler and Government of Dubai innovation, technology development and and ensure delivery of facts without entrepreneurship. ambiguity. Legal Affairs and Research Center (LARC) Dubai Economic Council LARC serves as the DEC’s advisory DEC was established in the year 2003 on all legal and regulatory matters, to play a major role in supporting the local and federal, that affect Dubai’s Government of Dubai’s economic policy economy. It actively participates in decision-making. The Dubai Economic the development of legal policies and Council comprises leading businessmen strategies by advising the Government of and officials representing the most Dubai and introducing reforms. vital sectors of the Emirate’s economy, encompassing a world-class team of economists, strategists, researchers and Dubai Chamber of legal advisors. DEC has transformed Commerce and Industry itself into a vital player in advancing (Dubai Chamber) Dubai’s economic agenda providing the Dubai Chamber of Commerce & Emirate with sound economic policy Industry, also known as Dubai Chamber recommendations. Following centers was established in 1965 to represent, have been established within DEC to act support, and protect the Dubai business as the operational arms of DEC: community. Dubai Chamber supports the business community in their commercial Economic Policy and Research activities, open doors to untapped global Center (EPRC) and local business opportunities and EPRC’s capability lies in producing sharing the best practices. Companies sound policy advice and has grown

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become member of the Chamber ideas into a reality. The initiative offers a automatically while obtaining the trade specialized programme and platform for licence. the youth in establishing their own small- to-medium-sized business enterprises Services of Chamber in Dubai. • Issuance of Certificate of Origin and Document Attestation Dubai Press Club (DPC) • Credit Rating The Dubai Press Club has been • Members’ information and established as a center for journalists Commercial Directories and media professionals to debate, • Data & Research Information discuss and deliberate political, • Dispute Resolution (Dubai economic and social issues. DPC has International Arbitration Centre) launched unique initiatives such as • Centre for Responsible Business to the annual Arab Media Outlook, an promote best business practices authoritative reference for journalists • MRM Business Award worldwide. The Dubai Press Club • Business Networking and Business is active in hosting and organizing Match making workshops and seminars on issues • Trade & Business Development impacting regional and international socio-political scenarios, and also on Recommendation for licensing of strategic communications. DPC is a Business Councils and Business founder member of the International Groups Association of Press Clubs and serves Dubai Chamber has been mandated as a thriving forum for the exchange of to recommend business councils and information, ideas and initiatives with groups to be formally licensed in Dubai. members of press clubs worldwide. Business Councils are issued official licence to open their headquarters and have the authority to hire staffs Dubai Free Zones Council Dubai Free Zones Council acts as a and obtain visas. The Chamber shall main forum to ensure coordination of issue its recommendation to the higher free zones’ activities and to represent the authority and Department of Economic zones in the Executive Council of Dubai Development to issue a licence on the and other local, federal and international basis of the necessary documentations bodies. Some of the council’s received. objectives include reviewing policies, procedures, rules and regulations with Tejar Dubai regard to the free zones, and resolve Tejar Dubai is an initiative of Dubai problems by providing suggestions and Chamber. It aims to find and train recommendations. The council will also creative and commercially-minded initiate researches and studies of issues youth to help them turn their business

94 related to free zones. It will facilitate land bank which includes a sizable transfer of knowledge and sharing amount of properties registered under of best practices and promote group the name of the Dubai Government, initiatives to benefit from suppliers and as well as others. Its mandate extends service providers. It will also coordinate to building, investing and utilization of marketing campaigns, propose target commercial and industrial lands and markets and correspond with other properties. DREC contributes to the organizations. It will also establish a sustainability of Dubai’s urban growth database that will serve decision makers while expanding its asset base by and investors. The Dubai Free Zones providing unique projects that satisfy Council has drawn a general framework market needs and exceed customer for the registration and licensing of expectations. DREC owns a large companies within the free zones. Aligned portfolio of lands available for leasing with the indicators and standards of the on a case by case basis. These range World Bank for establishing companies, in usage from commercial to industrial. the new regulations aim to make the Lease can be offered on a short term or registration process more efficient and long term basis depending on the type of enhance ease of doing business. investment.

Definitely Dubai Wasl Definitely Dubai is the brand signature of Wasl has been created by Dubai Real Dubai’s Tourism Department (DTCM). It Estate Corporation (DREC) to manage aims to interpret the visionary ideology and develop its assets. Wasl operates a into a visual identity for Dubai. Definitely wide spectrum of property management, Dubai brand signature has been project management and investment inspired by Arabic calligraphy known management services for DREC. In line as Thuluth Script, paying homage to with its long term strategic ambitions, the Government of Dubai logotype. An wasl’s project management capability elegantly sloping, cursive, calligraphic will cover the Residential, Commercial, script, Thuluth represents firmness, Retail, Light-Industrial, Public Utilities, quality and dignity. This inspired hand- Leisure and Entertainment and written style in English communicates a Education sectors. personal touch. It is shaped to evoke the sense of an artistic signature. Meydan

Dubai Meydan City, featuring Meydan Dubai Real Estate Racecourse, Meydan Metropolis, Corporation (DREC) Meydan Horizons, Meydan Godolphin Dubai Real Estate Corporation was Parks and Meydan Free Zone is an formed in year 2007 with the activities iconic development in Dubai to cater encompass owning and managing its race courses and related activites. The

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entire development will cover more than Dubai Maritime City 40,000,000 square feet gross floor area on a land size of around 15,000,000 Authority (DMCA) Dubai Maritime City Authority was square feet. established pursuant to Dubai Law No. (11) of 2007 to create Dubai as Meydan City Corporation is the body a world-class maritime city. In 2010 oveseas the devolepments in meydan another law was enacted mandating city. Dubai Maritime City Authority to regulate Meydan Racecourse currently hosts the Dubai maritime sector and outlining the world renowned Dubai World the scope and authorities for the Cup. Meydan Racecourse is able to registering and licensing of all types of accommodate over 60,000 spectators in vessels operating in Dubai. These laws a 1 mile long grandstand. task Dubai Maritime City Authority to enhance Dubai’s position in the maritime Meydan Metropolis aims to have industry and oversee the development a series of state-of-the art business of maritime sectors such as maritime parks. It is a 350,000 square meters services, maritime management, commercial development that consists licensing of vessels, chartering of of 17 office buildings built on a single vessels, maritime and educational pedestrian podium. research, design and building of vessels, maritime shipment organization, Meydan Horizons shall have business maritime exhibition, conferences, training towers mingling with luxury water front and workshops, maritime tourism and developments. Horizons is a 3,700,000 maritime specialized arbitration. square meters residential development that consists of Meydan Gateway Services of DMCA Towers, Meydan Tower, Horseshoe Plaza, and Bathhouse Residences. It will also have an 80-berth marina. Marine Vessels Licensing: The objective of Licensing of Vessels by Meydan Godolphin Parks offers Dubai Maritime City Authority is to facilities in Godolphin Tower created in ensure that the vessels are constructed the image of thoroughbred with signature and manned to acceptable standards mall to be located. with adequate safety requirements ensuring the Safety of Life (Passengers Meydan Free Zone: Meydan Free Zone and Crew), Safety of Vessels and to offers business opportunity to investors ensure that the vessels operate in an with the most modern infrastructure environmentally responsible manner facilities. Among other advantages it in accordance with certain codes. offers all the free zone benefits while Maritime City Authority issues licences to setting up an entity in Meydan Free Pleasure vessels, Commercial vessels Zone. and Traditional Wooden vessels.

96 Commercial Licensing (preliminary approval): DMCA has been empow- ered to issue preliminary approval for companies to obtain licence to carry out maritime activities in Dubai, Dubai World Communities, JAFZA and further to issue preliminary approval for floating restaurants in Dubai.

Drydocks World – World has established itself as a leading and fast growing interna- tional player in Offshore and Engineer- ing, Ship Repair and Maintenance, Shipbuilding and Conversion, Rig building and re-furbishment, FPSO/ FSO conversion, offshore fabrication, Maritime Clusters and Yacht and Fleet operations with facilities in the Middle East and Southeast Asia through its joint venture DDW-PaxOcean Asia Pte. Ltd. The flagship yard, Drydocks World- Dubai, the world’s largest and most modern facility between Europe and the Far East, is supplemented by four other fully operational facilities; one in Singapore and three on Batam Island, Indonesia, under the newly formed DDW-PaxOcean Asia Pte. Ltd.

Community Development Authority (CDA) The Community Development Authority has been created for overall supervision of community and social services being provided in Dubai. It aims to introduce an integrated and efficient management system for the development for social services. Community Development Authority’s role includes preparation, execution and supervision of

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comprehensive strategic plans and of the Commission with nominees further to propose legislations to improve from DTCM, DED, Dubai Police, Dubai the output of social development sector. International Film Festival, Dubai Media CDA has been empowered to issue Office, Emirates Airline and Jumeirah licences to the professionals in social Group. The Commission is expected services sector and further to regulate to deliver the process and policy to and standardize their activities. The decrease the cost of media production licensing has been classified into two in order to enhance Dubai’s position viz., Licensing of Social Clubs and both regionally and internationally. Licensing of Social Care Professionals.

