Law No. (9) of 2011

Concerning

Dubai Healthcare City[1]

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We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,

After perusal of:

Law No. (13) of 2007 Establishing the Dubai Health Authority;

Law No. (8) of 2010 Concerning the Financial Audit Department; and

Resolution No. (9) of 2003 Establishing Dubai Healthcare City,

Do hereby issue this Law.

©2014 The Supreme Legislation Committee in the Emirate of Dubai

[1]Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text will prevail.

Title of the Law

Article (1)

This Law will be cited as "Law No. (9) of 2011 Concerning Dubai Healthcare City".

Definitions

Article (2)

The following words and expressions, wherever mentioned in this Law, will have the meanings indicated opposite each of them unless the context requires otherwise:

Application of the Law

Article (3)

The provisions of this Law will apply to DHCC established pursuant to the above-mentioned Resolution No. (9) of 2003 as a free zone. The DHCC boundaries and area are determined in the map attached to this Law.

Establishment of the Authority

Article (4)

A public corporation based in DHCC named as "Dubai Healthcare City Authority" is hereby established to manage DHCC. The Authority will have legal personality and financial and administrative autonomy, and the legal capacity required to achieve the objectives of DHCC.

Objectives of DHCC

Article (5)

DHCC aims to achieve the following objectives:

1. to promote the status of the Emirate as an international medical and healthcare hub;
2. to contribute to the improvement of the quality of medical services locally, regionally and internationally through commitment to world-class state-of-the-art standards in providing such services;
3. to provide specialist medical care locally and regionally by attracting and recruiting local and international medical expertise, general and specialist hospitals and clinics in all medical disciplines, drug companies, pharmacies, drug warehouses and factories, medical laboratories, radiological centers, as well as other medical and health facilities, industries, medical and healthcare services and associated services; and
4. to encourage medical education and specialist medical research centers.

Functions of the Authority

Article (6)

For the purpose of achieving DHCC objectives, the Authority will have the following powers and duties:

1. to create and manage the infrastructure, administrative and other services within DHCC by itself or through real estate developers;
2. to establish or participate in the establishment of world-class medical colleges, medical research and study centers,  and nursing institutions and schools;
3. to cooperate with leading international medical and health universities and institutions in all efforts to develop medical services;
4. to establish or participate in the establishment of clinics, medical and diagnostic centers, pharmaceutical and  medical equipment companies,  medical rehabilitation centres, nutrition centres, health and therapy centres, spas, health and sports clubs, and sports therapy and physiotherapy companies and establishments;
5. to establish or participate in the establishment of hotels, motels, hotel apartments, as well as healthcare centres and online centres and solutions for providing medical, therapeutic, preventive and pharmaceutical services;
6. to regulate the activities undertaken within DHCC in accordance with resolutions approved in this regard;
7. to create the appropriate environment for providing all types of health, medical and other related services within DHCC;
8. in collaboration with competent Government entities, to establish, license and accredit hospitals, clinics and healthcare, therapeutic and pharmaceutical establishments, as well as other corporations and companies to operate within DHCC;
9. in collaboration with the competent Government entities, to regulate the method of work governing the relationship between DHCC Establishments and any other external entities;
10. to supervise and inspect DHCC Establishments;
11. to agree with free zones to enable DHCC Establishments to conduct their activities within such zones;
12. to supply DHCC Establishments, upon their request, with their requirements of administrators, technicians, professionals and other staff members in accordance with the conditions to be agreed upon with such Establishments;
13. to lease and grant title of ownership of land plots and buildings within DHCC to any DHCC Establishment in order to enable such Establishments to conduct their activities within DHCC;
14. to deliver all types of medical and healthcare services within DHCC;
15. to impose and collect fees for the services provided by the Authority;
16. to own, sell, lease, mortgage and dispose of land and facilities owned by DHCC;
17. to cooperate with local and international organisations and agencies in the field of healthcare;
18. to obtain loans, finance and credit facilities required for achieving DHCC objectives from local and international financial institutions; and
19. perform any other duties that would help DHCC achieve its objectives.

Organisational Structure of the Authority

Article (7)

The organisational structure of the Authority will be comprised of:

-          a Chairperson;

-          a Board; and

-          an Executive Body.

The Chairperson

Article (8)

Her Royal Highness Princess Haya bint Al Hussein is hereby appointed Chairperson of the Authority.

Functions of the Chairperson

Article (9)

1. The Chairperson will be responsible for the overall supervision of DHCC, having in particular the following powers:

1. to approve the Authority's general policy and strategic and development plans;
2. to approve the Authority's regulatory, administrative and financial bylaws;
3. to supervise the achievement of the Authority's objectives, and approve services, activities and projects of the Authority;
4. to approve the Authority's draft general budget and final accounts;
5. to establish any entities required for achieving DHCC objectives;
6. to appoint members of the Board of Directors and the Executive Director of the Authority;
7. to form committees and determine their powers and duties; and
8. to issue resolutions establishing departments, boards, authorities and any other bodies required for achieving DHCC objectives.

