UAE PM issues law establishing 'Dubai Investment Development Agency'

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, in his capacity as Ruler of Dubai, has issued a law establishing " Dubai Investment Development Agency"as a public institution enjoying legal personality and capacity to be affiliated to the Department of Economic Development in Dubai. The new body is tasked with enhancing Dubai's position as a world economic hub for attracting investment, providing appropriate investment environment and instilling confidence in the investment environment in Dubai in addition to the promotion for projects and investment opportunities in the Emirate. The law specifies the terms of reference of the new body, which includes the general policy and the strategic plan for investment, attraction and development of investment projects in the long term, in line with the economic development plan of the emirate. The law also stipulates coordination with the government agencies concerned with the investment sector and the organisation of economic activities on the proposed preferential advantages that enhance the implementation of necessary programmes and initiatives to promote investment. Reviewing and analysing the investment climate in the emirate , identifying investment opportunities and impediments to their growth , as well as dealing with any obstacles and to seek appropriate solutions in coordination with the concerned authorities, are among the other specialisations of the Agency. Article 2 of the Law is devoted to the preferential advantages provided to investors in Dubai, where the article stipulates the adoption of the Executive Council of the economic sectors that need to attract investment to them , and preferential advantages that can be granted to investors as well as classification of investment projects on the basis of the recommendation of the Department of Economic Development in Dubai. Article XII of the law dictates that preferential advantages - including incentives and exemptions - be granted for investment projects in the areas of importance to the economy of the emirate , which achieve sustainable development especially in the field of infrastructure, industrial , social , educational and health projects, as well as other projects related to the exploitation of natural resources , and those that include the transfer and emiratising of technology and knowledge in various areas , as well as tourism projects and any other areas approved by the Dubai Executive Council. The law also specifies the benchmarks that must be considered in granting of advantages for investment projects, most importantly of which are the compatibility of the project with the objectives of the strategic plan of the Emirate of Dubai, and the project's contribution to the growth of Dubai's GDP, as well as increasing employment opportunities for UAE nationals, and the use of local resources available in the emirate. For purposes of enabling the agency to carry out tasks entrusted to it under the provisions of this law , the government agencies concerned with investment , investors and regulation of economic activities in Dubai , in cooperation and coordination with the " Dubai Investment Development Agency " should garner efforts to implement adopted policies, plans and regulations on attracting local and foreign investments to Dubai , as well as speed up and ease transactions procedures for investors to ensure emirate's competitiveness. The Agency should consult with the authorities and institutions overseeing the free zones in the emirate and coordinate with them with respect to investments in these zones . The law elucidates obligations of the investor, including notifying the Agency, in writing, of the start of procedures and operational steps necessary to commence work on the project and the date of completion, as well as start of project's actual operation and production in thirty days from the date of operation or production. The investor is also committed to provide information, data, statistics and documents requested by the Agency, which it deems necessary to implement the provisions of this law and the resolutions issued hereunder. Commitment to the legislation in force in the emirate, instructions relating to security and public health and safety and to maintaining the integrity of the environment, public order and public morals are also among investors' obligations. Subject to concerned authorities' approval, in the case of transfer of ownership of the investment project from one owner to another, the new owner shall continue to enjoy preferential investment services stipulated under this law and resolutions issued hereunder, and after obtaining the approval of the concerned authorities. The law is effective from its date of issuance and will be published in the official gazette.