Benjamin Filaferro, Author at LexisNexis Middle East

UAE: Global Market Launches Public Consultation on Proposed Company Service Providers’ Framework

30/10/202030/10/2020
by Benjamin Filaferro

Abu Dhabi Global Market’s Registration Authority has launched a public consultation on its proposed Company Service Providers’ framework. It will end on 24 November 2020. The proposed framework will make it mandatory for particular special purpose vehicles and foundations to appoint Company Service Providers. They will also have to impose regulatory requirements on those providers. The aim of the framework is to protect Global Market entities and adapt to the success and increasing demand for Global Market special purpose vehicles and foundations. These structures have introduced several challenges and risks, particularly for entities which do not have a direct connection to the UAE or the Global Market. Transition periods have been proposed for the affected entities and for existing Company Service Providers wanting to engage in these activities under the new framework.

Weekly Spotlight

UAE: Country’s Commercial Transactions Federal Law No. 18/1993 Amended

30/10/202030/10/2020
by Benjamin Filaferro

The UAE’s Cabinet has approved amendments to the country’s Commercial Transactions Law (Federal Law No. 18/1993). A Decree-Law to this effect has been approved. It will come into force in 2022.
The amendments include changing certain provision covering bounced cheques and the issuing of cheques without value, by providing fast, advanced and civil mechanisms to collect the outstanding payments. The amendments also re-define crimes involving cheques have been redefined.
In addition, several mechanisms and alternatives will be introduced to ensure payments are collected by cheque simply and quickly. For example, banks will have to partially pay the amount after deducting the total amount available to the beneficiary and make bounced cheques an executive document to be executed directly by an appropriate judge in court.
The amendments will introduce several ancillary penalties, including cancelling the cheque books of convicts and preventing them from obtaining new ones for up to five years. They will also be suspended from practising professional or commercial activities. Additional penalties for legal persons except banks and financial institutions will also be introduced. These penalties will include fines and licenses may be suspended for up to six months. Those who repeat violations will have their licenses revoked or dissolved.
Other amendments cover the opening of joint accounts between two and more people. If one of the joint account holders dies or loses legal control, the other joint account holders will have to notify the bank within ten days of the date of death or disqualification. The bank will then have to limit the ability to withdraw from the joint account within a party’s share of the account balance on the day of death or loss of eligibility.
This provision will apply from the day after the Decree-Law is published in the Official Gazette.
The aim of the amendments is to avoid criminal lawsuits and facilitate related procedures, by encouraging reconciliation and encouraging the value of the original cheque to be paid as the main condition a criminal lawsuit to be avoided.

News developments

Saudi Arabia: Fintech Saudi Launches Fintech System Directory

25/10/202025/10/2020
by Benjamin Filaferro

Fintech Saudi has announced it has launched a new Fintech System Directory. It is part of the Organisation’s moves to develop this system in the Kingdom. The free directory will be publicly available on Fintech Saudi’s website. It provides a comprehensive database of the key support services and partners Fintech companies in the Kingdom may need. It is divided into five main categories. These include investors, financial institutions, infrastructure providers, service providers and IT providers. It also provides the details of 32 companies. These details include their contact information, services which can be provided and any exclusive offers or discounts which can be provided to Fintech entities. The launch of the directory follows applications for the Fintech Accelerator being accepted from October this year. The Accelerator offers an intensive three-month entrepreneurship programme which is aimed at helping Fintech communities grow and expand their businesses. Fintech Saudi will also launch Fintech Tour 20 which will be a series of high-profile events to increase public engagement in the Fintech industry at the end of next month.

News developments

Qatar: New Rules for Installing Surveillance Cameras Announced

25/10/202025/10/2020
by Benjamin Filaferro

Qatar’s Interior Ministry has announced new rules for installing surveillance cameras at Government entities and private companies in the country. The rules will be specified by the appropriate authority. The rules will vary depending on the type of company or institution. Under the rules, before surveillance cameras are installed, the relevant party has to get approval from the Security Systems Department. Permits will also be issued to specific exhibitions and institutions.

