LexisNexis Middle East

Saudi Arabia: Online Registration Process for Employment Contracts Forthcoming

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

The General Organisation for Social Insurance and the Labour and Social Development Ministry has launched a new initiative which allows employers in the private sector to upload and update electronic version of employment contracts for their Saudi and foreign employees. It is expected the registration process will become mandatory for all employers in Saudi Arabia in the near future. The new initiative is aimed at ensuring employment contracts conform with private sector regulations, ensuring the accuracy of data recorded in agreements and reducing labour disputes between parties. It also allows employees to review their contract online. Unlike some other jurisdictions in the region, employers in Saudi Arabia are not required to use any specific employment contract template as long as the agreement does not contravene the country’s labour regulations. However, in practice, there is no proper mechanism in place for verification of contracts. The fact the initiative is launched by the GOSI may also suggest the authorities are preparing to scrutinise the area of social contributions paid by employers and which are calculated proportionally to the employee’s remuneration.

News developments

Oman: Suspension Extended on Recruitment of Foreign Nationals in Certain Professions

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

Oman’s Manpower Ministry has extended its Decisions not to issue new visas for workers in several private sector professions for another six months. Three new Decisions were issued on 13 November 2018. The first profession-by-profession bans came in to force in late 2013. Under the new Decisions, visas for construction workers, cleaners, sales and marketing professionals are affected. The Decision restricting new visas for sales and marketing professionals will come into effect on 30 November, for cleaning and construction workers from 2 December 2018 and for carpenters, metallurgists, blacksmiths and brick kiln workers on 2 January 2019. Firms who are registered as excellent or international grade, consultancies and those implementing Government projects will not be affected.

Weekly Spotlight

Weekly spotlight: Amendments to Tender and Auction Law in Qatar to be Reviewed

25/11/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Qatar, where the Shoura Council has referred Qatar Decree-Law No. 18/2018 amending the 2015 Tender and Auction Law, Qatar Law No. 24/2015 to the Finance and Economic Affairs Committee to review and report back to the Council on.

The law details the classification process for those transacting with the Government, involving the issuing of certificates by the Government Procurement Regulatory Department (GPRD) at the Finance Ministry. Foreign and local companies are classified as contractors, service providers or suppliers. Tenderers applying to be classified are required to submit details on personnel, quality assurance, security and other information. The Council’s President had invited the committees to meet to discuss some things during the holiday, but a formal decision of memorandum cannot be issued to the Government until a new Council session has opened.

Elsewhere, the Council has referred a draft Media City Law to the Cultural Affairs and Information Committee to consider and report back to the Council on. The draft law would give the Media City legal personality and an independent budget. It would manage and develop media activities, attract international media, digital media and technology companies and media research and training institutions. It would provide services to licensed companies operating there, including granting licenses for television and radio broadcasting and for publishing and distributing newspapers, magazines and books.

News developments

Dubai: Committee to Regulate the Transplant of Organs and Tissues to be Established

24/11/201811/12/2019
by Benjamin Filaferro

Dubai’s Health Authority has announced it is working to establish a committee to regulate the transplant of organs and tissues in the Emirate. The committee will be responsible for standardising and regulating organ transplant processes in line with Federal Law No. 5/2016 on regulating the transfer and transplant of organs and tissues. The Authority has hosted a workshop to share experiences and learn about the best practices and latest developments in this area. Over 70 medical and technical teams intensive and emergency care specialists from the public and private sector hospitals in the Emirate attended and exchanged expertise and experiences in order to learn about the latest developments in organ transplant programmes, especially in Spain.

News developments

Saudi Arabia: Tax Authority Publishes English Version of General VAT Guidelines

24/11/201811/12/2019
by Benjamin Filaferro

Saudi Arabia’s General Authority for Zakat and Tax has published the English version of its general VAT guide, which was originally published in Arabic in October. The guide provides information to taxpayers on a wide variety of VAT obligations in the Kingdom. It covers topics such as VAT registration, charging VAT and issuing VAT invoices, deducting VAT on purchases, filing returns and interacting with the Authority on VAT matters and disputes. It also includes useful reference material, such as a tax invoice example, definitions of technical VAT terms, an illustrative VAT return form and a high-level decision tree for when VAT is expected to be applied. The guide is aimed at a broad audience and offers a good starting point for all taxpayers with respect to understanding VAT compliance obligations.