Majid Bin Mohammed Innovation Centre – in5 Majid Bin Mohammed Innovation Centre – in5 is a technology incubator supported by Dubai Internet City to promote start-up ventures. in5 is envisioned to promote entrepreneurship and technological innovation. The center will focus on the following: • Accelerate the Development of New Start-ups • Foster Entrepreneurship • Drive Technology Innovation • Develop the ICT Industry • Promote Dubai as the ideal location for start-up

Dubai Film and TV Commission Aligning to Dubai Strategic Plan 2015, the Dubai government has issued a decision to set up the Dubai Film and TV Commission with a mandate to support the development of Dubai’s film and television industry and to promote the Emirate as a production and filming location. The head of Dubai Studio City has been appointed as the Chairman

98 13 DUBAI GOVERNMENT ENTITIES

1. Awqaf and Minors Affairs Foundation Government Department

2. Community Development Authority Government Department

3. Department of Economic Development Government Department

4. Department of Finance Government Department

5. Department of Tourism and Commerce Marketing Government Department

6. Dubai Civil Aviation Authority Government Department

7. Dubai Civil Defence Government Department

8. Dubai Courts Government Department

9. Dubai Customs Government Department

10. Dubai e-Government Department Government Department

11. Dubai Government Human Resources Department Government Department

12. Dubai Health Authority Government Department

13. Dubai Municipality Government Department

14. Dubai Police Government Department

15. Dubai Public Prosecution Government Department

16. Dubai Statistics Center Government Department

17. Financial Audit Department Government Department

General Directorate of Residency and Foreigners 18. Government Department Affairs

19. Islamic Affairs and Charitable Activities Government Department

20. Knowledge and Human Development Authority Government Department

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DUBAI Government Entities (contd...)

21. Land Department Government Department

22. Office of HH The Crown Prince of Dubai Government Department

23. Protocol Department of Dubai Government Department

24. Roads and Transport Authority Government Department

25. The Ruler’s Court Government Department

26. Dubai Chamber Government Agency

27. Dubai Corporation for Ambulance Services Government Agency

28. Dubai Culture & Arts Authority Government Agency

29. Dubai Economic Affairs Government Agency

30. Dubai Electricity and Water Authority Government Agency

31. Dubai Events and Promotion Establishment Government Agency

32. Dubai Export Development Corporation Government Agency

33. Dubai FDI Government Agency

34. Dubai Media Incorporated Government Agency

35. Dubai Media Office Government Agency

36. Dubai School of Government Government Agency

37. Dubai SME Government Agency

38. Dubai Sports Council Government Agency

39. Dubai Supply Authority (DUSUP) Government Agency

40. Dubai Trade Government Agency

41. Dubai TV and Film Commission Government Agency

100 DUBAI Government Entities (contd...)

42. Real Estate Regulatory Agency Government Agency

43. Dubai Airports Government Entity

44. Dubai Government Workshop Government Entity

45. Dubai International Financial Centre (DIFC) Government Entity

46. Dubai Multi Commodities Centre Government Entity

47. Dubai Petroleum Establishment Government Entity

48. Meydan Government Entity

49. Nakheel Government Entity

50. Wasl Government Entity

51. Investment Corporation of Dubai (ICD) Govt Holding Company

Aswaaq ICD Portfolio

Borse Dubai ICD Portfolio

Cleveland Bridge & Engineering ME ICD Portfolio

Commercial Bank of Dubai ICD Portfolio

DAFZA ICD Portfolio

DNATA ICD Portfolio

Dubai Aerospace Enterprise ICD Portfolio

Dubai Aluminium Company Limited ICD Portfolio

Dubai Cable Company ICD Portfolio

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DUBAI Government Entities (contd...)

Dubai Duty Free Establishment ICD Portfolio

Dubai Ice Plant & Cold Stores ICD Portfolio

Dubai Investments ICD Portfolio

Dubai Islamic Bank ICD Portfolio

Dubai Silicon Oasis Authority ICD Portfolio

Dubai World Trade Centre ICD Portfolio

Emaar Properties ICD Portfolio

Emartech (DATEL) ICD Portfolio

Emirates Airline ICD Portfolio

Emirates Investment and Development ICD Portfolio

Emirates National Oil Company (ENOC) ICD Portfolio

Emirates NBD ICD Portfolio

Emirates Rawabi Establishment ICD Portfolio

Emirates Refreshments Company ICD Portfolio

Galadari Brothers Group ICD Portfolio

Golf in Dubai ICD Portfolio

HSBC Middle East Finance Company ICD Portfolio

National Bank of Fujairah ICD Portfolio

National Bonds ICD Portfolio

Noor Islamic Bank ICD Portfolio

Union National Bank ICD Portfolio

102 DUBAI Government Entities (contd...)

52. Dubai Aviation City Corporation (DACC) Govt Holding Company

Al Maktoum International Airport DACC Portfolio

Dubai World Central - Aviation District DACC Portfolio

Dubai World Central - Logistics District DACC Portfolio

53. Dubai Holdings (DH) Govt Holding Company

Dubai Group DH Portfolio

Dubai International Capital DH Portfolio

Dubai Property Group DH Portfolio

Emirates International Telecommunication DH Portfolio

Jumeirah Group DH Portfolio

TECOM Investments DH Portfolio

Dubai Industrial City TECOM Business Park

Dubai International Academic City TECOM Business Park

Dubai Internet City TECOM Business Park

Dubai Knowledge Village TECOM Business Park

Dubai Media City TECOM Business Park

Dubai Outsource Zone TECOM Business Park

Dubai Studio City TECOM Business Park

DuBiotech TECOM Business Park

EnPark TECOM Business Park

International Media Production Zone TECOM Business Park

Empower Other TECOM Investment

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DUBAI Government Entities (contd...)

Energy Management Services (EMS) Other TECOM Investment

Nexgen Other TECOM Investment

Arab Media Group TECOM Subsidiary

eHosting DataFort TECOM Subsidiary

Global Village TECOM Subsidiary

Smart City TECOM Subsidiary

54. Dubai World (DW) Govt Holding Company

DP World DW Portfolio

Drydocks World DW Portfolio

Isthithmar World DW Portfolio

Limitless DW Portfolio

55. Economic Zones World (EZW) DW Portfolio

JAFZA DW Portfolio - EZW

Technopark DW Portfolio - EZW

Dubai Auto Zone DW Portfolio - EZW

104 SECTION - 2 DUBAI FREE ZONES

Establishing a business entity in a Free Salient features: Zone can be an attractive option for • 100 per cent foreign ownership foreign investors and businesses. Free • 100 per cent import and export tax Zones contribute to and simulate the exemptions economy by attracting foreign direct • 100 per cent repatriation of capital investment, generating thousands and profits of jobs, increasing non-oil exports, • No corporate taxes, no personal encouraging the setting up of ancillary income taxes industries, and helping in the transfer of • No employee recruitment knowledge, expertise and technology to restrictions the country.

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1 JEBEL ALI FREE ZONE (JAFZA) Location Jebel Ali, Dubai • Facilities are available in different Operation since 1985 sizes. • Sublease of leased land is allowed Legislation Law No. 1 of 1980 for sister company(s) provided the Managed by Economic Zones World (EZW) existing company or shareholder is the major shareholder in the Segments Trading, Manufacturing, sub-lessee company. JAFZA Assembling, Logistics, Service charges an annual fee of Type of Legal Free Zone Establishment (FZE) AED 10,000 for sub-lease. Entities Free Zone Company (FZCO) • Warehouse units and buildings Branch of Local Company constructed on leased land are Branch of Foreign Company subject to a Public Health Levy Minimum Capital FZE: AED 1,000,000 which is charged at 2% on annual (physical) FZCO: AED 500,000 rental at a maximum of AED 10,000. Branch : N/A • 5% of office and warehouse rental is No. of Shareholders FZE: One charged as one time deposit. FZCO: Minimum 2 and Maximum 5 • Up to 60% of the allotted land can be leased for construction. Shareholding Structure Natural Person(s) and/or • Industrial Effluent Disposal fee is Corporate(s) applicable for factory units. Facilities Offered Office, Warehouse, Light Industrial • Industry specific zones have been Unit, Land, Showrooms created in free zone south viz., Size of Facilities Office: 27 sq. meters and above Dubai Distribution Centre, Digital Warehouse: 333 sq. meters and Valley, Construction Square, above Pharma-Med Park, Chemical & Land: 5,000 sq. meters and above Plastic Field, Paper Pack Zone, Fragrance & Beauty Park, Food & Lease Period Office & Warehouse : One Year; Beverage Park. renewable • The Establishments, Companies, Rental (per sq meter) Office : AED 1,500 onwards Persons and Workers shall be Business Centre: AED 5,000- exempt from all taxes, including 10,000 per month (rate varies income tax, in relation to their according to lease period and is operations within the Free Zone. negotiable) Such exemption shall apply for a Warehouse: AED 600 onwards period of fifty (50) years from the Land: AED 35 onwards date on which such establishments, Fees: FZE: AED 10,000 companies, persons or workers Formation [One time] FZCO: AED 15,000 commence work in the Free Zone. Branch: AED 5,000 The exemption period may be extended for similar periods. Fees: Trading & Industrial: • Power Tariff: AED 0.44/kwh. Licence [Annual] AED 5,500 -up to 7 products from • Water Tariff: AED 10.79/m3. One Group AED 9,000 – up to 12 products • Desk facility in Business Center from Two Groups allows 2 visas Service : AED 8,000 General Trading, Logistics : AED 30,000 No. of Visas Depends on facility leased

106 JAFZA OFFSHORE COMPANY

JAFZA offshore companies are special status non-resident companies formed as per the JAFZA Offshore Companies Regulations 2003. The offshore companies’ shares may be subscribed by individuals or corporate bodies both residents and non-residents of UAE. Such type of companies can be used as special purpose vehicles for commercial investment & owning freehold properties in UAE. Legislation JAFZA Offshore Company Regulations 2003 Date of Enactment 15 January 2003

Company Status Limited Liability

Shareholders Minimum One; no maximum

Suffix to the Name ‘Limited’

