Warning

Law No. (2) of 2025 On Organizing Department of Economic Development in Ras Al Khaimah We, Saud Bin Saqr Bin Mohamed Al Qasimi Ras Al Khaimah Ruler After perusal of the Constitution; And Federal Law No. (5) of 1985 on Promulgating Civil Transactions Law For United Arab Emirates, as amended; And Federal Decree-Law No. (50) of 2022 on Promulgating Commercial Transactions Law, And Federal Law No. (15) of 2009 on Combating Tobacco, as amended; And Federal Decree-Law No. (14) of 2018 on Central Bank and Regulating Financial Institutions and Activities, as amended; And Federal Decree-Law No. (20) of 2018 on Anti-Money Laundering, Combating Financing of Terrorism and Financing of Illegal Organizations, as amended; And Federal Law No. (15) of 2020 on Consumer Protection, as amended; And Federal Decree-Law No. (34) of 2020 on Establishing Competitiveness and Statistics Federal Center; And Federal Decree-Law No. (32) of 2021 on Commercial Companies; And Federal Decree-Law No. (36) of 2021 on Trademarks; And Federal Decree-Law No. (37) of 2021 on Commercial Register; And Federal Decree-Law No. (38) of 2021 on Copyright and Ancillary Rights; And Federal Decree-Law No. (46) of 2021 on Electronic Transactions and Thiqa Services; And Federal Decree No. (67) of 2021 on Accession of the State to the Protocol of Madrid Agreement Concerning Marks International Registration; And Federal Law No. (3) of 2022 on Regulating Commercial Agencies; And Federal Decree-Law No. (25) of 2022 on Industry Regulation and Development; And Federal Decree-Law No. (37) of 2022 on Family Businesses; And Federal Decree-Law No. (14) of 2023 on Modern Technology-Based Trade; And Federal Decree-Law No. (31) of 2023 on Trust; And Federal Decree-Law No. (36) of 2023 on Regulating Competition; And Federal Decree-Law No. (42) of 2023 on Combating Commercial Fraud; And Federal Decree-Law No. (51) of 2023 on Promulgating Financial Restructuring and Bankruptcy Law; And Federal Decree-Law No. (30) of 2024 on "Know Your Client" Digital Platform; And Federal Decree-Law No. (31) of 2024 on Netting; And Law No. (2) of 2007 on Ras Al Khaimah Environment Protection & Development Authority, as amended; And Law No. (5) of 2007 on Organizing Ras Al Khaimah Chamber of Commerce & Industry, as amended; And Law No. (7) of 2012 on Establishing Ras Al Khaimah Emirate Executive Council; And Law No. (1) of 2013 on Government Human Resources, as amended; And Law No. (2) of 2016 on Establishing Ras Al Khaimah Center for Statistics & Studies, as amended; And Law No. (8) of 2016 on Regulating Practicing Economic Activities in Ras Al Khaimah; And Law No. (2) of 2017 on Establishing Ras Al Khaimah Economic Zones and Supervising Authority, as amended; And Law No. (9) of 2017 on Regulating Working by Electronic Deeds and Signatures in Emirate of Ras Al Khaimah; And Law No. (7) of 2023 on Notary Public in Ras Al Khaimah, as amended; And Amiri Decree No. (31) of 2003 on Establishing Investment and Development Office in Ras Al Khaimah Government, as amended; And Emiri Decree No. (2) of 2005, as amended; And Emiri Decree No. (5) of 2009; And Emiri Decree No. (9) of 2011, as amended; And after approval of the Executive Council; promulgated the following Law: Article (1) The words and phrases stated in this Law shall have the meanings indicated opposite each of them, unless the context of text requires otherwise: State: United Arab Emirates. Emirate: Ras Al Khaimah Emirate. Ruler: His Highness Emirate’s Ruler. Council: Emirate Executive Council. Department: Department of Economic Development in the Emirate. President: Department President. Director-General: Department Director-General. Competent Authorities: Any local or federal authority that organizing and controlling one economic activity or more shall fall within competence thereof. Establishment: Any company or corporation licensed to practice the economic activity in the Emirate. Economic Activity: Any commercial, industrial, craft, professional, agricultural, service, technical or any other activity aiming at achieving profit or providing a public service. License: It is the document under which the Department shall allow a natural or legal person to practice a specific activity. Trade Permit: A document that includes approval granted by the Department to the establishment to practice marketing business. Trade Via Modern Technology Means Purchase and sell goods, services and data through modern technology means from websites, platforms or smart applications, including those conducted through electronic or digital commerce or social media and shall include non-digital goods and services that are obtained physically or virtually through modern technology means. Article (2) By exercising the competencies vested therein under this Law, the Department shall seek to achieve the following objectives: 1. Achieve sustainable economic development based on diversity, knowledge and innovation. 2. Provide a suitable and stimulating economic environment for practicing business in all fields and sectors, thus enhancing the emirate's position as a preferred destination for local and international business owners and investors. 3. Raise the Emirate’s competitiveness regionally and internationally in coordination and cooperation with concerned authorities. 