Tanya Jain, Author at LexisNexis Middle East

Kuwait: Electronic Real Estate Brokerage System Launched

11/10/202311/10/2023
by Tanya Jain

Alrai, 8 October 2023: The Undersecretary of the Trade and Industry Ministry Ziad Alnajem has announced the launch and activation of the first stage of a new Electronic Real Estate Broker system in Kuwait.

The system is intended to help prevent fraudulent real estate sales. It will help link up five relevant government departments – the Trade and Industry Ministry, the General Authority for Civil Information, the Justice Ministry, the Kuwait Municipality, and the fire brigade, as well as the purchaser and seller. It will also see the end of paper-based transactions in the local property market.

Read the full story here.

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News developments

Dubai: International Arbitration Centre Mediation Rules Come into Force

11/10/202311/10/2023
by Tanya Jain

The Mediation Rules approved by the Dubai International Arbitration Centre in July 2023 have come into force. They came into force on 1 October and mean all new mediation requests submitted to the Centre after this date will be governed by the Rules.

This will be subject to the introductory provisions set out in the Rules.

The Rules will apply where the parties have agreed to mediate their dispute at the Centre. Any party may refer a dispute to mediation at the Centre regardless of whether there is a pre-existing agreement to mediate.

Where there is a pre-existing agreement to mediate, the Rules will apply to mediations which start after the date the Rules came into force regardless of the date on which the agreement to mediate was entered into.

The parties may agree in writing to modify the Rules to the extent that the modiﬁcations are within the spirit of the Rules and do not render them inoperable, providing the modifications are approved by the mediator.

The aim is for all mediations to be conducted fairly, impartially, efﬁciently and proportionately with the sum(s) claimed and/or counterclaimed and the complexity of the dispute being taken into account.

The mediator, the parties and the parties’ representatives undertake to conduct the mediation in line with this objective. The party requesting mediation must submit an application to the Centre in the specified form and send a copy to the responding party at the same time.

The responding party will submit a reply in the specified form to the Centre and send a copy to the requesting party at the same time within 15 days of being notified of the application.

The Centre may grant the responding party an extension of up to seven days to ﬁle a reply, provided that the request for an extension contains the responding party’s consent that the dispute be referred to mediation under the Rules, if requested.

If no reply is received from the Centre within the specified time limits or within the additional time determined by the Centre in its discretion, it will be considered that the responding party does not consent to the dispute being referred to mediation under the Rules and the mediation will not proceed.

Where the parties reach an agreement to refer the dispute to mediation in line with the Rules, the mediation will start on the date the Centre sends written conﬁrmation to the parties that agreement to this effect has been reached.

The Rules also contain provisions on notifications, communications and calculation of time limits, mediation costs, appointment of mediators, conduct of the mediation and conclusion of the mediation.

In addition, they contain provisions on confidentiality, the functions of the Centre and Arbitration Court, exclusion of liability and document retention.

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News developments

UAE: Free Zones Council Considering Preferential Free Zones Option

06/10/202306/10/2023
by Tanya Jain

Gulf News (United Arab Emirates), 4 October 2023: Dubai’s Free Zones Council has discussed a range of measures to enable companies to choose their preferred free zones in the Emirate.

The measures will also encourage startups.

In addition, they will enable entrepreneurs to establish in the free zones.

The Council also discussed regulating the free zone-licensed establishments’ mainland activities. These activities include obtaining a permit from the respective licensing authority. They also include coordinating with the relevant free zone authority and opening a branch in the Emirate to carry out business activities from the same location in the free zone, in line with the procedures enforced by the licensing authority. However, specific legal procedures will have to be followed.

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News developments

UAE: Mandatory Job Loss Insurance Scheme Now in Force

06/10/202306/10/2023
by Tanya Jain

Gulf News (United Arab Emirates), 1 October 2023: The mandatory job loss insurance scheme is now in force. It means employees will now be fined 400 AED.

Employees who subscribe to the scheme but fail to pay the premiums for more than three months will now have their insurance certificate cancelled and be fined 200 AED.

If employees fail to pay the fines for three months from the due date, the amount will be deducted from their wages through the Wage Protection System, end-of-service gratuity, or any other alternative method deemed acceptable by the Human Resources and Emiratisation Ministry. This penalty will be specified in the relevant Ministerial Decision.

