Mohammed bin Rashid issues a law on the Dubai Multi Commodities Center

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, in his capacity as Ruler of Dubai, issued Law No. 3 of 2020 regarding the DMCC, which aims to advance the emirate’s position as a regional and global destination in the field of commodity trade and commercial and Islamic finance And contribute to the implementation of the strategic priorities of the Government of Dubai, to raise the level of economic growth of the emirate, as well as contribute to attracting and attracting local and international investments, companies, and commercial institutions for the center to be based on its business and investments, and enhance the competitiveness of the emirate in Trade commodities in general, and precious metals in particular.

The provisions of this law are applied to the Dubai Multi Commodities Center as a free zone, and the provisions of this law apply to the authority of the center, as it is a public authority, with legal personality, financial and administrative independence, and the legal capacity necessary to conduct business and actions that ensure the achievement of the center’s goals, and is attached to the Dubai Investment Corporation Government.
According to the law, the DMCC Authority is responsible for overseeing the center, and in order to achieve its goals: to establish, develop and manage infrastructure and administrative services within the center in coordination with the concerned authorities in the emirate, and to establish buildings, residential, commercial and hotel facilities, either by itself or through real estate developers And determining the activities that are authorized to be practiced inside the center, setting rules, conditions, requirements and licensing procedures, licensing and organizing construction works that take place inside the center, and supervising and supervising them.

The DMCA Authority shall have the authority to register and license the center’s institutions in accordance with the provisions of this law and the decisions issued pursuant thereto, as well as to control and inspect the center’s institutions and the activities that they carry out, to ascertain the extent of their commitment to the provisions of this law and the decisions issued thereunder, and to establish institutions and companies alone or in partnership with others, within The center and outside it, establishing, organizing and operating the actual and digital commodity markets, in accordance with the legislations in force in the emirate.

The authority of the center may also establish professional societies and committees, organize activities related to the activities of the center, and supervise the trade in rough diamonds, in coordination with local and federal stakeholders, in accordance with the provisions of international agreements and treaties to which the state is a party, as well as examine, approve and calibrate diamonds, gold and precious stones, and make sure From the authenticity of certificates and related documents, and to allow the institutions of the Center to import and store the goods, with a view to re-exporting them or importing them to the customs area in the emirate, in coordination with the concerned authorities, and conducting an amicable settlement of disputes Workers and disputes related to the center's institutions related to its operations.

The DMCA Authority is also entitled to conclude agreements and memoranda of understanding with the centers specialized in dispute resolution, and to allow the centers of the Center to provide various commercial, media, banking and insurance services within the center, in coordination with the relevant federal authorities, and in accordance with the legislation in force in the emirate, and to cooperate and coordinate with local authorities. Federal, regional and international levels, including the authorities of the Free Zones, in a manner that ensures the achievement of the goals of the Center.

The organizational structure of the DMCC Authority’s authority consists in accordance with the text of the new law, consisting of a board of directors consisting of a president and vice president, and a number of experienced and specialized members, appointed by a decree issued by His Highness the Ruler of Dubai. The Authority also has an executive body consisting of the CEO of the Center’s authority and a number of administrative, financial and technical employees, and the rights and duties of employees of the Authority’s authority and other their functional affairs are defined by a special system issued by the Center’s Board of Directors in this regard, and the CEO of the Dubai Center Multiple decision by the Chairman of the Executive Council of the Emirate of Dubai.

The law also specified the powers of the DMCC Authority board of directors, its meeting mechanisms, the Authority's financial resources, budgets and accounts, and obligated all Dubai government entities in cooperation with the DMCC authority to enable them to carry out the tasks assigned to them under this law and the decisions issued pursuant thereto.

The law stipulated that any activity inconsistent with the license granted to the institutions of the center or with the legislation in force in the emirate, and any activity inconsistent with the public order or public morals should be prohibited.
Goods from all sources are permitted to enter the Dubai Multi Commodities Center, whether national or foreign, while the law excludes a group of goods that are prohibited from entering or trading in the center, including: corrupt goods, and those that violate laws protecting commercial, industrial, literary, artistic and intellectual property. Including trademarks, law, patent, and copyright infringing goods.