4. Organize economic affairs in accordance with the legislation in force, activate the business sector and enhance role thereof to ensure that it works in accordance with best international practices. 5. Spread and promote entrepreneurship concept in the Emirate, especially among locals. 6. Raise the level of customer happiness as consumers, investors, partners and society in various aspects of economic development in the Emirate. 7. Contribute in raising the level of economic well-being in the Emirate. Article (3) a. The Department shall regulate creating and practicing business in the Emirate in all economic sectors and activities, for various types of establishments and legal forms thereof, through the following: 1. Issue and renew licenses for economic activities and set the necessary regulatory and procedural controls and baselines for that. 2. Provide services related to its competency, including issuing commercial permits for activities and granting initial and final approvals thereon, in accordance with the applicable local and federal policies, legislation and regulations and according to best international practices adopted in this field. 3. Prepare and maintain the commercial and industrial register and similar economic registers in the Emirate and regulate trade names. 4. Identify and classify the economic activities allowed to be practiced in the Emirate and the activities that are compatible therewith, in accordance with the latest internationally adopted regulations and work to develop and update them periodically in accordance with the needs of economic activity and economic development requirements. 5. Prepare fees and violations schedules and make the necessary amendments thereto, in accordance with the needs of the business environment and in a manner that ensures seriousness and effectiveness thereof and approve them from the Council. 6. Recommend granting facilities, incentives and support to establishments operating in the Emirate in accordance with the specified criteria and approve the recommendations from the Ruler or the Council. 7. Authenticate all kinds of commercial and professional corporations and companies’ contracts. 8. Issue, monitor and supervise licenses for associations of public benefit and other similar authorities and corporations. 9. Organize and issue licenses to practice trade through modern technology means in the Emirate, in coordination and cooperation with the competent authorities. 10. Cooperate, coordinate and link electronically with local and federal authorities and sectors concerned with regulating the practice of activities, each according to competence thereof. 11. Prepare studies, plans, policies, legislation and local economic strategies and assuming the role of the Emirate in preparing federal economic legislation, policies and strategies, and express opinion thereon, in coordination and cooperation with the concerned local and federal authorities. 12. Provide reference economic databases and update them periodically, to benefit from them in preparing studies, plans, policies and legislation in the various economic fields. 13. Coordinate with the private sector in matters related to economic growth and development plans in the Emirate and specify needs and aspirations thereof for the growth of its business. 14. Coordinate with the concerned authorities regarding the preparation and qualification of qualified and skilled economic cadres to manage various economic activities and establishments. 15. Work to spread economic awareness in the Emirate among investors, consumers, partners and in the community. 16. Coordinate with competent authorities regarding the economic promotion of the Emirate to attract investors and financers of projects, increase foreign exports and raise competitiveness thereof, in all economic activities, sectors and fields. 17. Work to enhance the capacity of the industrial sector and increase the competitiveness of products thereof in local, regional and global markets. 18. Work to encourage family businesses and provide the ideal environment for their activity continuation in the various sectors in the Emirate and expand their work fields in the future economic sectors. 19. Represent the Emirate in the economic committees set up in the State, in coordination and cooperation with the competent authorities. 20. Conclude economic agreements and follow up the activity of international and regional economic organizations in coordination with the concerned authorities. 21. Implement projects and initiatives that promote entrepreneurship among citizens, develop small and medium enterprises, develop innovative economic activities, enhance the role of the private sector and adopt the necessary regulatory and legislative amendments and exceptions for that. 22. Prepare programs, initiatives and policies that promote the green and circular economy and aim at developing the new environmental and urban fields with the purpose of raising the quality of life in the Emirate. 23. Seek with local and federal authorities to find solutions for the problems facing all economic establishments and activities in order to raise the efficiency of their performance and the quality of their outputs. b. Provide commercial protection to economic establishments and activities and control thereover through the following: 1. Regulate fair and free competition among all establishments. 