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Bahrain: Legal Consultancy Offices Accredited

Bahrain: Government Employee Guide

  • 14/11/202414/11/2024
  • by Hannah Gutang

Al Watan News, 6 November 2024: The Civil Service Bureau has issued a guide for government employees, serving as a reference for civil servants to determine work mechanisms, incentives, and allowances, while specifying a probationary period for employees not exceeding six months.

The guide emphasises the necessity for government employees to demonstrate loyalty and dedication to the Kingdom of Bahrain and its leadership, respect the constitution and the law, comply to official working hours, avoid conflicts of interest, prohibit accepting gifts, and maintain confidentiality and refrain from disclosing data when dealing with media, publishing, press, and social media.

Additionally, government employees are obligated to maintain a proper appearance and conduct, report violations, provide testimony when required, preserve public and private property, and exhibit respect and courtesy in work relationships with superiors, colleagues, clients, and other entities.

According to the guide, newly appointed permanent civil service employees, excluding those in senior positions and their equivalents, are subject to a six-month probationary period for evaluation, starting from the date of commencing work.

For educational positions subject to school vacations, the probationary period is set as a full academic year.

If an employee fails to demonstrate competence during the probationary period, the government entity may terminate their services.

The probationary period is included in the employee’s service duration if they are confirmed after the probationary period.

The employee’s competence is assessed through monthly evaluations conducted by their direct supervisor during the probationary period, which are then submitted to the department manager and the human resources division.

The employee’s service may be terminated during the probationary period by a reasoned decision from the competent authority if they fail to fulfill their job duties.

If the probationary period ends without the employee receiving a decision from the competent authority, they are considered confirmed.

Employees have the right to appeal the decision to terminate their service during the probationary period to the Grievance Committee of the government entity they worked for.

Employees may also resign during the probationary period, provided they notify their direct supervisor in writing within five working days.

Temporary employees are subject to a probationary period if their contract exceeds six months.

If they are permanently appointed to the position they held, their temporary service duration is included in their actual service, provided it is not less than six months, and they cannot be subjected to another probationary period.

The guide allows for the transfer of employees from one position to another within the same government entity or to another government entity.

It also permits the secondment of employees between government institutions not subject to the Civil Service Law or any other institution affiliated with countries or companies in which the government holds at least a 50% stake, or to Arab, regional, foreign, and international governments and bodies.

Regarding vacancies, there is an electronic service that allows government entities to internally advertise civil service vacancies through the ‘Vacancies’ system.

Incentive bonuses may be granted to employees who provide services and research that contribute to improving work methods, enhancing performance efficiency, or reducing costs, as a form of appreciation and to improve the quality of services provided to citizens.

Performance-related bonuses include the Professional Excellence and Exceptional Achievements Bonus, the Ideal Employee Bonus, the Suggestions Bonus, and the Letter of Appreciation or Commendation.

An employee cannot receive more than two performance-related bonuses or one performance-related bonus and an incentive allowance within a single year.

An employee cannot be considered for an incentive bonus if they have previously been disciplined until the penalty is expunged.

Bonus payments are suspended for employees under investigation until the accountability procedures are completed, and if they are disciplined, they are deprived of the bonuses.

The guide also emphasises that an allowance is a monetary amount granted to an employee on a continuous basis and is not deducted during paid leave.

Allowances include periodic, social, cost-of-living, incentive, housing, special, car, transfer, clothing, and communication allowances.

A compensation, on the other hand, is a monetary amount that is not paid during paid leave and is used to meet specific requirements, such as shift, nature of work, sea travel or diving, working in the Hawar Islands, dedication, guarding, nursing, driving, and others.

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Abu Dhabi: Sets 15% Limit For Exceptional School Fee Hike

Abu Dhabi: Sets 15% Limit For Exceptional School Fee Hike

  • 14/11/202414/11/2024
  • by Hannah Gutang

Gulf Insider, 11 November 2024: Private schools in Abu Dhabi are not permitted to raise tuition fees by more than 15% even in exceptional circumstances, and they must meet specific conditions before seeking approval for such an extraordinary increase.

These rules are part of the new education policy recently issued by the Department of Education and Knowledge – Abu Dhabi (ADEK).

ADEK has set the cap for exceptional tuition fee increases based on Abu Dhabi’s Education Cost Index.

To qualify for an exceptional fee increase, schools must demonstrate financial losses over the past two years and provide audited financial statements for this period.

Additionally, they must have been in operation for at least three years, hold a valid licence, and maintain an occupancy rate of at least 80%.

If approved, schools are limited to one exceptional fee increase per academic year.

