LexisNexis Middle East

Bahrain: Industry, Commerce and Tourism Ministry Restructured

25/09/202025/09/2020
by Benjamin Filaferro

Bahrain’s King issued has issued a Decree restructuring the Industry, Commerce and Tourism Ministry. Under Bahrain Decree No. 60/2020, Bahrain Decree No. 55/2019 restructuring the Industry, Commerce and Tourism Ministry will be repealed. The Industry, Commerce and Tourism Minister will be responsible for implementing this Decree. It will be published in the Official Gazette and will come into force on its issued date.

News developments

UAE:Dubai Chamber Signs Cooperation Agreement with Tel Aviv Chamber of Commerce

25/09/202025/09/2020
by Benjamin Filaferro

Dubai’s Chamber of Commerce and Industry has signed a strategic cooperation agreement with Tel Aviv’s Chamber of Commerce who were represented by the Federation of Israeli Chambers of Commerce. The aim of the agreement is to explore business opportunities and boost bilateral cooperation following the signing of the peace treaty between the UAE and Israel. Under the agreement the two bodies will cooperate on conducting economic studies on bilateral markets, investment opportunities, growth prospects, and partnerships which can form the basis for bilateral cooperation in various economic sectors. They will also cooperate on organising virtual events on growth opportunities and cooperation between the business communities in both countries and visits of economic delegations. They will also organise joint business forums and cooperate in the fields of entrepreneurship and emerging enterprises.

Weekly Spotlight

Abu Dhabi: New Public Private Partnership Regulations Issued

25/09/202025/09/2020
by Benjamin Filaferro

Abu Dhabi’s Investment Office has issued new Public-private Partnership Procurement Regulations. They have also published a Partnership Projects Guidebook to support greater cooperation between the private and public sectors in the Emirate.
The framework is consistent with international best practices to support greater private sector investment in the procurement and delivery of public sector infrastructure assets and services across Abu Dhabi.
The new regulations have been issued in line with the Emirate’s 2019 Public-Private Partnership Law (Abu Dhabi Law No. 2/2019). They provide greater clarity to the private sector in terms of engaging with the Government during the procurement and development phase of any major PPP project.
The Regulations have been issued following an Abu Dhabi Government announcement earlier this year to procure approximately 10 billion AED worth of infrastructure partnership projects across various sectors, including education, transport and municipality. The announcement was made as part of Ghadan 21 which is aimed at driving the Emirate’s development by investing in business, innovation and people.
The Office’s Infrastructure Partnerships Unit will be responsible for implementing the Regulations. They will also work with Government departments to identify, develop and procure infrastructure partnership projects.
The Partnership Projects Guidebook, includes a practical and comprehensive overview of the processes and procedures for developing, procuring and managing partnership projects in Abu Dhabi to support public and private sector entities deliver projects transparently and in a timely and efficient way.
It is aimed at improving the ease of doing business with the public sector by providing developers, investors and financiers with a single, trusted source of information when assessing, bidding and executing projects. It covers procurement procedures, as well as best practice approaches to promote effective partnerships between Government and private sector stakeholders.
Earlier this year, the Office enabled its first partnership project under the new Partnership Projects framework. The Noor Abu Dhabi Street Lighting PPP project involved the design, supply, retrofitting, financing, operating and maintenance of approximately 43,000 luminaires with power-saving state-of-the-art sustainable LED-based technology. It is also expected to save enough energy to power 8,000 homes.

News developments

UAE: New Categories of Movable Assets Announced

19/09/202019/09/2020
by Benjamin Filaferro

The UAE’s Finance Ministry has announced new categories of movable assets. The announcement says there are nine types of funds and movable assets which can be used as collateral for loans and bank financing, including fish, bees and agricultural crops. It also includes equipment and work tools, goods intended for sale or lease and raw materials and goods being manufactured or altered.

News developments

Qatar:Minimum Wage Committee to be Established Soon

19/09/202019/09/2020
by Benjamin Filaferro

Qatar’s Administrative Development, Labour and Social Affairs Ministry has announced a minimum wage committee is going to be established soon. It will be responsible for reviewing and studying the minimum wage for workers and domestic workers. It will also submit its recommendations to the Administrative Development, Labour and Social Affairs Minister.

News developments

Kuwait:Boursa Kuwait to List on Premier Market

19/09/202019/09/2020
by Benjamin Filaferro

Boursa Kuwait has announced it will list its shares on the Premier Market. It follows approval from the country’s Capital Markets Authority. They will start trading on 14 September under the BOURSA ticker symbol and will be classified under the Financial Services category. They will be the 174th company on the Exchange and will be the 20th listed company on the Premier Market. Its initial paid-up capital will be approximately 20.1 million Dinars which will be divided into approximately 201 million shares. Around 50% of the company’s shares, or what amounts to around 100 million shares have been offered to Kuwaiti citizens in an initial public offering process which concluded in December 2019 and was oversubscribed by 850%.

News developments

UAE:Dubai Diamond Exchange Signs Cooperation Agreement with Israel Diamond Exchange

19/09/202019/09/2020
by Benjamin Filaferro

Dubai’s Diamond Exchange has signed a cooperation agreement with their Israeli counterpart, the Israel Diamond Exchange. It aims to promote cooperation and dialogue between the two exchanges and will see the Israel Diamond Exchange set up a representative office in Dubai, UAE while the Dubai Diamond Exchange will open a sales office in the Israel Diamond Exchange’s headquarters in Israel. The two exchanges will share knowledge, expertise and experience, promote bilateral trade opportunities and partner on exhibitions, visits and conferences to boost regional trade and support the growth of the global diamond industry.

