In a welcome development for many of our maritime, insurance, and shipping clients the Dubai Government has recently issued Law No. (11) of 2007 establishing the Dubai Maritime City. The law was promulgated by His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai on 3 June 2007.
The law provides the regulatory framework to establish the Middle East's largest maritime business hub and is recognition of the importance that shipping and associated industries have to Dubai's future. The city is being built on reclaimed land and is strategically located north of the main city centre and the creek business area, between Port Rashid and Dubai Dry Docks.
Over the next three to five years companies will begin to move to the city. Over one thousand companies have already expressed an interest in locating there. More than one hundred thousand people will work within the Dubai Maritime City when the city is fully operational.
The Dubai Maritime City Law
Article 3(1) establishes the name "Dubai Maritime City" and provides the borders of the city. Article 3 (2) establishes the "Dubai Maritime City Authority" ("the Authority") and provides the Authority with a corporate entity and financial and administrative independence. It is given power to own property and carry out all legal acts necessary to achieve its objectives. The Authority is affiliated with the Ports, Customs and Free Zones Corporation.
Article 4 empowers the Authority to enhance the business position of Dubai and to make it a centre without limitation of the following sectors:
maritime services
maritime management
vessel and yacht registration
vessel and yacht ownership and charter
maritime and educational research
vessel and yacht design and building
maritime shipment organisation
maritime exhibitions, conferences, training and workshops
maritime tourism
maritime specialised arbitration
Pursuant to Article 5, the Authority is entrusted with the power to establish the rules and regulations for the Maritime City; to register vessels, traffic and shipments within the Maritime City; to provide staff; to issue licenses, collect fees, own sell and handle property and to invest funds of the Authority.
Article 6 entrusts the Authority with power to license all types of maritime activities including vessel and yacht ownership, operation of vessels, shipping agencies, charter and brokerage operations, cargo, surveyors, insurance, finance, tourism, entertainment, cruise industry, fishing and fish farms, ship and yacht building and repairs, warehousing, and maritime education, training, and conferences.
Article 7 provides that the administration of the Authority shall consist of the Chairman, the Executive Director and executive staff. Article 8 provides that the Chairman of the Ports, Customs and Free Zone Corporation shall be the Chairman of the Maritime City.
Article 10 says that the Chairman shall issue all the rules, regulations and resolutions necessary for the operation and administration the City.
Article 11 gives the Authority power to vest operations in companies or individuals within the Maritime City and to enter into contracts for that purpose.
The Authority, companies and individuals operating in the Maritime city are exempted from local Dubai rules and regulations by virtue of Article 12. The Maritime city is however not a free zone.
Pursuant to Article 13 any company or individual may only carry on activities in the Maritime City after receipt of the necessary licenses.
Comments
The above law provides an overview of the regulatory processes and structures that have now been put in place. We can expect to receive further information and regulations about the Maritime City in the near future as the City begins to take shape. Dubai Maritime city will comprise a maritime centre, an industrial precinct, office towers and marinas, residences and an academic quarter. These various activities provide an exciting opportunity for companies and individuals in the maritime industry to become involved in this ambitious project.
We have provided an overview of the law and recommend that any persons review the new law in detail.
By Jason Walters Maritime, Aviation & Insurance Department
© Al Tamimi & Company 2007
