LexisNexis Middle East

Weekly Spotlight: Real Estate and Housing Facilities Announced in Abu Dhabi and Oman

08/07/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on real estate developments in the GCC, where Abu Dhabi’s Urban Planning and Municipality Department has announced a number of facilities including real estate developers will be exempt from fines imposed on delays in registering their real estate transactions for the first time. Developers are now exempt from 10,000 AED fines if they are late in registering their businesses. The exemption is valid for all transactions made on properties but which have not been registered.

Elsewhere, Oman’s Housing Ministry has announced it has set up a centre to help developers clear all project approvals in 27 days. The aim is to boost the sector in the Sultanate and reduce paperwork levels. Previously developers had to approach different Government agencies to get approvals which could take upto two years.

News developments

Saudi Arabia’s Shoura Council Has Agreed to Amend the Ant-Bribery Law

08/07/201811/12/2019
by Benjamin Filaferro

Saudi Arabia’s Shoura Council has agreed to amend the Ant-bribery Law issued by Saudi Arabia Royal Decree No M36/1412 as amended in 2015. The amendments were proposed by Atta Alsubaiti and Latifa Alshalan and seek to stress the provisions of the UN agreement on combating corruption. The amendments propose appointing a special employee for combating bribery and ensuring the implementation of transparency and integrity standards. The amendments are aimed at protecting public facilities from corruption in all its forms and ensure the soundness of investigations and trials for crimes subject to this law.

News developments

Kuwaitis Can’t Leave GCC Anymore with Old Passports

08/07/201811/12/2019
by Benjamin Filaferro

Source: Kuwait Times, 5 July 2018

The Nationality and Travel Documents Department of Kuwait’s Interior Ministry has advised Kuwaiti nationals must hold e-passports before leaving the GCC. The advice followed a meeting of GCC Interior Ministers, where fellow interior Ministers were also advised the change came into effect on 30 June 2018. Kuwaiti nationals can currently travel freely with their civil IDs.

Read full article here: http://news.kuwaittimes.net/website/kuwaitis-cant-leave-gcc-with-old-passports/

Weekly Spotlight

Weekly Spotlight: Abu Dhabi Global Market Launches Crypto Asset Regulatory Framework

01/07/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on regulatory developments in the Abu Dhabi Global Market, where their Financial Services Regulatory Authority has launched its framework to regulate spot crypto asset activities, including those undertaken by exchanges, custodians and other intermediaries in the Global Market. The framework has been introduced following the conclusion of a public consultation which was launched by the Global Market’s Financial Services Regulatory Authority and ended on 28 May 2018.

The framework is designed to address the full range of risks associated with crypto asset activities, including money laundering and financial crime, consumer protection, technology governance, custody and exchange operation risks. As a result of feedback received during the consultation, several refinements have been made to the regulatory framework. One of the most significant changes is the implementation of a Daily Value Trading Levy which will be imposed on Crypto Asset Exchanges on a sliding scale.

In addition, the Financial Services Regulatory Authority has published its Guidance-Regulation of Crypto Asset Activities in the Global Market and application form for interested applicants to operate a crypto asset business in the Global Market. The Guidance elaborates on the Market’s approach towards the regulation of crypto asset activities and is a useful resource for interested applicants.

News developments

Kuwait: Amendments to the Companies Law Relating to Protection for Minority Shareholders Approved

01/07/201811/12/2019
by Benjamin Filaferro

Kuwait’s National Assembly has approved amendments to the Companies Law relating to protection for minority shareholders. The changes would reduce the minimum percentage of shareholders to request a general assembly requirement from 25% to 10%. Distribution of profits approved in a general assembly would take place within one month of the meeting. For companies with multiple directors, the general assembly would determine their powers and responsibilities. The time before a general assembly would also be increased from 15 to 21 days.

Lawyers have welcomed suggestions a Private-Public Partnership Law could be on the way in the Kingdom. If it is introduced, it will regulate the role of the private sector in terms of partnering with the public sector in infrastructure projects for the first time.

Despite not having any specific regulations in this area, the Kingdom has completed a number of projects using this framework.

Regulation

Saudi Arabia’s Capital Market is on the Go!

30/06/201811/12/2019
by Benjamin Filaferro

The index maker MSCI announced on Thursday 21st June the inclusion of Saudi stocks in its benchmark, the MSCI Emerging Markets, by June 2019. Saudi stocks will account for around 2.6% of global capitalisation.

The inclusion of Saudi Arabia in the MSCI Equity index would also be closely watched by bond market players.

Saudi equities entering the Emerging Markets benchmark is a strong signal of confidence for investors. For several months, Riyadh has made the necessary efforts to improve the regulation and especially the conditions of access for foreign investors to their stock markets.

The decision was eagerly awaited by local authorities, given the weight of the index among investors. The MSCI EM index serves as a benchmark for funds claiming more than $ 1.5 trillion in assets under management (20% of which are passive funds). Entering the index is therefore the insurance to get into the radars of the largest investment funds in the world.

