News

This week the spotlight is on legal and regulatory developments in Qatar, where the Emir has issued a new Law amending the country’s Labour Law and Civil and Commercial Procedures Law. Qatar Law No. 13/2017 amends Qatar Law No. 14/2004 and Qatar Law No. 13/1990. Under the new Law, one or more committees will be set up at the Administrative Development, Labour and Social Affairs Ministry to resolve labour disputes. It will be chaired by a Court of First Instance judge who will be chosen by the Supreme Judiciary Council. Two committee members will be nominated by the Administrative Development, Labour and Social Affairs Minister and one of them will have to have accounting experience.

The Minister will issue a decision to regulate the committee’s work and operations. Its secretariat will be assumed by one or more Ministry employees and this will be stated in the Ministerial Decision. Only the committee will be able to resolve disputes arising from the Law’s implementation or employment contract. It will give a decision on the dispute within three weeks of its first session reviewing it. The committee secretariat will notify both parties in the dispute about the committee’s procedures and decisions through registered correspondence at their residence or business centres, or through other suitable means.

The committee’s decisions will include its rationale, will be binding and will have to be executed immediately. Cases which should be heard and resolved by the committee will not be heard before the courts before they hear them. However, the related courts will continue to see the related cases which were filed before Qatar Law No.13/2017. Before lodging a case with the committee, employees will have to raise concerns with their employer within seven days of being advised of an issue. The complaint will have to be resolved within seven days and if an employee does not receive a response in this time, it will be considered to be rejected. Employees will be able to contact the committee directly where they are dismissed or terminated arbitrarily by an employer and the committee will look into the issue and reach a decision based on the facts.

This week the spotlight is on legal and regulatory developments in Saudi Arabia, where the Commerce and Investment Ministry and the General Investment Authority (Sagia), have announced foreigners will be able to own 100% of construction and engineering businesses. It follows a consultation which has recently concluded. Foreigners will be able to own 100% of these businesses so long as they have a 10-year operational track record and have a presence in at least four other countries. Sagia will be able to waive these restrictions if an application is considered to be in the Kingdom’s best interests.

Elsewhere, the Head of Saudi Arabia’s General Authority for Civil Aviation, Abdul Hakim Al-Tamimi has announced all of the Kingdom’s airports will be privatised by December this year. All of the country’s airports will be transferred to the Saudi Civil Aviation Holding Co first. They will then be transferred to the Public Investment Fund (PIF). The privatisation will be carried out in three ways. The first will see an airport transferred to a company like Riyadh’s King Khaled International Airport, where a minority holding was sold and an airport board of directors will then be established which will manage the company. The second is known as operation and maintenance like Jeddah’s King Abdul Aziz International Airport in Jeddah where the Civil Aviation Authority bears the capital cost of establishing the project and shares the income with investors. The third method is through Build, Operate and Transfer, like Madinah’s Prince Mohammed bin Abdul Aziz Airport where employees are an investor’s responsibility. The investors bear the capital cost of the project and share the income with the Authority.

This week the spotlight is on the issuing of the new Tax Procedures Law in the UAE. Under Federal Law No. 7/2017 (which has not yet been Gazetted), the foundations for the tax system are laid out whilst the administration and collection of taxes processes are stipulated and the role of the Federal Tax Authority is defined. It also defines a clear set of common procedures and rules to be applied to all tax laws in the UAE, particularly VAT and excise tax laws. The law covers tax procedures, audits, objections, refunds, collection and obligations, including tax registration, tax-return preparation, submissions, payment and voluntary disclosure rules as well as tax evasion. It also lays out the penalties for non-compliance as well as clear appeal processes in line with international best practices. When it comes into force businesses will have to keep records for five years.

An unofficial translation of the Law can be accessed here: https://www.mof.gov.ae/en/lawsAndPolitics/govLaws/Pages/TAX.aspx. We are monitoring the legislative progress of this important development with our publishing Partners, SADER Legal Publishing and will provide updates as and when appropriate.