Benjamin Filaferro, Author at LexisNexis Middle East

KSA: Special Residency Permits Draft Law Submitted to the Government

13/05/201911/12/2019
by Benjamin Filaferro

Saudi Arabia’s Shoura Council has approved a draft special residency permits law and has submitted it to the Government to consider. The aim of the law is to provide various benefits to those who hold special residency permits including the right to recruit foreign worker, own property and transport vehicles and obtain visitor permits for family members. There are two types of special residency permit. The first is unlimited while the other is only available for one year but can then be renewed. It is similar to the Green Card system in the US and if approved will mean applicants will not have to have a Saudi sponsor or employer. To be eligible, applicants must have a valid passport with a credit report, a health report and no criminal record.

News developments

Oman: Decree Establishing the Credit and Financial Information Centre Issued

13/05/201911/12/2019
by Benjamin Filaferro

Oman’s Sultan has issued three Decrees including a Decree establishing the Credit and Financial Information Centre. Under Oman Sultani Decree No. 38/2019, a Credit and Financial Information Centre will be established. It will report into the Sultanate’s Central Bank. It will be independent legally as well as administratively and financially. All of the assets, data and their systems from the Banking Credit Information Statistics Department and the Central Bank will be transferred to the new Centre. The Board of Governors of the Central Bank will issue the regulations and decisions necessary to enforce Oman Sultani Decree No. 38/2019. Until they do, the relevant Central Bank regulations and decisions will continue to be enforced unless it contradicts or contravenes the new Decree.

Weekly Spotlight

Weekly Spotlight: Changes to the DIFC’s End of Gratuity Scheme Announced

13/05/201911/12/2019
by Benjamin Filaferro

The Dubai International Financial Centre have announced changes to the Centre’s end of gratuity scheme will come into effect on 1 January 2020. It follows the launching of an informal consultation in March 2019 where the Governor of the DIFC sent a letter to several hundred senior executives on replacing the end of service gratuity system with a new Employee Workplace Savings Trust savings scheme.

Under the changes, employees will contribute funds on an ongoing basis rather than being paid by their employer when they leave. However, the rate will be the same as the current gratuity and employees will be able to make extra contributions if they want to. Employees will also be able to determine if they want to invest in low, medium or high-risk options. When they leave they will receive their contributions and the end of service gratuity acquired to the date of the change. The replacement will only affect new benefits and gratuities. A new law laying out the provisions and requirements in detail will be issued and the scheme will be regulated by the Dubai Financial Services Authority. The master trust housing the scheme will be based in the DIFC.

However, it is not clear if the amended framework will only apply in the DIFC or will apply across the UAE.

News developments

Kuwait: Draft Expatriate Remittance Tax Law Withdrawn

05/05/201911/12/2019
by Benjamin Filaferro

According to sources in Kuwait, the draft Expatriate Remittance Tax Law has been withdrawn. It followed strong Government criticism of the proposed legislation. Amid concerns the Government would have rejected it, MPs withdrew the legislation rather than risk rejection which would have meant 44 MPs would have had to of approved the reconsideration of the legislation in the country’s Parliament.

News developments

Bahrain: Amendment to the 2001 Non-Bahrainis Ownership of Property and Plots Law Approved

05/05/201911/12/2019
by Benjamin Filaferro

Bahraini MPs have approved an amendment to the 2001 Non-Bahrainis Ownership of Property and Plots Law which will mean expatriate property investors will not be able to own property in areas which aren’t designated tourism or investment zones. Previously foreigners were able to buy property anywhere in the Kingdom. It follows concerns Bahrainis were being priced out of the market. The Shoura Council will now consider the amendment.

Weekly Spotlight

Weekly Spotlight: Mandatory Child Vaccination in Dubai

05/05/201911/12/2019
by Benjamin Filaferro

The Chairman of the Standing Child Protection Committee of Dubai’s Health Authority has announced parents must vaccinate their children or risk being charged with negligence. It comes as there is a measles outbreak in the country. The Chairman added children requiring breastfeeding must also be breastfed. In addition, a parent or parents who fail to get a child who has a serious disease adequately treated could be charged with negligence.

Elsewhere in Dubai, the Health Authority’s Dubai Health Insurance Corporation have announced they have issued Directives meaning new-born babies will be able to get health insurance as soon as they are born rather than having to wait.

Directive No. 2/2019 applies to all parties involved in health insurance plans in the Emirate. New-borns will be covered under their mother’s insurance policy for 30 days or up to the annual limit of the mother’s insurance policy. Insurance companies must then issue an individual insurance policy for the child.

Previously insurance companies could implement a waiting period for providing insurance to a new-born which meant if anything happened to them they were uninsured. It comes into force with immediate effect.

Weekly Spotlight

Weekly Spotlight: Saudi Arabia Launches the “Najiz” Online Portal

28/04/201911/12/2019
by Benjamin Filaferro

The Saudi Justice Minister Dr. Walid Al-Samaani has launched the ‘Najiz’ online portal which will cover 177 first instance courts in all regions of the Kingdom.

The portal is part of efforts to unify judicial proceedings, enable digital transformation to the judiciary and speed up the litigation process. It was set after restructuring of procedures were adopted in all Saudi courts and a new judicial procedure system document was issued and digitized.

The portal is being considered a step towards a full digital transformation in all sectors. A service called ‘appeal without transcript’ has been introduced which enables first instance courts to send a case file to the court of appeal electronically in just a few minutes, and automatically receive the court’s reply. Task forces have also been formed to carry out the proceedings of the courts and compare them to legal proceedings, criminal court proceedings and related regulations, and proceedings in other countries.

The portal will be rolled out in four stages, and there will further updates to facilitate services.

News developments

The UAE at the Forefront of the National Artificial Intelligence Strategy 2031

27/04/201911/12/2019
by Benjamin Filaferro

The UAE Cabinet has approved an eight point strategy which aims at putting the country at the forefront of global efforts to develop artificial intelligence, called the National Artificial Intelligence Strategy 2031. The strategy covers areas including reaffirming the UAE’s position as a global artificial intelligence (AI) hub, employing AI in customer services and recruiting and training people to work in fields which will be driven by the technology in the future. The first phase of the strategy will focus on areas such as healthcare, cyber security, logistics and transportation and tourism and hospitality. In March 2018, the UAE Cabinet formed a council for artificial intelligence to oversee AI integration in government

News developments

Kuwait: Expatriates to be Exempted from the Visa Transfer Ban

27/04/201911/12/2019
by Benjamin Filaferro

Kuwait Manpower Authority officials have announced the Authority is exempting expatriates from the visa transfer ban. However, the exemption will only apply if the expatriate employee initially transferred to a small company locally and then transferred their residency from a small project to the private sector. It does not apply to other expatriates.

News developments

Bahrain: Draft Insurance Aggregator Rules Issued

27/04/201911/12/2019
by Benjamin Filaferro

Bahrain’s Central Bank has announced it has issued draft insurance aggregator rules. Insurance aggregators are intermediaries with an insurance broker’s license who operate an online platform, whether hosted on an Internet website or available as a smart device application which provides price comparisons and facilitates the purchase of insurance policies from several insurance licensees. By introducing insurance aggregators, customers will be able to find and choose insurance quotes from several insurance companies under a single electronic platform or mobile device application, instead of obtaining quotes individually and purchase insurance online from a single insurance company. The move is the first step towards Insuretech which is a technology-led transformation of the insurance sector. Copies of the directive are available on the Central Bank Website.