It is also prohibited to enter the goods that the state or the government of Dubai decides to prohibit, and goods bearing texts, drawings, ornaments, signs or forms that contradict the beliefs, teachings and concepts of divine religions or violate public order or public morals, as well as war goods and ammunition, except for them under a license From the competent authority in the Emirate of Dubai, the goods, services and products that are prohibited from circulating in the country according to the legislation in force.

The law exempted multiple commodities imported into the center, manufactured, produced, or developed therein from customs duties, and no customs fees are collected from them when they are exported outside the country, and the goods kept in the center or used in any operations inside it are also exempt from customs duties, as they are also considered Goods exported from the center to the customs area in Dubai, as if they were imported from abroad for the first time, and customs duties are collected according to the applicable customs tariff provisions.

Without prejudice to the legislation in force in the state, the institutions of the center and the individuals working in it are exempt from all types of taxes, including income tax, in relation to their work inside the center, and those institutions and those individuals are exempt from any restrictions related to the transfer of capital, profits or wages in any currency. To any party outside the center, for a period of fifty years, and this period may be extended for similar periods by a decision of the ruler, and this period is calculated from the date of commencement of the work of the institutions of the center or its employees.

According to the law, the DMCC’s institutions and their funds or those of its employees are not subject to any nationalization or restriction measures for the private property throughout the duration of their work within the center.
The center or its institutions in relation to its operations inside it are not subject to the legislation related to Dubai Municipality or the Department of Economic Development, or to the authorities and powers within the jurisdiction of either of them, and with the exception of legislation related to public health and safety and the environment and food control, as well as legislation that expressly provides for the application of provisions within the regions Free.

The authority may seek the assistance of government agencies in the emirate of Dubai and other free zones, and take advantage of the programs and systems available to them to license the centers of the center, as the authority deems appropriate. Concern as if issued by the authority.

Individual institutions and commercial companies are established within the Dubai Multi Commodities Center according to the regulations and decisions applied in the center. The institutions of the center may be owned by one or more persons, whether natural or legal person, and whether it is a citizen of the state or others.
It is not permissible for any person or entity to engage in any activity in the center, unless it is authorized by the authority to do so. And any other matters related to it, according to a special system approved by the Board of Directors of the Center’s authority for this purpose.

The law stipulated that the institutions of the center should mention next to their name in all their transactions, contracts, advertisements, invoices, correspondence, and publications, that they are a free zone institution, and the legal form that they have taken, and the owner of the center of the center is responsible for all its movable and immovable assets of the center’s obligations, In the event that he is not committed to mentioning the foregoing regarding clarifying the relationship of the corporation with the free zone.

The DMCI institutions are prohibited from assigning the license issued to them by the authority to any party or other party, without obtaining the prior written approval of the authority. The Board of Directors of the center’s authority issues a list in which it determines the administrative penalties decided to violate the provisions of this law and the decisions issued under it, Or any clause of the license terms issued by the Authority, and this regulation shall specify the authority authorized to impose and implement these sanctions.

The authority of the center may pledge any of its powers stipulated in this law to any public or private party, pursuant to an agreement concluded in this regard, according to which the rights and obligations of its parties are specified, and the records and information of the centers institutions are dealt with confidentially, and may not be disclosed or disclosed to others, Except in accordance with the legislation in force in the country, and the regulations, regulations and decisions approved by the Authority, under penalty of liability.

The Board of Directors of the Dubai Multi Commodities Center Authority shall issue the decisions necessary to implement the provisions of this law. The decision issued on May 1, 2002, and System No. (4) of 2002 regarding the organization of work in the Dubai Multi Commodities Center, and any text in any other legislation to the extent that Contradicting it and the provisions of this law, provided that the decisions, regulations and regulations in force in the center continue to apply to the extent that they do not contradict the provisions of this law, until the decisions, regulations and regulations that replace them are issued, and this law is published in the official gazette, and it is effective from the date of its publication .