Weekly Spotlight Archives - Page 2 of 19

UAE: Authorities have approved amendments to Cabinet Decision No. 2/1972 (the Implementing Regulations to the Federal Nationality and Passports Law, Federal Law No. 17/1972)

05/02/202105/02/2021
by Benjamin Filaferro

The UAE authorities have approved amendments to Cabinet Decision No. 2/1972 (the Implementing Regulations to the Federal Nationality and Passports Law, Federal Law No. 17/1972) to allow investors, professionals, those with special talents and their families to acquire Emirati nationality and passport in certain circumstances.
Among others, investors, doctors, specialists, inventors, scientists, talents, intellectuals, artists and their spouses and children will be able to benefit from the changes. They will be able to keep their existing nationality.
Emirati citizenship will be able to be obtained through nominations from Rulers and Crown Princes as well as Courts, Executive Councils and the Cabinet for Federal entity nominations. Investors have to own property in the UAE while doctors and specialists have to be specialists in a unique scientific discipline or other scientific principles which are in heavy demand in the UAE.
The applicant also has to have acknowledged scientific contributions, studies and research of scientific value and practical experience of at least 10 years. In addition, they have to have membership in a reputable organisation in their specialist area.
Scientists have to be active researchers in a university or research centre or in the private sector, with practical experience of at least 10 years in the same field. They should also have contributions in the scientific field such as winning a prestigious scientific award or securing substantial funding for their research during the past ten years. In addition, they will have to obtain a recommendation letter from recognised scientific institutions in the UAE.
Inventors who want to acquire Emirati citizenship have to obtain one or more patents which are approved by the UAE Economy Ministry or any other reputable international body as well as a recommendation letter from the Economy Ministry.
Individuals with creative talents like intellectuals and artists have to be pioneers in the culture and art fields and have won at least one international award. A recommendation letter from related Government entities will also be required.
Those who qualify will also have to swear an oath of allegiance, commit to abide by the Emirati laws and officially informing the respective Government agency if acquiring or forfeiting any other citizenship is required.
Citizens are able to establish or own commercial entities and properties. They are also entitled to any other benefits which are granted by federal authorities after Cabinet or local authority approval. If the conditions are violated, citizenship can be withdrawn. The aim is to attract international talent to the country.

UAE: Central Bank has announced the formal procedures for the merger of the Insurance Authority with the Bank have started

29/01/202129/01/2021
by Benjamin Filaferro

The UAE Central Bank has announced the formal procedures for the merger of the Insurance Authority with the Bank have started. The Bank has established several committees and working groups to oversee the merger which is aimed at transferring the supervisory and regulatory responsibilities of the Authority to the Bank.
It is being executed in line with Federal Decree-Law No. 25/2020 which states the Central Bank will assume the regulatory, supervisory, licensing and enforcement functions of the Authority.
The Bank will be responsible for monitoring the financial solvency of insurance companies, ensure they carry out business ethically and the rights of those who are insured are protected. The rules, Decisions, Circulars and regulations issued by the Insurance Authority in line with Federal Law No. 6/2007 will continue to apply to all licensed institutions and activities until replaced by regulations issued by the Bank.
It is part of wider efforts to transform the Central Bank into one of the world’s top 10 central banks.

Saudi Arabia: The General Assembly of the Saudi Supreme Court has ordered rents owed by businesses affected by COVID-19 be waived

