News developments Archives - Page 22 of 223

Kuwait: Municipal Committee Considers Agricultural Land Amendments

17/04/202517/04/2025
by Hannah Gutang

Arab Times, 13 April 2025: Kuwait’s Municipal Council has considered proposed agricultural land amendments.

The Kuwait Municipal Council’s Technical Committee held its 22nd meeting, at which it considered amendments to agricultural land regulations.

The proposed amendments to the agricultural land regulations have been requested by the Minister of State for Municipal Affairs. They include changes to building ratios in areas such as Wafra, Abdally, and Sulaibiya. The amendments propose limiting construction to 10% of the plot area, and there would be specific guidelines for residential buildings, family rest houses, and workers’ residences. Additional regulations would cover building reserves, maximum heights for structures, and setback requirements.

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Bahrain: Commercial Law Amendments on Bounced Cheques

17/04/202517/04/2025
by Hannah Gutang

Nabad, 14 April 2025: Bahrain’s Shura Council has proposed amendments to the Commercial Law (Bahrain Decree-Law No. 7/1987) to improve trust in commercial transactions and regulate cheque issuing.

The amendments, aim make the processing of cheques easier and facilitate their circulation, while safeguarding the rights of cheque holders or beneficiaries.

They will allow partial cheque payments where cheques bounce. Cheque holders will be able to collect part of the cheque amount if the full balance is unavailable, and will also have the option to re-present the cheque for the remaining amount. Banks will be required to honour cheques fully or partially when funds are available and will not be able to refuse payment if requested by the account holder or cheque bearer.

The amendments would also require banks to withhold cheque payments entirely or partially where they have received objections involving loss or damage. The Bahraini Central Bank will be authorised to issue decisions on alternative methods for proving partial payments, aside from cheque endorsements, and to regulate conditions and procedures for implementing partial cheque payments.

Cheque holders will be able to seek recourse against issuers and endorsers if the cheque is not fully paid on timely presentation, provided non-payment is documented by protest or other legal means. Cheques marked as having insufficient funds or a partial payment will be considered enforceable under civil and commercial execution laws, and the Minister of Justice will be authorised to regulate execution rules and procedures following approval from the Supreme Judicial Council.

The amendments will also criminalise the issuing of blank cheques for use as credit or guarantee instruments, and will impose fines ranging from 200 to 2,000 dinars for issuing these types cheques. Individuals who fill in and present blank cheques for payment will face fines of at least 10% of the recorded amount, up to twice that amount, with a minimum fine of 500 dinars and a maximum of 10,000 dinars.

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ADGM: Proposed Amendments to Prudential Framework for Lower-Risk Firms

16/04/202516/04/2025
by Hannah Gutang

ADGM, 9 April 2025: The Financial Services Regulatory Authority (FSRA) in the ADGM has issued a consultation paper proposing amendments to the prudential framework for lower-risk firms.

Consultation Paper No. 2 of 2025, targets Authorised Persons in Categories 2, 3A, 3B, 3C, and 4, as well as potential applicants and professional advisors. It has been proposed the Expenditure Based Capital Minimum (EBCM) requirement for Category 4 firms not holding Client Assets or Insurance Money should be removed, while increasing the Base Capital Requirement (BCR) for most Category 4 firms to $50,000. The FSRA has also suggested applying a BCR of $250,000 for Providing Custody for a Fund, unless it is a Public Fund, and removing the Internal Risk Assessment Process (IRAP) reporting requirement for Category 3B and 3C firms. There is also a proposal to eliminate the professional indemnity insurance (PII) requirement for Branches of Category 3B, 3C, and 4 firms. It is hoped the proposed changes would reduce the regulatory burden for these firms and better reflect the lower prudential risks associated with them. The closing date for comments on these proposals is 21 May 2025. The proposed amendments would modify the current prudential requirements under the FSRA’s Prudential – Investment, Insurance Intermediation, and Banking Rulebook (PRU).

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UAE: New Tax Rules for Non-Resident Investors in Investment Funds

10/04/202510/04/2025
by Hannah Gutang

Gulf News. 6 April 2025: The UAE Ministry of Finance has issued Cabinet Decision No. 35/2025 for non-resident investors in Qualifying Investment Funds and Real Estate Investment Trusts.

