LAW NO. (1) OF 2000 OF DUBAI TECHNOLOGY,
ELECTRONIC COMMERCE & MEDIA FREE ZONE
This Law shall be known as "Dubai Technology, Electronic Commerce
and Media Free Zone Law No. (1) of 2000".
The following words and phrases shall have the following meaning
appearing opposite each of them, unless the context implies
There shall be established by this Law:
a) a free zone to be known as Dubai Technology, Electronic Commerce
and Media Free Zone, which location, area and boundaries shall be as
set out in the map attached to this Law.
b) a corporate entity known as Dubai Technology, Electronic Commerce
and Media Free Zone, which shall be financially and administratively
independent and may sue or be sued in this capacity. Its main
premises shall be in the Free Zone, and it shall be part of the
The Free Zone Authority shall be constituted of:
– a chairman
b – a director general
c – an executive body.
The Chairman shall be appointed by the Ruler, and shall undertake
the supervision of the Free Zone. The Chairman shall have the power
and authority to issue rules and regulations necessary for the
operation and administration of the Free Zone, and for the
implementation of this Law.
The Director General shall be appointed by the Ruler, and shall
undertake the administration of the Free Zone, under the supervision
of the Chairman in accordance with the provisions of this Law and
the rules and regulations issued in relation thereto and shall
represent the Authority towards third parties.
The Chairman shall issue a special regulation governing the
recruitment and appointment of employees of the Authority’s
Executive Body, and the terms and conditions of their employment,
dismissal, salaries, duties, rights and other matters involving
The objects of the Authority shall be:
- to draw up strategies and policies, and methods of implementation
thereof, in order to promote Dubai as a center for Technology,
Electronic Commerce and Media.
b- to prepare researches and advise the Government in relation to
laws appropriate to the regulation and encouragement of Technology,
Electronic Commerce and Media in the Emirate, including but not
– data protection
- protection of intellectual property right.
- control of crimes associated with Electronic Commerce
- to establish, own and promote, either solely or with others,
establishments in the Free Zones, including but not limited to, a
University and a research centre.
- to co-ordinate with the other Free Zones in relation to matters of
To achieve its objects, the Authority shall undertake the following
functions and responsibilities:
- procure infrastructure, buildings, management and any other
services required to achieve the Authority’s objects.
- regulate business and activities within the Free Zone.
- provide telecommunications and Internet services.
- authentication of Internet and Electronic Commerce sites and
issuing of the necessary terms and conditions in relation thereto.
The Authority may also license other establishments within the Free
Zone to perform the authentication process of such sites.
- establish and license establishments in the Free Zone.
- regulate commerce between establishments in the Free Zone and any
other parties outside the Free Zone..
- enter into agreements with other Free Zones to enable the Free
Zone establishments to carry on business in those other zones.
- provide the Free Zone establishments, upon request, with
executives, managers technicians, craftsmen and other workers in
accordance with the provisions of this Law, the regulations issued
in relation thereto, and any terms and conditions agreed upon by the
Authority and these establishments.
- enter into leases of plots and buildings that may extend to
periods up to (50) years, with any establishment in the Free Zone,
to enable it to carry on its activity according to terms and
conditions agreed upon.
10- provide of all kinds of services.
11- levy and charge fees for the services it provides.
12- establish an investment fund for providing capital to the Free
Zone establishments, and for investing the Authority’s funds in the
manner and method, and in the activities and projects, which the
Chairman deems fit.
The business and activities carried on in the Free Zone shall
include the following:
- the design, development, use and maintenance of everything
relevant to Information Technology .
- business of Electronic Commerce
- Telecommunications and media services
- provision of services through the Internet or through any other
medium including banking, financial services, insurance, education,
call centres, marketing operations, information and recreation
- integrated marketing and public relations services.
- assembly and packaging of products manufactured within or outside
the Free Zone.
- import, export and storage of products.
- the development and manufacture of products.
- warehousing, logistics, distribution and redistribution services.
Subject to the provisions of Article (23) of this Law and the
regulations issued in relation thereto, the Free Zone shall be open
to all kinds of products from all sources, whether local or foreign.
The products brought, manufactured, produced or developed in the
Free Zone shall be exempt from customs duties, and shall not be
subject to any customs duties or any other fees when exported.
Products kept in the Free Zone, used in any process, or integrated
in the manufacturing of any product in the Free Zone shall be exempt
from customs duties.
Products exported from the Free Zone to the "Customs Zone" in Dubai
shall be deemed to have been exported from abroad for the first
time, and shall be subject to customs duties.
