Newsletter Archives - Page 134 of 244 - LexisNexis Middle East

Bahrain: Cyber Crime Law Amendments Being Considered

15/03/202215/03/2022
by Benjamin Filaferro

Al Watan, 10 March 2022: The Foreign Affairs, Defence and National Security Committee of Bahrain’s Parliament has discussed proposed amendments to the Kingdom’s Cyber Crimes Law.

The proposed amendment would add a new Article to Bahrain Law No. 60/2014 criminalising insult, slander, and violating the reputations of others by misusing information technology,

The Committee examined the feedback of the Legal and Legislative Affairs Committee, the Interior Ministry and the Justice, Islamic Affairs and Waqf Ministry.

Following their examination of the feedback, the Committee decided to approve the draft law.

They also approved reducing the minimum fine for the related violations to 5,000 Dinars instead of 50,000 Dinars. For full story, click here.

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Saudi Arabia: Consultation on Draft Regulations to Saudi Arabia’s Personal Data Protection Law closes 25 March 2022

14/03/202214/03/2022
by Benjamin Filaferro

SDAIA, the Saudi Data & Artificial Intelligence Authority, has just released draft Regulations to the new Personal Data Protection Law, due to come into effect on 23 March 2022. The draft Regulations provide helpful clarity on many aspects of the PDPL, although ambiguity remains on a variety of topics.

Any business likely to be affected by the Law should scrutinise the draft Regulations, and consider making submissions on any areas of concern. Further information on the consultation process is available here.

The draft Regulations contain a number of significant issues, and we have not sought to address them all here. We do, however, make some observations about transfers of personal data outside the Kingdom. Unless well drafted, with practical considerations in mind, the transfer provisions have significant potential to cause issues for international businesses and for businesses that rely on cloud services hosted outside the Kingdom. This topic caused the most concern when the Law was first published in September 2022.

Do the draft Regulations satisfactorily address these concerns? Probably not, but with some adjustments they might work.

In summary, the potentially bureaucratic requirements around regulatory approvals prior to transfers abroad, as well as the question of whether the consent of the data subject negates the need to obtain such approval, would benefit from further scrutiny by SDAIA.

In Art. 28.1, the draft Regulations restate a basic requirement to host and process personal data in the Kingdom – but they also contemplate personal data being transferred outside. Such transfers would be subject to the controller undertaking a privacy impact assessment and obtaining the written approval of the relevant ‘regulatory authority’ (such as an industry sector regulator) having liaised with the ‘competent authority’ (being SDAIA, initially) on a case by case basis.

Our main concern here is the bureaucratic aspect. If each regulatory authority needs to liaise with SDAIA, and also set up a process by which controllers apply to the regulatory authority for approval, this is unlikely to be efficient in practice. The Law indicates that there will be a registration portal for data controller (presumably operated by SDAIA, as the competent authority); if controllers could obtain general approval were simply by mentioning their proposed transfer activities as part of the registration process, then this would seem practical and effective. This approach is not what is indicated in the draft Regulations, and the ambiguity around reference to a ‘case by case’ approach raises further concerns.

Our recommendation is for SDAIA to reflect on how it anticipates the approval process to roll out at a practical level, and to adjust (i.e. simplify) the requirements of Art. 28.1, accordingly.

In Art. 28.2, the transfer provisions contain a statement that transfers of personal data to recipients outside the Kingdom can occur for public interest purposes (not defined); or where providing services to individuals (not corporates?) and the transfer is subject to the consent of the data subject and not in a manner contrary to what the data subject might expect. Art 28.2 includes reference to Art. 29, which provides for transfers to jurisdictions not assessed as providing an adequate level of data protection. (Art. 30 contemplates SDAIA developing a list of jurisdictions that it considers to provide an adequate level of protection to personal data.) The implication seems to be that, where the recipient is in a jurisdiction assessed as providing adequate protections, then the consent of the data subject will legitimise such transfers.

One question that arises is whether this provision permitting transfers subject to data subject consent can be read independent of Art. 28.1, requiring approval of the regulatory authority. Being able to rely on consent alone would be a practical approach, particularly if the approval of the regulatory authority will be as bureaucratic as it appears in the current draft.

Our recommendation is for SDAIA to clarify whether Art. 28.1 is “subject to” Art.28.2, thus allowing consent-based transfers without needing to obtain approval as contemplated in Art. 28.1. (If Art. 28.1 is streamlined in the manner discussed above, this point may be of less concern.)

