Newsletter Archives - Page 24 of 243 - LexisNexis Middle East

Kuwait: Municipality Plan to Address Encroachments

03/04/202503/04/2025
by Hannah Gutang

Kuwait Times, 27 March 2025: Kuwait Municipality has reaffirmed its commitment to addressing encroachment of state property.

The municipality now has a comprehensive field plan in coordination with relevant authorities to remove violations in the Taima and Sulaibiya areas. A Municipality Spokesperson stated an extensive campaign is set to be launched after violators had been given prior warnings issued that they have unlawfully exploited state land, obstructed public services, and are posing security concerns. The inspection drive is being carried out by the municipality’s encroachment monitoring teams and a range of government entities, including the Ministry of Interior’s Environment Police and the Ministry of Electricity, Water, and Renewable Energy.

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Bahrain: Court Rulings to be Reviewed for Possible Legal Changes

03/04/202503/04/2025
by Hannah Gutang

Daily Tribune, 30 March 2025: The Minister of Legal Affairs has stated judgments from Bahrain’s top courts are being reviewed to see if the country’s laws need to be reformed.

The Minister told the Parliament Court of Cassation judgments were being reviewed to see if there are any gaps or inconsistencies in the legislation. While some jurisdictions allow judges to call for changes to the law, this is not the case in Bahrain. The Ministry of Legal Affairs works closely with the Legislation and Legal Opinions Commission on new laws. The Ministry also reviews international laws and drafts possible legislation. The commission is in charge of the final wording and also draws up regulations and government decisions.

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UAE: New Zakat Law Approved

27/03/202527/03/2025
by Hannah Gutang

Khaleej Times, 19/03/2025: The UAE has approved a new zakat draft law, imposing fines of up to Dh1 million and imprisonment for illegal collection.

The Federal National Council (FNC) has passed a comprehensive federal law regulating the collection, distribution, and management of zakat across the UAE. The decision, led by the Chairman of the General Authority for Islamic Affairs, Endowments, and Zakat, aims to enhance transparency and accountability in the administration of zakat funds. The new law governs all aspects of zakat processes, including the investment of surplus funds in line with Sharia principles, and applies to all individuals and entities engaged in zakat activities within the UAE, including those in free zones. Certain organisations may be exempted by the Cabinet, provided they meet registration and reporting requirements.

The law introduces strict penalties for violations. Collecting, receiving, or distributing zakat without authorisation is considered a crime against public funds, punishable by imprisonment, fines of up to Dh1 million, or both. Misuse of funds, unauthorised deductions, and submitting false documents may result in further fines and imprisonment. Authorised entities also face fines of up to Dh1 million for violations such as distributing zakat abroad without permits, failing to comply with regulations, or mismanaging investments. All entities must regularise their status within a year of the law’s enactment, with an option for extension.

A key feature of the law is the creation of the ‘National Zakat Platform,’ which is a unified digital system to monitor authorised entities, beneficiaries, and fund allocations. This platform aims to ensure zakat funds are distributed efficiently to rightful beneficiaries and managed transparently. The law also restricts zakat distribution outside the UAE to exceptional circumstances like natural disasters, requiring official approval through the platform.

The law maintains the religious integrity of zakat by requiring investment surplus to be used exclusively for zakat purposes, and bars deductions for managing authorities. After extensive debates, the FNC upheld the original provision allowing traditional zakat giving to relatives and acquaintances without the need for excessive administration.

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Saudi Arabia: Tourism Ministry Enforces Strict Penalties on Unlicensed Hotels

27/03/202527/03/2025
by Hannah Gutang

Saudi Gazette, 25 March 2025: The Saudi Ministry of Tourism has imposed strict penalties on unlicensed hotels, ensuring adherence to the Tourism Law Saudi Arabia Cabinet Decision No. 79/1444.

The Ministry of Tourism in Saudi Arabia has announced their continued enforcement of statutory penalties against hotels and tourism facilities which violate the Saudi Arabia Cabinet Decision No. 79/1444 and its executive regulations. The penalties include a maximum fine of SR1 million, closure, or both, for facilities which operate without a license from the ministry. Unlicensed tourist hospitality facilities must comply with the law and obtain necessary licenses before they can resume operations.

The ministry has undertaken a comprehensive survey of tourism facilities which have been closed to ensure their compliance with closure penalties and has coordinated with regional emirates and relevant agencies on periodic follow-ups. The regulations mandate that facilities correct their status and adhere to approved standards, which aim to improve service quality and ensure visitor safety.