News developments

Oman: VAT Penalties Announced

25/10/202025/10/2020
by Benjamin Filaferro

Tax experts in Oman have announced the VAT penalties have been approved. The penalties will include fines and jail terms for violators. The fines will vary between 1,000 and 10,000 Rials. Violators will be jailed for between two months and a year. Violators could be fined and jailed. The penalties will be doubled for repeat offenders. However, the jail terms may not be increased by more than 50%. Offences which will result in penalties include taxable entities which deliberately fail to identify the ‘responsible person’. This person is the company’s designated point of reference on tax matters. Legal action may also be taken ‘the responsible person deliberately fails to notify the Oman Tax Authority and obtain its consent to appoint another responsible person during the period of his absence for a period of more than 90 days’. Unauthorised fudging of data, failure to tax returns, failure to maintain tax invoices and documents in the prescribed way, failure to respond to a summons and submitting inaccurate data to secure a refund will also result in penalties being imposed. In addition, late tax payments will lead to 1% of the tax owed for every month or part of a month it remains pending being imposed.

News developments

Kuwait: Draft Demographic Imbalance Law Approved

25/10/202025/10/2020
by Benjamin Filaferro

Kuwait’s National Assembly has approved the country’s draft Demographic Imbalance Law. If approved, it will allow the Government to specify the maximum numbers of expatriates in the country. They will have to submit regular demographic imbalance reports to the Assembly. Exemptions for the children and husbands of Kuwaiti women married to foreigners and other GCC citizens have been removed. The penalty provisions in the Law have also been removed as there are stricter penalties in other legislation like the Foreigners Law. It has been referred to the Government to consider further.

News developments

Bahrain: Draft Protection of New Plant Varieties Law Approved

25/10/202025/10/2020
by Benjamin Filaferro

Bahrain’s Public Utilities and Environment Committee has approved a draft law to implement the International Convention for the Protection of New Plant Varieties. It will protect new plant varieties in the Kingdom, regulate the rights and duties of plant breeders and support investment in scientific research and agriculture to develop new plant varieties of high economic and productive value. The explanatory memorandum to the draft law states the justifications for the law is to protect new plant varieties, regulate the conditions for protecting plant varieties, specify the duration of protection and the exceptions. It also states the controls of compulsory licenses, and the precautionary measures to protect Plant breeder rights. In addition, it specifies criminal penalties for violating their rights or violating the law.

News developments

UAE: Abu Dhabi Public Consultation on Proposed Amendments to Application of English Law Regulations 2015

25/10/202025/10/2020
by Benjamin Filaferro

The Abu Dhabi Global Market has launched a public consultation on proposed amendments to its Application of English Law Regulations (AELRs) 2015. The consultation ends on 15 November 2020. The Regulations are the cornerstone of the Market’s legislative framework. Since their introduction in 2015, certain English Statutes in the Regulations have been amended in England. The amendments made in England have no legal effect in the Global Market, unless they are incorporated by the Board of the Global Market into the Regulations. The aim of the proposed amendments is to enhance the current Regulations by reflecting and incorporating appropriate amendments made in England to the English Statutes, as well as introducing additional English statutes.

Weekly Spotlight

UAE: Bankruptcy Law Amendments Approved

25/10/202025/10/2020
by Benjamin Filaferro

The UAE’s Cabinet has approved amendments to the country’s Bankruptcy Law.
The amendments to Federal Decree-Law No. 9/2016 add new provisions in terms of ’emergency situations’ which interrupt trade or investment. The aim is to enable individuals and businesses to overcome credit challenges in times of extreme events like pandemics, natural and environmental disasters and wars.
They are also aimed at ensuring obligations are met and losses are mitigated against in cases of default without prejudice to the Law and enable creditors to secure their rights.
The new amendments also state the debtor will be exempt from starting procedures to declare bankruptcy. If the debtor files an application which would be approved by the relevant court, they may reach a settlement with creditors. They may request a grace period, or negotiate a debt settlement period of up to 12 months.
In addition, the relevant court, where a bankruptcy application is approved, will not take any proceedings involving the debtors’ funds which are needed to keep businesses running during the set period in case they default on debt because of an emergency.
Finally, the amendments offer the possibility of getting new financing in line with specific terms and conditions to secure the liquidity needed to recover businesses and enable them to survive challenges in time of emergencies.
The amendments are part of the Government’s moves to develop the legal and legislative frameworks in various sectors, particularly the economic sector.

News developments

Saudi Arabia: Article 14 of Anti-Bribery Law Amended

17/10/202017/10/2020
by Benjamin Filaferro

Saudi Arabia’s Council of Ministers has approved an amendment to Article 14 of the Kingdom’s Anti-Bribery Law. Under the amendment, the Interior Minister, following a recommendation from the committee consisting of the Interior Ministry, the Human Resources and Social Development Ministry and the Supervision and Anti-Corruption Authority to issue a decision to reconsider the ancillary penalties after five years have passed from the date of the end of the implementation of the original punishment. The Interior Minister will approve the remit of the committee’s work.