قانون الشركات / التجاري في الإماراتLaw No. (12) of 2016 Regulating the Security Industry in the Emirate of Dubai

Article (2) The following words and expressions, wherever mentioned in this Law, will have the meaning indicated opposite each of them unless the context implies otherwise: UAE: The United Arab Emirates. Emirate: The Emirate of Dubai. ©2018 The Supreme Legislation Committee in the Emirate of Dubai 1Every 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.

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Page 2 of 12 Government: The Government of Dubai. Executive Council: The Executive Council of the Emirate of Dubai. Government Entity: Any of the Government departments; public agencies and corporations; councils; authorities, including the authorities supervising Special Development Zones and free zones, such as the Dubai International Financial Centre; and other entities affiliated to the Government. SIRA: The Security Industry Regulatory Agency established pursuant to this Law. Concerned Entities: Government Entities, and any other entities with which SIRA may coordinate for the purpose of enabling it to exercise the functions assigned to it and achieve the objectives of this Law. Board of Directors: The board of directors of SIRA. Executive Director: The executive director of SIRA. DPS: The Department of Protective Systems. Security Industry: The components of the security system, including the policies, procedures, devices, equipment, and services that ensure the protection of Persons through the use of Preventive Systems. Preventive Systems: The precautionary measures, electronic systems, and security equipment used to protect establishments or individuals against potential threats or to eliminate such threats. Security Service Provider: A Person licensed by SIRA to provide Security Services to individuals, Government Entities, or establishments. Licence: A document issued by SIRA, authorising a Person to provide Security Services in the Emirate. Security Service: Any service which is intended to provide security protection to establishments or individuals through the use of security devices and equipment or specialised personnel; to provide security protection training; to sell and install security equipment and systems; or to conduct studies and provide consultations related to maintaining security protection.

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Page 3 of 12 Vital Sectors: Sectors and establishments that are highly exposed to risks or threats due to the type or value of the commodities in which they trade or the services they provide. These include banks, money exchange establishments, gold and jewellery shops, hotels, shopping malls, and hospitals. Major Compound: A compound of residential or office units, including buildings, towers, and villa compounds. Public Events: Ceremonies, meetings, or shows that are open to the general public or to which the general public or a particular segment of the public is invited. These include religious and national celebrations, festivals, contests, competitions, and races. User: A Person who uses Security Services to protect himself, or his business and property. Person: A legal or natural person. Implementing Bylaw: The implementing bylaw of this Law. Objectives of the Law

Article (3) This Law aims to: 1. regulate the Security Industry in the Emirate by adopting clear and effective measures and procedures; 2. set the general framework of the security standards and specifications of Preventive Systems, and ensure their reliability and effectiveness; 3. contribute to creating a safe environment for the Vital Sectors, Major Compounds, and Public Events in the Emirate; 4. perform effective oversight of Security Service Providers to ensure the provision of best Security Services to Users; 5. support security entities in the Emirate and enable them to perform their duties using the latest technology and Preventive Systems; and 6. raise the awareness of the public on the importance of Security Services, and their effectiveness in maintaining public security.

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Page 4 of 12 Scope of Application

Article (7) SIRA is the Government Entity responsible for regulating the Security Industry in the Emirate. SIRA will, in coordination with Concerned Entities, have the duties and powers to: 1. set, and follow up the implementation of, the general policy of the Emirate in the field of Security Industry; 2. establish, and regularly update, the best specifications, standards, and requirements of the Security Industry, and follow up the compliance by Security Service Providers with the same; 3. license Security Service Providers, and follow up their compliance with the rules and terms of their Licences; 4. license the security devices and equipment determined by the Implementing Bylaw; 5. provide technical studies and consultations relating to providing Security Protection, and other studies and consultations related to the work of SIRA;

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Page 5 of 12 6. develop or approve training curricula, and supervise the training and testing of Security Service Providers; 7. ensure the availability of Preventive Systems in Vital Sectors, Major Compounds, and Public Events in the Emirate, in accordance with the procedures and rules stipulated by the Implementing Bylaw; 8. coordinate with Government Entities, and with regional and international entities, in areas related to the work of SIRA; 9. propose and review legislation related to the Security Industry in the Emirate; 10. conduct and fund the studies and research required for the development of the Security Industry in the Emirate; 11. hold and participate in conferences and symposia; cooperate with regional and international organisations that are relevant to the work of SIRA; and exchange knowledge, expertise, and courses in areas related to the Security Industry; 12. establish companies, solely or with other persons; and invest in, enter into partnerships with, hold shares in, forge mergers with, or acquire shares or stocks in, companies, agencies, and corporations, within and outside of the UAE, that are engaged in the same or similar activities as those of SIRA or in activities which support SIRA in achieving the objectives of this Law; 13. own and take lease of the movable and immovable property required for the achievement of the objectives of this Law; and 14. exercise any other duties or powers required for enabling SIRA to achieve the objectives of this Law. Board of Directors of SIRA

Article (9) a. The Board of Directors is the highest authority of SIRA. It will undertake general supervision of the achievement of the objectives of this Law and ensure that the policies serve these objectives. The Board of Director will also ensure that SIRA performs its duties and exercises its powers under this Law and the legislation in force. The Board of Directors will exercise the powers and authority

