Weekly Spotlight Archives - Page 14 of 19

UAE: The New Arbitration Law Has Been Gazetted

10/06/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on legal developments in the UAE where the long-awaited and much anticipated Arbitration Law has been Gazetted. Federal Law No. 6/2018 will apply to all local arbitrations taking place in the UAE, unless agreed otherwise. It will also apply to any international commercial arbitration taking place outside the UAE, where the parties have agreed to apply UAE arbitration law and all arbitrations arising as a result of a contractual or non-contractual relationship governed by UAE law, unless expressly excluded. We have priority requested this important legislative development from our publishing partners, SADER Legal Publishing and we will keep you updated on its progress. The Law will replace the arbitration provisions in Federal Law No. 11/1992. We have been delighted to include analysis of this important legislative development from Afridi & Angell, Al Tamimi & Company, BSA Ahmad Bin Hezeem & Associates LLP, Clyde and Co, Hogan Lovells and Pinsent Masons LLP and their insights can be viewed under the Commentary section of Lexis Middle East Law (www.lexismiddleeast.com).

Weekly Spotlight: Ownership of Emirati Companies by Foreign Entities in the Mainland to Be Allowed

27/05/201811/12/2019
by Benjamin Filaferro

This week the spotlight is once again on the UAE where the Cabinet has announced two key investment rule changes. Under the changes, ownership of Emirati companies by foreign entities in the mainland will be allowed. Previously this was only allowed in the free zones. The change will come into effect in the third quarter of this year. The Cabinet also approved a new long-term visa system aimed at attracting international investors and high-skilled professional workers. Investors, scientists, doctors, engineers, entrepreneurs and innovators will be able to apply for a 10-year visa.

We have been delighted to include analysis of this important legislative and regulatory development from BSA Ahmad Bin Hezeem & Associates LLP and K&L Gates LLP, and their insights can be viewed under the Commentary section of our website.

Weekly Spotlight: UAE Arbitration Law Finally Published

20/05/201811/12/2019
by Benjamin Filaferro

This week the spotlight is firmly on the UAE where the long-awaited and much anticipated Arbitration Law has been published. Federal Law No. 6/2018 on Commercial Arbitration has not yet been Gazetted but it has been priority requested from our publishing partners, SADER Legal Publishing and we will keep you updated on its progress. The Law will replace the arbitration provisions in Federal Law No. 11/1992. We have been delighted to include analysis of this important legislative development from Afridi & Angell, Al Tamimi & Company and Hogan Lovells and their insights can be viewed under the Commentary section of Lexis Middle East Law (www.lexismiddleeast.com).

Weekly Spotlight: Special VAT Committee Estabilished in Kuwait

13/05/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Kuwait where the Finance Ministry has announced it has established a special committee to implement VAT in the country. PricewaterhouseCoopers have also confirmed their officials helped the Ministry draft the VAT Law. Together with PWC, the Investment Companies Union has invited all relevant parties to a conference on Problems and Best Practices on Implementing VAT. At the conference, the Taxation and Planning Manager at the Finance Ministry Osama Al-Qassar said VAT will be introduced after a six to twelve month grace adjustment period. The Ministry has also met with various sectors to get their suggestions and opinions on the proposed legislation.

Elsewhere, the country’s Manpower Authority and the Residency Directorate of the Interior Ministry have announced absconders will be able to legalise their status. Alternatively they can leave the country without paying any fines. The offer of legalisation applies to those who entered the country between 3 January 2016 and 22 April 2018. Some exemptions will be made for citizens’ spouses and children and foreign founding partners of companies.

Weekly Spotlight: Bahraini Bankruptcy Law Adopted

06/05/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Bahrain, where the Shoura Council has approved the bankruptcy law. A member of the Council’s Financial Committee, Darwish Almanaie said the aim of the legislation is to remedy some of the shortcomings of the existing bankruptcy law. Another Committee member, Sadeq Rahma said the law has been approved because it includes new provisions which are in line with updated laws and regulations and the requirements of commercial businesses. The law is expected to update bankruptcy procedures and establish a law for financial restructuring for enterprises and companies who will be subject to it. The law also regulates cross-border restructuring and bankruptcy procedures.