Capital Structure Decided by the Shareholders Shares Must be fully paid up when allotted No Bearer Shares allowed All shares must be of same class Administration Must have a Registered Agent approved by JAFZA Registered office may be in JAFZA or in Dubai Directors Minimum two Directors Secretary Must have a Secretary Activities Allowed • Professional contact with legal consultants, lawyers, accountants and auditors • To hold shareholders’ and directors’ meeting • To own properties developed by Master developers such as Nakheel, Emaar, Dubai Properties or other developers approved by the Authority • To hold a bank account in the UAE • To engage in General Trading (outside UAE) • To open branch office or representative office in any part of the world • To become shareholder in a limited liability company to be formed in Dubai/UAE • To become shareholder in any other entity formed in UAE or outside UAE or in UAE Free Zones Activities Restricted • To carry on banking, financial, insurance, reinsurance, insurance agent or insurance broker • To carry out any trading activity in the free zone or in the UAE • To carry on professional services, consulting services or activities related to intellectual property, media, security, publishing, advertising, movie production, management, gambling, casino, property development, game and win, advisory, real estate, military and education Registration The Registrar is the final authority to accept or reject the application for registration. Upon registration, offshore company registration number will be allotted and incorporation certificate will be issued. Registration Fee AED 10,000 Renewal Registration must be renewed annually (fee AED 2,500) Winding up Summary winding up under Chapter 1, Part 13 of the Regulations By the Creditors under Chapter 2, Part 13 of the Regulations By the Court under UAE Commercial Transactions Law of 1993

Corporate Documents Incorporation Certificate, Memorandum & Articles of Association, List of Directors

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2 TECHNOPARK TechnoPark is a purpose built facility to promote the commercial development of technology. TechnoPark is being built on 21 million square meters of land, and will house 60,000 permanent residents and employ over 133,000 people. The park shall function as a hub that enables research partners to access the resources of academic and research institutions, and international associations. Location Jebel Ali, Dubai • Core focus on Water, Energy, Operation since 1985 Health, Engineering, Logistics and Mobility Legislation Law No 1 of 2003 Managed by Economic Zones World (EZW) • Research & Development: TechnoPark focuses on the research Segments Industrial Activities, Professional and development of groundbreaking Activities, Trading of specified technologies that will drive industrial items development. Researchers are able Type of Legal Limited Liability Company (as per to easily access the resources of Entities UAE Commercial Companies Law) leading academic institutions and Sole Proprietorship (owned by international associations. GCC national) Civil Partnership Firm • Water resources: Middle East is one Branch of Free Zone entities of the world’s most water scarce Branch of Foreign Company regions, expected to invest almost Minimum Capital As per provisions of Commercial $30 billion in desalination facilities Companies Law or other applicable over the next few years. Developing laws/regulations new ways of treating and monitoring Shareholding Structure Natural Person(s) and/or water quality, TechnoPark Corporate(s), subject to the businesses also provide consultancy applicable laws to organizations in evaluating and selecting water technologies. Facilities Offered Office, Land

Size of Facilities Office: various sizes • Foreign Ownership: Companies Land: 5,000 sq. meters and above involving in the activities where Lease Period Office: One Year; renewable investment in intellectual faculties, or Land: Fifteen Years; renewable using acquired information or skills can take the form of civil partnership. Rental (per sq meter) Office: AED 1,500 onwards A Civil Partnership Firm can be Land: AED 35 onwards registered in accordance with the Licence Fee (Annual) Trading & Industrial: Federal Civil Transactions Law No. AED 5,500 up to 7 products from (5) of 1985 with its amendments. One Group Foreign national can have 100% AED 9,000 – up to 12 products ownership in such entities. from Two Groups Service : AED 8,000 • Power Tariff: AED 0.44/kwh No. of Visas Depends on facility leased • Water Tariff: AED 10.79/m3

108 3 DUBAI AIRPORT FREE ZONE (DAFZA)

DAFZA was established in 1996 within the boundaries of Dubai International Airport, and is considered as one of the fastest growing Free Zones in the region. DAFZA is a strategic gateway for developing Dubai as a successful centre for business, trade and investment. The Free Zone provides all facilities required by multinational companies worldwide to establish their regional offices, capture business opportunities available in the neighboring markets.

Location Dubai [adjacent to Dubai Airport] • Facilities are available in Operation since 1996 different sizes • No General Trading Licence Legislation Law No. 25 of 2009 (amended) is issued Managed by Investment Corporation of Dubai • Companies can opt renewing the licence for a Trading, Light Industry, Assembling, Services, Segments period of one or three years Logistics subject to payment made Free Zone Establishment (FZE) full in advance Type of Legal Free Zone Company (FZCO) • Application for Land is Entities Branch of Local Company considered on case-to-case Branch of Foreign Company basis and the terms and FZE: AED 1,000,000 conditions are subject to the Minimum Capital FZCO: AED 500,000 approval of the Management (physical) Branch : N/A • Up to 60% of the allotted No. of FZE: One land can be used for Shareholders FZCO: Minimum 2 and Maximum 5 construction • The Establishments, Shareholding Natural Person(s) and/or Corporate(s) Companies, Persons and Structure Workers shall be exempt Facilities Offered Office, Warehouse, Light Industrial Unit, Land from all taxes, including income tax, in relation to Office: 50 sq. meters and above their operations within the Size of Facilities Warehouse: 350 sq. meters with mezzanine Free Zone. Such exemption facility shall apply for a period Office & Warehouse : One Year; renewable Lease Period of fifty (50) years from Land: Fifteen Years; renewable the date on which such Rental Office: AED 1,950 + 12.5% service charge Establishments, Companies, (per sq meter) Warehouse: AED 1,000 + 10% service charge Persons or Workers commence work in the Free Fees: FZE: AED 10,000 Zone. The exemption period Formation FZCO: AED 15,000 may be extended for similar [One time] Branch: N/A periods. AED 10,000 – [for 3 related activities] 2 more Fees: activities can be added by paying AED 3,000 per Licence [Annual] activity

No. of Visas Depends on facility leased

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4 DUBAI MULTI COMMODITIES CENTRE (DMCC)

Dubai Multi Commodities Centre Authority (DMCC), was established in 2002 to enhance commodity trade flows through Dubai. DMCC performs several roles which have firmly established Dubai as a regional and international trading hub. DMCC regulates, promotes and facilitates trade across a range of commodities sectors, including gold, diamonds, pearls, precious metals, tea and cotton. Location Dubai DMCC Trade Flow Operation since 2002 DMCC Tradeflow was introduced in 2012 as an electronic system that provides access to the Decision by Chairman of PCFC dated Legislation central registry of ownership for commodities 1 May 2002 stored in Dubai. Its novice legal framework, Managed by DMCC Authority combined with the DMCC’s role as the platform registrar, stimulates commodity trade by Commodities, Gold, Diamond, Pearl, Segments offering enforceable collateral based trade Tea, Cotton, Metals, Minerals finance solutions for regional and international Type of Legal DMCC Company financiers. Through the online platform, owners Entities of goods stored in rated warehouses can request Minimum warehouse keepers to issue “DMCC Tradeflow Capital AED 200,000 Warrants” that represent the ownership of their (physical) goods. These warrants can be used by the Minimum one; owners to pledge beneficial ownership or transfer No. of No Maximum (Subscription must be title of the stored goods to financiers as collateral Shareholders AED 50,000 over and above the in return for working capital. All features of the standard minimum capital) platform have been developed according to international trade finance and banking best Shareholding Natural Person(s) and/or Corporate(s) practices, in addition to facilitating financial Structure institutions’ compliance with Basel III stipulation. Facilities Office, Land, Light Industrial Units Key Features of DMCC Trade Flow: Offered (Jewellery and Gemplex) • Access to finance for commodity traders and Size of asset owners Different Sizes Facilities • Warehouse Ratings and Inspection Programme Companies registered in DMCC • Global reach Lease Period: can operate out of the properties • Web-based and user-friendly systems developed by private developers • Secure Platform Rental Dubai Gold and Commodities Exchange AED 400-800 (per sq meter) The Dubai Gold & Commodities Exchange (DGCX), is the leading commodity and currency Fees:Formation AED 5,010 derivatives exchange in the Middle East. It is [One time] an initiative of the Dubai Multi Commodities MOA Fee AED 2,010 Centre (DMCC), Financial Technologies (India) [One time] Limited and the Multi Commodity Exchange of Licence India Limited (MCX). DGCX provides platform AED 15,010 [Annual] for electronic trading accessible from anywhere in the world. No. of Visas Depends on facility leased

110 5 Jumeirah Lakes Towers free Zone (JLT FREE ZONE)

Location Dubai General Trading Licence may be Operation since 2002 issued to an investor subject to the following conditions: Decision by Chairman of PCFC dated 1 May Legislation • Minimum paid up capital of the 2002 proposed entity must not be less Managed by DMCC Authority than AED 1,000,000 • Sufficient office space must be Segments Trading & Services leased or owned in JLT Free Zone for the use of proposed Type of Legal JLT Company entity Entities • The activity should not compete Minimum directly with the DMCC specified Individual shareholder – AED 50,000 Capital activities Corporate shareholder – AED 100,000 (physical) Annual fee for licence shall be Minimum one; AED 50,030. No Maximum (There is no maximum Business Center/service office No. of number of shareholders for a JLT Company. facility Shareholders However, each shareholder must subscribe Flexi Desk – Part time: to a minimum capital of AED 50,000). Size of Facility 20-30 sq .m Annual Rent: AED 16,000 Facilities Office, Land No. of visas : 3 Offered Flexi Desk Full Time – A: Size of Size of Facility 30 sq.m Varied Facilities Annual Rent: AED 22,000 Companies registered in JLT Free Zone can No. of visas : 3 Lease Period operate out of the properties developed by Flexi Desk Full Time – B: private developers. Size of Facility 50-80 sq.m Annual Rent: AED 25,000 Rental AED 400-800 No. of visas : 4 (per sq meter) Flexi Office – Small: Fees:Formation Size of Facility 80-100 sq.m AED 10,010 [One time] Annual Rent: AED 30,000 -35,000 Documentation No. of visas : 4 Fee AED 2,010 Flexi Office - Medium: [One time] Size of Facility 170-190 sq.m Annual Rent: AED 35,000 - 42,000 Licence [Annual] AED 20,010 No. of visas : 5 Flexi Office – Large: Size of Facility 200-265 sq.m Annual Rent: AED 42,000 - 45,000 No. of visas : 6 No. of Visas Depends on facility leased. Security deposit, fee for installation of telephone lines etc. shall also be payable wherever applicable

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6 DUBAI SILICON OASIS (DSO) DSO is a Free Trade Zone and an advanced technology park established in Dubai in 2004, provides both a living and working integrated community. The Zone offers advanced telecommunication, fibre optic network, tier 3 data centre with 120 high capacity racks and high-tech utility infrastructure.