Cabinet Decision No. 35/2025, outlines the conditions under which non-resident juridical investors in Qualifying Investment Funds (QIF) or Real Estate Investment Trusts (REIT) are deemed to have a nexus in the UAE, and therefore are subject to taxation. It has repealed Cabinet Decision No. 56/2023 and follows Cabinet Decision No. 34/2025 concerning Qualifying Investment Funds and Limited Partnerships.

It impacts non-resident juridical investors in QIFs and REITs, specifying that a taxable nexus arises if a QIF or REIT distributes 80% or more of its income within nine months from its financial year-end, either on the date of dividend distribution or the date the ownership interest is acquired. A nexus would also be created if a QIF fails to meet the diversity of ownership conditions during the tax period. Conversely, non-resident investors who are exclusively investing in QIFs and REITs without breaching these conditions would not be considered to have a taxable presence in the UAE.

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Saudi Arabia: New Commercial Registry and Trade Names Systems Implemented

10/04/202510/04/2025
by Hannah Gutang

Saudi Pulse News, 3 April 2025: The Saudi Ministry of Commerce has implemented new systems for commercial registry and trade names.

The Saudi Ministry of Commerce has announced new systems for commercial registry and trade names that are now in force, along with the relevant executive regulations, from 3 April 2025. The new commercial registry system covered by Saudi Arabia Cabinet Decision No. 237/1446 will simplify business operations by consolidating all activities under a single national registry, eliminating the need for separate sub-registries for individual enterprises and companies. This change is expected to reduce financial burdens on businesses.

The system has introduced an annual electronic confirmation requirement for registry data, replacing the previous practice of renewing the registry. Traders must confirm their registry data every 12 months from the issue date. Failure to provide this confirmation within 90 days of its due date will result in the suspension of the registry and associated services, with automatic deletion after one year if not rectified. Businesses must also open bank accounts linked to their commercial entities to enhance reliability.

The trade names system and its executive regulations aim to bolster trust by regulating the reservation and registration of trade names, ensuring their protection and associated rights. The system allows trade names to be reserved for a specified period, which is extendable once, under certain conditions, and prohibits the registration of names which are similar to existing ones, even if the business activities differ.

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Qatar: End of Supplier Classification Exemptions for Public Sector Procurement

10/04/202510/04/2025
by Hannah Gutang

Al Watan, 3 April 2025: The Qatari Ministry of Finance has announced the end of supplier classification fee exemptions, with effect from 6 April 2025.

After this date, the prescribed fees will apply, and companies classified under the old system with valid classification certificates and approved profiles will have to switch to the new classification system by then.

The new classification system, which was launched on 3 October 2024, is based on Article 101 of Qatar Cabinet Decision No. 16/2019 the Executive Regulations of the Tenders and Auctions Law No. 16/2019 and its amendments in Qatar Cabinet Decision No. 11/2022. The system requires companies which are participating in government tenders to create a mandatory profile via the national authentication system. An audited balance sheet is now mandatory for company classification, and company performance evaluations in government entities are linked as a criterion for classification. The system also focuses on the financial suitability of companies and ties company revenues to classification categories, adding quality, health, safety, and environmental standards.

The Ministry has urged companies to create their profiles (which can be done free of charge) on the unified state procurement website and to register in the classification lists for suppliers, service providers, and contractors. Profile creation is the first step for classifying companies in sectors such as contracting, suppliers, and service providers for all local and foreign companies. Required documents include a commercial register, trade license, establishment card, audited financial statement for the last fiscal year, and a professional activity license.

The classification criteria include previous experience and performance, quality, health, safety, and environmental standards, legal standards, and financial criteria. Companies are evaluated based on government project contracts, private project contracts, experience in Qatar, and average performance ratings from government entities over the last three years. Quality standards are assessed from company guidelines to ISO certifications, while legal standards consider fines and violations in government contracts. Financial criteria require audited financial statements for the last two years and assess operating profit margin, operating cash flow ratio, and coverage ratio. The Ministry of Finance also plans to develop business localisation programmes, which will include all government companies and subsidiaries of the Qatar Investment Authority, to support private sector companies, increase local content, and ensure small and medium enterprises (SMEs) have a share in local procurement.