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Page 6 of 12 required for the achievement of the objectives of this Law, and will, in particular, have the duties and power to: 1. approve, and supervise the implementation of, the general policy and strategic and development plans of SIRA; 2. approve, review, and annually evaluate the implementation of the work plans and programmes of SIRA and the initiatives that are conducive to achieving the objectives of this Law; 3. determine the strategic objectives of SIRA and the procedures required for supervising their implementation. These objectives must be reviewed, and compliance therewith evaluated, on an annual basis; 4. take the necessary action to ensure compliance by SIRA with the legislation in force, with the resolutions and regulations issued in pursuance thereof, and with any other legislation related to the work and activities of SIRA; 5. assess and follow up the performance of the executive body of SIRA to ensure the achievement by SIRA of the objectives of this Law; 6. approve the organisational structure of SIRA, and the resolutions required to regulate its administrative, financial, and technical work, including the human resources regulation; 7. approve the annual budget and financial statements of SIRA, and submit the same to the Concerned Entities for final approval; 8. approve fees and charges for the services provided by SIRA, and submit the same to the Concerned Entities for final approval; 9. form permanent and temporary sub-committees and work teams, and determine their duties, powers, and tenure, with a view to achieving the objectives of this Law; 10. determine the duties of each of the members of the Board of Directors to ensure the integration of their roles to achieve the objectives of this Law; 11. review the performance reports submitted by the Executive Director, and take the necessary action in this regard; and 12. exercise any other duties or powers required for the achievement of the objectives of this Law. b. The Board of Directors may delegate any of the powers stipulated in paragraph (a) of this Article to a committee comprised of some of its members or to the Executive Director, provided that this delegation is specific and in writing.

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Page 7 of 12 c. In the event of absence of the chairman of the Board of Directors or in case of any other impediment on his part, the vice chairman of the Board of Directors will act as the chairman and will exercise all the chairman’s duties and powers under this Law, the Implementing Bylaw, and the resolutions issued in pursuance thereof. Meetings of the Board of Directors

Article (10) a. The Board of Directors will be convened at the invitation of its chairman, or vice chairman where the chairman is absent, at least once every two (2) months or where necessary. Meetings of the Board of Directors will be valid if attended by the majority of its members, provided that the chairman or vice chairman of the Board of Directors is in attendance. b. Resolutions and recommendations of the Board of Directors will be passed by majority vote of attending members, and in the event of a tie, the chair of the meeting will have a casting vote. Resolutions and recommendations of the Board of Directors will be recorded in minutes signed by the chair of the meeting and attending members. c. A rapporteur will be appointed to the Board of Directors by its chairman. The rapporteur will be responsible for sending meeting invitations to members of the Board of Directors, preparing meeting agendas, recording minutes of meetings, following up the implementation of the Board of Directors resolutions and recommendations, and performing any other duties assigned to him by the chairman of the Board of Directors. d. The Board of Directors may seek assistance from the experts, advisers, and specialists it deems appropriate, provided that they do not have a vote in its deliberations. Executive Director of SIRA

Article (12) The Executive Director will supervise the daily work of SIRA; manage and administer its affairs; represent it in its relations with third parties and before judicial authorities; be responsible for achieving the objectives of this Law and implementing the policies related to these objectives; and exercise the powers and authority required for the achievement of these objectives. The Executive Director will, in particular, have the duties and power to: 1. propose, and follow up the implementation of, the policies; strategic, development, and operational plans; initiatives; and programmes that are conducive to achieving the objectives of this Law, and submit the same to the Board of Directors for approval; 2. implement and follow up the implementation of resolutions, policies, plans, and programmes adopted by the Board of Directors; 3. prepare work plans and programmes, and the projects and initiatives related to these plans and programmes, and submit the same to the Board of Directors for approval; 4. propose the organisational structure and the resolutions regulating the administrative, financial, and technical work of SIRA, including the human resources regulation; and submit the same to the Board of Directors for approval; 5. prepare the draft annual budget and financial statements of SIRA, and submit the same to the Board of Directors for approval; 6. propose fees and charges for the services provided by SIRA, and submit the same to the Board of Directors for approval; 7. supervise performance by the executive body of SIRA of the duties assigned to it pursuant to the resolutions issued by the Board of Directors, and appoint technical and administrative staff who are experienced and specialised; 8. submit periodic and annual reports on the performance, and progress of the work, of SIRA to the Board of Directors to take the appropriate action in this regard; 9. approve the financial transactions, subject to the financial regulations and bylaws adopted by SIRA; 10. sign, in SIRA’s name and on its behalf, contracts, agreements, and memoranda of understanding in accordance with the relevant powers conferred on him by the Board of Directors; 11. supervise the organisational units of SIRA included in its approved organisational structure;

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Page 9 of 12 12. engage experts and advisers and determine and pay their remuneration in accordance with the bylaws adopted by SIRA; and 13. exercise any other duties or powers assigned or delegated to him by the Board of Directors. Executive Body of SIRA

Article (21) a. Without prejudice to any stricter penalty stipulated in any other legislation, a person who commits a violation of this Law, the Implementing Bylaw, or the resolutions issued in pursuance thereof will be punished by a fine of no less than ten thousand Dirhams (AED 10,000.00) and no more than five hundred thousand Dirhams (AED 500,000.00). b. The amount of the fine mentioned in paragraph (a) of this Article will be doubled upon repetition of the same violation within one (1) year from the date of the previous violation. A fine must not exceed one million Dirhams (AED 1,000,000.00). c. The Chairman of the Executive Council will issue a resolution determining the acts that constitute violations of this Law and the Implementing Bylaw, and the relevant fines prescribed for each violation. Law Enforcement Officers