Hannah Gutang, Author at LexisNexis Middle East

Bahrain: Bahrain Bourse Updates the Listing Rules

19/12/202419/12/2024
by Hannah Gutang

Bahrain Bourse announced the publication of its updated Listing Rules and Guidelines, which would be effective immediately in alignment with the Central Bank of Bahrain’s (CBB) ESG requirements.

Analysis

The revised Listing Rules and Guidelines incorporate new disclosure requirements related to Environmental, Social, and Governance (ESG) standards, as mandated by the CBB’s ‘Common Volume ESG Module’. These rules apply to all securities listed on the Mainboard Market and future listings on Bahrain Bourse.

The new ESG disclosure requirements aim to standardise reporting among issuers, requiring them to establish their own ESG reporting framework in line with BHB and CBB guidelines. Issuers must submit their ESG reports within six months after the end of their financial year, either as a stand-alone report or as part of the company’s annual report.

The CBB’s ‘Common Volume ESG Module’ is applicable to all listed companies for the reporting period ending December 2024. From the end of 2024, these reporting requirements will be applied comprehensively to listed companies and CBB licensees. The module also addresses ESG-related risks in alignment with Bahrain’s Economic Vision 2030, the UN Sustainable Development Goals (SDGs), and the “Blueprint Bahrain” national action plan announced during the COP28 conference in the UAE.

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News developments

ADGM: Announces Plans for Establishment of Insurance Association

19/12/202419/12/2024
by Hannah Gutang

ADGM has announced the upcoming establishment of the Insurance Association within its jurisdiction, marking a significant step forward for the insurance and reinsurance sectors in ADGM and the UAE.

This initiative aims to create a unified platform to support industry growth and innovation.

The Association will foster collaboration among key stakeholders, enhance professional standards, and promote best practices within the insurance industry.

It will act as a collective voice, engaging with regulators, policymakers, and industry leaders to address emerging challenges and opportunities, aligning with ADGM’s mandate and the UAE’s economic and financial development goals.

This initiative highlights ADGM’s commitment to building a robust, sustainable, and globally competitive insurance ecosystem, reinforcing its status as a leading financial centre.

Further details on the Association’s structure, membership opportunities, and upcoming activities will be announced soon.

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News developments

Bahrain: Shura Council Approves Doubling Small Claims Limit to BD1,000 in Courts

19/12/202419/12/2024
by Hannah Gutang

The Daily Tribune, 18 December 2024: The Shura Council has endorsed a proposal to double the limit for small claims that can be substantiated through witness testimony, increasing it from BD500 to BD1,000.

This initiative aims to streamline and reduce the costs associated with resolving minor financial disputes in Bahrain’s courts.

Prompted by changing economic conditions, the proposal will now be sent to the government for legislative drafting.

If enacted, individuals will be able to use witness testimony for claims up to BD1,000, thereby reducing the reliance on costly legal procedures.

Members of the Shura Council have emphasised that this change would make the legal process more accessible for ordinary Bahrainis dealing with minor financial disagreements.

One council member noted that the previous 500-dinar limit was outdated and no longer aligned with current realities.

Increasing the limit to 1,000 dinars is expected to make legal action less intimidating and help individuals resolve disputes without incurring significant expenses.

The First Deputy Chairman of the Shura Council expressed support for the change but stressed the need for precise legal wording to ensure its effectiveness.

If approved, this adjustment would mark a significant step towards simplifying legal processes for Bahrain’s citizens, facilitating quicker and less burdensome resolutions for small-scale disputes.

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News developments

UAE: Launches World’s First VAT Refund System for E-Commerce Tourists

18/12/202418/12/2024
by Hannah Gutang

Khaleej Times, 16 December 2024: The Federal Tax Authority (FTA) has unveiled a groundbreaking VAT refund system for e-commerce retail purchases made by tourists during their stay in the UAE, marking a world-first initiative.

This innovative system, developed in partnership with Planet, the authorised operator, is part of the FTA’s strategy to embrace proactive solutions through innovation and digital transformation.

The new system integrates platforms and e-commerce retailers registered with the Authority into the ‘VAT Refund for Tourists on E-Commerce Purchases’ program.

This initiative builds on the success of a fully digital VAT refund system launched over two years ago, which has been continuously updated to remain entirely paperless.

Tourists can now enjoy a seamless shopping experience, easily scanning their passports and completing purchase transactions that are automatically converted into digital invoices.

