Benjamin Filaferro, Author at LexisNexis Middle East

Kuwait: Central Bank is studying the implications of Bitcoin in the country

14/01/201811/12/2019
by Benjamin Filaferro

Kuwait’s Commerce and Industry Ministry and the country’s Central Bank of Kuwait are studying the implications of Bitcoin in the country. According to local newspaper reports, they discussed the market to reach a decision on the currency which is currently unregulated. Commerce and Industry Ministry officials also disclosed they have been monitoring the ads of local companies which promote Bitcoin dealing, following several companies posting social media ads to open trading accounts in return for commission.

Weekly Spotlight

Weekly Spotlight: Saudi Arabia to address loopholes to ensure employees are not dismissed unfairly because of Article 77

14/01/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on employment and banking and finance developments in Saudi Arabia, where Saudi Arabia’s Shoura Council has asked the Labour and Social Development Ministry to review Article 77 of the Implementing Regulations to the Labour Law. The aim is to address loopholes to ensure employees are not dismissed unfairly because of Article 77 of the law. The Council also asked the Ministry to review the Saudi Employment Strategy to increase the number of jobs allocated to women and increase their employment chances.

On the other hand, Saudi Arabia’s stock exchange, Tadawul has announced further reforms designed to increase its appeal to investors. The aim is aid the Kingdom’s modernisation, improve market efficiency, boost investor security and access, and market liquidity in the Kingdom. Amongst other changes, the Independent Custody Model is updated to help ease Qualified Foreign Investor market access by providing increased trading limit flexibility for these clients. New procedures will also be introduced to mitigate credit risk associated with the settlement process for all participants. These changes come into force on 21 January 2018. There are also proposed changes to the methods for determining opening and closing prices.

Weekly Spotlight

Weekly Spotlight: Latest VAT developments in the GCC

07/01/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on VAT developments in the GCC. Whilst Saudi Arabia and the UAE’s VAT regimes have come into force and the first knock-on effects have been felt and additional clarifications and exemptions have been issued in both jurisdictions there have been interesting developments elsewhere in the GCC region.

In Bahrain, the First Deputy Chairman of the Kingdom’s Parliament, Ali Alarady has said VAT will be introduced at 5%. However it will not be introduced before June 2018. The draft VAT law will be considered by Parliament once it is referred by the Finance Ministry to discuss the amount, the way to impose it and exempted services and goods. It comes as the Kingdom has started implementing the selective tax on a number of products including fizzy drinks, energy drinks and tobacco.

Meanwhile in Oman, according to local newspaper reports, the authorities have announced VAT will not be introduced in the Sultanate until 2019. It is understood they want to give businesses in the country more time to prepare. However the authorities added selective tax on some goods will be introduced later in the year. The affected goods are fizzy drinks, cigarettes and energy drinks.

News developments

Qatar: Extension of the grace period for compliance with the country’s 2016 Data Protection Law

06/01/201811/12/2019
by Benjamin Filaferro

Qatar’s Emir has issued a Cabinet Decision extending the grace period for compliance with the country’s 2016 Data Protection Law (Qatar Law No 13/2016). The Emir also issued Qatar Cabinet Decision No. 2/2018 establishing a co-ordination committee for search and rescue mechanisms in civil aviation. The Decisions will come into effect on their issued date.

News developments

Dubai: New regulations to allow repurchase agreements

06/01/201811/12/2019
by Benjamin Filaferro

Dubai’s Financial Market has announced it has issued two new regulations to allow market participants to implement both repurchase agreements (Repo) and Islamic Murabaha transactions. It follows the UAE’s Securities and Commodities Authority approval of the proposals. The regulations have been issued in line with international best practices as well as after full consultation with various market participants.

News developments

Bahrain: Commercial Companies Law Amended

31/12/201711/12/2019
by Benjamin Filaferro

The Economic and Financial Commission of Bahrain’s Shoura Council has approved amendments to the Kingdom’s Commercial Companies Law. The amendments to Bahrain Decree-Law No. 21/2001 are contained in Bahrain Decree No. 57/2017. The Commission has referred the amendments to the Council Office Authority to present to the Council at its next session. The aim of these amendments is to improve the Kingdom’s international business rating.

