LexisNexis Middle East

Weekly Spotlight: New Worker’s Insurance Scheme Upcoming in the UAE

07/10/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on employment developments in the UAE, where the country’s Human Resources and Emiratisation Ministry has announced that from 14 October, a worker’s insurance scheme will replace the existing bank guarantees system. The new insurance scheme will apply to all private-sector employees, including domestic workers.

Instead of a fixed amount of 3,000 AED which typically must be paid against every work permit application, employers will pay an insurance premium of 120 AED per person, for a two-year work permit. This will provide an insurance coverage of up to 20,000 AED in lieu of unpaid wages, return ticket and against work-related injuries, among other benefits.

Employers will be able to recover earlier deposited bank guarantees only on the cancellation or renewal of a work permit and after the payment of an insurance premium. They must be free from any wages-related violations for at least six months before the renewal date of the work permit.

News developments

Saudi Arabia: Recommendation to Divide Government Projects into Small Shares

06/10/201811/12/2019
by Benjamin Filaferro

A Saudi-American joint report has recommended dividing Government projects into small shares to ease the process of giving tenders to small companies. The report also recommended allocating some of the procurement shares of public and private sectors to small and medium enterprises. The report was prepared by the Saudi-American Business Council on the development of small and medium enterprises in partnership with the research company Accountability. It also highlighted regulatory bodies need more indexes and indicators to measure the performance of SMEs to support their development.

News developments

Bahrain: New Laws Aimed at Improving the Country’s Investment Environment

06/10/201811/12/2019
by Benjamin Filaferro

Bahrain’s King has issued four new laws aimed at improving the country’s investment environment including the Competition Law. The Competition Law is aimed at tackling monopolies and anti-competitive behaviour. In addition, a new Health Insurance Law granting the Supreme Council of Health responsibility to implement the system and establishing a national health insurance fund was approved. The King also approved the Bankruptcy Law which will introduce reorganisation procedures, allow management to stay in place and business operations to continue. It also covers cross-border insolvency and insolvencies of SMEs. Finally the King approved the Personal Data Protection Law which covers big data for commercial use and includes guidelines on cross-border data transfers.

Weekly Spotlight

Weekly Spotlight: Dubai International Financial Centre Launches Consultation on New Insolvency Regime

30/09/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on insolvency law developments in the DIFC, where the Centre has launched a consultation on a proposed new Insolvency Law regime. The consultation ends on 17 October 2018. The aim of the amendments is to bring the Centre more into line with international best practices.

The key proposals include introducing a new debtor in possession rehabilitation procedure, which includes a stay and cram down mechanism which will be supervised by the court and introducing a new administration process, including the appointment of an insolvency practitioner accessible via rehabilitation where there is evidence of mismanagement or misconduct. It will also enhance the rules governing voluntary winding up procedures and the rules governing compulsory winding up procedures. In addition, it will include more detailed provisions on wrongful trading, the re-use of company names and adding an offence in respect of any misconduct taking place during a winding up, enhance the provisions relating to the enforcement of financial collateral and incorporate the UNCITRAL Model Law on cross border insolvency proceedings into the DIFC law, with certain modifications for application in the DIFC.

News developments

Kuwait: E-payments to be Regulated

29/09/201811/12/2019
by Benjamin Filaferro

Kuwait’s Central Bank has announced it has issued Instructions to all service providers to register on their electronic payments system. Under the Instructions, all service providers will have to regulate their e-payment transactions in line with the relevant regulations. The Central Bank will be able to scrutinise all e-payment methods.

News developments

Qatar: Free Media Zone to be Established

29/09/201811/12/2019
by Benjamin Filaferro

Qatar’s Cabinet has approved the establishment of a free media zone aimed at attracting international media, technology companies and research institutions. The aim will also be to integrate activities with other state projects and support the establishment of investment funds focusing on media organisations. Media which will be supported will include digital, film and television. The Director of the Government Communications Office said the decision will allow foreign journalists to register in the zone. It follows the Cabinet’s recent approval of a draft law on freedom of the press.

News developments

Jordan’s Legislation and Opinion Bureau has Published a Draft Zakat Law

23/09/201811/12/2019
by Benjamin Filaferro

Jordan’s Legislation and Opinion Bureau has published a draft Zakat law. If approved it will establish a General Zakat Organisation which will have its own financial and legal independence, a Board of Trustees and branches and offices across the country. A fund to succeed the Zakat Fund established under Jordan Law No. 8/1988 will also be established and that law and its regulations will be repealed. The Board’s members will be drawn from individuals recommended by the Cabinet, including the Awqaf, Islamic Affairs and Holy Sites Minister. It will identify Islamic banks in which Zakat funds are placed, make plans for expenditures, regulations and carry out other budgetary and administrative duties. It will also issue recommendations on Zakat payments. The law specifies the way in which Zakat funds will be spent. It will come into effect on its publication in the Official Gazette.

News developments

UAE: Expatriate Retirement Visa Law Approved

23/09/201811/12/2019
by Benjamin Filaferro

The Cabinet of the UAE has announced a new law on residency visas for retirees. From 2019, foreign nationals looking to retire in the UAE will be able to obtain a renewable five-year residency visa, according to the announcement by the Cabinet. General conditions state that the new visa will be available to applicants over 55 who meet the following eligibility criteria, among other yet unannounced conditions such as investment in a property worth a minimum of two million AED in the UAE; or financial savings of no less than one million AED; or active income of at least 20,000 AED a month. It is expected a list of additional requirements and further visa conditions will be announced closer to the implementation date of the law.

Weekly Spotlight

Weekly Spotlight: Abu Dhabi Global Market Launches Digital Sandbox

23/09/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on Abu Dhabi’s Global Market Financial Services Regulatory Authority who has announced its launch of a FinTech digital sandbox to allow financial institutions and FinTech innovators to work together to experiment on products and solutions in a digital platform environment.

The digital sandbox will provide a marketplace for open collaboration between financial institutions, FinTech firms and regulators to facilitate the testing and adoption of innovative digital financial products and services which can benefit the industry regionally.

It will allow financial institutions to source and procure FinTech solutions locally and globally, run digital tests on the platform and adopt and orchestrate the best ones which meet their business needs. It will also enable FinTech firms to offer their innovative solutions to international market players and tap cross-border market access and opportunities to grow and scale their business and participants in the UAE and regional markets to connect with other international markets and vice versa.

News developments

Saudi Arabia: Plain Cigarette Packaging Could be Adopted

16/09/201811/12/2019
by Benjamin Filaferro

According to the World Trade Organisation, Saudi Arabia could follow Australia and other countries and adopt plain cigarette packaging. The Kingdom has apparently notified the Organisation. No date for the introduction was given but when it does it will become the first GCC country to do so.