22/01/202122/01/2021
by Benjamin Filaferro

The General Assembly of the Saudi Supreme Court has ordered rents owed by businesses affected by COVID-19 be waived. A review of such contracts between tenants and landlords has also been ordered. However, the authorities have also set conditions which must apply before a case can be eligible for review under the new regulations. If a contract was concluded before the anti-COVID-19 measures started, the impact on the affected party will have need to have been direct and unavoidable. In addition, in these cases, an affected party must not have been compensated or reached a deal to mitigate the effects of the crisis. In such cases a review will be possible and the new regulations will come into effect. A competent court will then issue their verdict based on the facts and circumstantial evidence. They may order the contract be amended. These new provisions will apply to tenancy contracts and movable properties affected by COVID 19. The regulations also cover other types of contract such as construction and supply contracts, which have been affected by the crisis. If a contract obliges one of the parties to carry out something, which cannot be completed on time because of COVID 19, the court can temporarily suspend implementation of the obligation. If the other party fears unusual damage because of the suspension, they may request termination of the contract. The court has stressed the need for damages to be carefully assessed on a case-by case basis. This should be done by one or more experts and when assessing damages, it should be clear which losses were incurred directly because of COVID 19 and had nothing do to with seasonal changes in activities. The Supreme Court has explained that courts are bound, when considering cases arising from contracts and obligations impacted by COVID 19, not to apply penalty clauses or fines totally or partially, depending on the case. Where a contract includes an exemption of liability clause for one of the contracting parties when an emergency or force majeure event occurs, the condition has no effect and the party which breached the obligations must provide evidence COVID 19 caused the breach. Affected contracts which are not covered by this principle will be subject to standard legal and statutory litigation principles.

Saudi Arabia: Saudi Arabia’s Human Resources and Social Development Ministry has announced Labour Law amendments have been approved

15/01/202115/01/2021
by Benjamin Filaferro

Saudi Arabia’s Human Resources and Social Development Ministry has announced Labour Law amendments have been approved. Under the changes, Saudi employees should make up at least 75% of the total workforce. If there are not enough competent employees to achieve these numbers because of a lack of relevant candidates with the required technical or academic qualifications or if it was not possible to hire nationals for these jobs, the Minister will be able reduce the required proportion. Other amendments to the Labour Law will also require every employer who has 25 or more employees to ensure 4% of their workforce are disabled people providing the nature of their work allows this. There have also been changes to the rules on advertisements for new and existing jobs. The Ministry has launched a consultation on the proposed amendments.
The Ministry has also announced it has suspended the application of Article 41 of the Implementing Regulations to the Labour Law. It was issued by Saudi Arabia Ministerial Decision No. 70273/1440. It was introduced to help businesses manage the adverse effects of Coronavirus. It enabled employers to deal with their employees’ wages including having an option to reduce them temporarily and reduce their number of working hours.

Qatar: Saudi Arabia to Reopen Borders

09/01/202109/01/2021
by Benjamin Filaferro

According to reports by the Kuwaiti state news agency Saudi Arabia is to reopen its land and sea border with Qatar.
The borders have been shut since 2017. The move is seen as the first step to ending the diplomatic crisis between the two countries. According to several reports, Qatar will, in return, drop its lawsuits against Saudi and its allies, as part of a broader agreement to defuse tensions, which is due to be signed on 5 January 2021. The border with Saudi is Qatar’s only land border.
Egypt, the UAE and Bahrain have also been part of the blockade. Kuwait has been mediating between Qatar and the four states. The change allows the Qatari leader to attend the GCC summit which is being held in Saudi.
According to reports in Arab News Saudi will also be reopening its airspace to Qatar. Bahrain, Egypt and the UAE have also agreed to fully restore ties with Qatar.
They signed the Al Ula Declaration with Qatar during the 41st summit of GCC leaders.
They have committed to fully restoring all diplomatic ties, but it is unclear what this means in practice and how long the process will take.

Abu Dhabi: Global Market Launches Public Consultation on Proposed Auditor Framework Amendments