As noted above, Art. 30 contemplates SDAIA developing a list of jurisdictions that it considers to provide an adequate level of protection to personal data. For transfers to jurisdictions not assessed as providing an adequate level of protection, and excluding circumstances where the vital interests of the data subject are at stake, Art. 28.3 of the draft regulations contemplate a requirement for controllers to apply to SDAIA, at least 30 days in advance of proposed transfers. Art. 29 provides further requirements relating to transfers to such jurisdictions, including a requirement for controllers to undertake risk and impact assessments, and to provide appropriate safeguards (such as adoption of standard clauses, BCRs, etc.) .

The need to apply to SDAIA again seems unnecessarily bureaucratic. Elsewhere, a permit from an authority might be one option available to a controller (rather than a universal requirement for such transfers), and not required in circumstances where risks have been assessed and appropriate safeguards put in place.

Our recommendation is for SDAIA to adjust the requirements of Art. 28.3 so that the need to apply to SDAIA for approval is only required where the controller assesses that the risk to the data subject is high and there is uncertainty about whether proposed safeguards are likely to be adequate.

As noted above, the draft Regulations contain a variety of other concerns, and further scrutiny is essential. We will be happy to share further insight on this significant development, and to provide support in the preparation of submissions to the consultation process if required. Please follow our Digital & Data ‘showcase’ page on LinkedIn, and contact email Nick O’Connell directly for any specific support.

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Oman: Real Estate Ownership Changes Approved

14/03/202214/03/2022
by Benjamin Filaferro

Times of Oman, 9 March 2022: Oman’s Housing and Urban Planning Minister has approved real estate ownership changes in the country.

Under the changes, expatriates will be able to own properties in the Sultanate outside of Integrated Tourism Complexes.

A Ministerial Decision to this effect has been issued.

Foreign investors will be able to own properties worth over 250,000 Rials.

However, there are two tiers of ownership.

In the first tier, investors who buy properties worth more than 500,000 Rials will be offered first-class residency.

In the second tier, those who buy properties worth between 250,000 and 500,00 Rials will be offered second-class residency.

First-class residency enables investors to buy residential, commercial, and industrial properties, while second-class residency only allows investors to buy residential properties.

If an investor wants to buy a house which costs less than 250,000 Rials, they can do so through the existing Integrated Tourism Complex project or usufruct scheme.

Their ownership rights must comply with Oman Sultani Decree No. 29/2018 and Oman Ministerial Decision No. 292/2020. These pieces of legislation detail areas where expatriates cannot own property and the Implementing Regulations concerning foreign ownership of real estate.

Foreigners cannot own properties in Musandam, Buraimi, Dhahirah and Wusta governorates. Expatriates can also not own properties in the rest of the Dhofar region, with the exception of Wilayat Salalah. In addition, they cannot own properties in Liwa or Shinas wilayats.

In Masirah, Jabal Akhdar, Jabal Shams and any other landforms like mountains and islands which are considered to be of strategic importance, expatriates can also not buy properties.

Locations near high-priority installations like security and military facilities, archaeological and historic structures and areas designated as agricultural land will also not be able to be bought by expatriates.

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Dubai: Virtual Asset Regulation Law Approved

14/03/202214/03/2022
by Benjamin Filaferro

Dubai’s Ruler has issued a Dubai Virtual Asset Regulation Law to create an advanced legal framework to protect investors and design international standards for virtual asset industry governance which will promote responsible business growth in a regulated environment.

The Law applies throughout the Emirate, including special development zones and free zones, except the DIFC.

A Dubai Virtual Asset Regulatory Authority will be established. It will have its own legal personality and financial autonomy but report to the Dubai World Trade Centre Authority.

It will be responsible for licensing and regulating the sector across the Emirate. It will also provide a full range of virtual asset services together with the Central Bank and Securities and Commodities Authority.

The Law defines the tasks and competencies of the Authority. It will be considered the competent body in the Emirate to regulate, supervise and control virtual asset services.

It also states the Authority will be responsible for organising and setting the rules and controls which govern the conduct of virtual asset activities. This includes management services, clearing and settlement services and classifying and specifying types of virtual assets.

Under the Law, no one can engage in activities without authorisation from the Authority. Any one wanting to practice a virtual asset activity must establish a presence in Dubai to conduct business.

The Authority will be responsible for operating and managing virtual assets platforms services, exchanging services between virtual assets and currencies, whether national or foreign and exchanging services between one or more forms of virtual assets.