Location Dubai • Facilities are available in different sizes Operation since 2004 • Investor is required to pay security deposit depending on size of the facil- Legislation Law No. 16 of 2005 ity leased Managed by Investment Corporation of Dubai • Number of shareholders in FZCO can go up to 10 provided that the value of Segments Microelectronics:Integrated Circuit capital and/or number of shares are Design, EDA Tools, Nanotechnology, increased accordingly Photovoltaic Industry, Semiconductor There Industry. • Administrative Zone in DSO: are freehold & leasehold areas in DSO General Activities:Information Technol- which are developed by private devel- ogy, Telecommunication, Electronics, opers. These projects are not owned Computer Hardware, Software Develop- by Dubai Silicon Oasis Authority and ment and Solutions, Electrical Appli- are sold/leased/managed directly by ances & Equipment the developer or their chosen provider. Type of Legal Free Zone Establishment (FZE) If an investor wishes to operate from a Entities Free Zone Company (FZCO) property that is not directly owned by Branch of Local Company DSO, then the investor needs to apply Branch of Foreign Company to DSO’s freehold licencing section Minimum FZE: AED 100,000 pursuant to the business set up pro- Capital [represented by 1 share] cess for the Administrative Zone. (physical) FZCO: AED 100,000, Branch : N/A • Business Operation Permit: This is a No of FZE: One special permit for companies operating Shareholders FZCO: Minimum 2 and Maximum 10 in the Administrative Zone of DSO (areas owned by private developers) Shareholding Natural Person(s) and/or Corporate(s) using a licence issued by Dubai Eco- Structure nomic Department (DED). This licence Facilities Pre-furnished Office, Light Industrial is issued based on the licence issued Offered Unit (LIU), Land by Dubai Economic Department. No Size of Office: 80 sq. meters and above share capital is required for this type Facilities LIU: 700 sq. meters with office facility of licence. Land: 5,000 sq. meters and above • Entrepreneurial Business Licence (EBL): An EBL licence is designed to Lease Period Office & Warehouse : Two years; renew- accelerate the successful development able, Land: Fifteen Years; renewable of young entrepreneurs and their busi- Rental Office: AED 1,475, Warehouse: nesses through an array of support (per sq meter) AED 575 Land: AED 80 resources and services. This licence is Fees:Formation FZE: AED 8,000 only available for members of DSO’s [One time] FZCO: AED 12,000; Branch: N/A incubator program and involves a low cost licence in return for a small stake Fees:Licence AED 12,000 in the business. [Annual] No. of Visas Depends on facility leased

112 7 DUBAI FLOWER CENTRE (DFC)

Dubai Flower Centre (DFC) is a transshipment centre for cool chain processes that effectively safeguard product quality, maximize shelf life, thereby enhancing profitability. Dubai Flower Centre’s tightly controlled environment from plane to consignee prevents a break in the supply chain. The Flower Centre is capable of handling up to 150,000 tons of flowers and perishables. The DFC, developed and automated have a floor area of about 100,000 sq.meters providing for export chambers and offices apart from product break down and buildup stations and automated sorting areas.

Location Dubai (Adjacent to Dubai Airport) • Companies wishing to set up at DFC can Operation since 2004 operate with licence Legislation Law No. 16 of 2005 issued by DAFZA Managed / Owned by DAFZA /Dubai Airports or Department of Economic Trading in cut flowers, plants, foliage and fruits Development (DED) and vegetables [items that require temperature Segments • 5% service charge controlled environment can be handled in DFC] and 9% water and All related services electricity charge on Free Zone Establishment (FZE) top of annual rent Free Zone Company (FZCO) Type of Legal shall be applicable Limited Liability Company as per local laws (LLC) Entities • Warehouses are Branch of Local Company maintained at Branch of Foreign Company 15–180 C, and if a FZE: AED 1,000,000 lower temperature is Minimum Capital FZCO: AED 500,000 required, the tenant (physical) Branch : N/A will be responsible FZE: One for building and No. of Shareholders FZCO: Minimum 2 and Maximum 5 maintaining a separate chiller unit Shareholding Structure Natural Person(s) and/or Corporate(s) with the electricity Facilities Offered Business Unit, Office, Warehouse charged individually • Activity related to Business Unit: 10 - 50 sq. meters perishable items Size of Facilities Office: 50 – 170 sq. meters like floriculture, Warehouse: 120 – 480 sq. meters horticulture, fruits & Lease Term One year; renewable vegetables etc. is licenced only by DED Business Unit: AED 1,278 Rental (per sq meter) Office: AED 1,825 Warehouse: AED 750 FZE: AED 10,000 Fees: FZCO: AED 15,000 Formation [One time] Branch: N/A Fees: AED 10,000 Licence [Annual] No. of Visas Depends on facility leased

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8 DUBAI INTERNET CITY (DIC)

Location Dubai • Office Buildings equipped with an exceptional Operation since 2004 Building Management Legislation Law No. 1 of 2000 System (BMS) which Owned / Managed by TECOM Investments offers a wide range of Regulated by Dubai Technology & Media integrated services, Free Zone Authority (DTMFZA) including energy saving Segments Software, Internet and Multimedia, and security systems Telecommunication and Network, • First Step Business IT Services Center allows companies to lease short term office Type of Legal Free Zone Limited Liability Company spaces, while exploring Entities (FZ-LLC) business and market Branch of Local Company opportunities. First Step Branch of Foreign Company Business Centre offers an Minimum Capital FZE: AED 50,000 enabling combination of (physical) Branch : N/A a comprehensive working No. of Shareholders Minimum One and Maximum Fifty area, which includes a fully furnished office along with administrative Shareholding Structure Natural Person(s) and/or Corporate(s) services and an advanced Facilities Offered Commercial Offices infrastructure. First Step Business Center • The First Step Business Land Center facilities include Size of Facilities Offices: 70 sq. meters and above Executive Desk and fully furnished Executive Lease Term Commercial Office: One year and up to three Office with capacity to years subject to approval; renewable accommodate 2 to 7 staffs First Step Business Center : One year • DIC offers variety of Rental (per sq meter) Commercial Office: AED 160 modern meeting and First Step Business Center: conference room facilities. Executive Desk : AED 2,500 per month • Application for Land is Executive Office – AED 10,000 per month; considered on case-to- however, varies according to number of case basis and the terms visas available and conditions of lease, rental, term etc. are Fees: AED 3,510 subject to Management Formation [One time] decision. However, lease period may vary from 30 Fees: AED 15,010 to 50 years. Licence [Annual] No. of Visas Depends on facility leased

114 9 DUBAI MEDIA CITY (DMC)

Location Dubai • Media Business Operation since 2001 Centre offers fully furnished, serviced Legislation Law No. 1 of 2000 and spacious business Owned / Managed by TECOM Investments units ideal for media Regulated by Dubai Technology & Media professionals looking to Free Zone Authority (DTMFZA) operate out of Dubai with Segments Advertising and Communication, Media and maximum ease of doing Marketing Services, Media Support Services, business. Event Management, Event Support Services, • Services included in the Media Consultancy, New Media, Freelancers annual fees: and Non-ProfitAssociation • Guest reception service • Office management & Type of Legal Free Zone Limited Liability Company maintenance Entities (FZ-LLC) • Air-conditioning, lighting Branch of Local Company and power Branch of Foreign Company • 24 hours security Minimum Capital AED 50,000; • Daily housekeeping (physical) AED 2,500,000 for activities within service Broadcasting TV Segment and Broadcasting • Daily collection and Radio Segment (except IP Streaming) distribution of mail and Branch : N/A faxes No. of Shareholders Minimum One and Maximum Fifty • Access to local daily Arabic & English newspapers Shareholding Structure Natural Person(s) and/or Corporate(s) • Access to meeting Facilities Offered Commercial Offices, Media Business Centre rooms in Size of Facilities Commercial Offices – 60 sq. meters & above • Freelance Permit DMC offers an investor Lease Term Commercial Office: One year and up to three the ability to operate as years subject to approval; renewable a freelance professional. Rental (per sq meter) Commercial Offices : AED 1,600 (including The Permit identifies service charge) the investor as a sole Media Business Centre : AED 75,000 p.a. practitioner and enables him to conduct the Fees: AED 3,510 business in his birth name Formation [One time] as opposed to a brand Fees: AED 15,010 name. Licence [Annual] No. of Visas Depends on facility leased

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10 Dubai Knowledge Village (DKV)