The inclusion of Saudi Arabia is anything but a surprise, as the country has already incorporated a few weeks ago the emerging index created by FTSE Russell. For Riyadh this step is all the more important and symbolic seeing how the neighboring markets of Qatar and the United Arab Emirates had already joined the MSCI EM in 2014, while the largest stock market in the region (490 billion dollars of capitalization) remained at the doorstep.

Saudi stocks will weigh about 2.6% of the MSCI EM index. This will be done in two stages, in May 2019, then in August. With the upcoming IPO of Aramco, Saudi Arabia’s global financial weight could indeed increase in the future.

For now foreign investors hold only 1.8% of the Tadawul index, against 14% for UAE shares and more than 9% for Qatar. With the decision of MSCI, the country could attract $ 40 billion of additional flows according to Bassel Khatoun, CIO at Franklin Templeton Investment.

The Saudi Arabian Capital Market Authority (CMA) and the Saudi Stock Exchange (Tadawul) have been demonstrating an extraordinary commitment in the past couple of years to privatization and opening up their markets to foreign investors.
CMA and Tadawul have implemented several enhancements that have increased the opening of the domestic equity market to international institutional investors. Following the introduction by the CMA in 2015 of regulations for approved foreign financial institutions, the methods of access to the stock market have moved from indirect participations via derivative instruments, such as P-notes and / or SWAPs, to direct participations. Tadawul completed a complete redesign of its business model, including the introduction of a 2-day settlement and a cash-based delivery in April 2017.

Another breaking news to look out for… MSCI has also announced that it will include the MSCI Kuwait Index in its annual review of the 2019 market classification with a view to a potential reclassification of its status from a Frontier Market to an Emerging Market.

This goes to say, patience is key… vision 2030 seems to have stirred up curiosity across the globe and concrete steps on all sides are being taken. Let’s wait and see what investors will have to say…

Weekly Spotlight

Weekly Spotlight: A Series of Employment and Immigration Developments in the UAE

24/06/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on employment and immigration developments in the UAE, where additional changes to the country’s visa system and an upcoming amnesty for illegal residents have been announced by the Cabinet at its latest session. These changes are in line with earlier announcements, including the introduction of a new insurance scheme which will replace the bank guarantees system in the country. In the last quarter of 2018, a new one-year permit will be introduced for women and their children residing in the UAE without a visa sponsor due to certain circumstances including a divorce or death of their husband. Currently, no similar provision is guaranteed in the immigration regulations and the decision of allowing residency in these cases is discretionary.

Nationals of countries affected by war or natural disasters will be offered an extendable one-year residency permit free of charge, regardless of their current visa status. No specific list of countries has been issued yet. According to the announcement, the regulation will be in effect from 1 August until 31 October 2018.

Finally, the Federal Authority for Identity and Citizenship has announced an amnesty initiative called ‘Protect Yourself by Modifying Your Status’ which is expected to be launched in the coming weeks. The programme is aimed at allowing illegal residents in the UAE to correct their immigration status. Foreign nationals will have a choice to depart from the country without paying fines and without an immigration ban, or to change their status to employment. Those who entered illegally will be allowed to depart and will be issued with a two-year immigration ban.

Uncategorized

Iraq’s Top Court Upholds Law Ordering Hand Recount of Election Ballots

24/06/201811/12/2019
by Benjamin Filaferro

After two months of electoral turmoil, the highest court of Iraq ordered on Thursday a manual recount of all the votes casted during the last legislative elections of May 12.

Despite an election that seemed optimistic – at least from a legal and procedural standpoint, Iraq is still living great political uncertainty. Several political parties have come out with accusations of fraud – and such claims have obviously increased doubts on the electoral results in a country still struggling to perfect its democratic process. As a result the Iraqi Parliament demanded a recount of all votes.

Supreme Judicial Council President, Chief Justice Medhat al-Mahmoud announced on Thursday that “The Court finds the decision of Parliament [taken on 6 June] in favor of manual counting does not violate the provisions of the Constitution”.

What does this mean for the Iraqi democratic process? Should Iraqis be reassured that the Rule of Law, through independent courts, have taken on the fight for fair élections?

Read the full story here: https://www.theglobeandmail.com/world/article-iraqs-top-court-upholds-law-ordering-hand-recount-of-election-ballots/

News developments

Oman: Shoura Council is Set to Discuss a Number of Draft Laws

23/06/201811/12/2019
by Benjamin Filaferro

Oman’s Shoura Council is set to discuss a number of draft laws including imposing selective tax which has been referred to it by the Council of Ministers. The Council is also set to discuss a draft law to amend Article 4 of the Foreigners Residency Law. In addition they will discuss a proposal to amend the Social Housing Law.

News developments

KSA: Unified Contract to Start Being Used in Last Quarter of 2018

23/06/201811/12/2019
by Benjamin Filaferro

Sources from the Saudi Arabian Housing Ministry have said it is likely the Ministry, through its electronic Ejaar rent system will start using unified contracts for the commercial sector by the last quarter of this year. The sources added the Ministry has referred the contract template to the Justice Ministry to consider before it is implemented.