LexisNexis Middle East

Dubai: Family Business Guiding Model Issued

05/09/202405/09/2024
by Hannah Gutang

The Dubai Family Business Centre, operating under Dubai Chambers, has issued a guiding model for family businesses.

This model aims to review administrative structures, define specialisations and regulatory frameworks, and outline tasks and services for these businesses.

The centre has highlighted Dubai’s attractiveness to family businesses seeking to establish a regional headquarters.

This includes an advanced financial system providing access to diverse investment opportunities like hedge funds and real estate, a strategic location with advanced infrastructure enabling extensive global connectivity, and a high quality of life, creating an ideal environment for wealthy families.

The Family Office Guidance Model has confirmed Dubai’s position as a tax-efficient wealth management hub and a global destination for high-net-worth individuals to establish family offices.

This is due to the absence of personal income taxes, capital taxes, and inheritance taxes.

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News developments

Bahrain: Introduces New Tax for Multinational Enterprises

05/09/202405/09/2024
by Hannah Gutang

Zawya, 3 September 2024: Bahrain has announced the introduction of a Domestic Minimum Top-up Tax (DMTT) for Multinational Enterprises (MNEs) as outlined in Bahrain Decree-Law No. 11/2024.

The new framework for MNEs is fully aligned with the Organisation for Economic Co-operation and Development (OECD) guidelines, and will be effective from 1 January 2025, highlighting Bahrain’s commitment to promoting global economic fairness and transparency.

This strategic move builds on Bahrain’s proactive engagement with the OECD, dating back to 2018 when it joined the Inclusive Framework and endorsed the groundbreaking two-pillar reform.

To date, more than 140 jurisdictions have signed up for this international tax reform.

As part of this two-pillar reform, the OECD established a Global

Minimum Corporate Tax to ensure large MNEs pay a minimum tax of 15% on profits in each country where they operate.

With the introduction of the DMTT, the kingdom demonstrates its international commitment to global co-operation and its dedication to fostering a fair and level playing field in international taxation, the National Bureau for Revenue (NBR).

Implementing this initiative aims to ensure that MNEs pay the minimum 15pc tax on the profits generated in the kingdom.

This decree law will apply exclusively to large MNEs operating in the kingdom, with global revenues surpassing the Pillar Two threshold of 750 million euros (BD312m).

Eligible businesses are urged to register with the NBR before the deadline specified in the relevant legislation.

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News developments

Abu Dhabi: Residency Violators Seeking Visa Amnesty Exempted From Insurance Fines

05/09/202405/09/2024
by Hannah Gutang

Khaleej Times, 31 August 2024: Abu Dhabi’s Health Department has announced Health insurance fines will be waived for violators of entry and residence rules who have applied to regularise their status during the UAE visa amnesty program.

The two-month amnesty program, set to start on 1 September, allows those staying illegally in the UAE to either regularise their residency status and remain in the country or leave without paying fines or facing entry bans.

The Federal Authority For Identity, Citizenship, Customs & Port Security (ICP) has clarified that the amnesty covers all types of visas, including tourist and expired residency visas.

Those born without documents can also avail of the amnesty and rectify their status.

The ICP has stated that there will be no overstay fines or exit fees collected, and those who opt to leave can return to the UAE anytime with the proper visa.

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News developments

Qatar: CRA Issues Mobile Telecommunication Decision

04/09/202404/09/2024
by Tanya Jain

Al-Arab, 2 September 2024: The Communications Regulatory Authority (CRA) has issued a decision to mobile telecom service providers, Ooredoo Qatar and Vodafone Qatar to transition to high-speed Time Division Duplex (TDD) network technology in the 2.6 GHz frequency band by 31 March 2025.

This move aims to enhance the performance of public mobile networks in Qatar, optimise the use of this vital spectrum, ensure consistent usage in the Arabian Gulf region, and improve the telecom consumer experience through the latest 4G and 5G network technology.

Mobile service providers are required to cease all operations using the current Frequency Division Duplex (FDD) technology and ensure their networks are ready for this transition to provide a distinctive high-speed data service experience in Qatar.

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News developments

UAE: Strengthens Labour Law Penalties to Protect Workers’ Rights

29/08/202429/08/2024
by Hannah Gutang

The UAE has announced stricter penalties for companies violating labour laws, highlighting its commitment to safeguarding workers’ rights and combating illegal employment practices.

The recent amendments to the ‘Regulation of the Employment Relationship’, commonly known as the UAE Labour Law, introduce increased monetary fines ranging from AED 100,000 to AED 1,000,000 for labour law violations, a significant increase from the previous AED 50,000 to AED 200,000 range.

Specific offences targeted by the new penalties include employing individuals without proper work permits, neglecting to provide legitimate job opportunities, abusing work authorisation rules, and disseminating false recruitment or Emiratisation data.

In cases where companies fabricate employment or Emiratisation statistics, the fines will be multiplied by the number of employees involved in the fictitious employment.

