Hannah Gutang, Author at LexisNexis Middle East

Saudi Arabia: Tadawul Suspends Trading for Companies Failing to Disclose Financial Statements

15/08/202415/08/2024
by Hannah Gutang

Al-Eqtisadiya, 12 August 2024: The Saudi Stock Exchange (Tadawul) has temporarily suspended trading in the shares of three companies.

This action was taken due to the companies’ failure to announce their financial statements for the period ending on 30 June 2024.

The announcement was required within the regular timeframe specified by the Capital Market Authority’s rules for securities offerings and ongoing obligations.

The affected companies are Food Development Business, Saudi Industrial Exports, and Al-Naifat Finance Company.

Tadawul has announced the suspension in a statement, citing its powers stipulated in the listing rules and procedures for suspending trading of listed securities.

Trading in the shares of these companies was halted for one trading session.

However, Tadawul has granted a grace period of twenty trading sessions commencing from the 6 August 2024 session, during which the companies must publish their financial statements before the deadline of 9 September 2024.

Tadawul has emphasised that if any of the companies fail to announce their financial statements within the specified period, trading in their respective shares will be suspended again, effective 10 September 2024, until they comply with the disclosure requirements.

The suspension underscores Tadawul’s commitment to maintaining transparency and upholding the highest standards of corporate governance.

By enforcing strict compliance with disclosure regulations, the stock exchange aims to protect investors’ interests and ensure a fair and efficient trading environment.

Market participants and investors are advised to closely monitor the situation and stay updated on any developments regarding the affected companies’ financial reporting.

Timely disclosure of financial statements is crucial for making informed investment decisions and maintaining market integrity.

Tadawul’s decisive action serves as a reminder to listed companies of their obligations to provide accurate and timely financial information, enabling investors to make well-informed decisions and fostering confidence in the Saudi capital market.

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News developments

Qatar: CRA Launches Public Consultations on Postal Services Licences

15/08/202415/08/2024
by Hannah Gutang

Qatar Tribune, 13 August 2024: The Communications Regulatory Authority (CRA) has invited all stakeholders interested in the postal sector to participate in public consultations on the draft licences for providing postal services.

The consultations aim to create a transparent and fair legal and regulatory environment.

CRA has issued three draft licences for public consultation, which include the Postal Service Licence for Qatar Postal Services Company, Courier Licence for Domestic Services, and Courier Licence for International Services.

CRA stated that these consultations represent an opportunity to open the postal market in Qatar and increase competition.

They also aim to support growth, enhance the business environment and innovation, and improve the quality of postal services provided, thereby boosting e-commerce and the digital economy.

These efforts align with international developments, technological advancements, regulatory frameworks, and Universal Postal Union (UPU) recommendations, in line with Qatar National Vision 2030, the Third National Development Strategy 2024-2030, and the Digital Agenda 2030.

The public consultations aim to understand the needs of all concerned and interested parties and consider them in an organised and transparent manner, allowing CRA to better regulate the postal sector and improve the quality of services provided.

In July 2024, CRA had hosted a successful workshop focused on enhancing the postal services complaint handling process, thus enhancing transparency and quality of service.

Additionally, in line with the efforts to open the postal sector for competition, CRA will hold another workshop in September 2024 to discuss the feedback and comments received from concerned and interested parties regarding the postal services licences.

CRA will be issuing further regulations regarding the postal sector for public consultation later, including postal licence applications, licence fees, the definition of reserved services and universal services, consumer protection and complaints, resolving disputes, and quality of service.

Interested parties and stakeholders in the postal services sector can submit their feedback and comments via email by 29 August 2024.

The new Law Regulating Postal Services empowers CRA to regulate the sector, set licensing conditions, protect consumer rights, and ensure fair competition.

It also aims to improve service quality, expand consumer choices, and create opportunities for both local and international postal Service Providers.

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News developments

Oman: Contractors Must Comply With Omanisation Targets

15/08/202415/08/2024
by Hannah Gutang

Oman Observer, 13 August 2024: The Ministry of Heritage and Tourism (MHT) has notified all contractors and suppliers who deal with it for various tenders regarding purchases and services to submit an electronic certificate issued by the Labour Ministry.