The Department has emphasised its right to reject any request for fee increases, underscoring that tuition fees should be collected in at least three instalments, going up to ten instalments throughout the academic year.

According to the new policy, schools may collect the first instalment a month before the start of the academic year.

They are also authorised to charge a registration fee of up to 5% of the approved tuition fee, which can be collected from enrolled students up to four months before the academic year begins, and must be deducted from the student’s final tuition fees.

Schools are prohibited from requesting or accepting any financial guarantees from parents as a substitute for tuition payments, and they cannot request a pre-deposit, initial application, or first-time registration fee from parents before the student is enrolled.

The new policy requires schools to itemise tuition fees into six components: tuition fees, educational resource fees, uniform fees, transportation fees, extra-curricular activity fees, and other fees.

These components must be disclosed to parents during registration.

Schools are also allowed to charge administrative fees for board exams, provided they are clearly justified and disclosed on the school’s website.

Embassy-affiliated private schools can apply for an exceptional fee increase, subject to requirements such as justifying the increase, obtaining approval from the school’s Board of Trustees, and providing consent from the relevant embassy or consulate, if applicable. Schools must post detailed tuition payment schedules on their websites and may enter agreements with parents regarding compliance to these schedules.

Under normal circumstances, schools are only allowed to increase fees according to their rating in school inspections, called Irtiqaa, in conjunction with the Education Cost Index (ECI).

The maximum fee increase allowed varies based on the school’s rating, with ‘outstanding’ schools having the highest cap of 3.94% and ‘very weak’ schools limited to a maximum of 2.25%.

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Lexis Middle East Law Alert: Special Supplement

Lexis Middle East Law Alert: Special Supplement

  • 11/11/202411/11/2024
  • by Hannah Gutang

Welcome to the Lexis Middle East Law Alert: Special Digital Economy Supplement. This edition offers a preview of the key topics and discussions that will be explored at Ooredoo’s Digital Ecosystem conference, with insightful articles from moderators and panellists leading these sessions. Look forward to the analysis of digital innovation and the policy frameworks shaping transformation across the MENA region.

This supplement features a variety of articles, including:

Feature: The Future of Telecoms

Dr. Bharat Vagadia from Ooredoo Group examines the future of the telecom sector in the MENA region, discussing both technical advancements and regulatory perspectives.


Feature: Consumers: The Right Approach

Ken Wong and Ben Gibson from CMS explore consumer protection approaches within the telecom sector in Saudi Arabia and the UAE.


Feature: Artificial Intelligence

Umar Azmeh, Registrar at the Qatar International Court and Dispute Resolution Centre (QICDRC), analyses how AI is enhancing the GCC’s legal sector, along with its risks and future potential.


Feature: Cloud Computing: Supporting Development

Shahin Yasin from Muayad & Associates provides insights into Iraq’s rising interest in cloud computing across public and private sectors and the legal frameworks needed to facilitate growth.


Feature: Cybersecurity: The Need to Know

Steve Jump from Custodiet explains why understanding a business’ specific cybersecurity needs is essential.


News Round-up: Regional Legal and Regulatory Updates

Stay informed on the latest legal and regulatory changes across the region, including new AI guidelines introduced by the Qatar Central Bank.


Business News Round-up: Battling to Keep Communication Lines Open

Dr. Samer Fares, CEO of Ooredoo Palestine, shares efforts to maintain life-saving communication lines in conflict-affected Gaza.

Lexis Middle East Law Alert – Ooredoo Digital Economy Supplement

Explore the past editions of the Lexis® Middle East Law Alert and stay up-to-date with the latest news! Click the links below for instant access to older editions.

Lexis Middle East Law Alert_January-February 2024

Lexis Middle East Law Alert_May/June 2024 Edition
Lexis Middle East Law Alert_August-September 2024

Interview: Ahmad Mohamed Al-Kuwari > QNBN

Engineer Ahmad Mohamed Al-Kuwari, CEO of Qatar National Broadband Network (QNBN), discusses the critical role QNBN has played in building Qatar’s digital infrastructure and offers insights into the future direction of the Qatari telecommunications sector.


Any Questions? Can Personal Data Leave Saudi Arabia?

Ken Wong from CMS discusses the regulations on transferring personal data outside of Saudi Arabia.

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UAE: Tax Loss Utilisation Rules for Companies

UAE: Tax Loss Utilisation Rules for Companies

  • 08/11/202408/11/2024
  • by Hannah Gutang

Khaleej Times, 4 November 2024: UAE companies must meet certain conditions to claim tax losses.

Tax losses can be carried forward without limitation provided the same person or persons continue to own at least 50% of the entity with the losses.