Location Dubai • The DKV Business Center offers a selection of products and services ranging Operation since 2003 from hot desk to fully furnished complete Legislation Law No. 1 of 2000 office environments. Owned / Managed by TECOM Investments • Hot Desk - A hot desk is a shared office Regulated by Dubai Technology & Media space that can be used by more than Free Zone Authority (DTMFZA) one investor. A hot desk is suitable for Segments Human Resource Management, Freelancers. Executive Search, Content Development • Open Office - Open offices are Centre, Assessment and Testing, furnished with one executive desk and Linguistics, Research & Development, chair, a storage pedestal and cabinet Academic Service Provider, Human with key. Resource Consultancy • Executive Office - An executive office is a furnished office with typical sizes that Type of Legal Free Zone Limited Liability Company range from 100 to 250 sq ft. Entities (FZ-LLC) • Executive Suite - The executive suite Branch of Local Company offers a full-fledged furnished office Branch of Foreign Company environment, which includes an Minimum Capital AED 50,000 executive office, a private reception (physical) area and a small meeting room for six No. of Shareholders Minimum One and Maximum Fifty persons. • Knowledge Village Freelancer: Individuals are permitted to practice Shareholding Structure Natural Person(s) and/or Corporate(s) as freelancers at Knowledge Village as Facilities Offered Commercial Offices ‘Trainer, eLearning Advisor, Education Advisor, Researcher, Executive Coaching, Size of Facilities Commercial Office: 50 - 60 sq.meters Mentoring, Speech-language Pathologists. Lease Term One year and up to three years subject • Executive Recruitment: to approval Investors can now set up Recruitment Rental (per sq meter) Commercial Office AED 1,600 Company in Knowledge Village, Dubai. Companies that specialize in attracting and sourcing talented individuals in Fees: AED 3,510 leadership, executive or professional roles Formation [One time] and delivering best practice retainer-based Fees: AED 15,010 search on behalf of client organizations. Licence [Annual] It is to be noted that activity of such No. of Visas Depends on facility leased companies shall be restricted to assist organizations in sourcing executive level talent for placement in key positions rather than supplying normal employees.

116 11 DUBAI OUTSOURCE ZONE (DOZ)

Location Dubai • Facilities are available in different sizes. Operation since 2004 • Rental rate may vary Legislation Law No. 1 of 2000 according to the size of Owned / Managed by TECOM Investments the facility leased and for Regulated by Dubai Technology & Media the number of years lease Free Zone Authority (DTMFZA) contract is to be signed. Segments Business Process Outsourcing (BPO), HR • Application for Land is Outsourcing, IT Outsourcing, Back Office considered on case-to- and Call Center Operations case basis and the terms and conditions of lease, Type of Legal Free Zone Limited Liability Company rental, term etc. are Entities (FZ-LLC) subject to management Branch of Local Company decision. However, lease Branch of Foreign Company period may vary from 30 Minimum Capital AED 300,000 to 50 years. (physical) Branch : N/A No. of Shareholders Minimum One and Maximum Fifty

Shareholding Structure Natural Person(s) and/or Corporate(s)

Facilities Offered Commercial Offices, Land

Size of Facilities Commercial Offices – 100 sq. meters and above Lease Term Commercial Office: One year and up to three years subject to approval; renewable Rental (per sq meter) Office : AED 1,200 (including service charge) Land – depends on size and area

Fees: AED 3,510 Formation [One time] Fees: AED 15,010 Licence [Annual] No. of Visas Depends on facility leased

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12 DUBAI BIOTECHNOLOGY & RESEARCH PARK (DUBIOTECH)

Location Dubai Nucleotide Complex: Operation since 2005 • Core and shell lab spaces, which can accommodate up to Legislation Law No. 1 of 2000 160 laboratory units. Owned / TECOM Investments • The lab units are designed Managed by Regulated by Dubai Technology & Media Free Zone to meet up to Class III of Bio- Authority (DTMFZA) safety Standards/Guidelines. Segments Therapeutics, Diagnostics and Analysis, Agricultural, Forestry, • All lab units have a dedicated Horticulture, Food, Environment, Speciality Supplies, space for Biological Safety. Life Science Consultancy, Life Science and Biomedical Cabinet with an exhaust Associations (Non Profit) system to enable air filtering. • Air exhaust & ventilation Type of Legal Free Zone Limited Liability Company (FZ-LLC) system are provided to Entities Branch of Local Company prevent cross contamination Branch of Foreign Company of air. Minimum General Activities:AED 50,000 • Acid resistant drainage & pH Capital Manufacturing/Production:AED 300,000 neutralisation systems for safe (physical) chemical discharge/waste. No. of Minimum One and Maximum Fifty • Sterilized high quality stainless Shareholders steel mechanical equipments are used to ensure high Shareholding Natural Person(s) and/or Corporate(s) standards of hygiene. Structure • Emergency power system Facilities Warehouses, Commercial Office Spaces and Labs in (Electrical & Air) is installed Offered Nucleotide Complex, Business Center (Executive Offices), in case of main grid power Land. failure. Size of Warehouses: 500 sq. meters, • Lab facilities such as water Facilities Nucleotide Complex: Facility for Labs in various sizes. systems, drainage systems Dubiotech Business Center: Different sizes and vacuum/air systems.

Lease Period Warehouse: One year and up to three years subject to Dubiotech Business Centre: • Business Center offers approval contemporary state-of-the-art Facility for Lab: One year and up to three years subject to furnished offices and open approval space workstations that cater Executive Offices in Business Centre : One year and up to to small and medium sized three years subject to approval companies and start ups. Rental (per sq Warehouse: AED 550 • Application for Land is meter) Facility for Lab: AED 1,500 considered on case-to- Commercial Space: AED 1,100 case basis and the terms Executive Offices: AED 3,000 and conditions of lease, Fees:Formation AED 3,510 rental, term etc. are subject [One time] to management decision. Fees:Licence AED 15,010 However, lease period may [Annual] vary from 30 to 50 years.

No. of Visas Depends on facility leased

118 13 DUBAI STUDIO CITY (DSC)

Location Dubai • Boutique Studios are an unique advantage Operation since 2004 of DSC which will attract talents from the region. The layout of the Boutique Studios Legislation Law No. 1 of 2000 Phase 1 organizes 18 office/studios around Owned / TECOM Investments a small, shared, central open space and Managed by Regulated by Dubai Technology & Media access road, with at grade parking around Free Zone Authority (DTMFZA) the perimeter of the campus. Segments Broadcasting TV, Broadcasting Radio, • Key features: Broadcast Support Services, Broadcast • Direct Entrance from Lobby Service Providers, Animation, Film • Regular Rectangular Shape Support Services, Production (Film/ • Loading Access to outside (2 meters wide TV and Radio), Music & Entertainment, loading doors) Themed Amusement and Recreation • Floor to ceiling height: 7.7 meters activities (excludes any false ceiling; 6.2 meters with false ceiling) Type of Legal Free Zone Limited Liability Company (FZ- • Air conditioning provided through district Entities LLC), Branch of Local Company cooling system Branch of Foreign Company • Insulated flooring, ceiling, walls Minimum AED 50,000; • NC 25 Noise Criteria Capital AED 2,500,000 for activities within Broad- • Soundstages (physical) casting TV Segment and Broadcasting • The first phase of the Dubai Studio City film Radio Segment complex will include: Branch : N/A • One 15,000 sq ft Sound Stage and No. of Minimum One and Maximum Fifty production support office Shareholders • Two 25,000 sq ft Sound Stage and production support offices Shareholding Natural Person(s) and/or Corporate(s) • Interconnectivity between the stages via a Structure 30 meters elephant door Facilities Boutique Studios and Commercial • 2 nos. Indoor water tanks Offered Spaces. • Soundstage Specifications Size of Boutique Studios: 900 sq. meters • Column free structures Facilities onwards, Commercial Spaces - 50 sq. • Complete grid and cat-walk system meters and above • Adequate electrical power and cooling Lease Period Boutique Studios: 1 year tonnage Commercial Spaces: 1 year • Clear height is 12.5 -15 meters • Elephant doors for ease of moving Rental (per sq Boutique Studios: AED 1,000 equipments and sets meter) Commercial Spaces: AED 900 • Support spaces will accommodate Fees:Formation AED 3,510 • art department rooms [One time] • hair and make-up room Fees:Licence AED 15,010 • dressing rooms & rehearsal rooms [Annual] • suites for actors & editing suites • Support offices for staff No. of Visas Depends on facility leased

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14 DUBAI INTERNATIONAL ACADEMIC CITY (DIAC)

Location Dubai • Dubai International Academic City (DIAC) Operation since 2007 is the world’s only Free Zone dedicated to Higher Education. Legislation Law No. 1 of 2000 • Plots of Land are allotted for: Owned / TECOM Investments • Educational: These plots are meant for Managed by Regulated by Dubai Technology & Media Free building educational institutions (i.e. Zone Authority (DTMFZA), Ministry of Higher universities, vocational colleges, etc) Education, Knowledge and • Mixed-Use: Mixed-use plots can be Human Resource Development Authority used for building residential apartments Segments Higher Education Provider, Online University, or for any mixed use applications. Education Service Provider, Non-Academic • Student Accommodation: Student Service Provider, Branch School, Boarding Accommodation plots are for building School, Freelancers accommodation and dormitory facilities for universities and colleges. Type of Legal Free Zone Limited Liability Company (FZ-LLC) • DIAC Business Center offers a selection Entities Branch of Local Company of products and services ranging from Branch of Foreign Company hot desk to fully furnished complete office Minimum AED 50,000 environments: Capital • Hot Desk - A Hot desk is a shared office (physical) space that can be used by more than No. of Minimum One and Maximum Fifty one investor. A hot desk is suitable for Shareholders Freelancers. • Executive Desk: Executive Desks are Shareholding Natural Person(s) and/or Corporate(s) furnished with one executive desk Structure and chair, and a storage pedestal and Facilities Land, Commercial Floor Space, cabinet with key. Executive Desk clients Offered Business Center are eligible for 2 visas per desk. Typical Size of Different Sizes desk cabin size is approximately 100 Facilities sq.ft. Lease Period Commercial Floor Space: One year and up to • Executive Suite Offices - The Executive three years subject to approval; renewable Suite offers a full-fledged furnished Facilities in Business Center : One year and up office environment, which includes once to three years subject to approval; renewable executive table with chairs, visitors Land: 30 to 50 years; renewable couch, a storage cabinet and pedestal. Typical desk cabin size is 281 sq.ft. Rental Commercial Floor Space: AED 1,300/sq meter • Fitted Out Commercial Space: A Fitted Business Center : out Commercial Space offers the upper - Executive Office: AED 3,000/month end for a business environment. From - Open Desk : AED 20,000/year open areas fitted with desks, chairs and Land: AED 120/sq meter table, to projectors and audio visual Fees:Formation AED 3,510 systems. [One time]