2. The Chairperson may delegate any of the powers stipulated in this Law to any Board member or to the Executive Director.

Board of Directors

Article (10)

1. The Authority will be managed by a Board of Directors comprised of the Chairperson, the Vice Chairperson and at least seven (7) directors to be appointed, and their remuneration determined pursuant to a resolution of the Chairperson. Membership of the Board will be for a renewable term of three (3) years.
2. The Board of Directors will be convened by the Chairperson at least once every two months and whenever required. Board meetings will be valid if attended by the majority of members, provided that the Chairperson or Vice Chairperson is among them.
3. The Board of Directors will issue its resolutions by majority vote, and in the case of a tie, the Chairperson will have a casting vote. The Board's resolutions will be recorded in minutes of meetings to be signed by the Chairperson and attending members.
4. The Board of Directors will be accountable to the Chairperson for implementing the duties assigned to it under this Law.

Functions of the Board of Directors

Article (11)

The Board of Directors will have the following powers and duties:

1. to review DHCC policies, strategic and operational plans, bylaws, rules and regulations proposed by the Executive Director, and submit the relevant recommendations to the Chairperson for approval;
2. to approve DHCC annual budget, final accounts and financial and organisational structure and submit the same to the Chairperson for approval;
3. to review and approve the processes of registering and licensing DHCC Establishments, the services provided by the Authority and the fees charged for such services, and present the same to the Chairperson for approval;
4. to supervise and participate in the organisation of specialised conferences and events in areas and sectors targeted by the DHCC;
5. to appoint auditors and specialised consultants to assist in defining DHCC's initiatives, and determine their remuneration;
6. to determine investment opportunities within DHCC, and supervise the creation of DHCC infrastructure;
7. to establish and participate with third parties in the establishment of DHCC Establishments and companies inside and outside of the Emirate; and
8. perform any other duties to be assigned by the Chairperson.

Executive Body

Article (12)

1. The Executive Body of the Authority will be comprised of an Executive Director and a number of administrative, financial and technical employees.
2. The Executive Director will be appointed, and his salary and remuneration will be determined pursuant to a resolution of the Chairperson. The Executive Director will be accountable directly before the Chairperson for fulfilling his assigned duties under this Law or those assigned to him by the Chairperson or the Board of Directors.
3. Employees of the Executive Body of the Authority will be appointed, and the terms of their employment, termination, salaries, duties and other related issues will be determined, pursuant to a special regulation issued by the Chairperson in this regard.

Functions of the Executive Director

Article (13)

1. The Executive Director will have the following powers and duties:

1. to propose policies and strategic and operational plans and submit the same to the Board of Directors for approval, and take the necessary action to fulfill such policies and plans;
2. to prepare administrative, financial and technical regulations and bylaws required for regulating activities of, and services provided by the Authority, and present the same to the Board of Directors for approval;
3. to prepare the Authority's annual budget and final accounts, and submit the same to the Board of Directors for approval;
4. to prepare the Authority's organisational and administrative structure, submit the same to the Board of Directors for approval, and render decisions on creating records required for activities of the Authority;
5. to supervise the activities and services provided by DHCC Establishments;
6. to coordinate with ministries, federal and local government agencies and departments for the purpose of achieving DHCC's objectives;
7. to supervise the Authority's executive body;
8. to represent the Authority before third parties, and sign all contracts and memoranda of understanding on its behalf;
9. to conclude leasing contracts for DHCC land and buildings with any non-profit or for-profit organisation to enable such organisations to conduct their activities;
10. to appoint technical and administrative staff members required as per the bylaws and regulations approved by the Authority in this regard; and
11. to open and manage bank accounts inside and outside of the Emirate subject to the Chairperson's approval.

2. The Executive Director may delegate any of his powers stated in paragraph (a) of this Article to any employee of the Authority.

Financial Resources of the Authority

Article (14)

The Authority's financial resources will comprise:

1. movable and immovable assets allocated to it by the Government;
2. fees and charges for the licences and services provided by the Authority;
3. proceeds from the Authority's investment in its property; and
4. grants, donations and any other financial resources approved by the Chairperson, to the extent that these do not conflict with the Authority's objectives and the applicable laws of the Emirate.

Budget and Accounts of the Authority

Article (15)

1. In regulating its accounts and records, the Authority will apply internationally recognised rules and principles of commercial accounting.
2. The Authority's accounts and records will be audited by a licensed auditing firm to be appointed by the Board of Directors.
3. The Authority's financial year will commence on the 1 January and end on the 31 December of each year. The first financial year will start from the effective date of this Law and will end on the 31 December of the following year.

Financial Audit

Article (16)

The Authority's accounts and financial and accounting records will be subject to the control of the Financial Audit Department.

Cooperation with the Authority

Article (17)

All Government bodies in the Emirate must fully cooperate with the Authority in order to enable it to achieve DHCC's desired objectives.

