Decision No. 2 of 2008

Concerning Penalties for Breach of the Dubai Technology and Media Free Zone Licensing Regulations 2003

I, Ahmad Binbyat, Director General of the Dubai Technology and Media Free Zone Authority

After perusal of the Dubai Technology and Media Free Zone Licensing Regulations 2003 (the "Licensing Regulations") and Regulation 31 thereunder, hereby issue the following decision regarding penalties of breach of the Licensing Regulations.

1.                   Where a Licensee fails to renew its Licence on or prior to the expiry date of the Licence, the Licensee shall, in addition to the Licence Fee for the subsequent year, pay a penalty to the Authority calculated in accordance with the following:

1.1               where the Licence is renewed within 30 or less days but more than 10 days of the Expiry Date, a penalty of AED2500;

1.2               where the Licence is renewed within 60 or less days but more than 30 days of the Expiry Date, a penalty of AED5000;

1.3               where the Licence is renewed within 90 or less days but more than 60 days of the Expiry Date, a penalty of AED7500;

1.4               where the Licence is renewed after more than 90 days of the Expiry Date, a penalty of AED10,000.

The Licensee shall pay the penalty at the same time or prior to the Licence Fee for the subsequent year. Monies received by the Authority from the Licensee shall be applied firstly against any penalty due, and thereafter against the Licence Fee. The Authority may at its discretion refuse to renew a Licence in accordance with its discretionary powers as set out in the Licensing Regulations.  

In addition to the imposition of a penalty as set out in this Article 1, the Authority may refuse to provide any governmental services, including sponsorship services as described in Article 4 of the Dubai Technology and Media Free Zone Employment Regulations 2004 (the "Employment Regulations").

2.                   Where a person breaches Regulation 3.1 of the Licensing Regulations by carrying on a business in the Zone without a licence, that person shall pay a penalty to the Authority of AED10,000. For any subsequent offence, the person shall pay a penalty of AED25,000. Nothing in this Article 2 shall otherwise limit any actions of the Authority under Regulation 10.1 of the Licensing Regulations.

3.                   Where a Licensee breaches Regulation 10.1.7 of the Licensing Regulations by carrying on a business of a different category to that set out on the Licence, the Licensee shall pay a penalty to the Authority of AED10,000. Nothing in this Article 3 shall otherwise limit any actions of the Authority under Regulation 10.1 of the Licensing Regulations.

4.                   Where a Licensee breaches Regulation 10.1.3 of the Licensing Regulations by furnishing misleading or inaccurate information to the Authority, the Licensee shall pay a penalty to the Authority of AED5,000. Nothing in this Article 4 shall otherwise limit any actions of the Authority under Regulation 10.1 of the Licensing Regulations.

5.                   Where a Licensee hinders or otherwise prevents inspectors appointed by the Authority under Regulation 17 of the Licensing Regulations carrying out their appointment, the Licensee shall pay a penalty to the Authority of AED5,000. Nothing in this Article 5 shall otherwise limit any actions of the Authority under Regulation 10.1 of the Licensing Regulations.

This Decision shall come into effect on the date of its issuance.

Ahmad Binbyat

Director General of the Dubai Technology and Media Free Zone Authority

Issued in Dubai on 3 February 2008