Weekly Spotlight: New Multi Commodities Centre Authority Established in Dubai

Dubai’s Ruler has issued Dubai Law No. 3/2020 on the Dubai Multi Commodities Centre. The aim is to improve Dubai’s position as a regional and international destination in trading commodities and commercial and Islamic financing. It is also aimed at attracting investment and local and international companies to make Dubai a centre for their businesses. The Law applies to the Centre in its capacity as a free zone and to the Centre’s authority in its capacity as a public authority. The Centre’s Authority will supervise the Centre and it will be able to establish and develop infrastructure and administrative services in the Centre together with the relevant bodies in the Emirate.

Weekly Spotlight: Compulsory Health Insurance for UAE Visitors Under Consideration

The UAE’s Insurance Authority has announced it is working with a number of other bodies to prepare a draft law on compulsory health insurance for visitors. They stated during a health insurance conference in Dubai that it was important to continue to develop the regulatory and legislative base for this sector. The Authority’s Chairman said it is important to bolster the role of the insurance industry in securing individuals, possessions, and responsibilities against risks in order to protect the national economy.

Weekly Spotlight: New Financial Consumer Protection Rules for the UAE Under Consideration

The UAE’s Central Bank has announced it has launched a public consultation on new financial consumer protection rules. The Bank is proposing a new Financial Consumer Protection Regulatory Framework. The aim is to help the Bank develop and implement new regulations in these areas. It will also enhance disclosure and transparency requirements, ensure timely responses to customer complaints and require financial institutions to provide consumers with effective dispute resolution services. In addition, the proposed framework covers regulatory supervision, corporate governance, market conduct, business conduct and protection of consumer data and privacy.

The aim will be to introduce more comprehensive regulations in this area for entities it supervises.

Weekly Spotlight: UAE’s 1981 Commercial Agencies Law to be Amended

The UAE’s Cabinet has approved amendments to the country’s 1981 Commercial Agencies Law (Federal Law No. 18/1981). The amendments are aimed at supporting commercial agencies, encouraging investment and balancing the interests of agents and clients. They will apply to UAE nationals, foreign principals, those in the business sector and public shareholding companies. It will also provide the Emirati family-owned SMEs with the least risk when they default.

Weekly Spotlight: Amendments to the DIFC Employment Law Enacted

The DIFC has enacted amendments to the 2019 Employment Law (DIFC Law No. 2/2019) and introduced new Employment Regulations which introduce a new end of service savings plan. The amendments to the Labour Law introduce the new Qualifying Scheme workplace savings scheme in the Centre and replace the current end-of-service gratuity payment regime which has been in place since the Centre’s founding in 2004. They come into force on 1 February 2020 and employers will have to make mandatory monthly contributions to a professionally managed and regulated savings plan after that.

The new Regulations set out the requirements for Qualifying Schemes. Employers have until 31 March 2020 to enrol into a Qualifying Scheme. These include the DIFC Employee Workplace Savings Plan. Alternatively, employers may seek a Certificate of Compliance from the DIFC Authority for an alternative Qualifying Scheme under the Regulations.

There will also be a new oversight body which will have the right to appoint and remove the scheme operator, review its governance and fees and charges imposed on the scheme. In addition, Qualifying Schemes must require employer and employee representation and independent oversight with the aim of ensuring the proper protection of the employee’s interests.

Employees will also be allowed to make voluntary workplace savings contributions into a Qualifying Scheme on top of the mandatory monthly contributions to be made by employers under the Employment Law and ensure any accrued end-of-service benefits under the current regime remain in place, also providing employers with the option to pay these accrued benefits into a Qualifying Scheme. In addition, there are exemptions for certain types of employees, like those on secondment in the Centre, short-term workers, equity partners and employees working for Government departments and bodies which have a presence in the Centre. The mandatory contributions to be made by employers are set at 5.83% of monthly basic wage, for employees who have less than five years’ service and 8.33% of monthly basic wage for employees who have served for longer.

Weekly Spotlight: The DIFC Announces the DEWS Nomination Deadline

The DIFC has issued a reminder that the deadline for appointing an employee and/or employer to the DEWS Supervisory Board is 15 January 2020.

Nominations should be accompanied with a valid DIFC employee card and the entity should be registered in the DIFC. The nominees should also have the appropriate qualified and experience.

The DEWS Supervisory Board will be made up of DIFC Authority representatives, employer and employee representatives and independent members. The Board will oversee the continuing governance and commercial aspects of the scheme which are not subject to regulatory supervision.

Weekly Spotlight: Dubai’s Multi Commodities Centre Announces New Rules and Regulations for 2020

Dubai’s Multi Commodities Centre has announced various new rules and regulations. They will come into force on 2 January 2020. The aim is to make it easier to do business and set-up in the Centre. The new regulations update the Centre’s existing company law framework to provide greater flexibility and make it easier to operate for businesses registered with the Centre. Key amendments include increased flexibility around a company’s Articles of Association; the introduction of different share types, allowing businesses to tailor their shareholding structures; a new dormant status and an increased ability to transfer company incorporation in the Centre.

Elsewhere, the Chairman of Ajman Free Zone has announced it has launched a new Business Hub. It will be available to freelancers, entrepreneurs and businesses who operate in the Zone. It has been specifically designed to provide investors in the Zone with a comprehensive range of services.

Weekly Spotlight: Social Media Law for Government Influencers in Sharjah

The Crown Prince of Sharjah, Deputy Ruler of Sharjah and Chairman of the Sharjah Executive Committee has issued Sharjah Executive Decree No. 39/2019 which makes it mandatory for all government departments in Sharjah to first get approval from the Sharjah Media Office prior to using services offered by social media influencers.

According to the resolution, all government and semi-government entities, independent government agencies, companies that the government contributes to or fully owns and private contracting companies affiliated to the government within the scope of the contract, must obtain the approval of the Sharjah Media Office prior to using services provided by social media influencers.

Whether the services are for promoting activities, services or products for government entities, or are paid for or not paid for, the Sharjah Media Office must issue the necessary administrative decision prior to implementing the contracts signed with social media influencers.

The decree came into the effect from 4 December 2019.