18/12/202018/12/2020
by Benjamin Filaferro

Abu Dhabi’s Global Market has launched a public consultation on proposed auditor framework amendments. The consultation ends on 28 January 2021. The existing framework governing auditors was based on the UK Companies Act 2006. However, since the framework was initially implemented, international standards have been updated. This includes the enactment of EU legislation covering audit regulation, which has also been incorporated and reflected in the UK’s auditor framework.
If approved, there will also be additional requirements for auditors of public companies and investment funds and additional requirements for auditors of all financial institutions licensed by the Market’s Financial Services Regulatory Authority.
There are also proposals to require auditors to comply with international auditing standards, like audit quality requirements. The amendments would also give the Market’s Registration Authority comprehensive monitoring and enforcement powers, with investigation and sanctioning powers, which align with international standards.
The aim of the amendments to the Market’s 2020 Companies Regulations, Commercial Licensing Regulations 2015, Companies Regulations 2020 (Auditors) Rules 2020, Commercial Licensing Regulations 2015 (Controlled Activities Rules) 2018 and Limited Liability Partnership Rules 2020 is to create a single registration framework with tiered requirements and enhance audit quality requirements.
There will be a 12-month transition period for existing auditors from when the amendments come into force or the auditor re-registers.

UAE: Visa Violators Have Until 31 December to Leave

10/12/202010/12/2020
by Benjamin Filaferro

The UAE’s Federal Authority of Identity and Citizenship has announced visa violators have until 31 December to leave. The grace period applies to those whose visas expired before 1 March.
If they leave before 31 December, they will not face fines or administrative penalties.
They are instructed to book flights and leave before 31 December. Those who want to leave from Abu Dhabi, Sharjah and Ras al Khaimah airports must arrive at the airport at least six hours before the flight is due to leave. While those who intend to travel through Dubai and Al Maktoum airports will have to report at the Dubai Civil Aviation Security Centre 48 hours before their flight is due to leave. Any dependants sponsored by the visa violator will also have to leave.

Saudi Arabia: Central Bank to be Able to Buy Property

04/12/202004/12/2020
by Benjamin Filaferro

Saudi Arabia’s Central Bank will be able to buy or rent property under the new Central Bank Law. They will be able to do so providing the purpose is to diversify its foreign investments. The Law also bans the Bank from engaging in trade or participating in commercial activities or taking an interest in any commercial, industrial or agricultural projects. However, there will be exceptions to this, where the Bank does any of these activities to fulfil any of its objectives.
In addition, the Central Bank will be banned from financing or lending to the Government or to any individuals. However, there will be exception to this where the Bank carries out these activities to help manage the liquidity of financial institutions or are responding to crises.
The Central Bank’s assets, revenues, and properties will have immunity and should not be raided, seized, confiscated, possessed, or expropriated and they are not subject to any bankruptcy procedures.
They will also not be subject to the Competition and Government Procurement Law. However, they will be subject to the regulations and policies issued by the Board, provided the regulations and policies are consistent with the objectives and basic principles of the Competition Law.
The Bank’s contracts and agreements will be subject to the policies approved by the Board. There will be some exceptions, including where contracts and agreements are related to foreign laws if the rulings establish, they are subject to the jurisdiction of foreign courts.

Bahrain: DNA Test Required for Passport to be Issued

27/11/202027/11/2020
by Benjamin Filaferro

Bahrain’s Interior Minister has issued a Decision adding an article to the Implementing Regulations for passports. Under the Decision, the Immigration and Passports Department will now require parents to attach a DNA test report for those born outside Bahrain when requesting a new passport or replacement of an existing passport. Applicants may also be required to include an age determination certificate, any laboratory test or any other examinations. Only medical reports issued by the competent and accredited agencies in Bahrain will be accepted.

UAE: Abu Dhabi Global Market Launches Consultation on Proposed New Data Protection Regulation

27/11/202027/11/2020
by Benjamin Filaferro

The Abu Dhabi Global Market has announced it has launched a public consultation on proposed new Data Protection Regulations. The consultation ends on 19 December 2020. If approved, they will replace the Data Protection Regulations 2015 and because of the significant changes they will introduce for Data Controllers and Data Processors, there will be a 12-month transition period for existing entities regulated by the Global Market and six months for new entities. They include a provision to establish an independent Office of Data Protection which will be led by a Commissioner of Data Protection. They will have the power to monitor compliance with the regulatory framework and ensure non-compliance is appropriately treated. The aim is to increase the protection of personal data processed and controlled in the Global Market and will aim to align with the EU’s General Data Protection Regulations which were introduced in 2018.