Doing Business in the Dubai International Financial Centre - Jan 2009

118 Pages·2009·4.14 MB·English

Doing Business in the Dubai International Financial Centre
Introduction
The rapid development of the Dubai International Financial Centre (“DIFC”) as a global fnancial hub has
resulted in the expansion of the range of fnancial services that can be provided from the DIFC. This has
led to the promulgation of a number of new laws and regulations as well as amendments to existing
laws and regulations.
This second edition of the PricewaterhouseCoopers Guide “Doing Business in the DIFC” has been
compiled to provide the reader with a more up-to-date understanding of the DIFC, the types of fnancial
activities that can be undertaken from the centre and the recent changes in laws and regulations.
This Guide has been prepared to assist those who are interested in doing business in DIFC.
It does not cover its chosen subject exhaustively; rather it seeks to answer some of the more important
business-related questions that may arise. When specifc questions occur in practice, it is always
advisable to refer to the laws and regulations of the DIFC, and obtain the appropriate accounting, tax
and legal advice.
The material contained in this Guide was frst assembled in April 2006 and revised in November 2008
and, unless otherwise stated, this Guide is based on information that was current - and to the best of
our knowledge - accurate at that time.
Doing Business in the Dubai International Financial Centre
PricewaterhouseCoopers at the DIFC and in the
Middle East
PricewaterhouseCoopers (PwC) is proud to be associated with DIFC since its inception and to have
provided extensive support and encouragement to DIFC during its formative period. Today, as DIFC
expands and matures, PricewaterhouseCoopers continues to contribute to its overall success.
PricewaterhouseCoopers has over 30 years of experience in the Middle East and employs over 2,000
people in 12 countries in the region: Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Oman, Palestine,
Qatar, Saudi Arabia, the United Arab Emirates and Yemen; and provides services in Iraq and Iran through
cooperating frms. At PwC we have a reputation for providing quality professional services to a well-
diversifed client portfolio, in both the public and private sectors. We strive to create value for our clients
and to provide them with a competitive advantage, by combining our international capabilities and local
market knowledge, with an extensive range of skills and industry expertise.
We hope that the information in this Guide will assist you in assessing the advantages of doing business
in DIFC. To obtain specifc information and professional advice, or to discuss how we might be able to
help you, please refer to Chapter 9 of this Guide where we have included our contact information as well
as the range of services we provide institutions wishing to establish a presence at DIFC.
Michael J Stevenson
Middle East Senior Partner
PricewaterhouseCoopers
Doing Business in the Dubai International Financial Centre
Table of Contents
Chapter 1 - The UAE and Dubai ................................................................... 1
Chapter 2 - Introduction to DIFC .................................................................. 3
Chapter 3 - Structure of DIFC ....................................................................... 9
Chapter 4 - Primary Sectors of Focus ........................................................... 21
Chapter 5 - Business Licensing and Financial Services Regulation ............ 31
Chapter 6 - Overview of the Laws and Regulations at DIFC ..................... 65
Chapter 7 - Other Considerations ................................................................ 75
Chapter 8 - Living in Dubai ........................................................................... 83
Chapter 9 - About PricewaterhouseCoopers .............................................. 89
Appendices .................................................................................................... 91
Doing Business in the Dubai International Financial Centre
Chapter 1
The UAE and Dubai
1
Chapter 1
The UAE and Dubai
United Arab Emirates Strategically located at the crossroads of trade and
Established in 1971, the United Arab Emirates commerce between Europe and the US and the
(“UAE”) comprises of seven Emirates, Abu Dhabi Far East, Dubai is increasingly being recognised as
(the country’s capital), Dubai, Sharjah, Ras Al a regional hub for the Middle East, North and East
Khaimah, Umm Al Quwain, Ajman and Fujairah. Africa, and the Indian subcontinent.
In 1981, the UAE became a member of the In order to further encourage foreign investment,
Gulf Cooperation Council (“GCC”), which a number of economic free trade zones have
was established to harmonise legislation and been established across the UAE, offering foreign
regulations, economy, fnance, trade and customs businesses attractive concessions and a number
between the member states (Bahrain, Kuwait, of investment incentives, including the ability to
Oman, Qatar, Saudi Arabia and the UAE). own a 100 percent subsidiary (foreign ownership
restrictions apply outside the free zones) and the
Dubai guarantee of a renewable tax free holiday.
The current Ruler of Dubai is His Highness Sheikh
Mohammed bin Rashid Al Maktoum, who is also Dubai has approximately eighteen free trade
the Vice President and Prime Minister of the UAE. and industrial zones catering to a wide range of
business sectors or activities, such as media (Dubai
Dubai is the second largest Emirate and is Media City), manufacturing (Jebel Ali Free Zone),
nestled between the Emirates of Abu Dhabi information, communication and technology
and Sharjah, bordering the Gulf of Oman and (Dubai Internet City) and fnancial services (Dubai
the Persian Gulf. International Financial Centre).
2 Doing Business in the Dubai International Financial Centre