On 23 February 2020, the Supreme Legislative Committee announced that the ruler of the Emirate of Dubai has issued new Law No.3 of 2020 on the Dubai Multi Commodities Centre (DMCC). The DMCC free zone was established through Decision No.4 of 2002 to enhance commodity trade through Dubai.
Under the Law, the DMCC Authority established as per the guidelines of the new Law will be responsible for supervising the free zone. It is stated that entities and individuals operating in the DMCC will be exempt from all taxes including income tax for a period of 50 years.
The new Law also regulates customs duty exemptions and tax exemptions for commodities trade, re-export and storage within the DMCC and the establishment of private, commercial and joint venture companies. As per the law, all companies registered within the DMCC must identify themselves as a free zone company in all of their correspondence, contracts, advertisements, invoices and stationery. Also, DMCC companies may not transfer their license to any third party without obtaining prior written permission from DMCC Authority.
The DMCC Board of Directors will issue the by-laws required to implement the DMCC Law at a later stage.