Free Zone establishments and employees shall be exempt from all
taxes including income tax with regard to their operations within
the Free Zone. They shall also be excluded from any restrictions on
repatriation and transfer of capital, profits or wages in any
currency to any place outside the Free Zone for a period of (50)
years. This period may be renewed for further similar periods by a
resolution issued by the Chairman. Such period shall be calculated
from the date of the beginning of work of such establishments or
Assets or activities of the Free Zone establishments shall not be
subject to nationalization or any measures restricting private
ownership, throughout the period of their activities in the Free
Free Zone establishments may employ or hire whomsoever they choose
in their operations in the Free Zone, provided that such employees
are not subject to any countries politically or economically
boycotted by the UAE.
The operations of Free Zone establishments or employees, within the
Free Zone, shall not be subject to the laws and regulations of Dubai
Municipality, the Department of Economic Development of the
Government of Dubai, or the powers and authority falling within
Companies with limited liability may be incorporated in the Free
Zone in accordance with the Free Zone Regulations, and shall be
considered as Free Zone establishments. These companies may have one
or more shareholders, whether natural or corporate persons, local or
The Authority shall have the power to approve the establishment and
registration of the Free Zone establishments, and to regulate all
procedures and matters relating thereto, including incorporation and
registration of companies referred to in Article (19), levying
registration fees, setting out terms and rules governing such
companies, regulations regarding their liquidation or any other
matters as the Authority deems necessary for the proper supervision
and control of such companies.
Every limited liability company incorporated in accordance with
Article (19) of this Law, shall set out beside its name the
following particulars, in all its activities, contracts, notices
invoices, correspondence and publications:
a) that the company is incorporated in accordance with this Law, and
that it is a limited liability company.
b) that it is a company in the Free Zone.
in the cases where clause (a) and/or clause (b) of this Article are
disregarded, the company’s owner or owners shall be personally
liable for the obligations of the company.
The Chairman, the Director General or the employees and workers of
the Authority shall not be liable to any third party for the
operations or obligations of the Free Zone Establishments or their
The following products, goods and services shall be prohibited in
the Free Zone:
a) goods and services in violation of intellectual property law,
including those in violation of laws and rules relevant to trademark,
patent, copyright and design rights.
b) products boycotted by the UAE
c) all goods, products and services prohibited under the laws in
force in the Emirate and/or the UAE.
The Authority shall have power to specify or amend the list of
prohibited products and services in accordance with the laws of the
Emirate, as well as the power to grant exemptions from such
The following activities shall be prohibited within the Free Zone:
- any unlicensed activity by any natural or corporate person, which
requires a license within the Free Zone:
- any activity contrary to the Free Zone Regulations.
– any willful activities designed to disrupt computer networks &
software such as the creation and distribution of computer viruses.
Assignment of the license issued by the Authority, to another party,
shall be prohibited without the prior written consent of the
The Authority shall have the power to control and inspect the
activities of Free Zone establishments which are suspected to be in
breach of the provisions of this Law or any other regulation.
The Ruler may establish a court and/or an arbitration tribunal with
the jurisdiction of hearing claims and suits arising out of, or in
connection with, activities carried out by Free Zone Establishments
within the Free Zone, including claims and suits between these
establishments and any other parties outside the Free Zone.
The Director General may impose civil penalties on any person who is
in breach of any provision of this Law and the Regulations issued in
relation thereto, or in breach of the terms and conditions of the
license issued by the Authority, all in accordance with a special
regulation to be issued by the Chairman.Following is an artist's
impression of the proposed Dubai Internet City site plan. The site
is located on Sheikh Zayed Road, next to the American
University.This area overlooks the Emirates hills golf course
In May 2003, the Dubai Technology and Media Free Zone announced that
the Private Companies Regulations for Free Zone Limited Liability
Companies had been issued.
The regulation was designed to provide a comprehensive regulatory
base for Free Zone Limited Liability companies, and further enhance
the business environment that the Free Zone’s companies enjoy.
are confident that the new Regulations will provide a greater degree
of certainty to our Business Partners who have formed Free Zone
Limited Liability companies,” explained Ahmad Bin Byat, Director
General of the Dubai Technology and Media Free Zone, at the time.
“The Private Companies Regulations have been developed as part of
our commitment to ensure that our Business Partners can function
within a legal framework that provides security for their
investments and a means for effectively resolving conflicts,” he
Two other laws developed by the Free Zone’s legal department in
conjunction with international agencies had already been accepted as
Dubai Law at the time – the Facilitation of Electronic Transactions
Law and the Electronic Crimes Law.