News developments Archives - Page 31 of 223

Kuwait: New Amendments In Real Estate Ownership Law

30/01/202530/01/2025
by Hannah Gutang

Arab Times, 22 January 2025: Kuwait has taken a significant step forward by approving amendments to Kuwait Law No. 74/1979, which regulates real estate ownership by non-Kuwaitis.

This move is seen as a progressive effort to enhance human rights and stimulate economic activities within the country.

One of the key changes is the allowance for children of Kuwaiti women from Arab countries to permanently own real estate inherited from their mothers.

This amendment is crucial in affirming their human rights and promoting social stability.

Additionally, the decree introduces exemptions for certain economic entities, including companies listed on Kuwait’s licensed stock exchange, investment funds, and portfolios licensed by relevant authorities, as well as investment entities under the Direct Investment Promotion Law.

These entities are now permitted to own real estate necessary for their operations.

The aim is to boost economic growth while imposing restrictions to prevent real estate speculation, ensuring that properties are used solely for investment and development purposes.

These amendments underscore Kuwait’s commitment to fostering a more inclusive society and a dynamic economic environment.

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Bahrain: Enforces Strict E-Commerce Compliance Rules

30/01/202530/01/2025
by Hannah Gutang

The Daily Tribune, 23 January 2025: The Ministry of Industry and Commerce in Bahrain has initiated a robust campaign aimed at regulating businesses involved in online retail sales, specifically those classified under ISIC code 4791.

This move highlights the ministry’s dedication to protecting both consumers and merchants while promoting a fair and transparent e-commerce landscape.

Business owners are now required to register their e-store links with the ministry and ensure their platforms offer efficient shopping carts for seamless product selection and purchase.

Secure payment options are also mandatory to safeguard financial data during transactions.

Additionally, clear policies on returns, exchanges, product usage, and data privacy must be prominently displayed on all e-stores, alongside reliable delivery services to guarantee timely product distribution.

The ministry has stressed that businesses with licences for online sales must refrain from using virtual stores to sell items that require prior approval from other government agencies.

This regulation is designed to prevent breaches and bolster consumer confidence in the sector.

Non-compliance with these requirements will lead to legal action, underscoring the ministry’s commitment to strengthening consumer protections and ensuring fair competition within Bahrain’s digital economy.

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UAE: To Impose Penalty for Unpaid Corporate Tax

28/01/202528/01/2025
by Hannah Gutang

Arabian Gulf Business Insight, 26 January 2025: The Federal Tax Authority (FTA) has announced that companies failing to pay corporate tax will face a significant penalty, amounting to 14% per annum.

This penalty will be applied to the outstanding tax amount and will be calculated from the day after the payment deadline, accruing monthly on the same date.

To avoid these penalties, tax payments must be completed no later than nine months following the end of the relevant tax period.

Starting 1 January 2025, the UAE will increase the corporate tax rate for multinationals to 15% of profit.

This higher rate will affect companies operating in multiple jurisdictions with consolidated annual revenues of €750 million ($793 million) or more in at least two of the four preceding financial years.

This domestic minimum top-up tax amendment follows the introduction of a 9% corporate tax by the Gulf state a year earlier.

In December 2024, the Finance Ministry has stated that this strategic step reflects the UAE’s commitment to implementing the Organisation for Economic Co-operation and Development’s two-pillar solution, aimed at establishing a fair and transparent tax system aligned with global standards.

In a regional context, Bahrain has announced in September 2024 that it would also implement a Domestic Minimum Top-up Tax (DMTT) starting 1 January 2025 next year for large multinational enterprises (MNEs).

Similarly, Kuwait has declared an upcoming corporate tax rate of 15% for large MNEs, effective from the beginning of 2025.

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UAE: SCA Unveils New Rules for Security and Commodity Tokens

23/01/202523/01/2025
by Hannah Gutang

In a significant move towards embracing technological advancements in the financial sector, the UAE Securities & Commodities Authority (SCA) has announced a new regulatory framework for security tokens and commodity token contracts.

The decision, issued by the Chairman of the Authority’s Board of Directors, marks a pivotal step in integrating Distributed Ledger Technology (DLT) into the UAE’s financial markets.