2. Combat harmful economic practices, particularly commercial fraud. 3. Ensure protecting consumer, trademarks, intellectual property and other similar aspects. 4. Develop the necessary procedures and controls to verify the compliance of establishments with applying the provisions of anti-money laundering legislation, in accordance with the best international practices. 5. Issue violations and impose fines on violating authorities, in accordance with local and federal legislation in force in the Emirate. 6. Issue approval on the names of candidates for membership in the public and private shareholding companies’ Boards in accordance with the approved criteria and prepare a record of minutes of the general meetings of such companies. 7. Attend the general meetings of joint stock companies without the right to vote, for the purpose of monitoring the extent of companies' compliance with the laws and regulations in force. 8. Any other competences or tasks assigned thereto by the Ruler or the Council Chairman or transferred thereto by the federal authorities. Article (4) The President shall be at the head of the organizational structure of the Department and shall be appointed by Emiri Decree and shall be the senior officer before the Ruler for setting the general policies and plans of the Department, supervising the progress of work therein and implementing the tasks assigned thereto. He has the right to issue the necessary decisions, orders and internal regulations to ensure conducting the Department's daily work, performing its competencies and achieving objectives thereof. Article (5) The Department shall have a Director General appointed by Emiri Decree, who shall be the senior executive officer thereof and responsible to the President for its daily administrative, technical and financial affairs and implementing tasks thereof, and shall undertake in particular the following tasks and competencies: 1. Prepare the draft organizational structure of the Department, including the competencies of the administrations, divisions, sub-units and committees that make up the Department, in accordance with the governance system that it undertakes in all its financial, administrative and control affairs and the draft administrative regulations and systems therein and submit the same to the President for approval. 2. Prepare draft strategic plans for the Department and submitting them to the President for approval. 3. Issue internal administrative decisions related to organization of work procedures in the various administrations and divisions in the Department. 4. Propose regulations and decisions related to organization of work in the administrative, financial and technical aspects of the Department. 5. Set up the necessary committees and teams for follow-up, supervision, internal and external audit. 6. Take all procedures for employees in the Department that ensure the improvement of their work environment, motivate them to work, innovate and achieve happiness for them. 7. Appoint the Department's employees in accordance with Government Human Resources Law in force in the Emirate and supervise them administratively and technically. 8. Supervise the executive managers in developing the operational plans of the Department administrations and divisions and sign the necessary agreements and memoranda of understanding for that. 9. Address the complaints of customers dealing with the Department and set up the necessary committees for that, in a way that contributes to improving the quality of services provided by the Department. 10. Impose and approve the administrative penalty after a recommendation from the Grievance Committee in accordance with Government Human Resources Law. 11. Approve the necessary training programs to provide sufficient number of qualified cadres. 12. Prepare the draft annual budget of the Department, approve the same from the President and follow up implementation thereof. 13. Prepare an annual report on Department’s works and financial statements thereof and submit the same to the President for approval. 14. Propose fees, fines and exemptions and submit them to the President. 15. Open and operate bank accounts in the name of the Department in accordance with the financial regulations applied in the Emirate, within the limits of the powers granted thereto by the President. 16. Issue disbursement orders within the limits of the permitted administrative budget and he has the right to authorize his Deputy to do so. 17. Represent the Department before third parties, governmental and non-governmental authorities and judiciary and conclude contracts and agreements necessary to achieve the objectives and tasks of the Department within the limits of powers delegated thereto by the President. 18. Approve upon participating in seminars and conferences held internally or externally in the name of the Department. 19. Issue the necessary approvals for sponsorships to ensure the Department's contribution to the development of the local community. 