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Saudi Arabia: Labour Courts Issue Rulings in Absentia

  • 21/01/201911/12/2019
  • by Benjamin Filaferro

Judicial sources in Saudi Arabia have confirmed the labour courts which were established a couple of months ago have issued a number of rulings in absentia against companies who don’t turn up to court hearings. The sources said these companies failed to turn up to hearings even though they have been property notified electronically. Most of the rulings issued in absentia cannot be appealed because they are related to small cases worth less than 20,000 Riyals. The source added these cases would previously have been postponed if the company didn’t attend the hearing. Cases which are subject to this procedure include requests for certificates of services, requests for documents and records related to labourers and held by an employer. They also include objections against decisions issued by residential service committees and complaints against employers and employees against decisions issued by social security institutions.

Weekly Spotlight: Introduction of a New License For Visiting Doctors in Dubai

  • 21/01/201911/12/2019
  • by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Dubai, where the Healthcare City Authority has announced it is introducing a new license for visiting doctors which will be valid for two years. It will allow international physicians, dentists and Complementary and Alternative Medicine (CAM) practitioners to enter the UAE and work in up to three clinical facilities in the City.

The license is aimed at attracting international medical talent to Dubai and is being introduced ahead of Arab Health, the largest exhibition for healthcare and trade professionals in the Middle East. Visiting doctors can currently only practice temporarily in the free zone through a license from the clinical facilities, which is valid for a three-month-period and can be extended for three months. With the new license, physicians will be able to work for two years, after they have obtained a Letter of Acceptance which is a document confirming their eligibility to work as physicians and enter into a contract with a clinical facility. They will also be able to sponsor their families during the license’s validity period. They can apply for a license from 20 January and a special DArab Health license fee rate will be offered from then until the last day of the exhibition on 31 January.

Bahrain: Foreign Property Ownership Restrictions Recommended

  • 21/01/201911/12/2019
  • by Benjamin Filaferro

The Legislative and Legal Affairs Committee of Bahrain’s Parliament has recommended implementing a draft law limiting the property ownership rights of foreigners. If approved, it will only allow foreigners to own properties in tourism and investment areas. It will replace Article 1 of Bahrain Decree-Law No. 2/2001 on the ownership of land by non-Bahrainis. It is intended to limit the rise in real estate prices in some areas by concentrating non-Bahraini ownership in others. The Government had requested the Committee review the draft law, which will also require adjustments to other Government policies.

Weekly Spotlight: Bahraini Electricity and Water Authority Loses VAT Legal Case

  • 13/01/201911/12/2019
  • by Benjamin Filaferro

This week the spotlight is on tax and finance developments in Bahrain, where VAT came into force on 1 January 2019. Elsewhere, a Bahraini lawyer brought a claim against the Electricity and Water Authority before the High Civil Court requesting the annulment of a VAT decision issued by the Authority.

The lawyer benefits from water and power services for non-commercial purposes who sent a utility bill requesting payment of 5% VAT on these services. He cited Article 9 of Bahrain Decree Law No. 48/2018 on VAT which says the Authority cannot charge VAT if it was offering the service as a sovereign body. They can only charge VAT if it is offering commercial activities like those offered by the private sector.

The court accepted the lawyer’s arguments and said the Authority didn’t have the right to charge nationals VAT for power and water if it is for non-commercial activities. The court requested the Authority cancel the decision and pay legal costs.

Kuwait: Free Trade Zone Decision Cancelled

  • 12/01/201911/12/2019
  • by Benjamin Filaferro

According to local newspaper reports, Kuwait’s Council of Ministers has cancelled Kuwait Decision No. 512/2018 establishing a free zone in Shuwaikh port. However, the Public Authority for Industry will continue to undertake the tasks entrusted to it in the area until 1 April 2019. The Government has entrusted the Kuwait Ports Authority, together with the Kuwait Municipality to make future plans and projects for ports according to the country’s fourth organisational chart. Contracts with investors demanding the evacuation of buildings and land and handing them over to the Government should not be renewed.