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Bahrain: National Assembly Considers Extending Maternity Leave to 70 Days

10/04/202514/04/2025
by Hannah Gutang

Al Bilad Press, 9 April 2025: The Bahraini National Assembly has been considering a proposal to extend maternity leave for female government employees to 70 days.

The proposal aligned with the United Nations’ Sustainable Development Goals, particularly Goal 5 on gender equality.

However, the proposal also raised concerns about potential disruptions to operational schedules in government agencies, especially in critical roles, which may lead to a need to temporary restructure or hiring substitutes. There have also been concerns about increased public expenditure to cover salaries during the extended leave.

The proposed 70-day leave aligns with practices in Saudi Arabia and Jordan, while other countries such as the UAE, France, and Sweden offer longer maternity leave periods. Egypt is currently considering increasing its maternity leave to 90 days.

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Bahrain: Legislative Committee Begins Deliberations on New Law for Legal Profession

10/04/202510/04/2025
by Hannah Gutang

Akhbar Al Khaleej, 8 April 2025: Bahrain’s Legislative Committee has begun discussions on a proposed law to regulate the legal profession.

The proposal, has been prioritised for swift consideration and aims to regulate the profession as mandated by the constitution. The committee aims to finalise its report within a month, before the end of the current legislative session.

The proposed law would allow the Minister of Justice to establish law firms. Comments have been sought by the committees from bodies, including the Ministry of Justice, the Supreme Judicial Council, the Bahrain Bar Association, and the Bahrain Chamber of Commerce and Industry.

The General Secretariat’s Studies Department has also been tasked with conducting a comparative study of legal profession regulations in other countries to identify best practices.

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Ajman: New Real Estate Contributions Law

10/04/202510/04/2025
by Hannah Gutang

Ajman has introduced a comprehensive legal framework through Ajman law No. 1/2025 to regulate real estate contributions.

Ajman law No. 1/2025 outlines the procedures and requirements for real estate contributions, including the establishment of a register for real estate contributions, the roles and responsibilities of trustees, and the conditions for the transfer and liquidation of contributions. Real estate contributions are financial or in-kind investments made by an owner or investor into a real estate project or investment vehicle, often in exchange for shares or ownership in the venture. The new law is expected to enhance transparency, protect investors’ rights, and attract more investment into the real estate sector in Ajman. Obligations under the law include the requirement for trustees to manage contributions responsibly, ensure compliance with anti-money laundering regulations, and maintain a minimum ownership stake in the contributions. The law repeals any conflicting provisions in existing legislation and is set to come into effect 30 days after its publication in the official gazette.

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Abu Dhabi: School Fee and Cost Rules Outlined

10/04/202510/04/2025
by Hannah Gutang

Emiratalyoum, 3 April 2025: The Abu Dhabi Department of Education and Knowledge (ADEK) has announced a new school fee policy for the 2025-2026 academic year, allowing optional charges for textbooks and uniforms in private schools.

The policy divides school fees into six components: tuition, educational resources, uniforms, transportation, extracurricular activities, and other fees. It allows parents to opt out of certain charges involving devices, textbooks, and uniforms if they choose to use second-hand materials that meet the school’s requirements. Schools are permitted to collect tuition fees in up to ten instalments, providing flexibility for parents.

Schools must publish their approved fees on their websites and adhere to the fee levels set by ADEK. They must also offer detailed payment schedules and can enter into agreements with parents on these schedules. Schools can also charge a registration fee of up to 5% of the approved tuition fees, which can be collected up to four months before the academic year begins. However, any registration fees must be deducted from the final tuition fees, and schools cannot request additional financial guarantees from parents.

In cases of late or non-payment of fees, schools must have a clear and fair policy in place and not impose punitive measures. They must notify parents in writing at least three months before the end of the academic year on the consequences of not re-registering their children due to unpaid fees. Schools are prohibited from barring students from exams due to fee issues. The policy also outlines potential actions for non-payment, including issuing three consecutive warning notices to parents, suspending student registration for up to three days per term, and withholding exam certificates or transfer documents until all fees have been settled.

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