Newsletter Archives - Page 19 of 247 - LexisNexis Middle East

Kuwait: Systematic Risk Assessments for Money Laundering in Financial Institutions

10/07/202510/07/2025
by Hannah Gutang

Al Rai Media, 7 July 2025: The Kuwaiti regulatory authorities, represented by the Central Bank of Kuwait, the Capital Markets Authority, and the Insurance Regulatory Unit, have developed guidelines for assessing business risks.

Issued as a directive, it requires all supervised financial and banking institutions to systematically evaluate risks related to money laundering, terrorist financing, and the proliferation of weapons of mass destruction based on their activities, customer base, monitoring services, and geographic exposure.

The guideline is divided into eight key sections, obliging institutions to periodically assess business risks and initiate immediate reviews in response to significant developments. The aim is to empower institutions to make informed decisions regarding risk acceptance and adopt proactive measures to prevent financial crimes.

Affected parties, primarily financial and banking institutions, must regularly follow a systematic risk assessment process. This includes the evaluation of inherent business risks, categorising them into various levels such as high, medium-high, or medium-low, and developing strategies for resource allocation and risk mitigation which are aligned with guidelines from the Financial Action Task Force (FATF).

The guideline suggests effective customer due diligence measures, record retention practices to meet regulatory obligations, and internal risk management controls. Institutions must set policies on client acceptance, conduct risk evaluations, operate compliance frameworks, independently test controls, monitor transactions, and deploy stringent staff training programs.

Key risk categories identified include structural risks arising from ownership and governance complexity, customer risks related to client types and transaction patterns, product and service transaction risks, service delivery channel risks, geographical risks, and technology-related risks.

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Dubai: New First-Time Property Buyer Incentives Unveiled

10/07/202510/07/2025
by Hannah Gutang

Gulf Today, 2 July 2025: Dubai Land Department (DLD) has launched a “First Property Ownership” programme, targeting UAE citizens and residents to facilitate property ownership.

The legal framework of the programme introduces substantial incentives for first-time property buyers. It extends credit facilities up to 18 years and allows the registration fee of 4% with the DLD to be paid in instalments. Real estate developers involved in the scheme are offering significant price reductions, lowering property costs by up to 10% below the market rate for both ready and off-plan properties.

Eligibility criteria are that applicants must be UAE residents aged 18 or older, who do not own any freehold residential property in Dubai, and wish to purchase properties valued at up to Dhs5 million. The programme applies a one-time eligibility and waives rental restrictions for long-term investments.

The programme enforces legal obligations by integrating exemptions and facilitating financial processes within established legal requirements. It prioritises access to new project units, offers preferential rates, and provides interest-free registration fee payment options through credit cards and competitive financing offers with reduced interest and fees.

Applications are subject to review, and eligible participants are added to the beneficiary list, which will be accessible to developers, providing legal assurance and clarity for all those involved.

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Bahrain: Issues Asset Recovery and Confiscation Implementation Guide

10/07/202510/07/2025
by Hannah Gutang

Akhbar Al Khaleej, 8 July 2025: Bahrain Decision No. 47/2025 has been issued, releasing a guidance manual on asset recovery requests and the execution of confiscation orders.

This manual provides comprehensive procedural frameworks for retrieving assets and proceeds from crimes, accommodating both national requests and those from abroad. It includes mechanisms for executing confiscation orders from national courts and foreign judicial bodies, clarifying the roles of the involved institutions and bodies in Bahrain. It ensures conformity with relevant national laws and international conventions, particularly the UN Conventions against Corruption and Transnational Organised Crime, meeting the recommendations of the Financial Action Task Force (FATF).

The guide aims to standardise legal and procedural mechanisms for asset recovery and confiscation requests, enhance transparency and effective management of confiscated funds, and ensure respect for the rights of bona fide parties while reinforcing judicial cooperation based on bilateral and multilateral agreements.

For the full story, click here.

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UAE: FTA Issues New Excise Tax Framework for Natural Shortages in Designated Zones

03/07/202503/07/2025
by Hannah Gutang

Alvarez and marsal, 26 June 2025: The UAE Federal Tax Authority (FTA) issued Decision No. 6/2025, effective from 1 July 2025, introducing a structured framework for the reporting and management of natural shortages of excise goods within Designated Zones, in line with international tax standards.

FTA has established a detailed framework for managing the natural shortages of excise goods—those occurring due to uncontrollable factors during production, transportation, or storage. The regulation will require businesses to seek pre-approval from the FTA for any natural shortages within a permissible threshold. This threshold must be corroborated by an FTA-approved Independent Competent Entity (ICE), which will conduct assessments of production processes and storage facilities and issue a report that will be valid for up to a year, confirming allowable shortages. When significant changes occur that might affect loss ratios, prompt notification to the ICE will be mandatory.

The new procedural requirements come with rigorous documentation and reporting duties, and businesses will need to maintain comprehensive audit-ready documentation, supported by ICE findings. This includes real-time traceability of excise goods and full compliance with potential FTA inspections. Non-compliance will lead to a risk of excise tax relief being denied and potential penalties.