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Oman: Government Assets to Be Insured Under New Risk Mitigation Policy

27/03/202527/03/2025
by Hannah Gutang

The Arabian Story, 24 March 2025: The Ministry of Finance in Oman issued circulars requiring insurance for government vehicles, imports, and safes, from 1 April 2025.

The Ministry of Finance in Oman has issued three new circulars requiring this. These measures were part of the Ministry’s commitment to preserving state-owned assets and funds, ensuring they are adequately protected against potential risks. The circulars outlined specific insurance requirements, including coverage for government vehicles for the year 2025-2026, marine, air, and land insurance for government imports to safeguard against potential losses or damages during transit, and insurance of the contents of government safes.

The Ministry emphasised that these circulars align with the Financial Law, Oman Sultani Decree No. 47/1998, and are part of ongoing efforts to protect government assets.

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Kuwait: Strict Penalties for Money Laundering Violations

27/03/202527/03/2025
by Hannah Gutang

Arab Times, 24 March 2025: A resolution has been implemented imposing fines up to 10,000 dinars for money laundering violations.

Kuwait Ministerial Decision No. 25/2025, covers penalties and procedures for violations related to money laundering and terrorist financing. The resolution targets designated non-financial businesses and professions (DNFBPs) and categorises violations into three risk levels: low, medium, and high. Penalties range from written warnings and license suspensions to fines between 500 and 10,000 Kuwaiti dinars.

The resolution relates to Kuwait Law No. 106/2013 on combating money laundering and terrorist financing. Low-risk violations, such as failure to comply with due diligence for invoices under 3,000 dinars, will result in warnings or license suspensions. Medium-risk violations, including handling cash amounts exceeding 3,000 dinars, will lead to fines ranging from500 to 3,000 dinars. High-risk violations, such as failing to notify authorities about sanctioned individuals, carry fines between 4,000 and 10,000 dinars, with repeat offenders facing potential business bans.

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Bahrain: Parliament Approves Reduction in Housing Loan Deductions and Interest Rates

27/03/202527/03/2025
by Hannah Gutang

The Daily Tribune, 19 March 2025: Bahrain’s Parliament has approved a reduction in housing loan deductions and interest rates to ease financial pressures on citizens.

The Parliament has passed a proposal to lower the monthly deduction for housing services from 25% to 20% of salaries. This decision aims to ease the financial burden on Bahraini citizens who are receiving housing loans. Additionally, Members of Parliament urged the Ministry of Housing and Urban Planning to collaborate with Eskan Bank to reduce the overall interest paid on housing loans by 20%.

Currently, citizens pay up to half the loan value in interest alone.

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Abu Dhabi: Enforces Fines for Unlicensed Building Facade Modifications

27/03/202527/03/2025
by Hannah Gutang

Khaleej Times, 22 March 2025: Abu Dhabi’s Department of Municipalities and Transport (DMT) has introduced fines for unlicensed facade modifications on commercial buildings, facilities and establishments.

This decision aligns with Abu Dhabi Law No. 2/2012 on the Maintenance of Building General Appearance in the Emirate of Abu Dhabi, which aims to maintain a sustainable and visually appealing urban environment in the Emirate. The regulations prohibit the addition of tools, equipment, or any changes to building facades without the appropriate licence.

Property owners and commercial establishments are now required to obtain proper permits before making any facade modifications. Violators will face fines of Dh1,000 for the first offence, Dh2,000 for a second violation, and Dh4,000 for any third or repeated offences. The regulations also extend to unauthorised fencing, enclosing, or covering of properties, with fines ranging from Dh3,000 to Dh10,000 for repeated violations.

These measures are part of the DMT’s ongoing efforts to preserve the aesthetic integrity of public spaces, and came into force on 16 March 2025. The regulations mirror the provisions of Abu Dhabi Law No. 2/2012, which prohibits actions that negatively impact the cultural, architectural, or aesthetic features of public areas.

In addition to facade regulations, the DMT has issued reminders on the laws on abandoned vehicles, with fines for leaving vehicles in a way that distorts the public appearance. These fines range from Dh500 for first-time offenders to Dh2,000 for repeated violations.

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Lexis Middle East HR Alert – March 2025 Edition

24/03/202524/03/2025
by Hannah Gutang

Welcome to the March 2025 edition of Lexis Middle East HR Alert, your indispensable guide to understanding the dynamic legal and business environment affecting HR in the Middle East. As the region continues to evolve and harmonise with international standards, it is crucial for HR professionals, legal advisors, and business leaders to remain informed about the latest developments and trends impacting the workforce. This issue highlights significant amendments to Saudi and UAE labour laws, emphasising enhanced worker protection and strict compliance measures.

