His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, on Monday issued a new law pertaining to Dubai Multi Commodities Centre (DMCC)
The Law No. (3) of 2020, which is applicable to DMCC both as a Free Zone and an Authority, states that Dubai Multi Commodities Centre Authority will now be responsible for supervising DMCC, which was established under Decision No. (4) of 2002, to enhance the flow of commodity trade through Dubai.
Under the regulations of the law, the Authority’s responsibilities include setting up, developing, and managing DMCC’s infrastructure and also formulating the rules and regulations that will help DMCC achieve its objectives.
The Authority will also supervise the Centre’s activities and issue licenses for companies seeking to operate in the Centre, apart from supervision of any construction activities with the centre.
The law, which states that DMCC will be attached to the Investment Corporation of Dubai, also outlines the organisational structure of DMCC Authority and specifies the authorities and procedures to form the Board and executive body of the DMCC Authority.
As per the new law, any company registered to operate within DMCC is 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. Establishments and individuals operating in DMCC are exempt from all taxes including income tax for a period of 50 years.
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 identify themselves as a free zone company in all their correspondence, contracts, advertisements, invoices and stationery. DMCC companies cannot transfer their license to any other third party without obtaining prior written permission from DMCC Authority.
The Board of Directors of DMCC will issue all the bylaws required to implement and execute the articles of this Law. The new Law will be published in the Official Gazette and is effective from the date of publication.