Elsewhere, the Public Utilities and Environment Committee of Bahrain’s Shoura Council has approved a draft law which would establish a public food safety body. The Food Authority would have its own legal personality and have administrative and financial independence. The Food Control Section of the Health Ministry is currently responsible for the safety of food produced or imported in to the country. The Health, Industry, Trade and Tourism, Works, Municipal Affairs and Urban Planning Ministries as well as the Bahrain Chamber of Commerce and Industry all approved the draft law.

Weekly Spotlight: New Regulations and Technical Requirements for Leisure Drones and Cinemas in Saudi Arabia

29/04/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Saudi Arabia, where according to local media reports, regulations to monitor the use of leisure drones in the Kingdom are being finalised by the Interior Ministry. It comes after a leisure drone caused a security alert around the Royal palaces in the country’s capital, Riyadh. Until they are finalised, leisure drone users will have to get permission from the police before they can fly them.

Elsewhere, the Kingdom’s Municipality and Rural Affairs Ministry has issued the municipal and technical requirements for movies in cinemas as part of the Implementing Regulations for licensing cinemas including independent screening houses and cinemas annexed to shopping malls in the Kingdom. Amongst other things, the requirements state the location needs to be in the urban boundaries of a city, it should be allocated for commercial use and should be on two streets one of which should be a commercial street. They should be at least 100 metres away from petrol stations and gas selling points. They should also be 100 metres away from malls, factories, schools and wedding halls. The entry and exit points should be off the commercial street, car parking should be made available to customers with a ratio of one parking lot for every three seats and entrance and exits of cinemas annexed to shopping malls should be the same as the shopping malls.

Weekly Spotlight: New Law to Regulate Volunteering Activities in Dubai

22/04/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on legal developments in Dubai, where the Emirate’s Ruler has issued a Law to regulate volunteering in the Emirate. Dubai Law No 5/2018 will regulate volunteering activities and it is hoped will also promote social responsibility, stimulate positive social engagement and encourage people to serve their communities. Under the Law, Dubai’s Community Development Authority will establish, implement and oversee the plans and policies required to regulate volunteering in the Emirate. They will also encourage the public and private sectors to sponsor volunteering programmes and conduct awareness programmes about the importance of volunteering in community development.

In addition, the Authority will coordinate volunteering programmes, establish a volunteer’s database in the Emirate, issue identification cards for volunteers and participation certificates for volunteers. They will help entities attract volunteers for their initiatives and nominate volunteers to participate in volunteering initiatives based on their skills and qualifications. Entities sponsoring or conducting volunteering initiatives will have to be authorised by the Authority. Volunteers will be able to form teams to participate collectively in volunteering programmes in the Emirate on the condition the team has registered itself in the Authority’s database and obtained all of the necessary permits from the Authority. The volunteer teams will not be allowed to conduct any fundraising activities, including advertising through any kind of media, unless they are approved by the Authority. Public and private entities engaged in volunteering activities will have to define the standards and regulations governing their volunteering activities and provide a copy of these standards and regulations to the Authority. They should also specify the category and nature of the volunteering activity and if necessary train volunteers to perform the work. The entities must maintain a record with the volunteers’ names, personal information, the nature of work they have done and the hours of volunteering work they have done. They should also register this information in the Authority’s database. They must also provide all required tools and safety equipment necessary for the volunteers to perform their activities. In addition, the entities must provide insurance coverage against injuries, contagion and civil liabilities. All volunteers must sign the volunteering agreement issued by the Authority and this agreement must detail the relationship between the volunteer and the entity.

Under the Law, the volunteer must be over 18. Volunteers under 18 must be approved by their legal guardian. The volunteer must have a record of good conduct, be physically fit and be registered as a volunteer with the Authority. Volunteers must commit to their obligations according to the volunteering agreement and respect confidentiality. The sponsoring entity is responsible for all volunteering activities and efforts carried out by the volunteers. The Authority’s Director-General will form a Volunteers Affairs Committee to look into any complaints or litigation related to volunteering agreements. All sponsoring entities, volunteer teams and individuals must comply with the Law. The Law will be published in the Official Gazette and will come into effect on its published date.

