Hannah Gutang, Author at LexisNexis Middle East

UAE: Trade Licensing Authority’s Decision on Financial Year Sparks Confusion

17/04/202517/04/2025
by Hannah Gutang

The National News, 10 April 2025: A recent decision by a UAE trade licensing authority to standardise the financial year for entities under its jurisdiction to a calendar year has led to confusion among businesses.

A UAE trade licensing authority has required all entities under its jurisdiction to adopt a calendar financial year, running from January 2025 to December 2025. This decision will require thousands of companies to alter their memorandums of association and has caused confusion about the potential tax impact. Previously, businesses which came under the trade licensing authority had the flexibility to choose their financial year based on their month of formation, but the new directive has standardised the period.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

Saudi Arabia: New Penalties on Elderly Care Law

17/04/202517/04/2025
by Hannah Gutang

Gulf News, 11 April 2025: New penalties are being introduced to enforce the Elderly Rights and Care Law, Saudi Arabia Cabinet Decision No. 292/1443.

Executive regulations have been issued to enforce the Elderly Rights and Care Law, Thee introduce severe penalties for neglect and abuse, including up to one year in prison and a fine of SR500,000. Both government and non-government entities must provide comprehensive care, ensuring safe and accessible environments for the elderly and promote their active participation in society.

The executive regulations emphasise the dignity and inclusion of elderly individuals, recognising their right to respect as a fundamental duty. The law also provides a dedicated identification card for the elderly, which grants them priority access to services and reduces bureaucratic hurdles.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

Qatar: Central Bank Introduces Multiple Wallets Feature in Mobile Payment System

17/04/202517/04/2025
by Hannah Gutang

Gulf Times, 13 April 2025: Qatar Central Bank (QCB) has introduced a ‘Multiple Wallets per Mobile Number’ feature to the Qatar Mobile Payment system.

The feature allows users to have multiple wallets linked to a single mobile number. This initiative aligns with the Third Financial Sector Strategy and is part of QCB’s efforts to improve mobile payment services in Qatar. The feature enables users to open two wallets with different payment service providers using the same mobile number, providing them with enhanced flexibility and control over their financial transactions. Users can designate a default account for receiving all incoming transfers and have the flexibility to manage and change the default account as needed. The introduction of this feature is expected to support innovation among payment service providers, and support financial inclusion in Qatar.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

Oman: Amendments to Social Protection Fund Regulations

17/04/202517/04/2025
by Hannah Gutang

The Social Protection Fund Regulations (Oman Sultani Decree No. 50/2023) were amended on 10 April 2025 by Oman Sultani Decree No. 41/2025.

The amendment specifically altered Article 9 of Oman Sultani Decree No. 50/2023, which now states that the management of the Social Protection Fund will be overseen by a board of directors formed by a Cabinet Decision. This board will include the Chairman of Oman Chamber of Commerce and Industry and the Chairman of the General Federation of Oman Workers, among others. The board will also be able to seek assistance from experts and advisors. The amendment came into force on the day following its publication in the Official Gazette.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

Kuwait: Municipal Committee Considers Agricultural Land Amendments

17/04/202517/04/2025
by Hannah Gutang

Arab Times, 13 April 2025: Kuwait’s Municipal Council has considered proposed agricultural land amendments.

The Kuwait Municipal Council’s Technical Committee held its 22nd meeting, at which it considered amendments to agricultural land regulations.

The proposed amendments to the agricultural land regulations have been requested by the Minister of State for Municipal Affairs. They include changes to building ratios in areas such as Wafra, Abdally, and Sulaibiya. The amendments propose limiting construction to 10% of the plot area, and there would be specific guidelines for residential buildings, family rest houses, and workers’ residences. Additional regulations would cover building reserves, maximum heights for structures, and setback requirements.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

Bahrain: Commercial Law Amendments on Bounced Cheques

17/04/202517/04/2025
by Hannah Gutang

Nabad, 14 April 2025: Bahrain’s Shura Council has proposed amendments to the Commercial Law (Bahrain Decree-Law No. 7/1987) to improve trust in commercial transactions and regulate cheque issuing.

The amendments, aim make the processing of cheques easier and facilitate their circulation, while safeguarding the rights of cheque holders or beneficiaries.

They will allow partial cheque payments where cheques bounce. Cheque holders will be able to collect part of the cheque amount if the full balance is unavailable, and will also have the option to re-present the cheque for the remaining amount. Banks will be required to honour cheques fully or partially when funds are available and will not be able to refuse payment if requested by the account holder or cheque bearer.

The amendments would also require banks to withhold cheque payments entirely or partially where they have received objections involving loss or damage. The Bahraini Central Bank will be authorised to issue decisions on alternative methods for proving partial payments, aside from cheque endorsements, and to regulate conditions and procedures for implementing partial cheque payments.

Cheque holders will be able to seek recourse against issuers and endorsers if the cheque is not fully paid on timely presentation, provided non-payment is documented by protest or other legal means. Cheques marked as having insufficient funds or a partial payment will be considered enforceable under civil and commercial execution laws, and the Minister of Justice will be authorised to regulate execution rules and procedures following approval from the Supreme Judicial Council.

The amendments will also criminalise the issuing of blank cheques for use as credit or guarantee instruments, and will impose fines ranging from 200 to 2,000 dinars for issuing these types cheques. Individuals who fill in and present blank cheques for payment will face fines of at least 10% of the recorded amount, up to twice that amount, with a minimum fine of 500 dinars and a maximum of 10,000 dinars.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

ADGM: Proposed Amendments to Prudential Framework for Lower-Risk Firms

16/04/202516/04/2025
by Hannah Gutang

ADGM, 9 April 2025: The Financial Services Regulatory Authority (FSRA) in the ADGM has issued a consultation paper proposing amendments to the prudential framework for lower-risk firms.