Under the relevant Ministerial Decision, employees will not be eligible for a new work permit until all fines owed are paid within the specified timeframe.

Investors, domestic helpers, temporary contract workers, those under 18, and retirees who are entitled to a pension and have started a new job are exempt.

Employees had to pay a premium to subscribe to the scheme. If they lose their jobs for anything other than disciplinary action or resignation, they will receive financial support for up to three months.

Premiums can be paid monthly, quarterly, bi-annually, or annually. To get the support employees must be subscribed to the scheme for at least 12 months. Subscriptions to the scheme began in January 2023 so if an employee subscribed to it in January, they will become eligible for compensation only if they lose their job after December 2023. If a person subscribes to the scheme this month, they will only become eligible after 12 months have passed.

Private sector employees, federal government departments, and free zones had until 1 October to subscribe to the Involuntary Loss of Employment (ILOE) scheme.

There are two types of plans. Category A is available to employees with a basic salary of 16,000 AED or less. The premium will be five AED plus VAT a month and will provide an employee with 60% of their basic salary up to 10,000 AED a month.

Category B is available to employees with a basic salary of more than 16,000 AED. The premium will be 10 AED plus VAT a month and will provide an employee with 60% of basic salary; up to 20,000 AED a month.

The benefits of the scheme will stop if the beneficiary gets a new job or leaves the UAE.

The employee must not have an existing absconding complaint against them.

Claims must be submitted within 30 days from the date of termination or the settlement of a labour complaint referred to the judiciary.

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News developments

Saudi Arabia: Vehicle Insurance Violations Now Being Monitored Electronically

06/10/202306/10/2023
by Tanya Jain

Saudi Gazette, 1 October 2023: Saudi Arabia’s General Traffic Department has announced vehicle insurance violations are now being monitored.

Violations will be committed where the owners of vehicles don’t have valid insurance.

Violations will be monitored every 15 days across the Kingdom.

Owners of vehicles without valid insurance will be fined between 100 and 150 Riyals.

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News developments

Qatar: Stock Exchange Amends Eligible Securities List

06/10/202306/10/2023
by Tanya Jain

Gulf Times, 2 October 2023: Qatar’s Stock Exchange has announced it has amended the eligible securities list. The list states who can carry out market making, liquidity provision, margin trading, and covered short‐selling activities.

The Exchange has added more companies to the list. The new list will come into force on 2 October.

The constituents of the 20-stock Qatar Index and Al Rayan Islamic Index will be eligible for margin trading and covered short-selling.

Stocks of companies with an annual turnover rate equal to or greater than 10%, and a quarterly turnover rate in their trades exceeding 80% of trading days in each quarter, are also now eligible.

In addition, tradable units of the exchange-traded funds QE Index ETF and the Al Rayan Qatar ETF are eligible for margin trading and cover short-selling. Companies with at least one liquidity provider or market maker are eligible as well.

The securities are eligible for margin trading and covered short-selling are Ooredoo, Qamco, Qatar Insurance, QATR, QETF, Qatar Electricity and Water, Qatar Islamic Bank, Woqod, Qatari German Medical Supplies, Nakilat, Qatar Islamic Insurance, QIIB, Qatari Investors Group, Qatar Industrial Manufacturing Company, QLM, QNB, Qatar National Cement, Milaha, Qatar Oman Investment, Salam International Investment, United Development Company, Vodafone Qatar, Widam Food and Zad Holding.

Aamal Company, Al Khaleej Takaful, Baladna, Barwa, Commercial Bank, Dlala, Doha Bank, Dukhan Bank, Ezdan, Al Faleh Educational Holding, Gulf International Services, Gulf Warehousing, Estithmar Holding, Inma Holding, Industries Qatar, Masraf Al Rayan, Mannai Corporation, Medicare Group, Al Meera, Meeza, Mahhar Holding, Mekdam Holding, Mesaieed Petrochemical Holding, Mazaya Qatar and Alijarah Holding are also eligible.

In addition, all companies listed on the main market and the venture market, and all exchange-traded funds listed on the Exchange are eligible for market maker and liquidity provider activities.

Finally, all securities qualified for covered short-selling are eligible for lending and borrowing activities, and brokers of any stocks excluded from the qualified list will have three months to close open positions of the relevant activities.