Moreover, companies found guilty of severe violations may face criminal penalties in addition to the substantial financial fines, depending on the severity and impact of the infringements.

The amendments also establish a new process allowing labour dispute cases to be brought before the Court of First Instance if dissatisfied with decisions made by the Human Resources Ministry and Emiratisation.

The UAE government’s move aims to deter employers from engaging in illegal hiring practices and ensure fair treatment of both UAE nationals and expatriate workers.

Companies found in violation risk substantial financial penalties and potential legal consequences, which could impact their ability to hire foreign talent in the future.

The amendments reinforce the UAE’s commitment to improving the regulatory framework and holding employers accountable for upholding labour rights and ethical employment practices.

Businesses operating in the UAE are advised to review their recruitment and employment processes to ensure full compliance with the updated regulations.

Professional advisory services are available to guide companies through the changes and mitigate risks associated with non-compliance.

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News developments

Saudi Arabia: Issues Rules For Appointing Personal Data Protection Officers

29/08/202429/08/2024
by Hannah Gutang

The Saudi Data & AI Authority (SDAIA) has issued new rules for appointing Personal Data Protection Officers (DPOs).

These rules are in line with Saudi Arabia Royal Decree No. M19/1443 On the Approval of the Personal Data Protection Law and amended pursuant to Saudi Arabia Cabinet Decision No. 604/1444, and Saudi Arabia Administrative Decision No. 1516/1445 on Implementing Regulation of the Personal Data Protection Law.

The rules aim to set minimum requirements for DPO appointments, clarify cases where a DPO must be appointed, and outline the roles and responsibilities of DPOs.

Controllers must appoint a DPO if they are a public entity processing personal data on a large scale, if their core activities involve regular and systematic monitoring of data subjects, or if their core activities involve processing sensitive personal data, as per Article 5 of the rules.

The rules provide criteria for determining what constitutes large-scale processing and regular and systematic monitoring.

The DPO must have appropriate academic qualifications, experience in data protection, knowledge of risk management practices, and regulatory requirements, as stated in Article 4 of the rules.

They can be an employee of the controller or an external contractor.

The appointment must be documented, and the DPO’s contact details must be provided to SDAIA and made accessible to data subjects, as per Articles 6 and 7 of the rules.

The rules outline the DPO’s roles and tasks, including advising on data protection policies, contributing to data breach response plans, preparing reports on the controller’s data processing activities, and following up on regulatory updates from SDAIA, as stated in Article 8 of the rules.

Controllers must enable and support the DPO in performing their duties, provide necessary resources, and ensure the DPO’s independence, as per Article 9 of the rules.

The rules also encourage training and professional development for DPOs.

The new rules aim to enhance personal data protection in Saudi Arabia by ensuring that organisations handling personal data have dedicated personnel responsible for monitoring compliance with Saudi Arabia Royal Decree No. M19/1443 and Saudi Arabia Administrative Decision No. 1516/1445.

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News developments

Qatar: Generative AI Chatbots to Enhance Digital Consumer Experience

29/08/202429/08/2024
by Hannah Gutang

Qatar Tribune, 26 August 2024: Qatar Research, Development, and Innovation (QRDI) Council, in collaboration with the Communications Regulatory Authority (CRA), has launched an exciting new initiative to address unmet challenges in Digital Multi-Channels through Generative AI Chatbots.

Startups, small and medium-sized enterprises (SMEs), and corporations are invited to submit their innovative proposals for solutions that can deliver a seamless consumer experience across multiple digital platforms.

The submission deadline is 10 September 1, 2024.

The QRDI Council has expressed enthusiasm for the initiative, stating that it is thrilled to launch the innovation project that harnesses the power of Generative AI to enhance consumer interactions, making them more efficient, intuitive, and satisfying.

The Council mentioned that the initiative contributes to building a dynamic innovation ecosystem, creates new opportunities in the tech sector, connects innovators with opportunity owners, and fosters a culture of innovation.

The collaboration with CRA is a strategic move to integrate cutting-edge solutions into Qatar’s digital infrastructure, ultimately enhancing the overall customer experience.

The director of the Consumer Affairs Department at CRA has emphasised the authority’s commitment to leveraging Generative AI to significantly improve consumers’ experiences.

This aligns with Qatar National Vision 2030 and the Third National Development Strategy 2024-2030, which prioritise improving residents’ quality of life and delivering services that meet global standards.

The director has added that the initiative aims to provide seamless, real-time interactions and personalised services to consumers, fostering a digitally advanced society, ensuring efficient and effective communication, and maintaining Qatar’s leadership in the global digital landscape.

CRA has successfully transformed its consumer protection processes into a comprehensive digital system, integrating all stakeholders and public channels through a central CRM system.

Through this opportunity, CRA seeks innovative Generative AI chatbots that are both informative and transactional.

The proposed chatbots should intuitively detect consumer complaints and inquiries, providing high accuracy in handling and analysing information in real-time.

Solutions are required to authenticate users through the National Authentication Services (NAS) before releasing updates or processing transactions, in addition to aligning with CRA’s Applicable Regulatory Frameworks.