This decision replaces previous natural shortage procedures, changing the approach from discretion by the FTA to a more systematic approach with obligatory third-party assessments and set deadlines. It will specifically target natural shortages, with other loss types like theft or operational errors remaining under separate guidelines, such as EXTP007.

Businesses affected by these changes should submit pre-approval requests to the FTA, ensure alignment with ICE standards, and update their internal processes accordingly. They should also revisit previous shortage claims to ensure compliance with the newly established criteria.

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Saudi Arabia: Royal Commission Sets Out Regulations on Penalties for Municipal Violations

03/07/202503/07/2025
by Hannah Gutang

The Saudi Royal Commission for Jubail and Yanbu has stated it intends to implement stringent penalties for a broad range of municipal infractions, outlined in the draft “Regulations of Fines and Penalties for Municipal Violations of the Royal Commission.”

The draft regulation requires violators to be responsible for fixing any damages and restoring associated properties to their original state, but they would be entitled to contest the imposed penalties with the relevant authority within a 60-day period following notification. Any decisions can also be further appealed to the Board of Grievances within the same 60-day timeframe.

Municipal violations are split into five categories: public health, slaughter and stray livestock, sales, building, and traffic violations, and each has specific fine ranges and criteria. Public health violations include fees ranging from SR100 to SR20,000 for offences such as improper waste handling and unsafe food production. Slaughter and stray livestock violations carry fines from SR100 to SR5,000. Sales violations, involving unlicensed operations and failure to adhere to sales protocols, and have penalties up to SR10,000. Building violations, such as unauthorised constructions, face fines up to SR30,000. Finally, traffic violations, such as unauthorised roadworks, would incur penalties from SR200 to SR30,000.

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Kuwait: Executive Regulations for Multinational Entity Tax

03/07/202503/07/2025
by Hannah Gutang

Mubasher, 29 June 2025: The Kuwaiti Ministry of Finance has issued Kuwait Ministerial Decree No. 55/2025 on the implementing of Kuwait Decree-Law No. 157/2024, on the tax of Multinational Entities (MNEs).

This covers the introduction of a Domestic Minimum Top-up Tax (DMTT), and aligns with OECD requirements under the Global Minimum Tax Pillar Two project. The new regulations clarify the provisions of the law, outlining procedures and mechanisms for implementation.

Preliminary estimates suggested the tax could generate annual revenues of approximately 250 million Kuwaiti dinars.

The Ministry plans to conduct several educational workshops to explain the details of the executive regulations, with dates to be announced in due course.

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DIFC: Consultation on Variable Capital Company Regulations

03/07/202503/07/2025
by Hannah Gutang

Gulf Today, 25 June 2025: DIFC has launched a public consultation on the newly proposed Variable Capital Company (VCC) Regulations, designed to provide flexible investment structuring options within the DIFC.

The proposed regulations allow the establishment of VCCs as either standalone companies or umbrella structures with incorporated or segregated cells. This setup will offer adaptability on share capital and asset segregation without needing authorisation from DFSA, unless the entity is engaging in regulated financial activities.

The VCC framework is specifically tailored to facilitate proprietary investment activities, making it particularly suitable for family-owned enterprises, multi-asset holdings, and complex investment portfolios seeking efficient asset management and diverse structuring. Important features include flexible share capital equivalent to net asset value, allowing for efficient issuance and redemption of shares, and asset segregation to facilitate distinct investment strategies and risk profiles.

The adoption of these VCC Regulations is expected to provide legal clarity and structural advantages for potential investors within the DIFC, making it an attractive option for diverse asset management strategies.

Once finalised, the VCC Regulations will empower investors to benefit from economies of scale and centralised management, reinforcing DIFC’s reputation as a leading jurisdiction for financial services.

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Bahrain: Tamkeen Unveils Updated Skills Report for Financial Sector

03/07/202503/07/2025
by Hannah Gutang

The Daily Tribune, 30 June 2025: The Labour Fund “Tamkeen” released an updated Financial Services Sector Skills Report under the “Skills Bahrain” initiative, in collaboration with private stakeholders, governmental bodies, and educational institutions.

The updated report reflects significant developments in Bahrain’s financial landscape, which is now a significant GDP contributor surpassing traditional oil and gas sectors, with a workforce mainly comprised of Bahraini nationals. It identifies urgent sector needs, such as advanced skills in digital transformation, cybersecurity, and data analytics, alongside with growing demand for roles like compliance officers and sustainability officers, due to the increasing emphasis on ESG practices.

The report advocates enhanced skill development strategies which will equipping the national workforce with capabilities which enable them to respond to sectoral shifts and to reinforce Bahrain’s status as a financial leader. Legal entities and associated sector participants should reflect these insights into workforce planning, and align their training and development initiatives to meet these evolving industry standards and global practices.

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Abu Dhabi: Enhances Regulations for Real Estate Brokers and Property Market

02/07/202502/07/2025
by Hannah Gutang

Gulf News, 30 June 2025: Abu Dhabi has tightened its regulations on real estate brokerage services as part of a broader update to the emirate’s property market rules.

