The Financial Free Zone Law

1. Following is not covered in financial activities in the financial free zone definition under Federal Law No. 8 of 2004:

• Insurance and reinsurance

• Currency brokerage services

• Exports and imports

• financial markets

Financial free zones shall not be subject to following laws of the United Arab Emirates:

• Civil and commercial federal laws

• Criminalisation of money laundering

• UAE Vat Added Tax

• Economic Substance Regulations

Financial Markets Tribunal was established by :

• The Dubai Financial Services Authority (DFSA)

• The Dubai International Financial Centre Authority (DIFCA)

• Regulatory Appeals Committee

• The DFSA board of directors

DIFC courts can hear civil or commercial dispute of any transaction carried outside the DIFC Centre

• where the parties expressly agree to submit their dispute to the DIFC court

• where the parties disagree to submit their dispute to the DIFC court

• if they are financially strong enough and professionally managed by qualified and experienced lawyers

• If the relevant DIFC authorities are satisfied that a company meets their entry criteria

Brokers of the UAE stock market may not be licensed to carry out their activities in any financial free zone unless:

• They have Approval of DFSA

• They have gained prior approval from the Securities and Commodities Authority (SCA).

• They are approved by central Bank of UAE

• They are approved by CISI

Each financial free zone must publish a report and confirm that the financial free zone has complied with the provisions of the Federal law

• Annually

• Every six months

• Bi annually

• Quarterly

The DIFCA is responsible for the laws and regulations that regulate the non-financial activities within the DIFC, excluding

• Employment law,

• Companies Law

• Commercial law and real estate law

• Anti Money Laundering Law

DIFC laws are issued by

• The Ruler of Dubai

• DIFCA

• DFSA

• ISCA

Offering an activity by way of business excludes:

• the firm holding itself out as willing to engage in that activity.

• regularly solicits other persons to engage in that activity.

• the firm holds itself out as able to engage in that activity.

• sale or purchase of a commercial property on adhoc basis.

An exchange house or a clearing house can be operated by:

• Representative offices

• Authorised market institutions (AMIs)

• Collective investment funds

• Alternative trading system (ATS)