Creates the Jebel Ali Free Zone Authority as a legal entity of the Government of Dubai based at Jebel Ali Port, with power to supervise the free zone, issue regulations and licences, managed by a board of three to five members appointed by the Ruler; effective on issue.
Decree No. (1) of 1985 is the six-article instrument that created the Jebel Ali Free Zone Authority (JAFZA), the body that licenses and regulates companies in Jebel Ali Free Zone and issues the Jafza Rules and companies regulations. It was issued on 9 January 1985 by the Crown Prince and Deputy Ruler of Dubai under Law No. (1) of 1980, which established the free zone itself, and under Article 6 it came into force on the day of issue. It remains in force, but its operative articles were rewritten by Decree No. (2) of 2006, in force on issue, which replaced Articles 4 and 5 and added Article 5 bis; the Dubai Legislation portal publishes both texts separately, so the 1985 decree must be read with the 2006 amendment.
Article 3 establishes JAFZA as a legal entity affiliated to the Government of Dubai and headquartered in Jebel Ali Port. As issued, Article 4 gave JAFZA three duties: to issue the regulations required for managing the free zone, to issue licences to companies wishing to operate there, and to supply companies on request with administrative staff, technicians, artisans and other workers on agreed terms. Article 5 provided for a board of three to five members appointed by the Ruler, with terms of reference approved by the Ruler.
The 2006 replacement of Article 4 lists fourteen powers. JAFZA may develop and maintain the zone's infrastructure, establish the regulations for its management and operations, regulate the business and activities that corporations and companies may conduct in the zone, and license and register corporations and companies under the regulations, bylaws and resolutions it issues. It may assist companies in engaging staff, open promotion offices, charge fees for its services, conclude agreements with other free zones, establish or hold shares in companies, raise finance by borrowing, bonds or sukuk, buy, sell and lease land, and delegate any of its powers. The replaced Article 5 puts JAFZA under an executive body chaired by the Chairman of the Ports, Customs and Free Zone Corporation with its chief executive officer as vice chairman, which is why Jafza instruments are signed by the PCFC Chairman. The inserted Article 5 bis allows JAFZA to appoint one or more operators to manage all or any of its operations and provides that JAFZA is not liable for the operators' debts.
The decree contains no obligations on licensees and no penalties of its own. Its significance for a Jafza company is as the source of authority: the licence conditions, the premises lease, the Jafza Rules and the companies and offshore companies regulations all derive their force from the regulation-making and licensing powers in Article 4 as amended, and the fines in those instruments rest on the same power.
The Jebel Ali Free Zone Authority itself, its executive body and any operator it appoints, and indirectly every corporation, company and branch licensed or registered in Jebel Ali Free Zone, including Jafza offshore companies, whose licences, leases and rules are issued under the powers this decree confers.
| Article 3 | Establishes the Jebel Ali Free Zone Authority as a legal entity affiliated to the Government of Dubai and headquartered in Jebel Ali Port. |
| Article 4 | As issued in 1985, charges JAFZA with supervising the free zone by issuing the regulations required to manage it, issuing licences to companies wishing to operate there, and supplying companies with staff, technicians and workers on agreed terms. |
| Article 4 (as replaced in 2006) | Lists fourteen powers, including establishing the regulations for management and operations, regulating the activities companies may conduct, licensing and registering corporations and companies, charging fees, concluding agreements with other free zones, owning and leasing land, raising finance through loans, bonds and sukuk, and delegating any power. |
| Article 5 | As issued, JAFZA was managed by a board of three to five members appointed by the Ruler; as replaced in 2006, it is managed by an executive body chaired by the Chairman of the Ports, Customs and Free Zone Corporation with its chief executive officer as vice chairman. |
| Article 5 bis | Inserted in 2006: JAFZA may assign one or more operators to manage and perform all or any of its operations in the free zone and make the contractual arrangements needed, and is not liable for any debts or obligations claimed from an operator or any other party. |
| Article 6 | The decree comes into force on the day of its issue and is published in the Official Gazette. |
We cite this decree when a bank, auditor or foreign counterparty asks on what authority a Jafza company was licensed or why its rulebook is issued by the Ports, Customs and Free Zone Corporation rather than a government department. The licensing and regulation-making powers in Article 4 as amended are the legal root of the Jafza Rules, the companies implementing regulations and the offshore companies regulations under which our Jafza onshore and offshore clients operate, and the fines and licence sanctions in those instruments stand on the same power. When we prepare a legal opinion or a KYC file for a Jafza entity, the chain runs from Law No. (1) of 1980, through this decree and Decree No. (2) of 2006, to the current rules. The operator power in Article 5 bis explains why the registrar and licensing functions are performed by Jafza's corporate operating entity rather than the authority directly.
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