News developments

Kuwait: Deportations For Traffic Offences

30/12/201711/12/2019
by Benjamin Filaferro

According to a report on Kuwaiti TV, it has been stated Kuwait will deport any foreigner caught for a second time not wearing their seat belt or using a cell phone while driving. Articles within the Kuwaiti Traffic Law give the interior minister the right to deport those who do not comply with public order and break the laws. Kuwait has recently stiffened penalties against traffic violations including impounding cars for months if motorists are caught not wearing seat belts or using their cell phones while driving or parking in prohibited areas. (Although, following an initial spate of activity this week it was stated the changes would be taken more slowly.) Critics have warned deportations for these reasons could lead to equivalent steps being taken in other countries against Kuwaitis who break traffic laws abroad.

News developments

Oman: Professional Visa Bans Extended

27/12/201711/12/2019
by Benjamin Filaferro

Oman’s Manpower Ministry has extended the professional visa ban for expatriates in various sectors for an additional six months. The relevant Decisions were issued on 21 November and apply to construction workers, cleaners, sales and marketing professionals. However the ban does not apply to visa renewals for these workers, companies registered excellent or of international grade, consultancies or those implementing Government projects. Companies managed full-time by their owners, registered with Riyada and insured with the Public Authority for Social Insurance will also not be affected. The ban first came into force in November 2013. The ban on sales and marketing professionals comes into force on 30 November whilst the ban for cleaning and construction workers comes into force on 1 December. The ban on carpenters, metallurgists, blacksmiths and brick kiln workers comes into force on 1 January 2018

News developments

Saudi Arabia: Supreme Anti-Corruption Committee Established

27/12/201711/12/2019
by Benjamin Filaferro

Saudi Arabia’s King has issued a Royal Order to establish a Supreme Anti-corruption committee. It will be chaired by the Crown Prince and the Chairman of the Monitoring and Investigation Commission, the Chairman of the National Anti-Corruption Authority, the Chief of the General Audit Bureau, the Attorney General and the Head of State Security will be members. The Committee will be responsible for identifying offences and people and entities involved in public corruption cases. It will also have investigatory powers and issue arrest warrants as well as travel bans, disclosures and freezing of accounts and portfolios, track funds, assets and prevent their remittance or transfer by relevant persons and entities. The committee will have the right to take any precautionary measures until cases are referred to the investigating authorities or judicial bodies. It may take whatever measures it considers necessary to deal with those involved in public corruption cases. It may seek the assistance of those it considers necessary and may set up teams for investigations or prosecutions and may delegate some or all of its powers to these teams. The committee will submit detailed reports on its findings and what action it has taken. The competent authorities will be informed of this Royal Order and all relevant parties will cooperate fully to enforce it.

Weekly Spotlight

Weekly Spotlight: UAE has changed the payment terms of substitute teachers in public schools

24/12/201711/12/2019
by Benjamin Filaferro

This week the spotlight is on education, employment, and immigration developments in the United Arab Emirates, where Ministerial Decision No. 46/2017 has been issued changing the payment terms of substitute teachers in public schools. Nominees with the required specialisations and qualifications will be selected to be a part of a substitute teacher incentives system. Highest priority for this programme will be given to Emirati nominees, followed by children of Emirati women, and then Gulf citizens. The decision has also stated substitute teachers at nurseries will be paid 500 AED per day (for a maximum of five days per week). Substitute teachers will also be paid 100 AED per school periods taught, up to a maximum of 30 periods per week. However, rates will be different for those teaching certain subjects The decision states that the Ministry of Education must include mechanisms for establishing a database of substitute teachers, from which the minister has the right to add, remove or update subjects in this resolution’s third article, in addition to the value of fees paid for specific school activities and subjects. The decision states substitute teachers will be called on to cover for an absent regular teacher, and that human resources procedures set by the Federal Authority for Human Resources must be followed when choosing these teachers.

Elsewhere, a fake story doing the rounds on social media that visas for Pakistani nationals had been suspended has been officially denied by the UAE General Directorate of Residency and Foreigners Affairs. The story was even picked up by TV channels who quoted officials from the Travel Agents Association of Pakistan, who said the visa service has been suspended until further notice, although those who already had a visa would still be able to travel. It was claimed the suspension was temporary and would possibly be changed in the new year.