The system allows for quick verification of invoices via a shoppers’ portal, ensuring fast and efficient VAT refund procedures for eligible purchases.

The FTA’s Director-General expressed pride in launching this pioneering electronic system, which enhances the UAE’s reputation as a leading international tourism destination.

The system has been praised for its simplicity, efficiency, and speed, offering tourists a unique experience by enabling VAT recovery on purchases from both traditional stores and registered e-commerce platforms.

The VAT refund process is designed to be smooth and efficient, from purchase to refund completion upon the tourist’s departure.

Tourists can apply for VAT refunds directly through registered e-commerce platforms by providing travel document details and personal information to verify eligibility at the time of purchase.

The registration is finalised once the tourist’s identity is confirmed during delivery or online order fulfillment.

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News developments

Saudi Arabia: Social Insurance Launches Compliance Index for Enterprises

17/12/202417/12/2024
by Hannah Gutang

The Saudi Social Insurance announced the launch of the Compliance Index service, aimed at assisting employers and enterprises in achieving insurance compliance.

Analysis

The Saudi Social Insurance introduced the Compliance Index to educate enterprises about insurance systems and promote the principle of insurance compliance among employers.

Objectives of the Compliance Index

The Compliance Index aims to achieve several key objectives, including encouraging enterprises to adhere to social insurance systems, distinguishing enterprises with high compliance levels, and educating those with lower compliance. Additionally, the index seeks to offer exceptional services to compliant enterprises, thereby fostering a culture of adherence to insurance regulations.

Access and Additional Services

Employers and enterprises can access and review the Compliance Index through their accounts on the GOSI Business platform. Recently, the organisation launched the innovative “Self-Compliance” electronic service for enterprises, aiming to create a positive relationship and ongoing partnership to enhance and sustain occupational safety and health in work environments.

For the full story, click here.

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News developments

Oman: New Wage Protection and Workforce Transfer Regulations

17/12/202417/12/2024
by Hannah Gutang

The Ministry of Labour in Oman issued two ministerial decisions to regulate wage protection and the temporary transfer of non-Omani workers within the private sector.

Analysis

The Ministry of Labour in Oman issued two ministerial decisions to regulate wage protection and the temporary transfer of non-Omani workers within the private sector.

Wage Protection System

The Ministry of Labour in Oman announced a new Wage Protection System (WPS) to electronically monitor the payment of wages in the private sector. The system mandates employers to transfer wages to employees’ bank accounts or financial institutions under the supervision of the Central Bank of Oman, as per the agreed employment contracts and within the legally specified timeframe.

Employers are required to update employment contracts to reflect any changes in wages and must transfer wages through the WPS within three days of the end of the wage period. The Ministry’s relevant department will oversee the implementation and monitoring of the WPS, maintaining a dedicated database.

Exceptions to the WPS include cases of labour disputes where the worker has stopped working for more than 30 days, suspension of the worker for reasons beyond the employer’s control for more than 30 days, and new employees who have not completed 30 days of service.

A committee will review exemption requests not covered by the specified exceptions. Administrative penalties for non-compliance include warnings, suspension of preliminary work permits, and fines of 50 Omani rials per employee, with increased fines for repeated violations. The decision also repealed the previous Oman Ministerial Decision No. 299/2023.

Workforce Transfer Regulations

The Ministry also introduced regulations for the temporary transfer of non-Omani workers between private sector establishments. Key conditions for transfer include not moving workers to nationalised professions, ensuring job compatibility, and obtaining worker consent. Workers must have completed at least six months with the current employer, and the work permit must remain active with more than six months until expiration. Transfers are limited to six months per worker annually, and both establishments must comply with nationalisation quotas and have no service suspensions or financial obligations to the Ministry.

The receiving establishment must not employ the worker beyond the transfer period and must honour all rights and obligations, including maintaining the worker’s previous wage and benefits through the WPS. If a worker leaves the receiving establishment, it must immediately notify the original employer and provide evidence of the departure. The original employer is required to report the worker’s departure following Ministry procedures. The transfer period will count towards the worker’s total service duration, ensuring the protection of their rights and continuity of service calculation.

The decision also stipulates the percentage of transferred workers should not exceed 50% of the total registered workers in either establishment, and the transfer must be officially registered with the Ministry using the approved form. The receiving establishment is responsible for not employing the worker after the transfer period and must bear all rights and obligations during this time, ensuring the worker receives at least the same wage and benefits as in the previous establishment.

