Benjamin Filaferro, Author at LexisNexis Middle East

Weekly Spotlight: Bahrain has announced the introduction of VAT by December 2018

25/02/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on tax and finance developments in the GCC where Bahrain’s Finance Minister, Sheikh Ahmed bin Mohammed al-Khalifa has announced the Kingdom will introduce VAT by December 2018. This comes despite intense opposition which has seen the current plans shelved. Al-Khalifa was speaking on the sidelines of an investment conference in the country’s capital, Manama.

Elsewhere, Oman’s National Tobacco Control Committee has announced the excise tax which has already come into effect in Bahrain, Saudi Arabia and the UAE, will be introduced in the Sultanate in June. Tobacco products, alcoholic beverages and energy drinks will be taxed at 100%, while fizzy drinks will be taxed at 50%. The authorities are also considering increasing taxes on fast food.

News developments

KSA: Agencies working to tackle the increasing numbers of cases involving government purchase irregularities

24/02/201811/12/2019
by Benjamin Filaferro

Saudi Arabia’s Shoura Council has asked the Kingdom’s National Anti-Corruption Commission to work with other agencies to tackle the increasing numbers of cases involving government purchase irregularities. It comes as the country has recorded the highest ever number of bribery cases. The call came during the Council’s latest meeting.

News developments

Dubai: Regulatory changes planned for property developers regarding completion rates

23/02/201811/12/2019
by Benjamin Filaferro

Following a surge in off-plan sales in 2017, the authorities are planning regulatory changes. If approved, Dubai property developers would need to have hit 50% completion for their project, instead of 20% before they can start selling off-plan. Developers would also still need to pay off all land costs.

News developments

DIFC Courts have ruled a claim against Deloitte and Touche (Middle East)

18/02/201811/12/2019
by Benjamin Filaferro

In a landmark decision, the Dubai International Finance Centre Courts have ruled a claim against Deloitte and Touche (Middle East) for negligence and deceit can go to trial as the judge considers it has a ‘real prospect of success’. The case has been brought against the auditing firm by Nest Investments Holding SAL who were an investor in the collapsed Lebanese Canadian Bank. The Lebanese arm of the firm acted as the Bank’s auditors from 1995 until its liquidation. The case was brought following charges by the US Drug Enforcement Administration and US Treasury. The judgment extends potential liability for Dubai International Finance Centre institutions, like Deloitte and Touche (Middle East) for acts or omissions of foreign agents in non-Dubai International Finance Centre jurisdictions.

News developments

Bahrain: new Commercial Maritime Law is being considered

18/02/201811/12/2019
by Benjamin Filaferro

Senior officials at Bahrain’s Transportation and Telecommunications Ministry have announced a new Commercial Maritime Law is being considered. The aim is to boost the country’s maritime transportation and logistics sector and user experience at its Khalifa Bin Salman Port. It forms part of the Ministry’s wider maritime transport strategy.

Weekly Spotlight

Weekly Spotlight: draft law to regulate the investment of non-Qatari capital in Qatar

18/02/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Qatar, where the country’s Advisory Council has discussed a draft law to regulate the investment of non-Qatari capital in the country. The Council referred the draft law to the Finance and Economic Affairs Committee for further consideration and feedback. The Council also reviewed a request for a discussion on food security.

Elsewhere, the Advisory Council has reviewed several draft laws including a draft law on the organisation of business events. The Council also considered draft laws on establishing a national tourism council and a draft law to regulate tourism. The Council submitted its recommendations to the Advisory Council.

Weekly Spotlight

Weekly Spotlight: KSA has amended the penalties related to the Labour Law regulations

11/02/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on employment law developments in Saudi Arabia, where the Kingdom’s Labour and Social Development Minister, Ali Al-Ghafees has announced the Ministry has amended the penalties related to the Labour Law regulations.

Employers will be fined 10,000 Riyals if they violate the holiday entitlement of employees. They will also be fined 10,000 Riyals if they allow a non-Saudi employee to work in a profession other than the one specified in their work permit which is a breach of Article 38 of the Labour Law. In addition, if employers don’t open a file for the firm with the Labour Office or update the firm’s data they will be fined 10,000 Riyals which is a breach of Article 15 of the Labour Law. An employer who fails to submit the Wage Protection file to the Labour Office monthly will be fined 10,000 Riyals. If a firm fails to meet health and occupational safety requirements for its staff, they will be fined 15,000 Riyals. The fine will be doubled for repeat offences. Employers will be fined 2,000 Riyals if they keep an employee’s passport, residency permit or medical insurance card without their consent and 10,000 Riyals for failing to have organisational regulations in place or complying with them. The fine will have to be settled within a month of being issued and if it is not it will be doubled.

Elsewhere the country’s Shoura Council has approved a recommendation for a 40-hour work week. The Council also approved an additional paid day for employees working in activities earmarked for Saudisation. The Council made the decisions last week.

News developments

Oman: Shoura Council has referred a study on private investment in the health sector

10/02/201811/12/2019
by Benjamin Filaferro

Oman’s Shoura Council has referred a study on private investment in the health sector to the Council of Ministers. The study focuses on the challenges faced by private investment as well as the incentives which should be offered to encourage investment. The Council also referred a study from the Economic and Financial Committee on the obstacles faced by the private sector, the free zones and the incentives required to increase their participation in Gross Domestic Product. The study focuses on the most important economic sectors and the desired partnership between the public and private sectors. It also highlights the importance of reviewing the relevant legislation and legal framework.

News developments

UAE: Road Tolls Law issued

10/02/201811/12/2019
by Benjamin Filaferro

The UAE’s President has issued a Road Tolls Law to ease traffic congestion. The Transport Department will determine where the toll gates will go and the amounts to pay. They will also set the operation times and will collect the fees. Its recommendations will be sent to the Executive Council to approve. Abu Dhabi Law No. 17/2017 came into effect on 31 December. Ambulances, the armed forces, civil defence vehicles, public buses and motorcycles will be exempt. Those who fail to comply with it will be fined upto 10,000 AED.

Weekly Spotlight

Weekly Spotlight: Launch of the 2nd edition of the UAE Anti-money laundering Standardisation Manual

04/02/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on banking and finance developments in the UAE, where the UAE’s Foreign Exchange and Remittance Group which represents businesses engaged in money exchange and remittances in the country has announced it has launched the second edition of the Anti-money laundering (AML) Standardisation Manual in Dubai.

It was launched in 2015 to encourage exchange houses in the UAE to comply with Central Bank Regulations. When the Central Bank released a new set of Exchange house regulations, the Group worked with KPMG to review and redraft the manual in line with the new regulations. The Second Edition is an updated version of the Group’s first standardisation manual. The new edition states clear guidelines for the sale and purchase of foreign currencies and traveller’s cheques, handling remittance operations in different currencies and paying wages through the Wages Protection System, amongst other things.

Elsewhere the country’s Federal Tax Authority has confirmed businesses only have to use their Tax Registration Numbers and don’t need a tax certificate to carry out business. The Authority added tax registration certificates cannot be printed or downloaded with a provisional Tax Registration Number. The Authority’s website allows individuals to verify the Tax Registration Number of any company registered with the Authority for VAT purposes.