The certificates should prove that they are complying with requirements, including the Omanisation percentages approved by the government, provided that the certificate is valid for one month from the date of its issuance.

The certificate should be submitted when competing for government tenders and when requesting government services.

The ministry has also added that construction and service tenders will be awarded to companies that offer a 100% Omanisation rate in electricity, water, and maintenance services.

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News developments

Kuwait: Tax Reforms Being Considered

15/08/202415/08/2024
by Hannah Gutang

Al-Qabas, 12 August 2024: Kuwait is undertaking a comprehensive reform of its tax system to align with global standards and reduce its reliance on oil revenues.

As part of this initiative, the country has signed its first-ever double tax treaty with another Gulf state, the UAE.

According to a Partner in Tax and Regulatory Services at BDO Accounting and Consulting in Kuwait, the Kuwaiti government is implementing several measures to address its budget deficit, including increasing tax revenues.

The partner has stated that the tax treaty with the UAE comes at an opportune time to prevent or mitigate double taxation between the two countries.

Such agreements provide tax clarity and predictability, which can encourage an environment conducive to boosting investments.

While Kuwait currently imposes a 15% tax on business income, this tax has primarily been applied to non-Gulf foreign companies and non-Gulf foreign shareholders.

However, he has further indicated that the corporate profits tax will now be extended to all companies operating in the country.

The move is a significant shift for Kuwait towards establishing a more equitable tax system, where companies will contribute a larger share to government revenues.

The reforms are part of Kuwait’s broader efforts to diversify its economy and reduce its dependence on oil exports, which have traditionally been the primary source of government revenue.

By aligning its tax policies with global standards and encouraging a more favourable investment climate, Kuwait aims to attract foreign investment and promote sustainable economic growth.

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News developments

Dubai: Four Day Week Trial

15/08/202415/08/2024
by Hannah Gutang

Khaleej Times, 7 August 2024: Government Authorities in Dubai have announced the launch of a pilot to reduce the working hours in participating government entities during the summer.

The Dubai Government Human Resources Department (DGHR) has stated it will also see work on Fridays suspended.

The ‘Our Flexible Summer’ initiative will see work hours reduced to seven hours at 15 government entities in Dubai from 12 August to 30 September 2024.

Most government employees in Dubai have a two-and-half-day weekend (Friday half-day, Saturday and Sunday) at present this initiative, will see employees at participating government departments having a longer weekend for a period of seven weeks.

The DGHR has not specified which entities will be part of the pilot scheme, but explained it aims to “enhance workplace flexibility”.

The DGHR will then gauge the impact of the initiative on employees and overall productivity.

Sharjah, which already has a three-day weekend, has previously stated its employees reported an 88 per cent increase in productivity.

The DGMR will produce a final report summarising the initiative’s outcomes, recommendations, and adaptability to various government entities.

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News developments

Bahrain: Labour Market Regulatory Authority Conducts Extensive Inspections

15/08/202415/08/2024
by Hannah Gutang

The Daily Tribune, 6 August 2024: The Labour Market Regulatory Authority (LMRA) in Bahrain has intensified its efforts to combat illegal and undocumented workers, as well as other labour market violations.

Between 21 July and 3 August 2024, the LMRA has conducted 1,411 inspection campaigns and visits across various governorates of the Kingdom.

These inspections led to the apprehension of 100 illegal and undocumented workers, while 350 violators were deported during the same period.

The inspections have revealed numerous violations related to the LMRA Law, the Residency Law of Bahrain, and other relevant regulations.

The LMRA has conducted 1,378 inspection visits to commercial establishments across all governorates, along with 33 joint inspection campaigns.

These campaigns were carried out in collaboration with various government entities, including the Interior Ministry, security directorates, the General Directorate for Execution of Judgments, the Tourism and Exhibitions Authority, the Electricity and Water Authority, the Health Ministry, and the Industry and Commerce Ministry.