For the full story, click here.

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News developments

Bahrain: Shura Council Reviewing Amendments to Penal and Evidence Laws

17/12/202417/12/2024
by Hannah Gutang

The Shura Council in Bahrain discussed the report of the Foreign Affairs, Defense and National Security Committee regarding a draft law amending some provisions of the Penal Code and the report of the Legislative and Legal Affairs Committee on the proposed law amending some provisions of the Evidence Law in Civil and Commercial Matters.

Analysis
Protection of Modern Communication Means

The Council reviewed a report from the Committee on Foreign Affairs, Defense, and National Security regarding a draft law to amend certain provisions of Bahrain Decree-Law No. 15/1976 on the Penal Law, and associated with Bahrain Decree No. 7/2024. The committee recommended approval of the draft law in principle.

This legislative proposal aims to safeguard modern communication devices such as mobile phones and laptops, which contain personal information, banking data, and other sensitive details. The law seeks to impose stricter penalties for the unlawful exploitation of such data, reflecting the increased reliance on these devices in daily life and the need for protective legislation.

Amendments to the Civil and Commercial Evidence Law

Additionally, the Council discussed a report from the Legislative and Legal Affairs Committee on a proposed amendment to Bahrain Decree-Law No. 14/1996 on the Law of Evidence in Civil and Commercial Matters. The proposal suggests raising the maximum value threshold for legal transactions that can be proven by witness testimony from 500 to 1,000 dinars. This change considers the evolving economic conditions, the purchasing power of the currency, and the nature of current civil transactions. The committee recommended allowing consideration of this proposal, aligning with Bahrain’s legislative policy to update laws in response to economic developments.

For the full story, click here.

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News developments

Saudi Arabia: SDAIA Consults on Personal Data Audit and Certification Rules

17/12/202419/12/2024
by Hannah Gutang

SDAIA (the Saudi Authority for Data and Artificial Intelligence) has sought expert opinions on regulations governing the licensing of personal data processing audits and certification issuance, aiming to boost public trust in personal data handling.

Analysis

Licensing Conditions

The authority outlined general conditions for licensing, requiring applicants to adhere to system rules, regulations, and any official documents issued by the competent authority. Applicants must conduct audits or issue certifications independently, disclose potential conflicts of interest, and report any past complaints related to system compliance, ensuring no ongoing complaints during the application process.

Disclosure and Independence

The authority emphasised the need for applicants to disclose any violations previously identified by the competent authority. The regulations stipulated that applicants must be independent legal entities with a physical presence in Saudi Arabia, providing official contact details, including the legal name, address, and commercial registration or foreign investor license number.

Technical and Personnel Requirements

Applicants must possess the necessary technical tools and qualified personnel to perform audits or issue certifications related to personal data processing and protection, in line with system rules and methodologies set by the competent authority. Certification issuance requires accreditation from the Saudi Accreditation Center.

License Duration and Renewal

Licenses are granted for three years, with renewal applications required at least 90 working days before expiration, subject to meeting licensing conditions.

License Revocation

Licenses are revoked if the legal entity dissolves or undergoes transformation, merger, or division, as per company regulations. Revocation does not affect the validity of audit reports or certifications issued before the revocation date unless deemed invalid by the competent authority.

The end date of the consultation is January 11, 2025.

Here are the draft rules for the licensing of audits or checks of personal data processing activities and the issuance of accreditation certificates.

For the full story, click here.

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News developments

UAE: Announces Amendments to Corporate Tax Law

13/12/202413/12/2024
by Hannah Gutang

Finance Ministry has announced updates in relation to certain provisions of Federal Decree-Law No. 47/2022 on the Taxation of Corporations and Businesses.

These amendments aim to enhance the business environment in the UAE and promote greater compliance with global standards for tax transparency and fairness.

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News developments

Sharjah: Announces Rules on Conditional Release of Prisoners

13/12/202413/12/2024
by Hannah Gutang

Khaleej Times, 10 December 2024: Prisoners in Sharjah may be granted conditional release under a new decision issued by the emirate’s Executive Council.

The decision states that an inmate may be released on parole after serving three-quarters of his/her sentence.

The release, which would still include restrictions, could be set for a period of one month or more.

Those sentenced to life in prison can be granted conditional release if they have served at least 20 years in jail.

In all cases, however, the Commander-in-Chief of Sharjah Police shall issue a decision on an inmate’s conditional release.

The emirate’s public prosecution will then be notified.

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