News developments

UAE:Abu Dhabi Global Market Launches Public Consultation on Proposed Electronic Transactions Regulations

19/09/202019/09/2020
by Benjamin Filaferro

The Abu Dhabi Global Market have announced they have launched a public consultation paper on proposed Electronic Transactions Regulations. The consultation ends on 14 October 2020. The aim of the Regulations is to clarify e-signatures are enforceable and electronic records have an equivalent impact to physical copies. They highlight references to ‘writing’ in legislation include electronic form and therefore confirm the validity of electronic contracts. It comes as businesses and consumers are adapting to electronic dealings, including online contracting and e-signatures. Legal concepts have traditionally been based on the existence of a tangible or physical medium. Concepts like document, an ‘original’ or a ‘signature’ still remain relevant in legislation and need to be considered in today’s ever-changing digital environment, particularly when taking the impact of Coronavirus into account.

Weekly Spotlight

Saudi Arabia:Money Laundering and Terrorist Financing

19/09/202019/09/2020
by Benjamin Filaferro

Saudi Arabia’s Monetary Authority has announced new money exchange business regulations have been approved. They are aimed at tackling money laundering and terrorist financing as well as protect clients.
They will come into force 30 days after they are issued and allow hotels, hotel apartments and tourist offices to exchange currencies from their customers provided these currencies are sold to a licensed bank or exchange centre and national anti-money laundering provisions and UN Security Council resolutions on the spread of weapons of mass destruction and their financing are complied with.
Licensed money changers will only be able to buy, sell and circulate foreign currencies and import and export currencies. They will be licensed by the Monetary Agency.

Exchange shops should not carry out any activities which they are not licensed to. This includes any other commercial business not approved by the Agency, opening current accounts, investment accounts, savings accounts, or any other accounts for their clients or employees. In addition, they should not issue letters of guarantee or open documentary credits or guarantees, lease safes, accept deposits or speculate in currencies, metals and stocks.
In addition, they have to comply with Saudisation requirements, contract with employment services companies regarding working hours, official holidays, appointments to leadership positions and provide an administrative structure which includes all departments and jobs. This structure has to specify the tasks of departments and individual duties and responsibilities. A compliance officer also has to be appointed.
Exchanges must set an appropriate framework to protect customers from fraud and loss of privacy and comply at all times with clear signs for the public indicating customer rights and provide clear channels to receive complaints and address them within seven days.
Exchanges also have to commit to anti-money laundering and terrorist financing instructions, identify, document and address risks and develop and implement appropriate and appropriate policies capital. In addition, they have to have two million Riyals in paid up capital. This is 7 million for payments to Centres who import and export cash have to have seven million Riyals in liquidity and centres authorised to transfer funds outside the Kingdom have to have 10 million Riyals. They also have to keep a cash reserve of between 5 and 10%.

Licenses will be valid for five years and may be renewed. If a license is being renewed, it has to be done six months before the license is due to expire. They have to commit to carry out the activity in a suitable location, not use the word bank or bank, identify suspicious and fraudulent transactions and comply with the risk management policy. They also have to record all operations in the automated system and maintain confidentiality of information.
In terms of attribution to a third party, an approved policy, which is periodically reviewed, has to exist and there should be no obstacles to accessing their data. They must also be licensed to practice their commercial activity.
When it comes to importing and exporting currencies, there have to be customs notifications at border crossings, all documents for the importing and exporting of currencies have to be kept and funds have to be prepared in an appropriate way before they are transferred.
Exchanges also have to comply with all Monetary Agency instructions in terms of consumer protection and transaction receipts. They also have to ensure currency rates are clearly on display and resolve complaints within a week.
They should ensure their confidential information is not disclosed. Periodic data has to include the location of the head office, branches, and other entities, holders of leadership positions and their job titles, a list of employee data and names, suspension or restriction of services. If they do not, their license will be temporarily suspended.

Their exchange permit will be cancelled if they do not meet the requirements of the regulations, if one of the license conditions is lost, if its information is found to be incorrect or if the centre harms its clients or the public interest. Their permit will also be cancelled if the inspection team is prevented from performing its task or if it refuses to provide the Agency with the requested documents.

News developments

UAE: Influencers Must be Authorised to Run Advertisements

14/09/202014/09/2020
by Benjamin Filaferro

The UAE’s National Media Council has clarified influencers must be authorised to run advertisements on their social media sites. They must be approved by the Council. This is in line with regulations issued in 2017 by the country’s Cabinet. Advertisements involving health or pharmaceutical products and medical equipment will have to be approved by the Health and Prevention Ministry. All information in the advertisements has to be correct and there should be no errors in the names or specifications about the products. Advertisements must not be vague, ambiguous or unclear; contain false or misleading claims, use fabricated images, exaggerate the product or service being advertised or cause confusion between names, products or activities. The advertisement’s identity should be transparently defined and use clear and unconfusing language. Firms and individuals who don’t comply with the rules will be fined.