The joint efforts aimed to ensure comprehensive inspections and effective enforcement of labour regulations.

The campaigns were distributed as follows: 23 in the Capital Governorate, three in Muharraq Governorate, five in the Northern Governorate, and two in the Southern Governorate.

Legal action has been taken against the identified violations, as stated by the LMRA.

The authority emphasised its ongoing coordination with government entities to intensify inspection campaigns across the Kingdom.

This initiative aims to combat practices that negatively impact the labour market’s stability, competitiveness, or harm the economic and social security of Bahrain.

The LMRA has reiterated its call for community members to support government efforts in tackling illegal practices in the labour market and irregular employment, protecting the community as a whole.

Individuals are encouraged to report any complaints related to labour market violations and irregular employment by filling out the designated electronic reporting form on the LMRA’s official website (www.lmra.gov.bh), using the National Suggestions and Complaints System (Tawasul), or contacting the LMRA’s call center at 17506055.

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News developments

UAE: Reveals VAT Guidelines for Charities

08/08/202408/08/2024
by Hannah Gutang

The Federal Tax Authority (FTA) in the UAE has released comprehensive guidelines outlining the VAT treatment for charities operating in the country.

The guidelines, titled “Charities VAT Guide,” provide clarity on various aspects of VAT compliance for charitable organisations.

One of the key highlights of the guidelines is the introduction of the concept of “designated charities.”

These are charities that meet specific criteria, such as being approved by the Community Development Ministry, operating on a not-for-profit basis, and being primarily funded by grants or donations.

Designated charities will be eligible for a special VAT recovery scheme, allowing them to reclaim VAT incurred on expenses related to both taxable and non-taxable activities, except for exempt supplies.

A spokeperson from the FTA has stated that the guidelines aim to support the charitable sector in the UAE by providing a clear framework for VAT compliance.

Designated charities will benefit from the special VAT recovery rules, enabling them to maximise their resources for charitable purposes.

The document outlines the criteria for a charity to be recognised as a designated charity and the process for obtaining this status.

It also clarifies the VAT treatment of various activities undertaken by charities, such as business activities subject to VAT, non-business activities, and donated goods and services.

For charities that do not qualify as designated charities, the guidelines explain the standard VAT recovery rules.

These charities can only recover VAT on costs related to taxable supplies, following a prescribed input tax apportionment method.

The guidelines also address special situations, such as the VAT treatment of sales or leases of new buildings to charities.

The first supply of a new building specifically designed for a designated charity’s relevant charitable purpose will be subject to VAT at the zero rate, providing a cash-flow benefit.

The UAE Cabinet has issued several decisions listing the charities recognised as designated charities, eligible for the special VAT recovery rules.

The guidelines provide an updated list of these designated charities.

The FTA has emphasised the importance of charities familiarising themselves with the guidelines and ensuring compliance with the VAT regulations.

Failure to comply may result in penalties and other legal consequences.

With the release of these comprehensive guidelines, the UAE aims to support the charitable sector while ensuring a fair and transparent VAT system.

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News developments

Sharjah: Launches Job Training Program with Monthly Compensation for Trainees

08/08/202408/08/2024
by Hannah Gutang

Khaleej Times, 6 August 2024: In a significant move to empower job seekers and enhance their employability, the Supreme Council Member and Ruler of Sharjah has approved the ‘Sharjah Program for Training and Qualifying Job Seekers.’

The program, set to commence on 12 August 2024, will provide trainees with a monthly compensation of Dh6,000 during their participation.

The initiative aims to benefit 1,815 citizens across various regions of Sharjah, offering them specialised rehabilitation programs and practical experience to prepare them for diverse projects within the emirate.

The program’s reach extends to 500 citizens from the city of Sharjah, 400 from Khor Fakkan, 400 from Kalba, 200 from Dibba Al Hisn, 300 from the central region, and 15 from Al Hamriyah.

Through this comprehensive training program, the Sharjah government seeks to equip job seekers with the necessary skills and knowledge to enhance their competitiveness in the job market.