Fees:Licence AED 15,010 [Annual]

No. of Visas Depends on facility leased

120 15 INTERNATIONAL MEDIA PRODUCTION ZONE (IMPZ)

Location Dubai Operation since 2005 Legislation Law No. 1 of 2000 Owned / Managed by TECOM Investments Regulated by Dubai Technology & Media Free Zone Authority (DTMFZA) Segments Printing Machinery and Printing Consumable Manufacturing, Printing Press, Packaging, Packaging Machinery and Consumable Manufacturing, Publishing, Graphic Arts Support Services, Storage, Designs Type of Legal Free Zone Limited Liability Company (FZ-LLC) Entities Branch of Local Company Branch of Foreign Company Minimum Capital AED 300,000 – other than given below (physical) AED 50,000 for Graphic Arts Support Services AED 500,000 for companies from Printing Machinery and Printing Consumables Manufacturing and Printing Press segments AED 200,000 for Publishing No. of Shareholders Minimum One and Maximum Fifty

Shareholding Natural Person(s) and/or Corporate(s) Structure Facilities Offered Pre-built warehouses and showrooms [with office facility], Commercial Offices, Industrial Land Size of Facilities Pre-built warehouses and showrooms: 768 to 1428 sq. meters Commercial Offices: 58 – 929 sq. meters Industrial Land: 5,946 to 11,148 sq. meters Lease Terms Pre-built warehouses and showrooms: One year and up to three years subject to approval; renewable Commercial Offices: One year and up to three years subject to approval; renewable Industrial Land: 30 to 50 years Rental (per sq meter) Pre-built warehouses: AED 450 Showrooms: AED 500 Commercial Offices: AED 1,000 Industrial Land: AED 50 Fees:Formation AED 3,510 [One time] Fees:Licence AED 15,010 [Annual] No. of Visas Depends on facility leased

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16 Energy and Environment Park (EnPark)

Location Dubai • Since Enpark is Operation since 2006 also part of the Science Cluster, Legislation Law No. 1 of 2000 companies to be set Owned / TECOM Investments up under Enpark are Managed by Regulated by Dubai Technology & Media Free Zone offered the facilities Authority (DTMFZA) mentioned for Segments Energy, Energy Efficiency and Green Building, Dubiotech as well. Recycling and Solid Waste sectors • Nucleotide Complex: Type of Legal Free Zone Limited Liability Company (FZ-LLC) Commercial office Entities Branch of Local Company spaces are available Branch of Foreign Company in the complex and Minimum AED 300,000 : General Activities the investor can Capital AED 50,000: Associations (Non-Profit Organizations) lease it as per the (physical) prevailing lease No. of Minimum One and Maximum Fifty terms. Shareholders • Business Centre: Business Centre Shareholding Natural Person(s) and/or Corporate(s) offers contemporary Structure state-of-the-art Facilities Warehouses, Nucleotide Complex, Business Center furnished offices Offered (Executive Offices), Land and open space Size of Warehouses: 500 sq. meters workstations that Facilities Nucleotide Complex: Commercial spaces of different cater to small and sizes medium sized Executive Offices: Different sizes companies and start ups. Lease Period Warehouse: One year and up to three years subject to • Application for approval Land: Commercial Space: One year and up to three years It is considered subject to approval on case-to-case Executive Offices in Business Centre : One year and up basis and the terms to three years subject to approval and conditions of Rental (per sq Warehouse: AED 550 lease, rental, term meter) Commercial Space: AED 1,100 etc. are subject Executive Offices: AED 3,100 to management Fees:Formation AED 3,510 decision. However, [One time] lease period may Fees:Licence AED 15,010 vary from 30 to 50 [Annual] years No. of Visas Depends on facility leased

122 17 DUBAI HEALTHCARE CITY (DHCC)

Location Dubai • DHCC is currently home to two Operation since 2002 hospitals, over 100 outpatient medical centres and diagnostic Legislation Law No. 9 of 2011 (amended) laboratories with over 3000 Managed / Dubai Healthcare City Authority licenced professionals Owned by Center for Healthcare Planning & Quality • Center for Healthcare Segments Conventional Medical Services, Planning and Quality (CPQ) Complimentary and Alternative Medicine, was established jointly with Medical Education and Research, Healthcare Partners Harvard Medical Commercial Services, Hospitals, Diagnostic International, as the independent Laboratories, Support Services regulatory body responsible for implementing rigorous Type of Legal Free Zone Limited Liability Company standards that are aligned with Entities (FZ-LLC) international best practice to Branch of Local Company ensure the highest quality care. Branch of Foreign Company • The Mohammed Bin Rashid Al Minimum Hospitals: AED 1,000,000 Maktoum Academic Medical Capital Clinical Outpatient Segment: AED 300,000 Center (MBRM-AMC) is the (physical) All other activities: AED 50,000 academic and research arm No. of Minimum One and Maximum Thirty of Dubai Healthcare City, and Shareholders includes the following key components: Shareholding Natural Person(s) and/or Corporate(s) • University Hospital Structure • Khalaf Al Habtoor Medical Facilities Commercial Spaces [Clinics, Offices, Retail Simulation Center Offered Centres] • Dubai Harvard Foundation for Size of Different Sizes Medical Research Facilities • Al Maktoum Harvard Medical Library Lease Period One year; renewable • Boston University Institute for Rental Clinics: AED 1,500 Dental Research & Education (per sq meter) Offices: AED 1,800 Dubai Retail Centres: AED 2,000 • Boston University Dental Fees:Formation AED 3,510 Health Center Dubai [One time] Fees:Licence AED 15,010 (also specialty fee, wherever [Annual] applicable) No. of Visas Depends on facility leased

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18 Gold and Diamond Park (GDP)

Location Dubai • Registration, Licensing and Visa Operation since 2001 formalities with respect to an entity are controlled by JAFZA Legislation Law No 3 for 2001 Managed by Emaar Properties PJSC • Unlike other Free Zones, Gold and Diamond Park offers retail Segments Trading, Designing, Manufacturing, Crafting shopping facility. of Gold and Diamond Jewellery

Type of Legal Free Zone Company • Gold & Diamond Park caters to Entities Branch of Local Company the special needs of the gold Branch of Foreign Company and jewellery industry. The Minimum AED 100,000 [if more than one shareholder, set-up includes workshop areas Capital the capital can be divided as AED 50,000 complete with the features and (physical) each] amenities specifically for the No. of Minimum One requirements of the jewellers. Shareholders Shareholding Natural Person(s) and/or Corporate(s) Structure Facilities Office, Jewellery Manufacturing Units, Offered Showrooms/ Retail Units Size of Office : 100 sq. meters and above Facilities Manufacturing Unit : 60 sq. meters and above. Retail Showroom Lease Period 1 – 5 years; renewable

Rental (per sq Office : AED 800 meter) Manufacturing Unit : AED 1,100 Retail Showroom: Rent decided by Emaar Fees:Formation None

Fees:Licence AED 5,500 [Annual] No. of Visas Depends on facility leased

124 19 Dubai Cars and Automotive Zone (DUCAMZ)

Location Ras Al Khor, Dubai • DUCAMZ is solely for the Operation since 2000 purpose of re-exporting cars to target markets. Legislation Registration, Licensing and Visa formalities with respect to an entity are controlled by • The vehicles are categorized JAFZA. into the following groups: Managed by Economic Zones World (EZW) 1. Right-hand Drive Vehicles, mainly exported to India, Segments Trading in Automotives Afghanistan, Pakistan, Yemen and other African countries. Type of Legal Free Zone Company 2. Trading in used cars, heavy Entities Branch of Local Company vehicles, agricultural machinery, Branch of Foreign Company bikes, jet skies and recreational Minimum AED 100,000 [if more than one shareholder, vehicles. Capital the capital can be divided as AED 50,000 3. Left-hand Drive Used (physical) each] Vehicles, exported into the local No. of Minimum One markets and are subject to the Shareholders local regulations prevalent in the UAE. Shareholding Natural Person(s) and/or Corporate(s) Structure Facilities Office, Showroom Offered Size of Facilities are available in various sizes Facilities Lease Period One year renewable

Rental (per sq/ Office : AED 300 meter) Showroom : AED 700 Fees:Formation FZCO : AED 20,000 [One time] Branch : AED 10,000 Fees:Licence AED 12,000 [Annual] No. of Visas Depends on facility leased

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20 DUBAI TEXTILE CITY

Location Warsan, Dubai • Investors intend to set up an Operation since 2003 entity in Dubai Textile City must have formed a Limited Legislation Registration, Licensing and Visa formalities Liability Company in Dubai with respect to an entity are controlled by and obtained membership JAFZA in Textile Merchants Group Managed by TEXMAS (TEXMAS) before applying for a licence. Segments Textiles and Readymade Garments

• The application for register- Type of Legal Free Zone Company (FZT) ing a company in Textile Entities City shall be reviewed by Minimum AED 100,000 (since minimum 2 shareholders TEXMAS and the admis- Capital are required, the share capital is divided as sion shall be subject to its (physical) AED 50,000 each) decision. No. of 2 to 5 Shareholders • Warehouse facilities in Textile City are owned by Shareholding Natural Persons and/or Corporate(s) private individuals (TEXMAS Structure members) Facilities Warehouses (with office facility) Offered Size of 300 -1,100 sq. meters Facilities Lease Period 15 to 30 years

Rental AED 5,000 to 7,000 per month, however, varies according to size and market conditions Fees:First year AED 30,000 [formation and licence] Second and AED 10,000 subsequent years No. of Visas Depends on facility leased

126 21 Dubai World Central – Logistics City

The Dubai World Central logistics district is situated adjacent to the Al Maktoum International Airport and enables fast-cycle logistics businesses to better control their inventory and create greater efficiencies across their supply chain. With the necessary infrastructure, space, facilities and access in place, it is perfectly suited as an effective distribution or global supply chain hub for the Middle Eastern, Southeast European, CIS, Indian sub-continent and African market.