Weekly Spotlight: Objections to Bahraini Government’s Urgent Submission of a Draft Bankruptcy Law

15/04/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on legal developments in Bahrain, where a Bahraini MP has objected to the Bahraini Government’s urgent submission of the draft Bankruptcy Law to the Kingdom’s Parliament. The Government has referred the draft bankruptcy law to the House of Representatives to review in 15 days. The draft law would apply to natural or legal persons and provide legal protection during the bankruptcy process. It also covers bankruptcy procedures, fraud, preventive settlement, liquidation and the right to default until a decision by the Court. MP Ahmed Qaratah has objected because of the Law’s length and importance. It has been classed as urgent under Article 87 of the Constitution.

Elsewhere, Bahrain’s Shoura Council’s Foreign Affairs, Defence and National Security Committee has approved an amendment to the 1975 Passports Law. If approved, the new Article 18 to Bahrain Law No. 11/1975 will criminalise the tearing up or adulterating Bahraini passports with any signs, stickers, slogans, stamps or words. The fine for defacing a passport will be 400 Dinars but will not be imposed where damage is unintentional. Bahrain’s Cabinet Affairs Minister, Ghanim Al-Buainain said the aim is to stop Haj and tourism agencies defacing passports and preserve national identity. An Interior Ministry representative encouraged those with defaced passports to submit them to the Nationality, Passports and Residence Affairs department to issue a replacement. In a related development, Bahrain Law No. 7/2018 was ratified on 6 April. It adds a new clause to Article 9 of Bahrain Law No. 11/1975, granting retired military personnel the right to obtain a special passport.

Weekly Spotlight: Regulatory Amendments Issued by Oman’s Central Bank to Enhance the Sultanate’s Financial Industry

08/04/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on regulatory developments in Oman, where the Sultanate’s Central Bank has issued a number of regulatory amendments to enhance the Sultanate’s financial industry. The amendments came into force on 1 April 2018.

The Bank has reduced the capital adequacy ratio requirements for banks from 12 to 11%. This will increase banks’ lending capacity. It is expected to make an additional 2.6 billion Riyals of credit available with 7.8 billion Rials instead of 5.2 billion Rials being released. The Bank has also decided to remove the regulatory restrictions imposed on the risk weights to claims on sovereign and central banks. It comes as the Bank looks to implement the Basel Committee guidelines.

The Bank has decided to increase the prudential limit for all currencies from 15 to 20% for three-to-six months, 25% per cent for six-to-nine months and 25% for nine-to-12 months. The aim is to give banks more flexibility to utilise available credit lines available from foreign and local correspondents at a reasonable rate. Finally the Bank has increased the prudential limit ratio of credit exposure to non-residents and placement of banks funds abroad to banks’ local net worth from 50 to 75%. It is hoped this change will provide banks with greater flexibility to manage their liquidity surpluses, diversify their revenues and increase their external borrowing capacity to finance local projects.

New Consultation Launched by the QFC Regulatory Authority to Amend General Rules

01/04/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on regulatory developments in the Qatar Financial Centre (QFC), where the QFC Regulatory Authority has launched a consultation on proposals to introduce requirements for rule-based ongoing monitoring of close links and annual reporting of these links for QFC authorised firms. The consultation ends on 9 May 2018. These proposals are relevant to all QFC authorised firms and if approved would apply from July 2018.

The Regulatory Authority is proposing to amend the General Rules to include ongoing requirements relating to an authorised firm’s close links, including introducing systems and control requirements for the ongoing monitoring of changes to an authorised firm’s close links. They are also proposing requirements for authorised firms to submit an annual report to the Regulatory Authority about its close links (to be submitted with the annual controllers report). In addition they are suggesting a new definition for close links in Chapter 8 of the General Rules which would expand monitoring and reporting requirements to links between two or more persons who are linked through a holding or subsidiary company structure or through ownership or control of 10% or more of their voting rights or shares. Finally they are proposing clarifying the application of various Parts of Chapter 8 of the General Rules and consequential changes to the Interpretation and Application Rules 2005.