The Qatar Open Innovation programme is the primary platform that facilitates collaboration between startups, innovators, and potential government and corporate buyers.

It enables co-creation of cutting-edge technological solutions to address the nation’s most pressing challenges across five key priority areas: energy, health, resource sustainability, society, and digital technology.

As outlined in the QRDI Strategy 2030, the programme identifies opportunities and challenges where research and innovation can make impactful contributions to developing innovative solutions.

With more than 50 Open Innovation Calls has launched in partnership with over 20 local partners across key sectors, the QOI programme has garnered interest and participation from innovators from Qatar and around the world.

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News developments

Oman: SPF Launches E-Portal for Employers to Verify Expat Worker Data and Update Wages

29/08/202429/08/2024
by Hannah Gutang

Times Of Oman, 27 August 2024: The Social Protection Fund (SPF) in the Sultanate of Oman has launched an electronic portal, www.spf.gov.om, to facilitate the provision of services to employers.

Starting from August 26, employers can verify the data of their expatriate workers and update their wages through this e-portal.

This move aligns with the government’s policies to transition to electronic governance and the SPF’s vision to provide transparent and distinguished services.

The SPF will issue monthly contribution invoices based on worker data and wages available on the portal.

The next invoice will be issued on 31 August 2024, with a payment deadline of 15 September 2024.

Employers are advised to familiarise themselves with the SPF e-portal and its functionalities, verify their workers’ data (both Omani and expatriate), update worker wages (if applicable) through the portal or relevant systems for government units, and regularly check the portal for any updates or notifications.

The registration and termination of employment contracts for Omani and expatriate insured persons at the SPF are automatically handled through bilateral linking of various systems.

For workers in government units operating the Mawred/Rio systems or those with a direct connection to the SPF, the process is seamless.

However, for workers in non-governmental sectors, including the private sector, the employer must ensure that the contracts are registered through the Ministry of Labour system.

Employers in non-governmental sectors and government units with a direct connection to the SPF must update the wages of their workers (Omani and expatriate) through the SPF’s electronic portal, ensuring prompt updates whenever there are changes.

For government units linked through the Mawred and Rio systems, wage updates should be made through those systems.

The contribution bill is calculated at the end of each month by the SPF based on the workers’ data and wages available on the Fund’s portal, making it crucial for employers to verify and update this information on a monthly basis.

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News developments

Kuwait: Ministry of Interior Implements New Vehicle Driving Test System

29/08/202429/08/2024
by Hannah Gutang

Arab Times, 22 August 2024: The Ministry of Interior in Kuwait has introduced a modernised system for vehicle driving tests, utilising a new written evaluation form for assessing applicants. This new procedure, now in effect across all six governorates, covers all vehicle categories including private, public, construction, and motorcycles.

According to sources from the Ministry, the new driving test format is structured into six key stages. These stages include fastening the seat belt, maintaining attention while driving, properly parking inside spaces next to the sidewalk, stopping at a red light, manoeuvring the vehicle in a restricted space, and using manual transmission effectively when starting and moving.

Each stage is assigned a specific point value: 10 points for each of the first four stages, and 30 points each for stopping at a red light and turning in a confined space. Applicants must score at least 75 percent out of a total of 100 points to pass the test. Failure to meet this threshold will result in the applicant being considered unsuccessful.

The examiner is responsible for completing the new form and evaluating the applicant’s performance. The scores are then reviewed and approved by the practical testing officer and the head of the testing department.

This marks a shift from the previous system, where results were recorded simply as pass or fail by the examiner. Major General Yousef Al-Khudda, Assistant Undersecretary for Traffic and Operations Affairs, has endorsed this new testing approach. The revised procedure aims to provide a more comprehensive assessment of driving skills, moving away from the prior practice of recording results directly on the applicant’s form.

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News developments

Bahrain: Accreditation For Three New Medical Specialties

29/08/202429/08/2024
by Hannah Gutang

The Daily Tribune, 25 August 2024: Government Hospitals have earned accreditation for three additional medical specialties from the Saudi Commission for Health Specialties, bringing the total number of accredited programmes to 16.

The newly accredited specialties include ophthalmology, emergency medicine, and dermatology.

They join previously accredited areas such as internal medicine, general surgery, obstetrics and gynaecology, paediatrics, diagnostic radiology, neuroscience, anaesthesia, anatomical pathology, psychiatry, paediatric surgery, urology, orthopaedic surgery, and otolaryngology-head and neck surgery.

This recent accreditation reflects the hospitals’ ongoing effort to enhance healthcare quality in Bahrain and demonstrates their emphasis on medical training as a key element in developing skilled professionals.

The hospitals aim to offer a high-quality educational environment, providing trainees with the expertise needed for safe professional practice.

They work to meet both institutional and programme standards, fully leveraging available resources for specialised medical training, under the supervision of bodies such as the Arab Board of Health Specialisations and the Saudi Commission for Health Specialties.

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