With its stellar growth, Dubai has been known for alluring every business opportunists due its efficient licensing rules, infrastructure, and ease of work. In a survey “the World Bank’s Ease of Doing Business Survey for 2014,” the Emirate has been indicated as the easiest places to do business. If you’re an expat and looking to begin a new business, you need to be informed about the business law and regulations. If you aren’t aware, you can seek the help of lawyers and legal advisors in Dubai.
Existing Business Laws in the UAE
The UAE provides a supportive legal framework for businesses in line with the vision of country’s leadership and their deep conviction that an effective legal framework in par with international standards is essential to a competitive and prosperous economy.
The country has issued a number of laws related to the economy, trade and investment since its formation in 1971. These laws are listed in the right column of the page.
New Business Laws and Amendments
The UAE is currently working on upgrading a number of key legislations, especially with regard to the development of the country’s economic infrastructure and investment climate in a bid to better address investment issues and regulate the relationship between all parties concerned with the country’s economic development and investment process.
Draft bills on foreign investment, competition, arbitration, certificate of origin, industry affairs organization, suppressing commercial fraud, industrial property law, federal law on organization of the auditing profession and federal law on commercial companies are already being reviewed by the relevant authorities.
Foreign Investment Law
The new law on foreign investment removes a large part of the regulatory and administrative obstacles to attract more foreign and Arab direct investment. It is aimed at creating a unified regulatory framework for foreign investment in terms of regulating investment procedures, registration and licensing. The law also deals with the advantages, tax exemptions and guarantees for foreign investors, as well as their rights and obligations.
The competition law is aimed at promoting the principle of competition and evolving a competitive market that is ruled by sheer market mechanisms. The law is envisaged to free the national economy from all wrong practices that adversely affects its efficiency, including monopolies which are against the principle of competition and prohibits all types of acts that lead to a monopoly. It is prepared in line with the recommendations made by the World Trade Organization (WTO) in its last review of the UAE’s trade policy.
The law also provides a conducive environment for businesses to promote efficiency, competitiveness, consumer welfare and sustainable development in the country.
Law on Certificate of Origin
The law on certificate of origin aims to reorganise the legislations related to the rules of the certificate of origin based on the progress achieved in this area. The new law will address various issues pertaining to the origin of national goods and issuance of certificates of origin. It will also allow the Ministry of Economy to impose penalties and fines on those who issue fake certificates, documents or data.
New Federal Law on Commercial Companies
The new federal law on commercial companies makes it mandatory for all companies in the country to develop a general framework for corporate governance to ensure the protection of shareholder rights, achieve transparency, disclose financial data and improve the efficiency and integrity of the company’s director board.
The New Law on Commercial Arbitration
The Ministry of Economy has also finalised the draft bill of a new commercial arbitration law in collaboration with a number of legal experts from the Abu Dhabi Conciliation and Arbitration Centre.
The new law will be applied to resolve commercial disputes instead of the UAE Civil Procedure Code (Federal Law No. (11) of 1992. As per the new law, civil cases will be heard by the civil courts of respective emirates, while the Abu Dhabi Federal Court of Appeal will hear international cases.