Benjamin Filaferro, Author at LexisNexis Middle East

Oman: Insurance Investment Regulatory Guidelines Issued

18/12/202018/12/2020
by Benjamin Filaferro

Oman’s Capital Market Authority has announced it has issued insurance investment regulatory guidelines. They will regulate investments of insurance companies and Takaful insurance in the Sultanate. They give insurance firms greater flexibility in making investments to support their corporate growth objectives, while maintaining adequate reserves and liquidity to handle claims from policyholders. In terms of Takaful insurers, Takaful companies will have to comply with legal provisions like deeds and Islamic investment funds according to the specified percentages and terms regardless of whether they are investing in or outside the Sultanate. The regulations impose limits on investments in schemes like deposit, commercial and Government bonds and the public joint stock companies’ shares, investment funds and companies which are not listed on the stock exchange as well as real estate. When drafting the guidelines, the Authority considered investment trends, market volatility issues, international developments in the sector among other things. It is part of efforts by the Authority to support the development of the Omani insurance market and enable insurance firms to diversify their investments.

News developments

Kuwait: According to local media reports, the first case for Coronavirus losses has been launched in Kuwait

18/12/202018/12/2020
by Benjamin Filaferro

According to local media reports, the first case for Coronavirus losses has been launched in Kuwait. The case involves a nursery who are requesting financial and moral compensation from the State for losses incurred as a result of anti-Coronavirus measures. They are relying on the principle that the State has to provide compensation for damage suffered by natural disasters. The nursery is not disputing the State’s authority to close nurseries. They claim the decision was arbitrary and have asked the court to delegate an expert to determine the value of the damages caused to their facilities as a result of this decision and the consequences of preventing them from collecting child registration fees for 2019 and 2020 and 2020 and 2021. Nurseries were closed down on 11 March and were meant to reopen in the fifth and final phase of the country’s unlocking. However, this phase has been postponed. 400 nurseries are estimated to have been affected by the Government decision. It is expected more nursery owners and similar businesses will join the litigation.

News developments

UAE: Dubai Financial Service Authority Launches Public Consultation on Proposed Amendments to Employee Money Purchase Regime

18/12/202018/12/2020
by Benjamin Filaferro

The Dubai Financial Service Authority have announced they have launched a public consultation on proposed amendments to the Employee Money Purchase Regime. It ends on 17 January 2021. The aim is to address various practical issues the Authority has encountered in administering the regime. Employees of DIFC businesses, DIFC employers, Operators and Administrators of Employee Money Purchase Schemes, persons offering foreign Employee Money Purchase schemes to DIFC employers and employees, life insurers conducting pension fund management, persons conducting other financial services that involve an interest in an Employee Money Purchase Scheme and persons who intend to carry out any of these activities should review these proposals.

News developments

Bahrain: Approves Accession to Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting

18/12/202018/12/2020
by Benjamin Filaferro

Bahrain’s Cabinet has approved a memorandum from the Ministerial Committee for Legal and Legislative Affairs on the Kingdom’s accession to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).

Weekly Spotlight

Abu Dhabi: Global Market Launches Public Consultation on Proposed Auditor Framework Amendments

18/12/202018/12/2020
by Benjamin Filaferro

Abu Dhabi’s Global Market has launched a public consultation on proposed auditor framework amendments. The consultation ends on 28 January 2021. The existing framework governing auditors was based on the UK Companies Act 2006. However, since the framework was initially implemented, international standards have been updated. This includes the enactment of EU legislation covering audit regulation, which has also been incorporated and reflected in the UK’s auditor framework.
If approved, there will also be additional requirements for auditors of public companies and investment funds and additional requirements for auditors of all financial institutions licensed by the Market’s Financial Services Regulatory Authority.
There are also proposals to require auditors to comply with international auditing standards, like audit quality requirements. The amendments would also give the Market’s Registration Authority comprehensive monitoring and enforcement powers, with investigation and sanctioning powers, which align with international standards.
The aim of the amendments to the Market’s 2020 Companies Regulations, Commercial Licensing Regulations 2015, Companies Regulations 2020 (Auditors) Rules 2020, Commercial Licensing Regulations 2015 (Controlled Activities Rules) 2018 and Limited Liability Partnership Rules 2020 is to create a single registration framework with tiered requirements and enhance audit quality requirements.
There will be a 12-month transition period for existing auditors from when the amendments come into force or the auditor re-registers.

News developments

Saudi Arabia: Wages Protection Agreement Ratified

10/12/202010/12/2020
by Benjamin Filaferro

Saudi Arabia’s Human Resources and Social Development Minister has announced the Kingdom has ratified the International Labour Organisation agreement No. 90 on the protection of salaries and agreement No. 120 on health rules in the work environment. The Ministry launched a wages protection programme in 2013 which has been improved since then to reflect the 2030 Vision.

News developments

Qatar: Cheque Cases Can be Filed Online

10/12/202010/12/2020
by Benjamin Filaferro

Qatar’s Interior Ministry has announced cheque complaint cases can now be filed online through the Interior Ministry’s website. The facility is available to companies, banks and individuals who will not have to visit the relevant security department in person. Instead they will be able to log in to the service and submit a report by attaching all the required documents. Once submitted, the relevant department will review the report and the required documents and confirm validity. A text message will then be sent via Metrash confirming the successful receipt of the report and its reference number. If further documents are required, the complainant will get a text message asking them to complete the case procedures and refer to the Public Prosecution in line with the law. Complainants can also make enquiries about the status of the case through the electronic follow up service by giving the case details.

News developments

Oman: Decision No. 8/2020 On the Issuance of the Arbitration Rules of Oman Commercial Arbitration Centre

10/12/202010/12/2020
by Benjamin Filaferro

The Chairman of Oman’s Commercial Arbitration Centre has issued Oman Decision No. 8/2020 implementing the Centre’s rules. The centre itself was established under Oman Sultani Decree No. 26/2018 and Oman Decision No. 37/2019 was issued to approve its workflow and Board. The rules will come into force, the day after the Decision is published in the Official Gazette.

News developments

Kuwait: Rules and Conditions for Issuing Compulsory Insurance Policies Published

10/12/202010/12/2020
by Benjamin Filaferro

Kuwait’s Insurance Unit has issued rules and conditions for issuing compulsory vehicle insurance policies against civil liability resulting from traffic accidents. Kuwait Decision No. 9/2020 specifies the companies which are qualified to issue the insurance policies and a list of the approved companies will be published soon. The Decision will be implemented on 13 December 2020. The Unit has stated insurance policies issued before the Decision by unqualified companies will remain valid, as will all of the rights and duties set out in these policies.

News developments

Abu Dhabi: Artificial Intelligence System for Detection of Traffic Violations Introduced

10/12/202010/12/2020
by Benjamin Filaferro

The Abu Dhabi Digital Authority and Abu Dhabi Police have announced they have introduced an artificial intelligence system to detect traffic violations in the Emirate. The Vehicular Attention and Safety Tracker or VAST system will come into force on 1 January 2021 and will enable the automatic detection of seatbelt and mobile phone use violations.