The monthly compensation of Dh6,000 is designed to support the trainees financially during their participation, enabling them to focus on acquiring valuable expertise and practical experience.

The ‘Sharjah Program for Training and Qualifying Job Seekers’ highlights the emirate’s commitment to investing in its human capital and fostering a skilled and competent workforce.

By providing targeted training and financial support, the program aims to empower citizens, boost their employability, and contribute to the overall economic development of Sharjah.

Interested individuals are encouraged to explore the program’s details and eligibility criteria to take advantage of this unique opportunity for professional growth and career advancement.

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News developments

Saudi Arabia: Announces Key Labour Law Amendments to Improve Work Environment

08/08/202408/08/2024
by Hannah Gutang

The Saudi government has approved key amendments to several articles of the Labour Law, aiming to create a more attractive work environment and contribute to sustainable development in line with the goals of Vision 2030.

The Human Resources and Social Development Ministry has stated that the new amendments include 38 articles, deleting seven articles, and adding two new articles to the Labour Law.

These amendments align with the Saudi employment market strategy as well as international agreements ratified by the country.

The ministry has stated that the new amendments will take effect after 180 days from the date of their publication in the official Gazette.

The amendments aimed to improve the labour market in the country, enhance job stability, preserve the rights of parties to the contractual relationship, in addition to developing human resources, enhancing training opportunities for workers, and increasing job opportunities for citizens.

The amendments took into account the interests of all parties to the contractual relationship.

These included an expansion of the item on holidays and labour contracts; adding definitions of the terms: resignation and assignment; adding an article specifying the procedures for resignation; amending the grievance procedures for the worker; and adding penalties for practicing the activity of employing workers without a licence from the ministry.

The new amendments also stipulate that the employer must formulate a special policy for the training and qualification of employees in order to raise their skills and improve their standard.

A number of amendments were also made in the item on maritime work.

The ministry has explained that the new amendments were made after an extensive study.

This study involved standard comparisons with labour laws in several countries as well as an analysis of best global practices.

Over 1,300 participants offered their opinions and suggestions on the proposed amendments to various articles of the Labour Law.

These inputs were collected via the Istitlaa survey platform, run by the National Competitiveness Centre.

This is in addition to sharing opinions and advice with private sector establishments, relevant government agencies, labour committees, and a number of specialists and experts in human resources through workshops and consultative meetings.

These amendments are formulated to reinforce the directive to develop existing systems and regulations.

The aim is to contribute to supporting the market, production and service sectors.

The amendments also provide an appropriate legislative environment and support small and medium enterprises.

Ultimately, the goal is to create more job opportunities for citizens and achieve sustainable development goals.

These goals align with the labour market strategy and the targets of Vision 2030.

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News developments

Qatar: MoPH Intensifies Monitoring of Markets to Ensure Food Safety

08/08/202408/08/2024
by Hannah Gutang

The Peninsula, 4 August 2024: The Ministry of Public Health (MoPH) has ramped up its monitoring efforts in local markets to ensure the safety of imported and locally produced food products.

During the first half of 2024, the ministry inspected 60,520 shipments of imported food, verifying their compliance with relevant technical standards.

A total of 1,168,695,000 kg of imported food met these standards, while 985,676 kg of non-compliant food were destroyed, and 211 shipments were re-exported.

The Food Safety Department has issued 155 export and re-export certificates, 104 certificates for food product destruction, and 48 certificates for re-inspection of food items.

It processed 625 requests for food item destruction and 102 requests for re-analysis of food products.

The ministry handled 3,119 requests for final product clearance and conducted 147 reviews on the registration of local food establishments.

In the first half of the year, 1,279 food producers were registered, 1,734 certificates were issued to food handlers, and 766 food handler permits were granted.

To ensure compliance with laws, standards, and technical requirements, MoPH inspected 3,221 local food establishments.

A total of 7,022 samples from imported foods at the country’s ports and 10,064 samples from local establishments were analysed for safety and quality.

The “Watheq” electronic food safety system approved 21,457 food items, ensuring they met the necessary standards.

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