If there is a greater than 50% change in ownership, tax losses may still be carried forward provided there is no major change in the nature or conduct of the entity’s business.

Tax losses from one UAE group company may be used to offset the taxable income of another UAE group company where there is 75% or more common ownership and certain other conditions are met.

These conditions include both companies being UAE resident juridical persons, neither being an exempt person or a qualifying free zone business, and their financial statements being prepared using the same accounting standards and financial year.

Tax losses can, subject to certain conditions, be offset against the taxable income of future periods, up to a maximum of 75% of the taxable income in each of those future periods.

Any excess (unused) tax losses can be carried forward and used against taxable income of future tax periods indefinitely.

Example: A taxpayer has a taxable income of Dh360,000 and carried forward losses of Dh300,000.

It can offset (75% x Dh360,000) = Dh270,000 of its losses carried forward in the relevant tax period, reducing its taxable income to Dh90,000.

The amount of tax losses available for carry forward to subsequent tax periods would reduce to Dh30,000 (Dh300,000-Dh270,000).

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Sharjah: Issues a Decree Establishing the Judicial Council

Sharjah: Issues a Decree Establishing the Judicial Council

  • 08/11/202408/11/2024
  • by Hannah Gutang

Sharjah has issued a decree establishing the Judicial Council in the Emirate, to be chaired by the Deputy Ruler.

The decree states the establishment of a judicial council called the “Judicial Council”, which shall have legal personality and the necessary legal capacity to achieve its objectives and exercise its competencies.

It shall have financial and administrative independence and shall be the highest authority for the judicial system in the Emirate, aiming to assist the Ruler in managing and organising the judicial authority.

The Judicial Council shall be formed under the chairmanship of the Deputy Ruler, and the membership of the Head of the Judicial Department, the Head of the Legal Department of the Government, the Head of the Court of Cassation, the Head of the Judicial Inspection Department, and two members of the judicial authority chosen by the Judicial Council.

A law shall be issued to organise the Judicial Council in the Emirate, in accordance with the legislative procedures followed.

For the full story, click here.

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Saudi Arabia: Real Estate Transactions Tax

Saudi Arabia: Real Estate Transactions Tax

  • 08/11/202408/11/2024
  • by Hannah Gutang

Al Watan, 3 November 2024: A workshop titled “Real Estate Transactions Tax” organised by the Real Estate Committee at the Ahsa Chamber of Commerce, in cooperation with the Zakat, Tax and Customs Authority, has determined that it would take 5 minutes on average to register a property on the electronic Real Estate Transactions Tax platform.

The platform aims to facilitate the process for users, enabling them to register their properties for taxation, pay the applicable tax on non-exempt cases, and complete this essential step before finalising the property transfer or contract documentation.

The platform’s services include tracking application status, viewing invoices, and modifying or canceling applications.

The workshop has emphasised the importance of considering the fair market value, which is the amount due for the property (in exchange for similar and concurrent goods or services provided flexibly between unrelated parties).

The Real Estate Transactions Tax is an indirect tax on all transactions that result in a legal effect, involving the transfer of property ownership or possession for the purpose of ownership or usufruct from one person to another.

The transaction may be contingent on a subsequent action by the parties involved, such as a sale, or based on the unilateral will of the transferor, such as a bequest.

It includes gifts, exchanges, barters, financial leases, Islamic leases ending in ownership transfer, transfer of shares in real estate companies, and long-term usufruct contracts exceeding 50 years.

The tax applies only once in cases where the parties, property, and value remain the same.

The Real Estate Transactions Tax exempts certain transactions, such as those involving inheritance division, transfers without consideration to family members or charitable associations, and forced transfers due to expropriation for public benefit.

Other exempted transactions include documented gifts to spouses or third-degree relatives (under specific conditions), transfers based on a legal will, temporary transfers as security for financing or credit (unless permanently transferred), transactions before the regulations’ effective date related to lease-to-own or financial leases, temporary transfers between a fund and a custodian, and contributions of property as in-kind shares in a company established in the Kingdom.

For the full story, click here.

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Qatar: The Official Gazette Outlines Three Controls for Remote Referendum

Qatar: The Official Gazette Outlines Three Controls for Remote Referendum

  • 08/11/202408/11/2024
  • by Hannah Gutang

Al Arab, 3 November 2024: The Justice Ministry has published issue No. 16 of the Official Gazette for the year 2024, which included a number of decrees and decisions related to the referendum on constitutional amendments.

The most prominent items in the Official Gazette were Qatar Decree No. 87/2024 calling on citizens to vote in the referendum, the draft constitutional amendments for 2024 to the Permanent Constitution of Qatar, and Qatar Decision No. 1/2024 of the Chairman of the General Committee for the Referendum on naming the Chairman and members of the General Committee for the Referendum on the draft constitutional amendments for 2024 to the Permanent Constitution of Qatar.

