LexisNexis Middle East

UAE: Law on Minimum Capital for Banks Issued

09/04/202109/04/2021
by Benjamin Filaferro

The UAE Central Bank has issued a new law on the minimum capital for banks which applies to all banks including branches of foreign banks which work in the UAE.
The law will be effective on the beginning of next month and requires banks which do not yet meet its requirements to do so by no later than 31 December 2023.
The second article of the law requires banks at all times to maintain a minimum level of the paid capital and to keep the required level on a continuous basis as a main condition of their licence.

News developments

UAE: Accedes to Strasbourg Agreement on International Patent Classification

02/04/202102/04/2021
by Benjamin Filaferro

The UAE authorities have announced it has acceded to the Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure. They have also acceded to the Strasbourg Agreement Concerning the International Patent Classification. It comes as the country looks to develop a legal intellectual property framework and legislative environment which support innovation and patents. After joining the Budapest Treaty, Emirati inventors and researchers will be able to benefit from the services of the International Depositary Authority which is recognised by the World Intellectual Property Organisation. The country’s accession to the Strasbourg Agreement will facilitate patent classification and increase the number of patents registered in the country, as well as improve their quality.

News developments

Oman: Clarity Sought on VAT Impact on Oil and Gas Industry

02/04/202102/04/2021
by Benjamin Filaferro

The oil and gas industry in Oman is awaiting clarity on the impact of VAT on them. Upstream and midstream activities are zero-rated for VAT purposes. Downstream activities are likely to be taxed at the standard rated of 5%. This includes refining and petrochemicals. These expectations are based on the provisions of the Implementing Regulations to the VAT Law. The Regulations to Oman Sultani Decree No. 121/2020 were issued in Oman Decision No. 53/2021.

News developments

Kuwait: SMEs Support Law Approved

02/04/202102/04/2021
by Benjamin Filaferro

Kuwait’s National Assembly has approved a draft SMEs support Law. It will help SMEs adversely affected by Coronavirus. It will do this by securing guarantees for local banks to extend loans to businesses which have been adversely affected by Coronavirus. They also agreed to allow citizens who have been affected to delay repayments to both public and private institutions for six months.

News developments

Egypt: Ever Given Inquiry Launched

02/04/202102/04/2021
by Benjamin Filaferro

Egypt’s Suez Canal Authority has announced it has launched an inquiry into the grounding of the Ever Given cargo ship. The inquiry will examine events before, during and after the accident. It will consider whether the ship’s captain responded to the Authority’s instructions before it ran aground. The Authority has requested the ship’s black box. The Authority added they expect to finalise a compensation agreement with the ship in three or four days. If the ship rejects the investigation findings, the case will be transferred to a civil court and the vessel will be seized. The inquiry’s findings will be made public.

News developments

Dubai: Enhanced Auditing Standards and Controls on Annual Budgets for Jointly Owned Properties Introduced

02/04/202102/04/2021
by Benjamin Filaferro

The Real Estate Regulatory Agency at Dubai Land Department has announced it has signed agreements with 27 audit offices to establish and tighten standards and controls for auditing annual budgets for service charges and financial reports for jointly owned properties in the Emirate.

News developments

Bahrain: Investment Reconciliation Decree-Law Approved

02/04/202102/04/2021
by Benjamin Filaferro

Bahrain’s Shoura Council has approved a Decree-Law to carry out the amendments necessary before the World Bank Review for the usual assessment which takes place in the first quarter of each year. The aim of the law is also to boost confidence in the economic and financial system in the Kingdom to improve its international credit rating. The Law aims to reconcile the financial and economic situation of the investments and companies and to boost the rights of creditors as well as encourage them to utilise the benefits given by the Bahraini legislature.

News developments

Abu Dhabi: Global Market Introduces New Company Service Providers Framework

02/04/202102/04/2021
by Benjamin Filaferro

Abu Dhabi’s Global Market has announced it has introduced a framework to regulate Company Service Providers in the Market. It will come into force on 12 April 2021. The framework has been introduced following a public consultation on the introduction of a commercially balanced and proportionate CSP Framework. It will be administered by the Global Market’s Registration Authority. Affected entities will benefit from a transition period.

Weekly Spotlight

Qatar: Landmark Arbitration Judgment Issued

02/04/202102/04/2021
by Benjamin Filaferro

Qatar’s International Court and Dispute Resolution Centre First Instance Circuit has issued a landmark arbitration judgment. The judgment in C v D (QFC 0004/2021, [2021] QIC (F) 8) has confirmed the Centre’s status as an opt-in court of arbitration.
It has clarified parties can select the Qatar International Court as the competent court in the arbitration by virtue of an arbitration agreement where neither party is a Qatar Financial Centre registered entity.
It has also approved the position under Qatar Law No. 2/2017 (the Arbitration Law).

News developments

UAE: Energy Ministry Signs Safety Permits Agreement with Etihad Rail

26/03/202126/03/2021
by Benjamin Filaferro

The UAE’s Energy and Infrastructure Ministry has signed a safety permits agreement with Etihad Rail. Under the agreement, they will work together on issuing safety permits for Stage Two of the UAE’s national rail project. Stage Two of the National Rail Network extends from Al Ghuwaifat on the UAE’s border with Saudi Arabia to Fujairah on the east coast. Once it is completed, the network will link ports, manufacturing hubs and cities in the UAE and connect it with the wider GCC rail network. The agreement was signed by the Undersecretary of the UAE’s Energy and Infrastructure Ministry Hassan Mohammed Juma Al Mansouri and for Etihad Rail by its Chief Executive Officer, Shadi Malak.