News developments

Saudi Arabia: Women Can be Arbitrators

17/11/201811/12/2019
by Benjamin Filaferro

The undersecretary of Saudi Arabia’s Justice Ministry and Chairman of the Appeal Court has said there is nothing which prevents women from becoming arbitrators. He was speaking during a seminar on commercial arbitration organised by Riyadh Chamber. He added mediation and arbitration should be encouraged for family disputes and said women can be commercial arbitrators but called for there to be better training of arbitrators in general. He went on to say better arbitration procedures should also be introduced to boost integrity and transparency.

News developments

Egypt: Social Media Advert Tax Law Under Consideration

17/11/201811/12/2019
by Benjamin Filaferro

Egypt’s Finance Minister has announced a draft public finances law and a law on taxing advertising on social media sites are under considerations. The proposed legislative developments are part of a wider initiative, including amendments to the country’s 2005 Income Tax Law, Egypt Law No. 91/2005. The draft social media law will impose taxes on adverts displayed on social media. The Minister mentioned Facebook specifically as a platform where adverts can be placed without sufficient control. He also said the Government will send a draft customs law to the House of Representatives in the coming weeks to consider.

Weekly Spotlight

Weekly Spotlignt: The DIFC Has Amended its Company, Real Estate and Strata Law Regimes

17/11/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on regulatory developments in Dubai, where the Dubai International Financial Centre has amended its Company, Real Estate and Strata Law regimes. The changes to the Companies regime came into effect on 12 November 2018 and the changes to the Real Estate and Strata Law regimes came into effect on 14 November 2018. These changes have been analysed by Al Tamimi & Company and can be read at https://www.lexismiddleeast.com/doc/2720578_2720581 and https://www.lexismiddleeast.com/doc/2720588_2720593.

These changes and other legislative changes have also been analysed by BSA Ahmad Bin Hezeem & Associates LLP. Their insights can be read at https://www.lexismiddleeast.com/doc/2720154_2720163?highlight=bsa.

Weekly Spotlight

Weekly Spotlight: Abu Dhabi Global Market Courts Issued a Public Consultation on Litigation Funding Rules

11/11/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on regulatory developments in Abu Dhabi, where the Global Market Courts have issued a public consultation on litigation funding rules. The consultation ends on 5 December 2018.

They will provide parties with greater certainty on the enforceability of funding arrangements which have been entered into in connection with proceedings in Abu Dhabi Global Market. They are intended to apply to funding agreements used in connection with both court litigation and arbitration proceedings conducted in the Abu Dhabi Global Market. The public consultation includes the conditions and requirements of funders and the types of funding structures.

They will apply to litigation funding agreements which are defined in the Abu Dhabi Global Market Courts, Civil Evidence, Judgments, Enforcement and Judicial Appointments Regulations 2015.

They will set out the highest standards of best practice in litigation funding for Abu Dhabi and wider UAE and have taken the frameworks which are in place in other international jurisdictions where third party funding is common practice into consideration.

News developments

Egypt: Proposal to Grant Residency to Foreigners Who Purchase Property Under Consideration

10/11/201811/12/2019
by Benjamin Filaferro

Egypt’s Housing Ministry has announced criteria for granting residency to foreigners who purchase residential units under construction are being considered. The Ministry said residency will be granted to owners of units who purchase them in US Dollars, provided the minimum payment for a unit is 40% of its price or at least $100,000 and the period of construction of the property does not exceed four years. The Ministry added the passport department is responsible for determining the length of stay, according to the transfer amount. The Ministry added that in terms of constructed residential units, residence will be granted in line with the law and an Interior Ministry Decision to this effect.