The new regulation acknowledges the transformative potential of Distributed Ledger Technology, which has redefined the issuance, trading, and investment landscape in financial markets.

Security tokens and commodity tokens, as highlighted in the regulation, represent a fusion of traditional securities and commodity contracts with cutting-edge technology, offering investors more flexible and efficient tools.

Security tokens, digital assets created using DLT, represent financial rights or tangible assets.

These include equity tokens, which signify ownership in companies, and bond tokens, representing tradeable debts.

Commodity tokens, on the other hand, are digital assets based on the value of physical commodities like gold and oil, facilitating digital trading while minimising traditional trading costs and risks.

The regulation outlines detailed provisions for the offering, issuance, promotion, and registration of security and commodity token contracts within the UAE.

It emphasises the importance of compliance with existing securities and commodity contract regulations, ensuring a seamless integration of these innovative financial instruments into the current legal framework.

Key aspects of the regulation include the requirement for security and commodity token contracts to be recorded and managed through a distributed ledger.

This ledger must meet stringent technical and organisational standards to ensure integrity and protect against unauthorised modifications.

The regulation also stipulates that these tokens can only be traded and settled through licensed markets or alternative trading systems.

The SCA has placed a strong emphasis on investor protection and market integrity.

Obligors, or entities responsible for issuing these tokens, are required to provide comprehensive information to token owners, including details about the distributed ledger’s operation, associated risks, and disaster recovery measures.

The regulation also holds obligors accountable for any damages resulting from inaccurate or misleading information.

In cases of regulatory violations, the SCA is empowered to impose administrative measures, including suspending offerings and cancelling subscriptions.

The Authority also reserves the right to publish the names of violators, ensuring transparency and accountability in the market.

This regulatory development underscores the UAE’s commitment to fostering innovation in its financial markets while maintaining robust regulatory oversight.

By embracing Distributed Ledger Technology and establishing a clear framework for security and commodity tokens, the UAE is positioning itself as a leader in the adoption of digital financial instruments.

The decision will be published in the Official Gazette and will come into effect 30 days from the date of publication, signaling a new era for the UAE’s financial markets.

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Saudi Arabia: Issues Updated Guidelines For Recreational Facilities

23/01/202529/01/2025
by Hannah Gutang

Gulf Insider, 20 January 2025: The Ministry of Municipalities and Housing has clarified that the updated guidelines apply to all recreational facilities except venues such as theatres and cinemas.

The Ministry of Municipalities and Housing has released updated guidelines for recreational facilities as part of its ongoing efforts to enhance service quality, encourage investment in the recreational sector, and ensure visitor safety while protecting the rights of all stakeholders.

The ministry has clarified that the updated guidelines apply to all recreational facilities except venues such as theatres and cinemas.

The revisions aim to improve the business environment, stimulate investments, and ensure compliance with the Saudi Building Code in construction processes.

The new guidelines include various requirements related to spatial aspects such as location, area, complementary activities, and signage.

They also address architectural requirements, façade aesthetics, and other technical and operational standards to enhance the user experience and deliver integrated recreational services that meet community expectations while adhering to the highest safety and quality standards.

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Qatar: Cabinet Okays Draft Law on Drones

23/01/202523/01/2025
by Hannah Gutang

Qatar Tribune, 16 January 2025: The Cabinet, led by the Prime Minister and Minister of Foreign Affairs, has given the green light to a draft law concerning drones, forwarding it to the Shura Council for further consideration.

This proposed legislation aims to establish a comprehensive legal framework for drone usage, ensuring the security and safety of air navigation, safeguarding lives and property, and delineating the roles and responsibilities of relevant authorities.

It also seeks to promote optimal drone utilisation and encourage innovation and investment in this burgeoning sector.

At the start of the meeting, the Cabinet commended the Ministry of Commerce and Industry Strategy and the Qatar National Manufacturing Strategy for 2024-2030.

These initiatives, launched under the theme “Achieving Sustainable Economic Growth,” align with the objectives of the Third National Development Strategy, marking the final phase of Qatar National Vision 2030.

The strategies aim to bolster sustainable economic growth, diversify key economic sectors, and enhance the private sector’s contribution to the GDP.

