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Kuwait: New Traffic Law, Community Service and Stricter Penalties

Kuwait: New Traffic Law, Community Service and Stricter Penalties

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

Arab Times, 12 March 2025: Kuwait’s recently enacted Kuwait Decree-Law No. 5/2025 introduces significant amendments, including alternative penalties that can replace traditional sanctions at the discretion of the judiciary.

This new approach allows judges to convert penalties into community service, which is tailored to the violator’s profession and qualifications.

Such service can last up to a year, requiring eight hours of work per day without pay.

In cases where a serious violation results in damage to public property, the violator may be required to repair the damage at their own expense.

Judges also have the authority to impose multiple service penalties, which take effect immediately upon the issuance of the ruling.

The law maintains vehicle impoundment in 27 cases, but introduces “physical impoundment,” where a tracking device is installed in the vehicle, and fees are imposed based on the violation.

If the conditions of spatial impoundment are violated, a fine of 50 dinars is imposed, and the vehicle is moved to a traffic impoundment garage.

Additional fines apply if the tracking device is damaged or lost. Violating physical impoundment is considered a serious offence, requiring the violator to designate a fixed location for the vehicle.

A regulatory decision will soon limit the number of vehicles citizens and residents can own before the new traffic law takes effect on 22 April 2025.

Concerns about potential discrimination have been addressed, clarifying that these measures are within the state’s sovereign authority to regulate in the public interest.

The accuracy of AI cameras in detecting violations is reported to be 99%, with human oversight ensuring precision.

Violations such as not wearing a seatbelt, using a mobile phone, exceeding speed limits, or placing children in the front seat are documented by AI and reviewed by humans.

Notifications are sent to violators within 48 to 72 hours.

Citizens and residents can file complaints about violations through the Ministry of Interior’s “Sahl” application or by visiting the Violations Investigation Department.

Complaints are thoroughly reviewed, and violations may be canceled if the claimant’s rights are proven.

Ministry patrols are equipped with cameras to verify claims of wrongful violations, ensuring the rights of both security personnel and violators are protected.

Addressing concerns about the severity of fines under the new law, it has been clarified that Kuwait’s fines are not the highest among neighbouring countries, with some GCC countries imposing stricter penalties.

The General Traffic Department conducted extensive studies and public opinion polls before finalising the law, which was reviewed by the judiciary, the Fatwa and Legislation Authority, and the Public Prosecution.

The resulting fines aim to deter reckless driving and serious violations, such as running red lights, which endanger lives.

The 2025 Unified Traffic Week for GCC countries will carry the slogan “Driving without Accidents,” continuing the theme from 2024.

It has been highlighted that most accidents result from driver inattention, often due to mobile phone use.

Under the new law, settlement orders for violations now range from 15 to 150 dinars, up from the previous range of 5 to 50 dinars.

Habitual violators, especially those committing serious offences, will be referred to court without the option of settlement.

Vehicle owners are held responsible for violations, even if someone else was driving at the time.

If a vehicle owner disputes a fine, they must identify the driver during the violation.

An example was shared of a woman fined 30,000 dinars for violations committed by her son’s friends, who were driving her vehicle without her knowledge.

Drivers and front-seat passengers are required to wear seat belts, with vehicle owners held accountable for compliance.

With the new law’s implementation, patrols and control rooms have observed increased adherence to seat belt regulations.

It is now rare to see drivers or passengers without seat belts.

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UAE

Dubai: New Regulations on Freezone Company Operations

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

The National, 17 March 2025: Dubai has introduced a new regulation which will allow free zone companies to operate anywhere within the emirate after they have obtain the necessary permits from the Dubai Department of Economy and Tourism (DET).

Dubai Executive Council Resolution No. 11/2025, aims to simplify business expansion for free zone companies. However, it excludes financial institutions which are licensed within the DIFC.

The companies will have to comply with federal and local regulations and maintain separate financial records for their operations outside the free zone. In addition, to operate outside Dubai, additional licenses from relevant authorities will be required. The DET will be authorised to issue one-year renewable licenses for branches within Dubai and permits for specific activities.

The resolution also details the requirements for obtaining a licence, the procedures for issuing activity permits, and the conditions for employing the company’s workforce.

This initiative supports Dubai’s D33 agenda, which aims to double the economy to Dh32 trillion ($8.71 trillion).

