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Lexis Middle East HR Alert – July 2025 Edition

04/08/202504/08/2025
by Hannah Gutang

In this edition of the Lexis Middle East HR Alert, we explore the most pressing legal, regulatory, and HR developments shaping the employment landscape across the region, with a particular focus on the ongoing impact of nationalisation policies. These legislative initiatives remain a central concern for HR professionals, regardless of their industry or jurisdiction. Alongside the need to understand the evolving legal requirements, organisations must also adopt a practical and culturally sensitive approach to implementation. In our featured interview, the Head of HR Operations at Al Tamimi & Company shares how their organisation is proactively and innovatively adapting to these changes. However, not all responses have been as constructive—some employers are attempting to circumvent the rules through misreporting or fraudulent hiring practices. With the introduction of stricter enforcement mechanisms and the implementation of Cabinet Decision No. 43/2025, the UAE authorities are shifting from discretionary to structured penalties, significantly increasing the scope of punishable offences and the severity of fines. The Ministry of Human Resources and Emiratisation’s Enforcement Report 2024 underscores the government’s readiness to prosecute offenders, further raising the stakes for non-compliance. This edition offers practical insights and guidance to help organisations assess their compliance status and, where necessary, take swift and innovative action to align with nationalisation goals in a responsible and sustainable manner.

Empower your HR strategy with cutting-edge analysis from Lexis Middle East HR Alert, delivering the latest updates shaping workplaces in the Middle East.

Happy reading!

This edition features a diverse range of content, including:

FEATURE: GETTING TOUCH

Raka Roy and Yusur Dalloul of Galadari Advocates and Legal Consultants delve into the UAE’s stricter enforcement measures against individuals and companies that falsify records to bypass Emiratisation rules or improperly benefit from related incentives.

TREND SETTER: AUTOMATED WORKFORCE MONITORING

Diana Froyland, Senior Counsel at Hadef & Partners, examines the implications of automated employee monitoring in the UAE and the data privacy concerns it raises for employers and HR teams.

NEWS ROUND-UP: COVERING RECENT KEY DEVELOPMENTS – REGION-WIDE

This section presents a curated summary of major legal and HR updates from across the region, including the latest on Oman’s immigration grace period.

IMMIGRATION FOCUS: SAUDI VISIT VISA CHANGES

Experts from Vialto Partners explain the recent revisions to Saudi Arabia’s visit visa policies, which now affect travellers from 14 countries, highlighting compliance considerations for affected stakeholders.

LAW CHANGES: NEW AND PROPOSED MENA LAWS

Aarti Thadani and Sarah Sheppard from Norton Rose Fulbright (Middle East) LLP discuss the anticipated impact of Dubai Decree No. 19/2025, a regulatory shift set to enhance health and safety protocols in the emirate’s construction sector.

CASE FOCUS

A recent ruling from the QICDRC in Zia Ur Rehman v Forvis Mazars LLC [2025] QIC (A) 7 (issued 14 May 2025) underscores the need for robust evidence in breach of contract claims, the conditions under which non-compete compensation may apply, and the high threshold for appeals.

Enrich your understanding of the HR landscape and stay up-to-date with the latest trends, cases, and policies through the newest issue of Lexis Middle East – HR Alert.

For all the latest industry updates and developments, opt for a free HR Alert subscription!

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.

Lexis Middle East HR Alert_July 2025

Have you read the Lexis® Middle East HR Alert – previous editions? Click the links below to access and read these editions.

Lexis Middle East HR Alert_May 2025

Lexis Middle East HR Alert_March 2025

Lexis Middle East HR Alert_January 2025

Lexis Middle East HR Alert_October 2024

HR PROFILE: AN AGILE APPROACH TO CHANGE

Samia AlRajaby, Head of HR Operations at Al Tamimi & Company, shares how adopting an agile mindset has empowered her to navigate technological transformation and shifting generational expectations.

IN-HOUSE PROFILE: PRACTITIONER PERSPECTIVE

Ben Brown, Sara Khoja and Sarit Thomas of Clyde & Co offer insights into evolving leave policies following a significant recent decision by the Abu Dhabi Courts, urging a strategic review for in-house teams.

POLICY POINTERS: FRACTIONAL EXECUTIVES IN SAUDI ARABIA

Dr. Sairah Narmah-Alqasim, Partner at Pinsent Masons, explores the growing adoption of fractional executives in Saudi Arabia, driven by remote work and the Regional Headquarters Programme, and highlights key policy considerations such as Saudisation.

