New law on DMCC aimed at boosting commodities trade

dubai — His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No.(3) of 2020 on the Dubai Multi Commodities Centre (DMCC). Established pursuant to Decision No.(4) of 2002, the DMCC is dedicated to enhancing the flow of commodity trade through Dubai.

The provisions of the new law are applicable to the DMCC both as a free zone and an authority since it is a public authority by law with financial and administrative independence. It has the legal capacity to conduct business and transactions to achieve its objectives. The DMCC will be attached to the Investment Corporation of Dubai under the new law.

Pursuant to the law, the DMCC Authority will be responsible for supervising the DMCC. The authority is responsible for setting up, developing and managing the infrastructure of DMCC, developing the rules and regulations required for DMCC to achieve its objectives; supervising activities in the centre; issuing licences for companies seeking to operate in the centre; and monitoring and supervising construction within the centre.

The new law outlines the organisational structure of the DMCC Authority and specifies the authorities and procedures to form the Board and executive body of the authority. Pursuant to the new law, any company registered to operate within the DMCC is strictly not allowed to practise 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. —