Consultation Paper No. 2 of 2025, targets Authorised Persons in Categories 2, 3A, 3B, 3C, and 4, as well as potential applicants and professional advisors. It has been proposed the Expenditure Based Capital Minimum (EBCM) requirement for Category 4 firms not holding Client Assets or Insurance Money should be removed, while increasing the Base Capital Requirement (BCR) for most Category 4 firms to $50,000. The FSRA has also suggested applying a BCR of $250,000 for Providing Custody for a Fund, unless it is a Public Fund, and removing the Internal Risk Assessment Process (IRAP) reporting requirement for Category 3B and 3C firms. There is also a proposal to eliminate the professional indemnity insurance (PII) requirement for Branches of Category 3B, 3C, and 4 firms. It is hoped the proposed changes would reduce the regulatory burden for these firms and better reflect the lower prudential risks associated with them. The closing date for comments on these proposals is 21 May 2025. The proposed amendments would modify the current prudential requirements under the FSRA’s Prudential – Investment, Insurance Intermediation, and Banking Rulebook (PRU).

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

UAE: New Tax Rules for Non-Resident Investors in Investment Funds

10/04/202510/04/2025
by Hannah Gutang

Gulf News. 6 April 2025: The UAE Ministry of Finance has issued Cabinet Decision No. 35/2025 for non-resident investors in Qualifying Investment Funds and Real Estate Investment Trusts.

Cabinet Decision No. 35/2025, outlines the conditions under which non-resident juridical investors in Qualifying Investment Funds (QIF) or Real Estate Investment Trusts (REIT) are deemed to have a nexus in the UAE, and therefore are subject to taxation. It has repealed Cabinet Decision No. 56/2023 and follows Cabinet Decision No. 34/2025 concerning Qualifying Investment Funds and Limited Partnerships.

It impacts non-resident juridical investors in QIFs and REITs, specifying that a taxable nexus arises if a QIF or REIT distributes 80% or more of its income within nine months from its financial year-end, either on the date of dividend distribution or the date the ownership interest is acquired. A nexus would also be created if a QIF fails to meet the diversity of ownership conditions during the tax period. Conversely, non-resident investors who are exclusively investing in QIFs and REITs without breaching these conditions would not be considered to have a taxable presence in the UAE.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

Saudi Arabia: New Commercial Registry and Trade Names Systems Implemented

10/04/202510/04/2025
by Hannah Gutang

Saudi Pulse News, 3 April 2025: The Saudi Ministry of Commerce has implemented new systems for commercial registry and trade names.

The Saudi Ministry of Commerce has announced new systems for commercial registry and trade names that are now in force, along with the relevant executive regulations, from 3 April 2025. The new commercial registry system covered by Saudi Arabia Cabinet Decision No. 237/1446 will simplify business operations by consolidating all activities under a single national registry, eliminating the need for separate sub-registries for individual enterprises and companies. This change is expected to reduce financial burdens on businesses.

The system has introduced an annual electronic confirmation requirement for registry data, replacing the previous practice of renewing the registry. Traders must confirm their registry data every 12 months from the issue date. Failure to provide this confirmation within 90 days of its due date will result in the suspension of the registry and associated services, with automatic deletion after one year if not rectified. Businesses must also open bank accounts linked to their commercial entities to enhance reliability.

The trade names system and its executive regulations aim to bolster trust by regulating the reservation and registration of trade names, ensuring their protection and associated rights. The system allows trade names to be reserved for a specified period, which is extendable once, under certain conditions, and prohibits the registration of names which are similar to existing ones, even if the business activities differ.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

Qatar: End of Supplier Classification Exemptions for Public Sector Procurement

10/04/202510/04/2025
by Hannah Gutang

Al Watan, 3 April 2025: The Qatari Ministry of Finance has announced the end of supplier classification fee exemptions, with effect from 6 April 2025.

After this date, the prescribed fees will apply, and companies classified under the old system with valid classification certificates and approved profiles will have to switch to the new classification system by then.

The new classification system, which was launched on 3 October 2024, is based on Article 101 of Qatar Cabinet Decision No. 16/2019 the Executive Regulations of the Tenders and Auctions Law No. 16/2019 and its amendments in Qatar Cabinet Decision No. 11/2022. The system requires companies which are participating in government tenders to create a mandatory profile via the national authentication system. An audited balance sheet is now mandatory for company classification, and company performance evaluations in government entities are linked as a criterion for classification. The system also focuses on the financial suitability of companies and ties company revenues to classification categories, adding quality, health, safety, and environmental standards.

The Ministry has urged companies to create their profiles (which can be done free of charge) on the unified state procurement website and to register in the classification lists for suppliers, service providers, and contractors. Profile creation is the first step for classifying companies in sectors such as contracting, suppliers, and service providers for all local and foreign companies. Required documents include a commercial register, trade license, establishment card, audited financial statement for the last fiscal year, and a professional activity license.

The classification criteria include previous experience and performance, quality, health, safety, and environmental standards, legal standards, and financial criteria. Companies are evaluated based on government project contracts, private project contracts, experience in Qatar, and average performance ratings from government entities over the last three years. Quality standards are assessed from company guidelines to ISO certifications, while legal standards consider fines and violations in government contracts. Financial criteria require audited financial statements for the last two years and assess operating profit margin, operating cash flow ratio, and coverage ratio. The Ministry of Finance also plans to develop business localisation programmes, which will include all government companies and subsidiaries of the Qatar Investment Authority, to support private sector companies, increase local content, and ensure small and medium enterprises (SMEs) have a share in local procurement.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.