They also focus on advancing manufacturing industries and boosting Qatar’s economic competitiveness on both regional and global stages.

The Cabinet has acknowledged the Shura Council’s endorsement of a draft law concerning the state emblem, designed to provide legal protection and regulate its use.

Additionally, the Cabinet provisionally approved a draft decision to define the coordinates of tourist areas with notable features, including archaeological, historical, natural, climatic, environmental, or vital attributes.

This decision aims to classify certain areas as tourist destinations, enhancing the country’s standing as a premier global tourist destination of qualitative value.

Furthermore, the Cabinet has resolved to take necessary steps to ratify an agreement on international land transport and goods cooperation between Qatar and Turkiye.

It has also approved several proposals, including the registration of the National Archives of Qatar with the Secretariat General for Centres of Documents and Studies of GCC States, and various draft agreements and MoU with countries such as Algeria, Oman, Djibouti, Paraguay, El Salvador, and Chile, covering areas like air transport, museums, higher education, public prosecution, security cooperation, and political consultations.

The meeting concluded with the review of four reports, leading to appropriate decisions.

These reports included the second follow-up on the National Framework for Promoting Values and Morals in Qatari Society for 2024, the annual report of Qatar Development Bank for 2024, and reports on the participation of Qatari ministers in international environmental and health forums.

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Oman: Eases Restrictions on Part-Time Employment

23/01/202523/01/2025
by Hannah Gutang

The Arabian Stories, 19 January 2025: The Ministry of Labour has issued Oman Ministerial Decision No. 13/2025 regarding the governance of part-time work.

The decision outlines new regulations for the employment of minors, including students.

It applies to various categories of workers, including job seekers, students, retirees, and employees

The decision aims to provide greater flexibility for students seeking part-time work while ensuring their well-being and academic performance.

Article 2 of Ministerial Decision No. 13/2025 refers part-time work to employment with fewer working hours than those set for full-time employees in the same establishment or as defined by law.

The decision permits employers to hire workers for short periods, with conditions such as limiting employment to Omani nationals, and ensuring that working hours do not exceed 25 hours per week, with a minimum of four hours per day.

Part-time workers must be paid a minimum hourly wage of RO 3, although agreements for lower wages are permissible.

Employers are also required to offer occupational health and safety measures, provide training, and ensure payment of wages in accordance with the provisions of the Labour Law.

Part-time workers are also required to be registered in the Social Security Fund, with the required contributions made.

For students specifically, the decision establishes that they must be enrolled in a public or private school, be at least 15 years old, and obtain parental approval for part-time work.

The work must not interfere with their academic responsibilities or affect financial allocations from the educational institution.

Importantly, students are not required to seek approval from their school or higher education institution to take up part-time employment.

Furthermore, they will be provided with an experience certificate for the duration of their work.

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Kuwait: Targets Harmful Goods With New Tax Law

23/01/202523/01/2025
by Hannah Gutang

Arab Times, 15 January 2025: The Finance Ministry is preparing a selective taxation law aimed at commodities detrimental to human health, with expected annual revenues of KD 200 million (USD 648.3 million).

It was revealed that a significant step in Kuwait’s tax reform is the introduction of corporate income taxes.

This includes Kuwait Decree-Law No. 6/2024 for the Exchange of Information for Tax Purposes and Kuwait Decree No. 157/2024 for taxation on multinational entities.

Kuwait joined the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on November 15, 2023, which includes 140 countries and jurisdictions.

Since then, efforts have been made to combat international tax evasion and promote transparency in taxation.

Key reforms include treaties on double taxation, combating financial evasion, and agreements for investment protection, alongside ratifying international taxation cooperation treaties.

Entities subject to Kuwait Decree No. 157/2024 are exempt from certain levies, such as those for workers under Kuwait Law No. 19/2000 and alms under Kuwait Law No. 46/2006.

Companies contributing to the Kuwait Institute for Scientific Research will continue their payments, as no exemptions are mentioned in the decree.

Exemptions from the multinational taxation law include some government entities, non-profits, international agencies, and pension and investment funds.

Projected revenues from fees on multinational entities are estimated at KD 250 million (USD 810.6 million) annually, with enforcement set for the 2027-2028 period.