MOVES AND CHANGES

Stay informed with the latest executive appointments, promotions, and market trends shaping the business landscape across the region.

UAE: Bankruptcy Court Created

31/07/202531/07/2025
by Hannah Gutang

Khaleej Times, 24 July 2025: The Ministry of Justice announced a decision regarding the organisation of the Bankruptcy Court, which will be headquartered at the Abu Dhabi Federal Court of First Instance.

The court will be responsible for adjudicating all applications and disputes arising from the implementation of the provisions of the Federal Decree-Law on Financial Reorganisation and Bankruptcy (Federal Decree-Law No. 51/2023). The Federal Judiciary Council will also be able to establish one or more branches of the court in any other emirate, subordinate to the main court, to handle these applications and disputes.

The court shall consist of a chief judge with a rank no lower than that of an appellate judge, and several specialised judges appointed by the Federal Judiciary Council.

A bankruptcy division will also be created within the court, headed by a judge of at least appellate rank, which will be responsible for tasks, including receiving applications, objections, and grievances, registering applications, among others.

The court will be able to engage professionals with relevant experience and expertise to perform various tasks such as managing the debtor’s funds and business operations, implementing precautionary measures, expediting procedures, meeting with creditors, and hearing the debtor or their representative on matters related to debts, assets, or operations.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

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Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Saudi Arabia: New Arabic Data Governance Platform

31/07/202531/07/2025
by Hannah Gutang

Arab News, 23 July 2025: A newly launched platform will allow Saudi companies to align their data regulations with national AI policies.

Governata will enable companies to coordinate with the Kingdom’s National Data Management Office, or NDMO, and Saudi Data and AI Authority, or SDAIA, guidelines. All the data remains hosted domestically.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Oman: New Mandatory Annual Pay Rises for Private Sector Workers

31/07/202531/07/2025
by Hannah Gutang

The Arabian Stories, 27 July 2025: The Omani Ministry of Labour has implemented new regulations requiring private sector employers to provide annual salary increases based on employee performance ratings.

Under Sultani Ministerial Decision No. 317/2025, Omani workers who have completed six months of employment will be eligible for yearly increments each January, with increases determined by their performance appraisal scores.

The new payment structure establishes clear percentage increases tied to performance ratings: Excellent performance: 5% basic wage increase, Very Good performance: 4% increase, Good performance: 3% increase, Acceptable performance: 2% increase, Weak performance: No increase.

Employers failing to comply with the new regulations face penalties of RO 50 per violation, with fines multiplied by the number of affected employees.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

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Kuwait: New Building Regulations Apply Only to Free Zone Service Sector

31/07/202531/07/2025
by Hannah Gutang

Kuwait Times, 26 July 2025: Kuwait Municipality has confirmed that recent amendments to building specifications apply exclusively to the free zone’s service sector (16), and not to the broader Shuwaikh and Al-Rai areas.

Municipality Director clarified that the new regulations maintain the existing 150 percent building area allowance for hotels within service plots, while introducing the option for multiple basement levels.

The updated specifications establish specific requirements for sector (16):

Maximum building coverage of 130 percent across three floors
Minimum shop and showroom sizes of 100 square metres
Office spaces no smaller than 150 square metres on ground and mezzanine floors
Increased restaurant allocation from 5 to 10 percent
Mandatory on-site parking provision

They also noted that the former free zone, now under the Public Authority for Industry’s jurisdiction, permits various commercial activities, including:

Administrative offices
Retail shops
Banking services
Health clubs
Hotels
Warehousing facilities

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

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Bahrain: Expands Digital Building Permit System with New Features

31/07/202531/07/2025
by Hannah Gutang

The Daily Tribune, 26 July 2025: Bahrain’s Ministry of Municipalities Affairs and Agriculture has introduced new updates to its national building permit platform “Benayat”, expanding digital services for property development applications.

The enhancement details were unveiled at a recent workshop coordinated by the Information & eGovernment Authority and the Bahrain Real Estate Development Association, where officials demonstrated the system’s technical procedures to real estate developers and investors.