The amendments introduced by Abu Dhabi Law No. 2/2025 have changed the law governing the real estate sector in Abu Dhabi, under Abu Dhabi Law No. 3/2015 Concerning the Regulation of the Real Estate Sector in the Emirate of Abu Dhabi.

These new regulations, are aimed at increasing transparency and accountability, and were announced by the Department of Municipalities and Transport earlier this month.

The updated regulations redefine real estate activities to include sales, purchase, registration, evaluation, management, and operational aspects of real estate.

New regulatory bodies have been introduced, and operational procedures which will impact developers, brokers, financial institutions, owners, and tenants have been introduced.

The ‘Owners’ Union’ has been changed into the ‘Owners’ Committee’ and has new roles and responsibilities. Specific penalties have been introduced for unauthorised practice of real estate activities, and there are strict administrative fines.

The regulations require homeowner committees to be established for new freehold projects. These committees, will be governed by the Department’s decisions, and will have advisory and oversight roles, with specialised management companies handling operational management.

Obligations on escrow account management have also been revised to ensure transparent transactions and safeguard buyer’s interests.

Key decisions included restructuring the administrative oversight by authorising the Department to impose administrative penalties for violations, reflecting improved compliance standards within the sector. Developers now face altered guidelines, notably stricter registration and marketing requirements for off-plan sales, and enhanced escrow account protocols. There have also been changes affected service fee collection procedures, developers will have to comply with.

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Lexis Middle East HR Alert – May 2025 Edition

26/06/202526/06/2025
by Tanya Jain

In this edition of Lexis Middle East HR Alert, we bring you a curated selection of the most pressing HR, legal, and regulatory developments shaping the employment landscape across the Middle East. From sweeping changes in Saudi labour law to evolving expectations around flexible work in the UAE’s blue collar sector, this issue is packed with expert insights, legal updates, and practical guidance for HR professionals, legal advisors, and business leaders alike.

As organisations across the region navigate complex immigration frameworks, new compliance requirements, and shifting workforce dynamics, our contributors provide the clarity and context needed to stay ahead. With in-depth features, real-world case reviews, and spotlights on key figures driving HR transformation, the LME HR Alert continues to serve as a trusted resource for understanding the policies and trends that matter most.

Stay ahead of the curve with Lexis Middle East HR Alert, as we provide you with the insights needed to navigate the complexities of HR in the Middle East.

Happy reading!

This edition features a diverse range of content, including:

FEATURE: FRAMEWORK IMPLEMENTED

Shiraz Sethi and Fatima Al-Sabahi of Dentons delve into the key reforms introduced in the Saudi Labour Law following the release of its implementing regulations. Their analysis highlights the significant changes impacting employment relationships, enforcement mechanisms, and employer compliance obligations in the Kingdom.

TREND SETTER: MORE FLEXIBLE BLUE COLLAR JOBS

With a mounting talent shortage in the UAE’s blue collar workforce, businesses are exploring more flexible working arrangements. Mary Rintu Raju of NYK Law outlines the legal implications and operational considerations of rolling out flexible models for this often-overlooked sector.

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

This section captures a selection of important legal and HR news, including changes to company structures in UAE freezones and other updates from across the MENA region.

IMMIGRATION FOCUS: SAUDI ARABIA IMMIGRATION UPDATE

Ali Ibrahim of Vialto Partners provides a comprehensive update on Saudi Arabia’s immigration regulations. His commentary offers vital guidance on how these changes may affect both employers and foreign nationals working in the Kingdom.

LAW CHANGES: NEW AND PROPOSED MENA LAWS

Explore recent and upcoming legal reforms, including newly proposed rules affecting work permits in Kuwait—changes that may impact workforce planning and compliance across multiple jurisdictions.

CASE FOCUS:

This issue includes a review of a recent QICDRC ruling in Clare Holloway v MBG Corporate Services LLC (QFC Case No. 0059/2024), where the Court of First Instance addressed the issue of premature litigation. Mohammed Al Ansari highlights the court’s approach to jurisdiction and procedural compliance.

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_May 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 2024

Lexis Middle East HR Alert_July 2024

Lexis Middle East HR Alert_October 2024

Lexis Middle East HR Alert_January 2025

HR PROFILE: CREATING CHANGE

Nishanth Krishnan, Director of People Advisory and Business Consulting at Grant Thornton UAE, shares insights into the strategic HR interventions needed to lead and manage successful organisational change in today’s climate.

IN-HOUSE PROFILE: PRACTITIONER PERSPECTIVE

Henrietta Baker and Kahroba Kojouri of Dentons discuss proposed amendments to the Saudi Personal Data Protection Law Implementing Regulations (Saudi Arabia Administrative Decision No. 1516/1445).

POLICY POINTERS: WORKING HOURS IN KUWAIT

Bader Al-Qellaish of Wefaq Law Firm reviews the legal frameworks governing working hours in Kuwait, with practical considerations for policy compliance and workforce wellbeing.

MOVES AND CHANGES

Stay updated on the newest business trends, significant appointments, and promotions in the region to stay connected with the market’s key influencers.