Benjamin Filaferro, Author at LexisNexis Middle East

DIFC: Group Health Scheme for Registered Firms

08/06/202008/06/2020
by Benjamin Filaferro

The Dubai International Financial Centre (DIFC), has signed a memorandum of understanding (MoU) with EC3 Brokers to implement a Group Health Insurance Master Policy. The Group Health scheme will be available to over 2,400 active registered firms in DIFC who provide health insurance for mandatory health cover to their 25,600 staff and their dependents. As part of the agreement, EC3 Brokers will act as an intermediary to facilitate the tendering process to shortlist the insurer and the third party administrator contractual partners in the UAE. Criteria will be agreed by both DIFC and EC3 Brokers. The idea is to reduce costs for firms operating in the DIFC.

News developments

Saudi Arabia: Private Sector Employment Guidelines Issued

08/06/202008/06/2020
by Benjamin Filaferro

The Human Resources and Social Development Ministry in Saudi has issued detailed COVID-19 guidance on returning to work in the private sector. Issues covered include communal areas, travel to work, best practice while in the work environment and employer’s reporting responsibilities.

News developments

Kuwait: New Amendments to the Labour Law Being in Consideration

08/06/202008/06/2020
by Benjamin Filaferro

Kuwait is considering a draft bill to amend the labour law in the civil sector in order to allow companies which have been impacted by COVID-19 to agree with their employees to reduce their salaries during the crisis. The government has referred the draft bill to the parliamentary financial committee which is looking at remedying the impact of the coronavirus on the labour market.

News developments

Bahrain: Reduced Fees on Personal Loans Implemented

08/06/202008/06/2020
by Benjamin Filaferro

New administrative fees have been set by the Bahraini Central Bank which will apply to personal, certain real estate property loans from 1 June 2020. The new fees are less than the ones imposed previously by banks and will enable the customers to get loans at a lower cost and ensure greater transparency in the mechanism for calculating these fees. The rates are 100 Dinars for personal and vehicle loans and 200 to 500 Dinars for real estate property loans.

Weekly Spotlight

Weekly Spotlight: New DIFC Data Protection Law Enacted

08/06/202008/06/2020
by Benjamin Filaferro

The Ruler of Dubai has enacted the new DIFC Data Protection DIFC Law No. 5/ 2020. The new law will come into effect from 1 July 2020 and current DIFC Data Protection Law, DIFC Law No. 1/2007, will remain in effect until this date. New DIFC Data Protection Regulations which set out the procedures for notifications to the Commissioner of Data Protection, accountability, record keeping, fines and adequate jurisdictions for cross-border transfers of personal data have also been issued.

The DIFC’s updated Data Protection Law and Regulations set out expectations for Controllers and Processors in the DIFC on several key privacy and security principles. The Data Protection Law combines the best practices from a variety of current, global data protection laws, including the EU’s General Data Protection Regulation (GDPR), the California Consumer Privacy Act and other advance technology agnostic concepts. They will enable DIFC to continue to build upon the Centre’s reputation as a leading global financial centre while also promoting ethical data sharing. The new Data Protection Law and Regulations provide a framework that will support DIFC’s bid for adequacy recognition by the European Commission, the UUK and other jurisdictions, easing data transfer compliance requirements for DIFC businesses.

The changes legislate for accountability of Controllers and Processors through compliance programmes requirements, appointing data protection officers where necessary, conducting data protection impact assessments and imposing contractual obligations that protect individuals and their personal data. Enhanced rights of individuals are clarified in terms of data usage by entities that collect and manage personal data, including contractual clarity on such rights when engaging with vendors of emerging technologies, such as Blockchain and Artificial Intelligence (AI). Permit options for cross-border data transfers and special category personal data processing have been removed. The new Law and Regulations include appropriate data sharing structures between government authorities, which represent a key step forward in data sharing standards within the UAE and the region.

General fines for serious breaches of the Law, in addition to or instead of administrative fines, and ncreased maximum fine limits, have been introduced. In light of the current global pandemic, while DIFC Law No. 5/ 2020 will be effective from 1 July 2020, businesses to which it applies have a grace period of three months, until 1 October 2020, to prepare to comply with it, after which it becomes enforceable.