In Saudi Arabia, updates to Cabinet Decision No. 219/1426 clarify the enforcement roles of the Ministry of Human Resources and Social Development and the Ministry of Interior, with increased fines for unauthorised employment ranging from 200,000 to 500,000 Riyals. The UAE’s Federal Decree-Law No. 9/2024 introduces amendments aimed at improving employer compliance, notably imposing fines of up to one million AED for employing workers fictitiously, with potential multiplication based on the number of workers involved. Additionally, Oman has implemented a new scheme requiring monthly employer contributions to the Social Insurance Organisation, ensuring expatriate employees receive their end-of-service gratuity dues more efficiently. Our comprehensive analysis delves into the implications of these legislative changes for HR practices across the region, exploring how these updates will affect compliance strategies, employee relations, and overall workforce management.

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: A More Flexible Approach

Ben Brown and Sarit Thomas of Clyde & Co explore the greater adaptability afforded to employees and employers following the revisions to the ADGM’s Employment Regulations, set to be implemented on April 1, 2025.

Trend Setter: Recruitment

Mary Rintu from NYK Law analyses how the shift towards prioritising practical skills over experience in hiring may offer both opportunities and challenges for employers in the UAE.

News Round-up: Covering Recent Key Developments – Region-Wide

Keep up-to-date with the most recent regional developments, including a consultation on DIFC Employment Law.

Immigration Focus

Deepen your knowledge of the changing immigration and visa rules in the Gulf Cooperation Council (GCC) nations, emphasising the grace period for visa violators in Qatar.

Law Changes: New and Proposed MENA Laws

Balall Maqbool, Hamood Al Rawahi, and Mehdi Al Lawati of DLA Piper Middle East discuss Oman Ministerial Decision No. 13/2025 and the newly introduced regulations on part-time work in Oman.

Case Focus: QFC Employment Standards Office v Meinhardt BIM Studios LLC [2024] QIC (F) 24

Umar Azmeh, Registrar at QICDRC, highlights the importance of this case, comparing it to Donoghue v Stevenson [1932] AC 562, a landmark in negligence law. The QFC Employment Standards Office (ESO) is crucial in enforcing the QFC Employment Regulations 2020 through its investigations and guidance.

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_March 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: People and Technology

Uchenna Okpara Izuagba, Chief Human Resources Officer at Gastronaut Hospitality, asserts that prioritising employee needs and leveraging technology are essential for success in the UAE hospitality industry.

In-House Profile: Practitioner Perspective

Sarah Malik, Pavithra Rajendran, and Sara Nassif from SOL International outline the main aspects of UAE health and safety laws and the National Standard for the Occupational Safety and Health Management System (OSHMS).

Policy Pointers: Sponsorship transfers

Sarah Khasawneh, Associate at Pinsent Masons, highlighted that recent legal reforms in Qatar have changed the sponsorship transfer process by eliminating the need for NOC. Employees can now switch jobs without their current employer’s approval, improving worker mobility.

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.

UAE: Pioneers Drone Air Navigation Certification

20/03/202520/03/2025
by Hannah Gutang

Gulf Today, 13 March 2025: The UAE General Civil Aviation Authority (GCAA) has launched the region’s first national regulation for certifying air navigation service providers for drones, known as CAR Airspace Part Uspace.

This groundbreaking regulation establishes a comprehensive framework for organisations aiming to offer air navigation services for unmanned aircraft, ensuring they comply with stringent operational and safety standards.

The regulation adopts a holistic approach, addressing all critical aspects of certifying drone air navigation service providers.

It includes contracting, training, quality assurance, safety, future planning, auditing, and certification.

The primary objective is to integrate drone operations seamlessly into the existing aviation ecosystem, ensuring a cohesive, efficient, and safe airspace through licensed entities specialising in drone air navigation services.

The Director-General of the GCAA has highlighted the importance of this milestone, noting that the regulation is a testament to the UAE’s commitment to safety, efficiency, and innovation in aviation.

As drone operations are projected to double soon, this proactive regulatory framework is poised to serve as a model for integrating drone and commercial aviation, reinforcing the UAE’s status as a regional aviation leader.

The Assistant Director-General of Aviation Safety Affairs has emphasised that the regulation is crucial for safely incorporating advanced drone technology into UAE airspace.

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