Tax and Customs Exemptions

Article (18)

1. DHCC Establishments and persons working therein will be exempt from all taxes, including income tax with respect to their activities within DHCC. Such Establishments will be exempt from any restrictions on capital, dividend or salary transfer in any currency and to any destination outside DHCC for a period of fifty (50) years. Such a period may be extended to similar periods pursuant to a resolution of the Chairperson, and will be calculated starting from the date of commencement of business or the date of employment of staff.
2. All products and goods manufactured, developed, imported into, or used within DHCC, as well as those used in producing any service or product, will be exempt from customs duties.
3. Products and goods exported from DHCC will be treated as being imported from abroad for the first time and will be subject to applicable customs duties.
4. Assets or activities of DHCC Establishments will not be subject to any nationalisation measures or private ownership restrictions as long as they are operating within DHCC.

Exemption from Compliance with Specific Laws

Article (19)

1. Neither DHCC, DHCC Establishments nor any of their staff, with respect to their activities in DHCC, will be subject to laws, regulations, and authorities and powers of Dubai Municipality or Department of Economic Development, nor to powers and authorities that fall within the jurisdiction of such entities, except public health and safety, and environment laws and regulations.
2. The Authority may benefit from or utilise any facilities or licensing services provided by the entities mentioned in paragraph (a) of this Article, for the purpose of licensing DHCC Establishments as deemed appropriate by the Authority, provided that the DHCC Establishments licensed through services provided by such entities are subject to regulations and bylaws applicable within DHCC, and licences of such establishments will be treated as if they were issued by the Authority itself.

Exempting Government from Liability

Article (20)

The Government will not be liable towards third parties for any debts or liabilities claimed against the Authority or its affiliated entities. The Authority will be solely liable for such debts or liabilities.

Disclaimer

Article (21)

Except in cases of fraud or gross negligence, neither the Chairperson, nor the Board members nor the Executive Director, in the course of managing DHCC and its operations, will be liable towards third parties for any act or omission they commit with respect to the Authority and its operations. The Authority will be solely liable for such act or omission.

Licensing DHCC Establishments

Article (22)

No individual, establishment or company may conduct any medical or commercial activity within DHCC unless they have obtained the relevant licence from the Authority. Applications for licences will be considered in accordance with the relevant rules and requirements adopted by the Authority in this regard and the applicable legislation in the Emirate.

Establishing DHCC Establishments

Article (23)

DHCC Establishments, including all types of companies except public joint stock companies, will be established, and such establishments may be owned by one or more natural or legal persons irrespective of being UAE Nationals or Non-UAE Nationals.

Licensing Rules for DHCC Establishments

Article (24)

Establishment, registration, accreditation, liquidation, audit and supervision of DHCC Establishments, as well as the regulation of all their processes and related issues and determining their licensing terms and requirements and prescribed fees will be subject to the relevant regulations and bylaws issued by the Authority in this regard.

Obligations of DHCC Establishments

Article (25)

DHCC Establishments must add to its name its legal form and its status as a free zone company/establishment in all of its activities, contracts, advertisements, invoices, correspondence and publications, failing which the owner of the Establishment will be liable towards third parties for obligations of such Establishment.

Liability of the Authority

Article (26)

The Authority will not be liable to third parties for any obligations resulting from the activities of DHCC Establishments or their staff members.

Prohibited Activities

Article (27)

The following activities are hereby prohibited within DHCC:

1. any activity that conflicts with legislation applicable in DHCC;
2. any activity that involves illegal competition; and
3. any activity that conflicts with legislation applicable in the UAE or with public order or morals.

Assigning the Licence

Article (28)

It is not permissible for any owner of a DHCC Establishment to assign the licence delivered to him by the Authority to any party whatsoever unless prior approval of the Authority for such assignment is obtained.

Transfer of Powers and Duties

Article (29)

All employees of DHCC, along with all its powers and duties prescribed pursuant the above mentioned Resolution No. (9) of 2003 including the power of granting medical licences, will be transferred to the Authority.

Sanctions and Penalties

Article (30)

The Chairperson will, in accordance with the bylaws and regulations issued by the Authority, prescribe administrative sanctions for violations committed by DHCC Establishments or their staff of the provisions of this Law, the resolutions or bylaws issued hereunder, or the requirements of the licence delivered by the Authority.

Issuing Implementing Bylaws

Article (31)

The Chairperson will issue the bylaws and resolutions required for implementing this Law.

Repeals

Article (32)

This Law supersedes Resolution No. (9) of 2003 Establishing Dubai Healthcare City. Any other provision in any other legislation will be repealed to the extent that it contradicts the provisions of this Law.

Publication and Commencement

Article (33)

This Law comes into force on the day on which it is issued, and will be published in the Official Gazette.

Mohammed bin Rashid Al Maktoum

Ruler of Dubai

Issued in Dubai on 24 April 2011

Corresponding to 21 Jumada al-Ula 1432 A.H.