News developments

UAE: New draft movable assets law

29/05/202029/05/2020
by Benjamin Filaferro

The UAE’s Federal National Council has approved a draft movable assets law. If approved further, it will repeal Federal Law No. 20/2016 on the Mortgage of Moveable Property to Secure Debt. It will now apply to tangible and intangible assets as well as existing and future assets. In addition, it will cover rights to claim payments on funds deposited with financial institutions and give a right to enforce obligations of counterparties under a contract. Receivables, credit balances with banks and other financial institution, written instruments transferable by delivery or endorsement, including commercial papers like promissory notes, bank certificates and bills of lading, vehicles and equipment will also be covered. Animals, animal products and agricultural crops will be covered by the law as well. However, movable assets which guarantee wage rights, worker benefits, public funds, endowment funds and funds held by diplomats and consulates and international government organisations are not covered by the draft law. ‘Secured obligations’ will be required, which will include all current and future obligations of the debtor or borrower. An upper limit of the amount secured will have to be provided and this threshold will be laid out in subsequent legislation. Under the law, a ‘security interest’ will be enforceable against third-parties and have priority over other debts. The first security interest registered will have priority over later ones. A new Register for Rights Over Movable Assets will be established and the Finance Minister will recommend the assets which should be added to this Register. Anyone who violates the law will be jailed and/or fined 60,000 AED.

News developments

Oman: 50% Pay Cut Clarification Issued

17/05/202014/05/2020
by Benjamin Filaferro

Oman’s Manpower Ministry has issued a clarification on reports of pay being cut by 50%. The Ministry was responding to reports in other media saying employers were cutting pay by 50% instead of 30%. The Ministry said the Supreme Anti-Coronavirus Committee has not approved a percentage cut to employee pay once an employee has used up all their paid annual leave. Once the paid annual leave has been used up employers can negotiate reductions in their pay for three months. Any reductions must be accompanied by a reduction in working time.

News developments

Saudi Arabia: VAT Rate Tripled from 5% to 15%

16/05/202014/05/2020
by Benjamin Filaferro

According to local media reports, Saudi Arabia’s Finance Ministry has tripled the VAT rate from 5% to 15%. The increased rate will come into effect on 1 July. The cost of living allowance will be withdrawn from 1 June. It comes as the Kingdom’s economy tackles plunging oil prices and Coronavirus. The Finance Minister added some Government projects could be slowed down to help reduce spending. According to sources, this could include a 30 billion Riyal cut in projects related to Vision 2030 in the Kingdom. In a related development, the country’s General Authority of Zakat and Tax have called for nationals and expatriates to report anyone who increases VAT on their goods before then via the call centre on 19993 or the VAT application on smart phones. Anyone who violates this Decision will be prosecuted.

News developments

Dubai International Financial Centre Amends Real Property Regulations

15/05/202014/05/2020
by Benjamin Filaferro

The Dubai International Financial Centre Authority has enacted amendments to the 2018 Real Property Regulations which came into force on 12 November 2018. This was when the Real Property Law, DIFC Law No. 10/2018 was enacted. The amendments come into force today and mean the enforcement and compliance regimes under DIFC Law No. 10/2018 and the Real Property Regulations are brought into line with the DIFC Operating Regulations which came into force on 12 November 2018. This has been done by explicitly categorising all Real Property Law contraventions as offences, providing a mechanism for fines to be enforced and the Decision Making Procedures applied. The Regulations also now identify a separate form of notification for Indirect Interest transfers and provide the Registrar with the power to make default assessments of the Transfer Fee with the onus of evidence reversed.

News developments

Qatar: Wireless Home Area Network Class License Issued

14/05/202014/05/2020
by Benjamin Filaferro

Qatar’s Communications Regulatory Authority has announced it has issued a Class License for Wireless Home Area Networks. The license was issued in line with Chapter 3 of Qatar Decree-Law No. 34/2006 (the Telecommunications Law as amended). It covers anyone in this category and they do not have to request this license. This Class License relates to wireless networks which facilitate communication between groups of devices and equipment in or near homes. Among other things, the class license covers clock devices, speakers and home theatre systems. It also covers lighting control systems, doorbell control systems, security cameras and monitoring systems. In addition, it covers window and window blinds systems, cooling, air conditioning and water heating systems in homes, kitchen appliances, metre reading systems.