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Abu Dhabi: Enacts Law to Restructure Independent Customs Administration

Abu Dhabi: Enacts Law to Restructure Independent Customs Administration

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

Abu Dhabi has enacted a law to reorganise the General Administration of Abu Dhabi Customs.

This administration, operating under the Abu Dhabi Department of Economic Development, now holds an independent legal status.

It is tasked with proposing policies and strategic plans for customs operations, facilitating trade, ensuring regulatory compliance, and safeguarding society from illegal activities.

The administration’s responsibilities include managing customs offices, implementing customs policies, and coordinating with authorities to regulate the import, export, and transit of goods.

It also oversees the inspection and valuation of goods, collection of duties and taxes, and management of free zones and customs warehouses.

Additionally, the administration is involved in facilitating the movement of goods, regulating customs clearance, and monitoring customs brokers.

It plays a crucial role in combating smuggling and customs-related crimes by investigating violations and enforcing legal measures.

The administration also handles conciliation settlements and the management of seized goods and customs exemptions.

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UAE: Cabinet Approves Executive Regulations for Legal Professionals

UAE: Cabinet Approves Executive Regulations for Legal Professionals

  • 14/03/202514/03/2025
  • by Hannah Gutang

Gulf Today, 12 March 2025: The UAE Cabinet has recently approved new executive regulations aimed at enhancing the legal profession and legal consultation sector within the country.

These regulations are designed to bolster the judicial system, improve the nation’s rule of law indicators, and ensure effective justice through partnership and integration.

Key aspects of the regulations include the criteria and procedures for lawyers transitioning from practicing before lower courts to the Federal Supreme Court.

They also outline the requirements for trainee lawyers, the responsibilities of supervising lawyers, and the licensing process for non-national lawyers practicing in the UAE.

Additionally, the regulations cover the registration and re-registration of legal researchers and advisors, as well as their powers and responsibilities.

The regulations further detail the establishment and management of law and legal consultation firms, including licensing, suspension, and liquidation processes.

They also address the equivalency of university qualifications for legal professionals.

Lawyers’ rights and duties, their relationship with clients, and fee structures are clearly defined.

The regulations also specify conditions under which lawyers may engage in commercial activities.

Confidentiality obligations for legal researchers, advisors, and representatives are emphasised, with exceptions only in cases of preventing crimes or when required by law.

The Cabinet has also approved a regulatory framework for professional law and legal consultancy firms, aiming to enhance the legal environment and regulate the practice of legal professions according to best practices.

This framework allows Emirati lawyers and legal consultants to establish professional companies, either individually or in partnership with international firms, provided certain conditions are met.

Permitted legal forms for professional companies include partnerships, limited liability companies, and one-person limited liability companies.

All partners must be licensed professionals, ensuring compliance to Federal Decree-Law No. 34/2022 and its executive regulations.

To obtain a professional company licence, applicants must be registered Emirati lawyers or legal advisors, have certified articles of association, and secure professional insurance to cover liability for errors, thereby protecting clients’ rights and fostering trust in the legal services offered.

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UAE: Approves Remote Work for Government Entities Outside the Emirates

UAE: Approves Remote Work for Government Entities Outside the Emirates

  • 13/03/202513/03/2025
  • by Hannah Gutang

Khaleej Times, 10 March 2025: The UAE has announced the approval of a remote work system for government entities, allowing employees to operate from outside the country.

While remote work has been a part of federal entities since 2017, this marks the first instance of extending the policy to employees based internationally.

The system is expected to enable the UAE to access specialised skills and knowledge from around the world, enhancing the execution of projects and studies for federal entities.

The relevant authorities will be responsible for identifying roles suitable for remote work from outside the UAE.

Additionally, the country will establish guidelines outlining the conditions and responsibilities for contracted employees.

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Saudi Arabia: Reaffirms Commitment to Chemical Weapons Ban

Saudi Arabia: Reaffirms Commitment to Chemical Weapons Ban

  • 13/03/202513/03/2025
  • by Hannah Gutang

Saudi Arabia has reiterated its commitment to the Chemical Weapons Convention and highlighted the importance of its full implementation.

The Kingdom has condemned the use of chemical weapons as a violation of the Convention and international law.

The Saudi delegation supported Palestine’s request for OPCW oversight in the region and welcomed progress on the Syrian chemical weapons issue, emphasising the need for cooperation among States Parties to support the OPCW and Syria in resolving the matter.