Location Jebel Ali [Al Maktoum International Airport] • Licences will be granted to companies Operation since 2010 who operate in the Legislation Law No 8 for 2006 logistics business: Managed by Dubai Aviation City Corporation 1.As an industrial or Segments Logistics, Specified Light Manufacturing, General trading company with Trading, Service, Education (specific) the need for multi- Type of Legal DWC Limited Liability Company (DWC-LLC) modal transportation; Entities Branch of Local Company Branch of Foreign Company 2.As a logistics service Minimum Capital AED 300,000; value per share is AED 1.00 each provider or transport operator; No. of Shareholders Minimum One; Maximum Five 3.Selected companies, who provide Shareholding Structure Natural Person(s) and/or Corporate(s) amenities and Facilities Offered Offices in Business Park, Warehouses, Plot of ancillary services Land to Logistics District tenants. Size of Facilities Facilities are available in various sizes.

Rental (per sq meter) Office Units : starting from AED 1300 (all inclu- sive) Warehouse: AED 600 - 700 Land: AED 30 - 35 Fees: AED 11,000 Formation [One time] Fees: General Trading : AED 20,000 Licence [Annual] Other Licences: AED 10,000 No. of Visas Depends on facility leased

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21 Dubai World Central – Aviation City

Leveraging Al Maktoum International Airport, the Aviation District at Dubai World Central caters to MROs, FBOs, light aviation industries, R&D establishments, aviation support services including design and consultancies, education/academic institutions, and business aviation. Spanning 6.7 square kilometres, with state-of-the-art office buildings, airside and landside plots, MROs, and heliport hangars, it is a one-stop centre dedicated to meeting the demands of the many different aviation disciplines.

Location Jebel Ali [Al Maktoum International Facilities in Aviation District Airport] include: Operation since 2010 • Open areas (plots) for Legislation Law No 8 for 2006 developers to design and Managed by Dubai Aviation City Corporation build their required facilities • Light Industrial Unit/ Light Segments Specified Light Manufacturing, General Maintenance Unit Trading, Service, Education (specific), • State of the art commercial Consultancy offices Type of Legal DWC Limited Liability Company • High-tech research Entities (DWC-LLC) laboratories Branch of Local Company • Training facilities Branch of Foreign Company • Research & Development Minimum Capital AED 300,000; value per share is facilities AED 1.00 each • MRO (Maintenance, Repair & No. of Shareholders Minimum One; Maximum Five Overhaul) hangars • FBO ( Fixed Base Operations) • General hangars Shareholding Structure Natural Person(s) and/or Corporate(s) • Helicopter hangars and Facilities Offered Offices in Business Park, Light landing spots Maintenance Unit (LMU), Plot of Land • Executive Jet terminal facilities Size of Facilities Facilities are available in various sizes • Cost effective staff residences within the Dubai World Rental (per sq meter) Office Units : starting from AED 1,300 Central project (all inclusive) LMU: AED 74,000 per annum. Land: AED 200 Fees: AED 11,000 Formation [One time] Fees: General Trading : AED 20,000 Licence [Annual] Other Licences: AED 10,000 No. of Visas Depends on facility leased

128 22 International Humanitarian City (IHC)

International Humanitarian City enables humanitarian organisations through its global reach, infrastructure and custom designed services to facilitate aid and development efforts across the globe. Acting both as an operational platform and a physical and virtual meeting place, IHC provides nonprofit organisations, companies, donors, volunteers, governments and those striving to save lives with a common ground for collaboration.

Location Jebel Ali International Humanitarian City is: Operation since 2010

Legislation Law No 6 for 2007 [Amended by Law No 1 of • A community of local 2012] and international Managed by IHC Authority humanitarian nonprofit and Segments Non-Profit Organizations (NPO): commercial suppliers United Nations Agencies, Specialized Agencies, Non-governmental Organizations, Charities, • A fully integrated Foundations, News, Research and Educational one-stop-shop, with institutions of the United Nations Agencies access to procurers, Commercial Companies (CC): suppliers and Manufacturers and suppliers of goods and business partners services to the humanitarian agencies and fast multi-modal Type of Legal Free Zone Entity (FZE) logistics capabilities Entities Free Zone Company (FZCO) Branch of Local Company • Office, warehousing Branch of Foreign Company and meeting facilities Minimum Capital (physi- FZE: AED 1,000,000 cal) FZCO: AED 500,000 • A platform for Branch : N/A humanitarian No. of Shareholders Minimum One; Maximum Five information and knowledge exchange Shareholding Structure Natural Person(s) and/or Corporate(s)

Facilities Offered Offices, Warehouses • A socially responsible operating Size of Facilities Facilities are available in various sizes environment

Rental (per sq meter) Office Units : NPO - AED 430; CC - AED 807 Warehouse: NPO - AED 270; CC - AED 380 Fees: FZE: AED 10,000 Formation [One time] FZCO: AED 15,000 Branch: AED 5,000 Fees: AED 5,500 Licence [Annual] No. of Visas Depends on facility leased

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23 DUBAI INTERNA- TIONAL FINANCIAL CENTRE (DIFC)

DIFC was established to become a centres. DIFC was established to be a free zone for one of the most important recognized hub for institutional finance financial centres in the Middle East and to be a regional gateway for capital and North Africa.The DIFC came into and investment. existence in 2004 with its own laws, regulations, courts and facility for The laws are principle-based, allowing arbitration. It is independent of the for the creation of subsidiary legislation civil and commercial laws of the UAE, such as regulations and rules. Laws but is still subject to UAE criminal law. have been enacted which in effect Legislations have been enacted to constitute a “commercial code”. govern the day-to-day requirements These laws include the Companies and operations of financial institutions, Law, Contract Law, Arbitration Law companies and individuals within the and Insolvency Law, among others, DIFC. It is a world class financial centre administered by the DIFC Authority. and the basic objective is to bridge the Other laws deal with the application of gap between world’s major financial civil commercial laws in the DIFC.

130 Structure of the DIFC The DIFC is also home to a leading The DIFC is intended to be a well international stock exchange which has regulated hub for commercial and grown significantly in a short period of investment banks, and other financial time. The exchange NASDAQ Dubai institutions that wish to take advantage has developed from an equity-focused of the wealth of opportunities in the market to one which now offers a trading region by providing services in respect of platform for structured financial products underwriting, mergers and acquisitions, and equity derivatives. NASDAQ Dubai venture capital/private equity, foreign is also the leading exchange for Sukuk, exchange trading, trade finance, capital or Islamic bonds. market and Islamic finance operations.

Sectors of DIFC Uniqueness of DIFC The DIFC is a wholesale financial 1. 100 percent foreign ownership centre catering primarily to institutional 2. Zero percent tax on income and investors. Catering to retail clients is not profits the primary objective of DIFC. The DIFC 3. Freedom to repatriate capital and focuses on the following sectors: profits 4. Most modern operational • Banking Services atmosphere • Capital Markets 5. Availability of skilled workforce/ • Asset Management & Fund professionals Registration 6. Independent regulatory agency • Insurance and Reinsurance (Dubai Financial Services Authority) • Islamic Finance 7. US Dollar dominated environment • Business Processing Operations • Ancillary Service Providers

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Financial activities that may be carried out within the DIFC

Category 1 Accepting deposits, providing credit

Category 2 Dealing in investments as principal

Dealing in investments as agent, managing assets, operating Category 3 a Collective Investment Fund, providing custody, providing trust services, acting as the trustee of a fund

Arranging credit or deals in Investments, Advising on Financial products or credit, Arranging custody, Insurance Category 4 intermediation, Insurance management, Operating an alternative trading system, Providing fund administration

An Islamic financial institution whose entire business is Category 5 conducted in accordance with Shari’a and which manages a profit sharing investment account

132 Process of Setting up The process of setting up in DIFC comprises the following three stages:

1. DIFC Review and Approval 2. DSFA Approvals 3. ROC Registration

DIFC / DFSA APPROVAL PROCESS

Preparation of the Initial meeting Submission of the Business Plan, with the DIFC Letter of Intent related financials Submission of and complaiance draft to DIFC manual

Formal submission to DFSA, along with Completion of DFSA Initial review Payment of application forms, and comments client meeting with DFSA fee DFSA policies, procedures etc.

Presentation of application to In-Principle Replies to initial Application approval from the review Review Committee DFSA (by the DFSA Case Officer)

ROC REGISTRATION PROCESS

NA for branch Submission of Bank account Receipt of Issuance of legal documents opening and commerical share to ROC, along transfer of licence from Certificates and with related fee share capital the ROC press release by Lease of office the DFSA space NA for branch

END OF PROCESS

The overall approach adopted by DIFC and DFSA through the approval process is with respect to ensuring fit & propriety of the business plan, personnel, systems & controls to be adopted by the authorized firm.