20. Delegate any of the Department's employees to represent it before any governmental or non-governmental authority or before judiciary or to carry out any specific tasks without prejudice to the provisions of Law No. (4) of 2012 on Government Lawsuits. 21. The Director General may authorize or delegate whomever he deems appropriate to represent him before other authorities. 22. Any other tasks or competencies assigned thereto by the President and are consistent with the nature of the Department's work. Article (6) Without prejudice to the provisions of Law No. (1) of 2013 on Government Human Resources, the Director General may nominate experts, consultants and auditors in the administrative, financial, economic or other fields, provided that a resolution from the President shall be promulgated in this regard. Article (7) A committee consisting of at least three members, selected by the Director General, provided that one of them is a legal, shall be set up by a decision from the Director General to decide on the grievances submitted thereto and the decision shall determine the procedures followed before it, the mechanism of its work and the quorum for the validity of its meetings and decision-making and the Committee shall decide on the grievances within a period not exceeding thirty days from the date of referring the grievance thereto and its decision issued in this regard shall be considered final. Article (8) Any interested party may appeal to the Director General against the decisions issued against him by the Department within thirty days from the date of being aware thereof. In case the reasons for the grievance cannot be removed, the Director General has the right to refer the grievance to the Committee provided for in Article (7) of this Law to decide thereon. Article (9) The Department may grant any local government department or private sector corporation or company or any other authority, the liability to implement any of its projects or part thereof. Article (10) 1. The Department may be affiliated with specialized corporations and centers that carry out their works in the fields related to the provision and development of economic services in the Emirate, each of which shall be established by Emiri Decree based on a proposal from the Director General after obtaining the approval of the President and presenting the same to the Council. 2. The Department may, in accordance with its needs and the requirements of work in corporations affiliated thereto, propose to update, dissolve or merge the aims and objectives of such corporations after presentation to the Council and promulgation of a resolution by the Ruler. 3. The corporations affiliated to the Department shall be committed to implement the approved plans and policies, submit periodic reports on their works and programs, statistics and information available therewith to the Director General, obstacles to the implementation of their tasks, proposals to overcome them and the mechanism for their implementation, in accordance with the regulatory decisions issued by the Department in this regard. Article (11) The Director General and all employees of the Department shall be subject to the Government Human Resources Law and the appointment or dismissal of any of the leading employees in the Department shall not be effective except after the approval of the President. Article (12) The Department’s financial resources consist of the following: 1. Funds allocated to the Department in the annual budget of the Emirate. 2. Returns of investments in economic and development projects in which the Department participates. 3. Fees and charges of services provided by the Department. 4. Profits of companies established or contributed to by the Department. 5. Fines of all kinds that the Department is competent to collect. 6. Any other returns determined by a Decree or resolution promulgated by the President or Council Chairman. Article (13) The Department shall enjoy all privileges and exemptions stipulated in federal and local laws. Article (14) The Department shall have an independent annual budget, which shall be included in the annual budget of the Emirate Government and the Director General shall supervise preparing it in accordance with the financial rules and regulations in force, after consulting the President and shall be approved in accordance with the rules followed in the Emirate. In organizing its accounts and records, the Department shall follow the accounting rules and standards adopted within the State and the Emirate in accordance with international standards in this field. Its fiscal year shall begin on the first day of January and end on the thirty-first of December of each year. Article (15) The Council Chairman shall, upon the proposal of the Department, issue the executive regulation of this Law. Article (16) Law No. (4) of 2016 on Restructuring and Organizing Department of Economic Development shall be repealed, provided that all regulations, decisions and systems in force before the Department shall remain in force till issuing this Law executive regulation. Article (17) This Law shall come into force as of date and shall be published in the Official Gazette. Saud Bin Saqr Bin Mohamed Al Qasimi Ras Al Khaimah Ruler Promulgated by us on this day twenty ninth of Rajab 1446H. Corresponding to twenty ninth of January 2025G.