The platform now processes various permit types, including:

Small-scale property additions
Renovations
Fencing installations
Property merging and division
Land use modifications

The system operates on a comprehensive geographic information database comprising over 300 spatial data layers and serves more than 30 public and private organisations. Users can track application status and navigate an interactive map of Bahrain through the platform.

During the workshop, the Information & eGovernment Authority provided detailed guidance on the permit application process through “Benayat”, which functions as a unified system for all building licence categories in the kingdom.

They also outlined how the platform enables engineering offices and property owners to submit applications, process payments, and access regulatory information through a centralised online service.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

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UAE: Agreement with US on Patent Procedures

25/07/202525/07/2025
by Hannah Gutang

Khaleej Times, 20 July 2025: The UAE and the US signed a statement that aims to accelerate patent-granting procedures in the UAE

The agreement was signed at the 66th Assemblies of the Member States of the World Intellectual Property Organisation (WIPO) in Geneva, by the Ministry of Economy and Tourism and the US Patent and Trademark Office (USPTO).

The Joint Statement of Intent aims to launch a bilateral cooperation programme which provides collaborative mechanisms to recognise positive examination results issued by the USPTO for corresponding Emirati patent applications.

This will be implemented in accordance with applicable national laws.

The focus is on industrial property rights and the development of patent registration procedures that provide flexible and efficient services which support an innovation-driven and entrepreneurial environment.

This partnership with the US side is part of a new push to accelerate patent issuance by strengthening international cooperation and adopting advanced operational models.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

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Qatar: E-Payment Service for Judicial Fees

25/07/202525/07/2025
by Hannah Gutang

Qatar Tribune, 22 July 2025: The Supreme Judiciary Council (SJC) has launched the first package of electronic payment services in partnership with Qatar National Bank (QNB).

Payments will be able to be made through an integrated electronic payment gateway aimed at facilitating judicial procedures and enabling parties to pay deposits and judicial fees in a safe, fast, and easy digital way. The Council aims to provide payment channels that support a number of different card types and modern payment features for a number of services, such as Apple Pay.

This will enable users to pay court fees, execution requests, and deposits through the Courts Portal and the Courts app, as well as through the mobile app, ATMs, and QNB’s e-portal, which will be launched in the phase after the initial launch via the Courts Portal.

The electronic payment services will allow individuals to pay for themselves or for another party using Visa, MasterCard, and AMEX cards, as well as local NAPS cards, and Himyan cards.

The new system also offers smart payment options, such as partial payments in specific cases, and payment via SMS links. It also sends notifications to users on completion of financial transactions and provides financial reports to the relevant management.

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Oman: Professional Licenses Required for Logistics Work

25/07/202525/07/2025
by Hannah Gutang

Oman Daily Observer, 22 July 2025: As part of efforts to regulate the labour market and ensure that professions are practiced according to approved professional standards, the Ministry of Labour has announced that there will be a mandatory requirement to obtain a Professional Practice License for all designated professions in the logistics sector, from 1 September 2025.

These will include truck driver, tractor-trailer driver, water tank driver, waste transport driver, food delivery person and food delivery supervisor.

The requirement will apply to both Omani and expatriate drivers and across various sectors.

The professional practice licenses will be available from the sectoral skills unit for the logistics sector. Applications should be submitted via the skills unit’s website. No work permit will be issued or renewed for these occupations after the deadline without this certification.

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Kuwait: MoUs on Money Laundering Signed

25/07/202525/07/2025
by Hannah Gutang

Kuwait Times, 20 July 2025: The Kuwait Interior Ministry Department for combatting money laundering and terrorist financing and the customs office have signed a memorandum of understanding to enhance cooperation on the fight against financial crimes.

The two departments will increase mutual operation and sharing of information in line with international standards set by the UN Financial Action Task Force (FATF). The MOU also aims to intensify regulatory procedures to support the national system for reducing financial crime. In addition, the Kuwait Capital Markets Authority (CMA) and the Financial Intelligence Unit (FIU) have also signed a separate MOU on cooperation and information exchange on money laundering. This will impact the scope of information the FIU and CMA can provide to each other.

Amendments to Kuwait Law No. 106/2013 (the money laundering law) in June 2025 now allow the Kuwaiti Cabinet to issue decisions to implement resolutions passed by the UN Security Council on financing terrorism and freezing assets, and to impose hefty fines on violators. In a report in June 2025, FATF had stated gaps in the legal system in Kuwait did make it difficult to free assets in these situations.

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