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Dubai Financial Services Capital Requirements Authority (DFSA) • The actual ongoing capital DFSA is the independent regulator requirements of Authorized Firms of financial and ancillary services depend on the nature and volume conducted in and from DIFC. Its of the firm’s business, and the independence is guaranteed by law consequent variable risks faced and acts as an independent regulatory by the firms in related areas. covering banking, securities and However, under the DFSA laws insurance segments and uses a risk and regulations the base capital based approach. DFSA follows requirements are set out by DFSA international standards on financial based on the Category of the regulations such as IOSCO, Basel, IAIS Authorized Firm. and FATF. • An Authorized Firm must have, at all times, capital resources of at least the amount of its capital DFSA’s key activities include: requirement, however subject Rulemaking and policy development; to stress testing based on the Drafting financial services legislation; business scenarios and expense Approvals for financial services entities, levels. Supervision and/or recognition of entities • An Authorized Firm must have providing financial services in DIFC, systems and controls enabling it to including NASDAQ Dubai & Dubai determine and monitor its capital Mercantile Exchange; Enforcing DFSA requirement. administered legislation.

Base Capital Requirement

Category - 1 US $ 10 million Category - 2 [other than those Category Authorised Firms included US $ 2 million elsewhere in this table] Category - 3 [other than those Category Authorised Firms included US $500,000 elsewhere in this table] Categories 2 or 3 that are depositaries of mutual funds/ OEICs or provide custody services to other Collective US $10 million Investment Funds. Category - 4 US $ 10,000

Category - 5 US $10 million

134 • An Authorized Firm may be DFSA Regulations : required to calculate Credit Risk Rulebook Modules Capital Requirement and a Market • General (GEN) Risk Capital Requirement while • Authorisation (AUT) calculating its capital adequacy. • Supervision (SUP) • Enforcement (ENF) Major Laws, Rules and • Conduct of Business (COB) • Prudential Insurance (PIN) Regulations in DIFC • Prudential - Investment, Insurance Intermediation & Banking (PIB) DIFCA Administered Laws • Anti Money Laundering (AML) • Employment Law • Islamic Financial Business (ISF) • Companies Law • Collective Investment Rules (CIR) • Personal Property Law • Ancillary Service Providers (ASP) • Law of Security • Offered Securities Rules (OSR) • Real Property Law • Authorized Market Institution (AMI) • Data Protection Law • Recognised Bodies & Recognised • Law on Application of Civil & Members (REC) Commercial Law • Price Stabilisation (PRS) • Contract Law • Takeover Rules (TKO) • Insolvency Law • Glossary (GLO) • Arbitration Law • Prudential Returns (PRU) • Law of Obligations • Law of Damages & Remedies • Law relating to Application of DIFC Laws • Limited Liability Partnership Law • General Partnership Law • DIFC Court Law • Real Estate Law

DFSA Administered Laws • Regulatory Law • Markets Law • Law Regulating Islamic Financial Business • Trust Law • Investment Trust Law • Collective Investment Law

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Type of Authorizations 1. Authorized Firms: Conduct specified financial services in or from the DIFC, once licence has been granted 2. Authorized Individuals: Perform licenced functions within an Authorized Firm after being authorized 3. Authorized Market Institutions: Licenced exchanges or clearing houses operating in DIFC [currently NASDAQ Dubai and DME] 4. Ancillary Service Provider: Provide legal and accounting services to Authorized Firms after being registered 5. Recognised Bodies: Exchanges, clearing houses or settlement facilities recognised to conduct financial services without having physical presence in DIFC 6. Recognised Members: Remote trading and clearing members recognised to conduct financial services without having physical presence in DIFC

Restrictions on Authorized Firms while conducting business in DIFC DIFC, being a financial centre intending to cater to the wholesale market, has introduced certain restrictions on Authorized Firms while selecting their clients. The firms must adhere to the criteria set out under the definition of a ‘Client’ in the COB Module of DFSA Rule Book.

136 An Authorized Firm may choose to client has sufficient experience and provide Financial Services and products understanding of relevant financial to both Retail Clients and Professional markets, products or transactions and Clients. In these circumstances, the any associated risks. Authorized Firm must determine the appropriate classification of its Clients. (c) A client is treated as a professional As a consequence of the analysis under client, if the client has elected not to the said rule the Client may be classified be treated as a retail client. as: An Authorized Firm may consider the a. a Professional Client; following Persons [As per DFSA Rule b. a Retail Client; or Book] Definition, as possessing the c. a Professional Client in relation to necessary degree of experience and certain services and products and a understanding of relevant financial Retail Client in relation to other services markets, products or transactions, and products. without having to undertake the necessary analysis stated: Professional Client • a Collective Investment Fund or a Before carrying out a Financial Service regulated pension fund; with a person an Authorized Firm must • an Authorized Firm, a Regulated determine whether such a Person is Financial Institution or the a Professional Client, unless explicitly management company of a concurred by the client that he is treated regulated pension fund; as a retail client. • a properly constituted government, An Authorized Firm may classify a government agency, central bank or Person as a Professional Client only if other national monetary authority of such a Person: any country or jurisdiction; (a) either has net assets of at least • public authority or state investment $500,000 calculated in accordance body; to the rules specified in the COB Module or

(b) is, or has been in the previous 2 years: a. an Employee of the Authorized Firm; or b. an Employee in a professional position in another Authorized Firm; The approach of determining the client to be a professional client based on experience is on the grounds that the

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• a supranational organization whose (a) must exclude the value of the primary members are either countries, residence of that Person; and central banks or national monetary (b) may include any assets held directly authorities; or indirectly by that Person • an Authorized Market Institution, regulated exchange or regulated clearing house; Authorized Individuals • a Body Corporate whose shares are Though individuals may not hold listed or admitted to trading on any licences in their own right to provide regulated exchange of an IOSCO Financial Services in DIFC, but can do member country; so as employees of Authorized Firms. • a Body Corporate which has These individuals, however, must called up share capital of at least be approved by the DFSA as being $10,000,000; or Authorized Individuals. However, it is • any other institutional investor mandatory for every Authorized Firm whose main activity is to invest in to have an Authorized Individual in the financial instruments, including an function of, amongst others, senior entity dedicated to the securitisation executive officer, compliance officer, of assets or other financial finance officer and money laundering transactions. reporting officer. Persons who are looking to being authorized by the DFSA A personal investment vehicle may must clear a ‘fit & proper’ test to assess be classified as a Professional Client; their integrity, competence and financial without having to meet the requirements soundness, ensuring that the person is with respect to minimum asset size, fit and proper to hold the position. if it is operated for the sole purpose of facilitating the management of the Ancillary Service investment portfolio of an existing Providers - ASPs Professional Client. A firm providing Ancillary Services must be a body corporate or a partnership and Retail Client A Client is a Retail Client to the extent he is not a Professional Client. Additional protection and controls are expected to be in place for handling a retail client.

Calculating Net Assets An Authorized Firm, when calculating net assets of a Person for the purposes of determining whether the client is a professional client;

138 must be registered if it is to carry on one Authorized Market of the businesses set out below, and it Institutions intends to have a permanent place of An Authorized Market Institution (AMI) business at the DIFC. Moreover, such is an exchange or a clearing house in firms can be formed either inside the the DIFC that is licenced and regulated DIFC under the Companies Law, Limited by the DFSA. There are currently two Liability Partnership Law or General AMIs in the DIFC, namely the NASDAQ Partnership Law, or alternatively, outside Dubai (formerly known as DIFX) and the DIFC but having a branch office in the Dubai Mercantile Exchange (DME). the DIFC that is registered with the DIFC AMIs are allowed to deal in Equities, Companies’ Registrar. Bonds, Funds, Islamic Products, Index Ancillary Service Providers are those Products, Derivatives, etc. who provide any of the following services: Non-regulated Businesses • Legal Services in DIFC • Accountancy Services Non-regulated entities are those which • Financial Audit Services may be set up in DIFC and their core • Market Information Services business do not fall under the category • Compliance Services of financial services or any regulated services. Examples of non-regulated Local Services Office entities set up in the DIFC include Operating a Local Services Office means restaurants, recruitment agencies, and (a) seeking, or offering generic advice similar service providers. The entities to, potential customers with a view to which do not engage in providing the provision of Financial Services, financial services that intend to set up either directly or by a member of the in the DIFC must submit an application same Group, from an establishment to the DIFC Authority. The application outside the DIFC ; or (b) marketing and will be screened and processed by the other activities relating to (a), but not Registration Review Committee (“RRC”). falling within the definition of Financial Upon receiving provisional approval Services in GEN chapter 2. A Person does not operate a Local Services Office if that Person is an Authorized Firm.

Management Office Operating a Management Office means managing one or more Members of the same Group who are Regulated Financial Institutions.

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from the RRC, the applicant will have to proceed with the formation procedures of the selected entity with the DIFC Registrar of Companies (“ROC”).

Single Family Offices Single Family Offices concept with the DIFC has been created to encourage business families to consolidate and manage their wealth through a formalized structure in a tax-free jurisdiction. The main criteria for Single Family Offices to be set up in the DIFC are as follows:

• 100% of the ultimate beneficial ownership of the DIFC Company are members of a single family. i.e. there is a common named ancestor; • If the ultimate beneficial owner is a trust or similar entity, 100% of the principal beneficiaries / controlling individuals are members of the same family; • The DIFC company does not provide services to third parties; it manages a single family’s proprietary assets only; • The family’s net wealth exceeds the required minimum (USD 10 million); • The DIFC Company has a physical presence within the DIFC.

Single Family Offices are non-regulated entities in the DIFC, however with some limited monitoring by the DFSA on the Anti-Money Laundering aspects.

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