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31 August, 2020

Consumer Protection to be extended to Free Zones in Dubai

As part of an agreement, the Dubai Economy will now extend the consumer protection services to the free zones as well.

The Emirate of Dubai has over 30 free zones, with some specializing in specific business sectors such as trading, Finance or Technology. These free zones represent a self-sustaining and diverse economic ecosystem for emerging businesses and sectors. Over time, the need for consumer protection in these jurisdictions was increasing, and the Free Zone Governing Council has taken cognizance of this.

On the other hand, the established business regulation framework of The Dubai Economy has a formally established Commercial Compliance & Consumer Protection Centre (CCCP). This sector observed 63,356 enquires and suggestions from the customers last year. There were also 39,113 complaints, which were 20% higher than those received in the year before that.

With such a strong consumer protection and engagement model already in place, the Dubai Economy aimed to extend its model to free zones as well, and bring it under the CCCP. All channels such as personal and online grievance redressal mechanisms and technology would also be applied to the free zone customers.

For free zones, the jurisdiction not only hosts businesses but due to the self-sustaining nature of their model, the jurisdiction usually provides many amenities such as schools, clinics, hospitals, food service outlets, retail supermarkets and others. This naturally provides multiple opportunities for consumers to engage with service providers.

The consumer protection model is expected to forge the consumer trust in the free zone jurisdictions and encourage more business in future. This would lead to consumer confidence and sustainable business growth.

 

Source: Khaleej times

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