The Official Gazette included three major decisions issued by the Chairman of the General Committee for the Referendum.

Qatar Decision No. 2/2024 has established the Executive Committee responsible for preparing for the referendum on Qatar’s 2024 draft constitutional amendments, as well as its sub-committees and their respective tasks.

Qatar Decision No. 2/2024 has addressed the formation of referendum committees for the draft amendments, specifying their tasks, procedures, and headquarters.

Lastly, Qatar Decision No. 4/2024 has set out the regulations and procedures for conducting the referendum remotely.

Article 1 of Qatar Decision No. 4/2024 issued by the Chairman of the General Committee for the Referendum, outlines the regulations and procedures for conducting the (remote) referendum on the draft constitutional amendments to the Permanent Constitution of the State of Qatar.

It specifies that the referendum process will proceed as follows:

First, regarding the procedures and controls for the (remote) voting process, an electronic remote voting system will be implemented via the (Metarash 2) application.

This system allows all Qatari citizens, both inside and outside Qatar, who are at least eighteen years old on the day of the referendum, to participate.

They will cast their votes on the draft constitutional amendments through a general referendum scheduled for Tuesday, 3/5/1446 AH, corresponding to 05/11/2024 AD.

The (remote) voting service on (Metarash 2) will open at 7:00 a.m. and close at 7:00 p.m.

To cast a vote, the individual must access the (Metarash 2) application, select the “Vote” icon, and accept the terms and conditions.

Once identity verification is completed, they can choose between “Yes” or “No” to express their opinion on the draft amendments. The vote is finalised by selecting the “Confirm” icon.

Second, for the (remote) vote counting process, the Executive Committee will oversee the counting procedure after the voting period ends.

Votes cast through the (remote) application will be electronically sorted into “Yes” and “No” groups.

The Chairman of the Technical Committee will then compile and verify the results from both (remote) voting and electronic voting, document them in an official record, and submit them to the Chairman of the Executive Committee.

For the full story, click here.

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Oman

Oman: Approval of the Final Draft of the Law on Special Economic Zones and Free Zones

  • 08/11/202408/11/2024
  • by Hannah Gutang

Al Watan, 30 October 2024: The Legislative and Legal Committee and the Economic and Financial Committee of the Shura Council have approved the final draft of the law on Special Economic Zones and Free Zones in Oman, referred by the government.

This is in preparation for presenting and discussing it during the upcoming regular sessions of the Council, in accordance with Article 72 of Oman Sultani Decree No. 6/2021 On the Issuance of the Constitution of the State, states that Draft laws prepared by the government shall be referred to the Council of Oman for approval or amendment, and then submitted directly to the Sultan for ratification and issuance.

During the meeting, the articles and provisions of the draft law were reviewed, in terms of legal drafting, as well as the opinion of the Economic and Financial Committee, which focused on studying its economic feasibility and its contribution to enhancing investment and providing facilities and incentives for investors in those zones.

Some amendments were made to a number of provisions of the law after the consensus of the honourable members of the two committees.

It is worth noting that the draft law on Special Economic Zones and Free Zones aims to unify the system of guarantees, advantages, incentives, exemptions, and facilities granted to economic activities.

It also helps develop policies for granting income tax exemptions to attract strategic projects in Oman.

Previously, the Economic and Financial Committee had hosted a group of experts and stakeholders from several government institutions to seek their views and benefit from their expertise in order to develop a perspective on the law.

For the full story, click here.

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Kuwait: Capital Markets Authority Imposes Disciplinary Action

Kuwait: Capital Markets Authority Imposes Disciplinary Action

  • 08/11/202408/11/2024
  • by Hannah Gutang

Mubasher, 3 November 2024: The Kuwaiti Capital Markets Authority has announced the issuance of Kuwait Ministerial Kuwait Capital Markets Authority Decision No. 29/2024 imposing a financial penalty against ASICO Industries Company and its board members, and Kuwait Finance Center Company.

According to the Authority’s statement, the number of board members is three members, a former board member, the former chairman of the company’s board of directors, Al-Bazai and Partners Office, and the company’s auditor; for violating the listing rules, market conduct, corporate governance, market ethics, securities activities, and registered persons.

The Authority has clarified that it was conclusively proven that the transactions carried out by ASICO Industries during 2018 and 2019, specifically the sale of a substantial stake in a (subsidiary) company, which resulted in profits of around 40 million Kuwaiti dinars, within the financial statements ending in 2018, were fictitious and not real.

