Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and ruler of Dubai, issued a new law covering the Dubai Multi Commodities Centre – one of the city's biggest freezones aimed at commodities trading.
The law will lead to the formation of a new Dubai Multi Commodities Centre Authority which will supervise the DMCC, Dubai Media Office said in a statement. The DMCC will continue to manage the free zone and will be attached to the Investment Corporation of Dubai under the new law.
The authority will be responsible for setting up, developing and managing the infrastructure of DMCC while also developing the rules and regulations required for DMCC to achieve its objectives. It will be responsible for supervising activities and issuing licenses to companies in the free zone, as well as monitoring and supervising construction in the zone, which covers most of the Jumeirah Lakes Towers district .
The law also outlines the organisational structure of the DMCC Authority and specifies the authorities and procedures to form its board and executive body.
The provisions of the new law are applicable to the Dubai Multi Commodities Centre both as an authority and free zone since it is a public authority by law with financial and administrative independence, the statement added.
Aside from governing the scope of the DMCC Authority, the law dictates that companies registered to operate within DMCC are “strictly not allowed to practice any activity other than what is stated in their registration permit, or any activity that goes against public order and norms”.
The new law also regulates customs duty exemptions and tax exemptions for commodities trade, re-export and storage within DMCC and the establishment of private, commercial and joint venture companies.
All companies registered within DMCC must identity as a freezone company in all of their correspondence. DMCC-based companies are also not allowed to transfer their license to a third party without written permission from the new authority, the statement added.
Establishments and individuals operating in DMCC are exempt from all taxes including income tax, for a period of 50 years.