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News developments

Oman: Banks Have to Maintain Bounced Cheque Defaulters List

06/10/202306/10/2023
by Tanya Jain

Oman Daily Observer, 1 October 2023: Oman’s Central Bank has approved a Decision requiring banks to maintain a list of bounced cheque defaulters.

Oman Resolution No. BM/9/57/2023 regulates the direct debit system and bounced cheques.

Among other things, licensed banks must provide all details related to bounced cheques, especially details relating to account holders who have two or more bounced cheques in a month, four or more bounced cheques over six months, or six bounced cheques within one year, regardless of whether those cheques were returned through one or more banks.

Banks also have to provide the names and IDs of the owners of the bounced cheque, the numbers and dates of its issuing and return, the amounts, beneficiary names and the reasons for it bouncing.

In addition, they must provide any other information specified by the Central Bank for the purposes of analysing information and setting policies.

Licensed banks will be responsible for the accuracy and updating of the information related to the bounced cheque.

The Central Bank or the hosting entity will prepare a unified warning list of the names of the account holders based on the information received from the licensed banks.

Licensed banks, financial institutions, credit bureaus, their participating members, and others, as determined by the Central Bank, may also review the warning list to benefit from it for the purpose of assessing credit status and financial solvency.

Licensed banks or any authorised person may not use the system to benefit from information related to the bounced cheques for the purposes for which it was requested.

Licensed banks must also exercise caution when dealing with account holders whose names appear on the unified warning list and must withdraw cheque books from them. They must also not open current accounts for them and refrain from providing them with direct debit services for one year from the date of returning the returned instrument, without prejudice, apart from imposing any fines or actions determined by the Central Bank.

Licensed banks may remove the name from the list if account holders of those returned cheques have settled their obligations towards the beneficiary too.

Licensed banks should obtain a document proving settlement and maintain evidential documents as well.

The Central Bank may fine violators 20,000 Rials.

Also reported in Shabiba on 1 October 2023. For the full story, read here.

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News developments

Kuwait: Cost of Living Allowance Could be Increased

05/10/202305/10/2023
by Tanya Jain

Alqabas, 1 October 2023: A Kuwaiti government source has announced the government is studying a cost of living allowance increase. They are considering increasing it from 120 to 250 Dinars.

The source added the government will work to stabilise prices first and then approve any financial increases. They went on to say the government implements a joint mechanism for up to 90 days to control any high prices affecting consumer goods and products in cooperative associations, retail stores and parallel markets.

Read the full story here.

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News developments

Dubai: Land Department Launches Munaqasat Service

05/10/202305/10/2023
by Tanya Jain

Gulf News (United Arab Emirates), 2 October 2023: Dubai’s Land Department has announced it has launched a new Munaqasat service to improve transparency in the sector and ensure top-quality services at competitive prices.

It will be available via the Real Estate Regulatory Agency and will regulate tendering processes for all matters related to services and maintenance for jointly owned properties.

It will facilitate and simplify the tender process and establish a direct link between jointly owned property companies and service providers.

Jointly owned properties will have to submit all tenders through the service following the submission of their 2024 budgets which must be submitted by October 2023.

A specialist technical team will then submit tasks, assess firms, and provide recommendations. A finance team will then review the technical aspects and set prices for each necessary service.

The average of the technical and financial scores determines the final tender selection.

Tenders will then be initiated, allowing service providers to participate via the new service. They can register as suppliers, which will give them access to all relevant tenders based on their registered activities.

Additional features will be added by 2024 that will allow property owners to evaluate the performance of service providers. Owners’ committees will also have access to view presented tenders, which will improve transparency further and engage the real estate sector.

It has been launched in line with Dubai’s Digital Strategy.

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News developments

Abu Dhabi: Government Empowerment Department Established

05/10/202305/10/2023
by Tanya Jain

Gulf News (United Arab Emirates), 28 September 2023: Abu Dhabi’s Ruler has issued a law to establish the Government Empowerment Department-Abu Dhabi.

The new Department will be responsible for providing services to government entities in the Emirate.

It will have a focus on improving human capital and digital capacity.

It will provide digital government services and boost collaboration to improve efficiency and productivity in government bodies.

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