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Qatar: Cabinet Approves Draft Law on Lost Property and Unclaimed Money

Qatar: Cabinet Approves Draft Law on Lost Property and Unclaimed Money

  • 13/03/202513/03/2025
  • by Hannah Gutang

The Peninsula, 6 March 2025: The Cabinet has approved a draft law concerning lost property and unclaimed money, which will now be referred to the Shura Council for further consideration.

The draft law, prepared by the Interior Ministry aims to establish clear procedures for handling lost property and unclaimed money, ensuring that these items are returned to their rightful owners and encouraging individuals to report found items.

Other decisions made by the Cabinet include approving a draft resolution on protective measures for public electrical and water facilities, endorsing an employment agreement with Sierra Leone, and ratifying an MoU with Uzbekistan on combating money laundering.

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Oman

Oman: First Dual Citizenship Granted Under New Law

  • 13/03/202513/03/2025
  • by Hannah Gutang

The Arabian Stories, 9 March 2025: Oman has issued a Royal Decree granting Omani citizenship to an individual, allowing them to hold both Omani and Russian nationalities.

This is the first instance of dual nationality being permitted under Oman’s new citizenship law.

The Royal Decree follows the recent implementation of Oman Sultani Decree No. 17/2025, which came into effect on 2 February 2025.

The new law generally prohibits dual nationality unless explicitly granted by a Royal Decree, based on the recommendation of the Interior Ministry.

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Kuwait: Minister Inspects Cooperative Societies in Jahra for Regulation Compliance

Kuwait: Minister Inspects Cooperative Societies in Jahra for Regulation Compliance

  • 13/03/202513/03/2025
  • by Hannah Gutang

Arab Times, 6 March 2025: The Minister of Social Affairs, Family, and Childhood Affairs has conducted a visit to several cooperative societies in Jahra Governorate to assess their adherence to ministerial regulations during the holy month of Ramadan.

This visit is part of ongoing efforts to maintain price stability, ensure the availability of high-quality essential products, and enforce laws and regulations in cooperative markets for the benefit of both shareholders and consumers.

During the visit, the minister engaged with officials from the cooperative societies to discuss the mechanisms in place for price control and the availability of Ramadan-related products.

The minister has assured them that the ministry will continue to monitor the performance of these societies to ensure the best possible services for shareholders and consumers.

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Bahrain: Legal Consultancy Offices Accredited

Bahrain: Updates VAT Guide for Imports and Exports

  • 13/03/202513/03/2025
  • by Hannah Gutang

The Kingdom of Bahrain’s National Bureau of Revenue (NBR) has released an updated version of the Imports and Exports VAT Guide.

This comprehensive document offers essential guidance for businesses involved in international trade in Bahrain, detailing the VAT treatment of imports and exports.

It covers key areas such as VAT liability on imports, conditions for zero-rating exports, and compliance requirements for businesses engaged in cross-border transactions.

A notable update in the guide is the revision of Section 1.2, which provides enhanced details on the VAT treatment of goods exports.

The guide reaffirms that exports of goods from Bahrain are subject to a 0% VAT rate, provided they meet specific conditions.

To qualify as an export and benefit from zero-rating, goods must be shipped from Bahrain to a destination outside the Implementing States within 90 days from the date of supply.

Additionally, the goods must remain unchanged, unused, and unsold before leaving Bahrain.

Suppliers are required to maintain valid export documentation to prove compliance with these conditions, as failure to do so may result in the transaction being treated as a domestic supply subject to a 10% VAT rate.

The most significant update involves a new subsection under Section 1.2 titled “Multiple Supplies Resulting in a Single Export.”

The guide clarifies that when multiple transactions culminate in a single export, only the final supply in the chain will qualify for zero-rating, provided all export conditions are met.

Any preceding transactions in the supply chain will be treated as domestic supplies and will be subject to a 10% VAT rate.

This change directly impacts businesses involved in multi-step transactions where goods are initially sold within Bahrain before being exported.

For instance, if a VAT-registered supplier in Bahrain sells goods to another Bahrain-based entity, which then arranges for the direct export of those goods to a customer outside Bahrain, the initial transaction within Bahrain will be subject to a 10% VAT rate, while the final sale to the overseas customer will be zero-rated.

The supplier responsible for the export must ensure they retain documentation proving the outbound destination of the shipment to apply the 0% VAT rate.

These updates underscore the importance of accurate VAT classification and proper documentation for businesses engaged in imports and exports.

Companies are advised to review their VAT compliance procedures to ensure they correctly apply zero-rating to exports and account for VAT on domestic transactions preceding an export.

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