They will also be responsible for virtual asset transfer services, virtual asset custody and management services as well as services related to virtual asset portfolios and services related to the offering and trading of virtual tokens

Acts which violate the Law and its related decisions and the fines imposed on violators, will be determined by a Decision which will be issued by the board of directors of the Dubai World Trade Centre.

As well as a fine, the Authority may suspend a violator’s permit for up to six months, cancel the permit and cancel the commercial license together with the relevant commercial licensing authority in the Emirate.

The Law will be published in the Official Gazette and come into force on the day it is published. Also reported in Alroeya on 9 March 2022. For full story, click here.

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Key Dubai International Financial Centre Laws Amended

10/03/202210/03/2022
by Benjamin Filaferro

Mubasher, 8 March 2022: Dubai’s Ruler has issued DIFC Law No. 2/2022 regarding the Dubai International Financial Centre to incorporate amendments to some of its key laws.

The amendments approved affect the 2020 Data Protection Law, the 2019 Insolvency Law and the 2018 Trusts Law.

They also affect the 2017 Electronic Transactions Law, 2018 Common Reporting Standard Law and 2007 Strata Title Law.

The amendments also affect the rules of interpretation for various DIFC laws.

The amendments include clarifying the process of judicial legislation to individuals so it is more in line with international practice, especially in light of recent rulings in Europe regarding the rights of data subjects.

The amendments also set out better conditions for the legal accountability of controllers and data processors in which the privacy of individuals may be affected by repeated attempts and requests to access their data. For full story, click here.

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Saudi Arabia: Nitaqat Clarification Issued

10/03/202210/03/2022
by Benjamin Filaferro

Saudi Gazette, 7 March 2022: Saudi Arabia’s General Organisation for Social Insurance has issued a Nitaqat clarification.

They have introduced a new mechanism which means Saudi employees will only be included in the firm’s Saudisation programme with their knowledge express consent.

The express consent will be evidenced by a signature on an electronic contract.

The aim is to avoid their names being exploited.

Under the mechanism, when a company or establishment wants to hire a Saudi citizen, the Saudi national must accept the contract sent to them by the firm within seven days.

If they are not, they will not be counted in the Nitaqat programme and the contract will be rejected automatically.

Previously, the Organisation allowed Saudi employees to be calculated in the Nitaqat programme without their approval of the contract.

Where a Saudi employee agrees to the electronic contract, they will receive a message stating they are registered in the social insurance system.

The employee’s wage and insurance subscription number will be mentioned in the message. At the same time, the employer will receive a message stating the employee’s registration has been approved.

In terms of non-Saudi employees, their data will be sent from the Human Resources and Social Development Ministry to the Organisation after their sponsorship is transferred or they enter the Kingdom.

A message will then be sent to the employer from the Organisation stating they have a non-Saudi subscriber who needs to update their information.

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Dubai International Arbitration Centre Finalises New Arbitration Rules

08/03/202208/03/2022
by Benjamin Filaferro

Dubai’s International Arbitration Centre (DIAC) has announced it has finalised its new Arbitration Rules.

They were finalised following a review by its Arbitration Court.

A dedicated task force consisting of regional and international arbitration practitioners and members of their Secretariat drafted the new rules.

The new rules contain provisions dealing with consolidation, joinder, expedited proceedings, alternative process for appointing arbitrators and exceptional proceedings, like emergency arbitrator and conciliation.

In addition, legal fees will now be part of arbitration costs and could be claimed by the parties to the arbitration.

The rules will come into force on 21 March 2022.

They will apply to all new requests for arbitration and exceptional procedures submitted after this date.

The new rules reflect the latest international arbitration developments and evolving business needs.

They aim to improve the efficiency of arbitration procedures and ensure users benefit from multiple enhancements.

The Centre has also announced it Arbitration Court has formally been established. The Court replaces the Centre’s Executive Committee and assumes responsibilities for undertaking general supervision of the alternative dispute resolution services offered and supervising the management of all cases administered by the Centre.

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Oman: Muscat International Airport Free Zone to be Established

07/03/202207/03/2022
by Benjamin Filaferro

Oman’s Sultan has issued Oman Sultani Decree No. 10/2022 to establish a free zone at Muscat International Airport and Sohar and Salalah airports.

They will be established in the designated land plot according to the relevant layouts and concession agreements.