Approximately 300 groups, including 20 Kuwaiti and 25 Gulf groups, will be subject to this tax, with the remainder being foreign entities operating in Kuwait.

This tax enforcement aligns with Kuwait Vision 2035, aiming for a diversified and sustainable economy.

The proceeds will help diversify non-oil revenues and prevent financial outflows to other countries, enhancing Kuwait’s role in international cooperation for fair taxation practices.

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Bahrain: Tightens Timeshare Rules

23/01/202523/01/2025
by Hannah Gutang

Gulf Insider, 19 January 2025: Bahrain has introduced a comprehensive new law to regulate timeshare activities, marking a significant advancement in consumer protection and industry transparency.

Ratified by the King, the 36-article legislation targets overselling and misleading advertising, imposing stringent penalties for violations, including fines up to BD 50,000 and potential licence suspensions.

This move positions Bahrain as a leader in setting high standards for the timeshare sector.

Under the new law, all timeshare projects must appoint a licensed manager to oversee daily operations, with the project owner remaining accountable for compliance.

The Bahrain Tourism and Exhibitions Authority, or a designated body, will oversee licensing and ensure compliance to the law.

The authority is empowered to address breaches, with the ability to impose severe penalties based on the violation’s severity and impact.

Violators are notified in writing and given a chance to respond before any action is taken.

Public disclosure of breaches is permitted post-appeal or court ruling, and any criminal evidence found is forwarded to the Public Prosecution.

The licensing process for businesses is clearly defined, with a grievance process available for rejected applications.

Advertising is tightly regulated, allowing only licensed projects to market timeshare products, and banning misleading promotions and investment claims.

These rules extend to foreign projects advertised in Bahrain.

Consumer protection is a cornerstone of the law, offering a ten-day contract cancellation period with a full refund.

Escrow accounts are mandated to safeguard consumer payments, and overselling is prohibited to ensure consumers’ access to their timeshare slots. Beneficiaries can transfer or mortgage their rights, with automatic transfer to heirs upon death.

The Bahrain Tourism and Exhibitions Authority is tasked with enforcing these regulations, with inspectors granted judicial authority to ensure compliance.

Violators face severe penalties, including imprisonment and substantial fines.

Transparency is enhanced by requiring all contracts and transactions to be recorded in a timeshare registry, providing legal clarity and protecting consumers from disputes.

Licensed projects have six months to comply with the new regulations.

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Abu Dhabi: Emergency Preparedness A Must For Early Childhood Education Institutions

23/01/202523/01/2025
by Hannah Gutang

Gulf Insider, 20 January 2025: The Abu Dhabi Department of Education and Knowledge (ADEK) has issued a stern warning to early childhood education institutions, emphasising the importance of complying to its newly established Emergency Management Policy.

This policy, which must be fully implemented by the start of the 2025–2026 academic year, outlines a comprehensive framework for emergency preparedness and response, ensuring that all facilities and transportation vehicles are equipped with the necessary emergency signage and equipment.

The policy is designed to standardise emergency response processes across early childhood education institutions, addressing critical areas such as evacuation plans, initial safety measures, and communication protocols.

By doing so, it ensures that all stakeholders, including management, staff, parents, regulators, and service providers, are well-prepared and aware of their roles and responsibilities during emergencies.

Institutions are required to establish and implement an emergency policy that complies with applicable laws and guidelines.

This includes comprehensive planning and preparation for various emergencies, such as medical incidents, evacuations, lockdowns, and shelter-in-place scenarios.

Clear communication protocols and defined roles and responsibilities for all involved parties are also mandated.

Staff training is a crucial component of the policy, with institutions required to conduct regular training sessions on incident management, first aid, and emergency procedures.

Accurate and secure documentation of incidents must be maintained in compliance with the Abu Dhabi Occupational Safety and Health System Framework (OSHAD).

Parents must be informed of any physical injuries or health issues caused by institutional or staff negligence, serious injuries due to hazards, incidents requiring intervention from authorities, or service disruptions.

Failure to comply with these requirements, including incident reporting and compliance to investigation outcomes, will result in penalties, fines, or potential closure, depending on the severity of the violation.

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