Saudi Arabia: Supervisory Health Council to be Established

  • 12/01/201911/12/2019
  • by Benjamin Filaferro

Saudi Arabia’s Shoura Council has approved an amendment to Article 16(A) of the Health Law following recommendations from the health committee. Under the amendment, a health council will be established and linked to the president of the council of ministers. The Council’s chairman will be of Minister grade and appointed by a Royal Decree. Members of the council will include a representative of the Health Ministry and representatives from health services from other relevant ministries. The aim is to boost the council’s independence and enable it to exercise its supervisory and regulatory roles.

Weekly Spotlight: General Tax Authority to be Estabilished in Qatar

  • 23/12/201811/12/2019
  • by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Qatar, where the country’s Finance Ministry has announced it will establish a General Tax Authority. The Ministry also announced they will not introduce Income Tax on individuals or VAT in 2019. The Authority will be established as a stand-alone entity but will be supervised by the Finance Ministry. It will be responsible for implementing all tax laws. The Authority will be able to set up all related bylaws, procedures and instructions to implement tax legislation. It will also review and assess tax return forms submitted by establishments and collect taxes from relevant entities. In addition, it will represent the country in the relevant international and regional organisations as well as at international conferences and events. Finally, it will have the power to sign agreements with other countries to prevent double taxation. The Ministry added they will issue additional exemptions for key economic sectors and will not impose tax on investments in shares and profits. However, they will introduce an excise tax on goods which negatively affect health from the start of next year. It will include a 100% tax on tobacco and its products and energy drinks and a 50% tax on sugary drinks.

Regulations to UAE Federal Law No 3/2016

  • 22/12/201811/12/2019
  • by Benjamin Filaferro

The UAE’s Prime Minister has issued the Implementing Regulations to Federal Law No 3/2016 on the rights of the child in line with Cabinet Decision No 52/2018. The Regulations cover child labour, procedures for reporting violations of children’s rights in educational institutions, terms of reference of the Child Protection Unit, conditions for child protection specialists, preventive and protection measures, foster family conditions and obligations, and child custody regulations for guardians. Employing a child will require special permission from the Human Resources and Emiratisation Ministry. The child should not be under 15 and must be medically fit for work. The Regulation also bans children from entering hazardous places including laboratories or places where toxic gases are emitted, as well as quarries, mines, conflict zones, environmental disasters, adult entertainment centres, explosives manufacturing facilities and other high risk workplaces.

Bahrain: Consultation on Draft Crypto-Asset Platform Operator Rules launched

  • 22/12/201811/12/2019
  • by Benjamin Filaferro

Bahrain’s Central Bank has launched a consultation on draft crypto-asset platform operator rules. The consultation ends on 31 December 2018. The proposed framework will cover licensing requirements, financial resources and measures to safeguard client or customer interests, technology standards and cyber security risk management measures, reporting and other requirements. The aim is to provide a regulatory framework for licensing and supervising crypto-asset services including those provided by a platform operator as a principal, agent and as a custodian, in or from the Kingdom.

Weekly Spotlight: Draft UAE Federal Maritime Law Being Prepared

  • 16/12/201811/12/2019
  • by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in the UAE, where the Federal Government reportedly plans to adopt a new maritime law. It is understood the first draft will be ready in early 2019. It will then be circulated for a consultation and submitted to the Government to review.

It will support port infrastructure in the country with the aim of attracting participation in its shipping industry and address the issue of diversity of shipping facilities. It will also include provisions for freight forwarders, cargo and ports. In addition, it will cover the UAE National Ship Registry, as well as environmental pollution, health and safety and logistical operations.

Elsewhere, the country’s Health and Prevention Ministry has approved a draft federal law on legal protection for non-medically trained persons providing emergency assistance and relief. The Head of the Emirates Emergency Division of the Emirates Medical Society said the law will come into force in 2019 and will make the UAE the first Arab nation to apply this type of law. It will protect people from civil or criminal prosecution when providing bona fide assistance or relief to another person in an emergency. The law also covers the requirement to inform the authorities in emergency situations and the provision of ambulances or other rescue operations.

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