The Council of Ministers will determine the Operating Party for these free zones from companies who report to the Oman Investment Authority. These companies may seek the assistance of departments and companies specialising in the development, marketing, management and operation of those free zones.

Both the Operating Party and companies will be granted the incentives and privileges specified in Oman Sultani Decree No. 56/2002 (the Law on Free Zones).

The Operating Party and companies will be granted a 15-year Income Tax waiver for each separate project. This can be extended for an additional five years. The waiver is not valid for banks, financial institutions, insurance and reinsurance companies or projects providing telecommunications, land transport or contract services.

The waivers will be issued by a Decision of the Chairman of the Tax Authority and in line with the rules, regulations and procedures approved by the Board of the Public Authority for Special Economic Zones and Free Zones, following the approval of the Ministry of Finance.

The operating companies will pay amounts owed to the Operating Party in return for the services the Operating Party provides to them. The Operating Party has to specify the value of the service fee and the method of its collection once the Board of the Public Authority for Special Economic Zones and Free Zones has approved it.

The Operating Party will stick to governing aerial affiliation regulations and requirements for safety and security of civil aviation under the supervision of the Civil Aviation Authority.

The Operating Party has to work with the Public Authority for Special Economic Zones and Free Zones to achieve the measures considered necessary for the safety of individuals, operating companies, installations, goods and commodities within the purview of each zone. They also have to fully cooperate with the Public Authority for Special Economic Zones and Free Zones to observe the regulations governing environmental and security protection.

The Decree will be published in the Official Gazette and come into force the day after it is published.

Also reported in Shabiba on 2 March 2022. For full story, click here.

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Qatar: Fire and Life Safety Manual Launched

07/03/202207/03/2022
by Benjamin Filaferro

The Peninsula, 4 March 2022: Qatar’s General Directorate of Civil Defence has announced it has launched an updated fire and life safety manual.

The manual is contained in the Civil Defence Technical Requirements Manual 2022. It includes all of the engineering requirements related to prevention systems in buildings. It has also been updated to keep up with urban developments in the country.

The guidelines will be enforceable.

At the launch of the manual, the General Directorate of Civil Defence organised a technical workshop for specialists to introduce the design and construction requirements for fire prevention control systems. In addition, technological developments related to firefighting systems, conditions approved by the relevant authorities in the country and the updated technical requirements to improve safety and protection systems in buildings and facilities were also discussed in the workshop.

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Dubai: Savings Scheme for Foreign Employees in Government Launched

07/03/202207/03/2022
by Benjamin Filaferro

Dubai’s Crown Prince and Chairman of the Executive Council has announced a Savings Scheme for Foreign Employees in the Government has been launched.

It has been launched to improve the end-of-service benefits system and retain Dubai’s position as an attractive place to work.

It will be supervised by the Dubai International Financial Centre together with several international investment firms.

It will offer an integrated system which will offer employees various saving opportunities across financial portfolios who can grow their benefits and savings.

It will be available to both citizens and residents.

It will provide employees with various financial benefits, particularly the opportunity to save across different financial portfolios to grow their savings and provide financial sustainability to them and their families. It will also protect and manage amounts owed more effectively by depositing them in the Scheme from the date of enrolment.

It will therefore not include any amounts owed from former years of service which the current legislation applies to. In addition, employees will be able to choose multiple investment structures including traditional investment funds and others which are compatible with Islamic Sharia. Employees who do not wish to invest their benefits will also be provided with options which ensure capital protection.

The Crown Prince has also ordered a steering committee be established which will be led by the General Secretariat of the Executive Council. Committee members will include the Department of Finance, the Dubai Government Human Resources Department, the Government of Dubai Legal Affairs Department, the Supreme Legislation Committee and the Dubai International Financial Centre. They will be responsible for developing an action plan, setting executive procedures, overseeing the workflow of the Scheme and ensuring it achieves its objectives. They will also be responsible for studying the possibility of extending the system to the private sector in Dubai on a voluntary basis, in line with the legislation in force and the relevant federal and local authorities.

The board of trustees and international investment firms will assume the duties of overseeing the Savings Scheme within a governance system which ensures the efficiency and effectiveness of the Scheme to guarantee it serves employees’ interests first and foremost. They will also be responsible for ensuring it provides multiple investment avenues and supports the planning and management of human resources in Dubai by securing end-of-service benefits for employees on a regular and sustainable basis within an efficient integrated system. Also reported in Alroeya on 2 March 2022. For full story, click here.

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