A new law, Law No. (16) of 2021 was introduced by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to create an independent legal entity called Dubai Integrated Economic Zones (DIEZ) Authority and bring the three separate free zones namely the Dubai Airport Free Zone, Dubai Silicon Oasis and Dubai Commerce City under one roof. The newly formed DIEZ will now collectively supervise and administer all these three zones and enjoy absolute administrative and financial autonomy.
Sheikh Ahmed bin Saeed Al Maktoum will act as the chairman of the DIEZ and Dr Mohammed Ahmed Al Zarouni, the Secretary-General of Dubai Free Zone Council (DFZC) will be the executive chairman, effective January 1, 2022.
On passing the new law, His Highness remarked, “The establishment of the Dubai Integrated Economic Zones Authority is a vital move to enhance Dubai’s global competitiveness and raise its investment attractiveness. The private sector is a major partner in our development journey over the next 50 years and the government continues to explore innovative initiatives to support their growth and success. Our objective is to make Dubai the destination of choice for global investors and a major focal point for global commerce.”
“The creation of the new Authority is one of our many strategic initiatives to raise the speed and efficiency of services for businesses and investors and enhance the ease of doing business. Our focus is on integrating government processes and facilitating greater access to global markets through an accelerated transition to a digital environment. We remain committed to strengthening our partnership with the private sector and making our business environment more attractive, both of which are key to sustained growth in our new phase of development.”
The enactment of the new law aims to promote Dubai as the leading business and investment hub in the world and provide an integrated & state of the art multimedia system in line with the highest global standards. DIEZ will have a wide global network and will offer comprehensive and innovative packages of business solutions satisfying the needs and expectations of customers across various industries.
Seamless cross-border business activities will be ensured by the DIEZ authority and a happy and conducive living and working environment will be created through various unique offerings for its existing and new customers.
The newly created authority will primarily focus on attracting both local and global companies for new business setup in Dubai free zone and establish their business headquarters in the DIEZ. It shall also enhance the business and economic competitiveness of Dubai and mainly in retail, technology, Islamic economy, e-commerce, industrial, logistics and shipping sectors. Moreover, it shall also provide all the required and necessary support to the SMEs to promote business growth and diversification through innovation and entrepreneurship across various sectors and improve ease of doing business.
DIEZ will act as the sole authority to create, develop and manage the infrastructure and administrative services and shall regulate all business activities and services including the import and storage of merchandise.
DIEZ will be home to more than 5,000 global firms hailing from 20 core economic sectors and 30,000 employees. Almost 5 per cent of Dubai’s GDP will now be generated by this authority.
50 years of tax exemption has been announced for all companies and individuals licensed under DIEZ and will be effective from the date of the enforcement of the new law. The tax exemption shall include all taxes including income tax and the exemption period can be extended for a similar period by a decision issued by the Dubai Ruler.
Once licensed under DIEZ jurisdiction, all companies, subsidiaries and individuals will be exempted from all restrictions related to the repatriation of capital, profits and salaries. The exemption will apply to all currencies and all destinations outside the DIEZ and will have a validity of 50 years renewable for a similar period. Besides, no nationalization or restriction of ownership will be applied to the funds of licensed companies, subsidiaries and their employees.
The activities of DIEZ and companies licensed under it will not be subjected to the regulations of Dubai Municipality or Dubai Economy unless the regulations relating to safety, security and food control, or any other regulations specifically applicable within free zones.
The creation of the DIEZ Authority complements the continuous effort of the government to introduce new frameworks for further improving services provided to businesses and investors to boost up business setup in Dubai and enhance the economic growth of the nation.