It became clear that the purpose was to revalue the (subsidiary) company to improve and enhance the financial position of ASICO Industries.

Additionally, the transaction carried out by the company was essentially a financing transaction and not a sale transaction, as the final outcome of this transaction became clear during 2019 after ASICO Industries exercised the right to repurchase the sold stake without complying with the application of International Accounting Standards.

The three board members were proven to have violated Article 3-7(5) of Book Fifteen (Corporate Governance) of the Executive Bylaws of Kuwait Law No. 7/2010 and its amendments, for failing to fulfil their role in complying with International Accounting Standards following the transactions carried out by ASICO Industries during 2018 and 2019, specifically the sale of a substantial stake on 8 July 2018, of 30.23 million shares of its ownership in a (subsidiary) company to (the Buyer).

This resulted in profits of around 40 million Kuwaiti dinars within the financial statements ending in 2018, which was proven to be a fictitious and not a real transaction aimed at revaluing the (subsidiary) company to improve and enhance the financial position of ASICO Industries.

Additionally, the transaction carried out by the company was essentially a financing transaction and not a sale transaction, as the final outcome of this transaction became clear during 2019 after ASICO Industries exercised the right to repurchase the sold stake in the (subsidiary) company’s shares, without complying with the application of International Accounting Standards.

Regarding Kuwait Finance Center Company, it was proven to have violated Article 3-2(4) of Book Eight (Work Ethics) of the Executive Bylaws of Kuwait Law No. 7/2010 and its amendments, as the company arranged a transaction for its client ASICO Industries (the Seller), and the other party in that transaction was a subsidiary of Kuwait Finance Center Company.

It also violated Article 8-2(2) of Book Eight (Work Ethics) of the Executive Bylaws of Kuwait Law No. 7/2010 and its amendments.

As it was conclusively proven that Kuwait Finance Centre Company, in its capacity as an investment advisor to ASICO Industries, arranged the sale of a stake in a (subsidiary) company to (the Buyer), with one of the conditions for its execution being the opening of a portfolio with Kuwait Finance Centre Company and the collection of a management fee of 50,000 Kuwaiti dinars annually.

Obtaining a fee is considered obtaining a benefit by the licensed person from arranging the transaction through which profits and benefits are achieved other than the basic advisory fees.

Al-Bazai and Partners Office was found to have violated Article 3-4-5 of Book Five (Securities Activities and Registered Persons) of the Executive Bylaws of Kuwait Law No. 7/2010 and its amendments.

The violation occurred due to the firm’s failure, as the auditor of ASICO Industries, to report any observations in its review of the company’s financial statements for the years ending in 2018 and 2019.

Specifically, the auditor did not address the improper recording of the financial impact of a transaction in which a stake in a subsidiary was sold on July 8, 2018, to a buyer. Despite the sale, ASICO Industries continued to control the sold stake after the transaction was completed, given the company’s retained right to repurchase the stake as specified in Article Four of the contract dated July 8, 2018.

The decision included imposing a financial penalty on ASICO Industries of 50,000 Kuwaiti dinars for the first violation, and 5,000 Kuwaiti dinars for each of the four board members and the former chairman of the board for the violation attributed to them.

A financial penalty of 50,000 Kuwaiti dinars was imposed on Kuwait Finance Center Company for the first and second related violations, and Al-Bazai and Partners Office, as the auditor of ASICO Industries, was fined 20,000 Kuwaiti dinars for the violation attributed to it.

For the full story, click here.

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UAE

Dubai: DFSA Fines Company for Unauthorised, Misleading Financial Promotions

  • 08/11/202408/11/2024
  • by Hannah Gutang

The Dubai Financial Services Authority (DFSA) has published a Decision Notice against Vedas International Marketing Management (Vedas Marketing) for unauthorised and deceptive Financial Promotions related to the Multibank Group.

The DFSA has stated that it had imposed a financial penalty of US$100,000 (AED367,000) on Vedas Marketing for conducting unauthorised financial promotions about the Multibank Group to individuals located in the DIFC.

Also, for engaging in misleading and deceptive conduct by representing that certain entities in the Multibank Group were regulated by the DFSA, when in fact, none of the promoted entities were.

The Multibank Group offers trading platforms, and the DFSA has made no allegations of wrongdoing against the Multibank Group itself in the Decision Notice.

On 2 June 2024, Vedas Marketing challenged the conclusions in the DFSA’s Decision Notice by referring it to the Financial Markets Tribunal (FMT).

However, the FMT directed on 22 July 2024 that the reference should be struck out due to Vedas Marketing’s failure to pay the required filing fee for the referral.

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