LexisNexis Middle East

Dubai: Dubai Taxi Company Law Issued

14/11/202314/11/2023
by Tanya Jain

Khaleej Times (United Arab Emirates), 12 November 2023: Following the issuing of Dubai Law No. 21/2023 establishing a Dubai Taxi Company, they will sell shares via an initial public offering.

It is the latest initial public offering to be carried out by the government since COVID-19.

Their listing is one of ten to be announced by the Dubai Financial Market to increase liquidity in the equity market and boost their market capitalisation to three trillion AED.

Until now, only the utility services provider Dubai Electricity and Water Authority, toll gate operator Salik, Tecom Group and district cooling company Empower have been listed on the Dubai Financial Market.

Dubai Taxi Company will have its own financial and administrative independence.

It will operate for 99 years. This period will be calculated from the date of its registration in the commercial register.

It will be automatically renewed for another 99 years.

As well as providing transportation services for taxis, the Company will also offer specialised transportation using self-driving vehicles and flying taxi services. The Company will also be involved in leasing vehicles with or without drivers, engaging in leasing bikes for cargo transportation companies and pursuing other purposes outlined in their Articles of Association.

Finally, the Company will be able to outsource passenger transportation services through contractual agreements with other companies.

However, Dubai Law No. 21/2023 does not specify when and how much of the Company’s shares will be included as part of the initial public offering.

Dubai’s Crown Prince and Chairman of the Executive Council also approved Dubai Executive Council Decision No. 93/2023 approving Dubai Taxi Company’s Articles of Association. This includes the relevant bylaws and regulations.

In addition, Dubai Executive Council Decision No. 92/2023 has been issued appointing Abdul Mohsin Ibrahim Younis as Chairman, and Ahmed Ali Al Kaabi as Vice Chairman. Among others, Shehab Hamad Abu Shehab, Youssef Ahmed bin Ghalaita, Dr Hanan Sulaiman Al Suwaidi, Abdulla Mohammed bin Damithan, and Issa Abdullah bin Natouf will also be members of the board.

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News developments

Oman: Carbon Capture and Blue Hydrogen Regulatory Framework to be Established

10/11/202310/11/2023
by Tanya Jain

Oman Daily Observer, 8 November 2023: Oman’s Energy and Minerals Ministry has signed a Terms of Reference agreement with multiple oil and gas industry stakeholders to establish a policy and regulatory framework for blue hydrogen and carbon capture utilisation policies in the Sultanate.

The agreement was signed by the Energy and Minerals Ministry and a team consisting of Petroleum Development Oman, Oman Shell, OQGN and Occidental Oman.

Under the agreement, a House of Expertise consisting of the Energy and Minerals Ministry, key carbon capture, utilisation and storage and blue hydrogen industry partners, public and private stakeholders and academic institutions will be established.

They will conduct a study to assess the current carbon capture, utilisation and storage and blue hydrogen landscape.

They will also carry out a techno-economic assessment of carbon capture, utilisation and storage in the country, create transparent licensing processes and assess financial mechanisms required to facilitate private sector investment in these sectors.
They will help develop the regulatory framework as the Sultanate looks to achieve net zero emissions by 2050 too and identify regulatory challenges to projects in these sectors.

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News developments

UAE: Corporate Tax Regulations for Free Zones Updated

08/11/202308/11/2023
by Tanya Jain

Gulf News (United Arab Emirates), 3 November 2023: The UAE’s Finance Ministry has announced it has updated the corporate tax regulations for free zones.

The Ministry issued Cabinet Decision No. 100/2023 and Ministerial Decision No. 265/2023 to effect these changes.

Cabinet Decision No. 100/2023 expands the definition of Qualifying Income to include income from the ownership or exploitation of Qualifying Intellectual Property, following the methodology of the Organisation for Economic Co-operation and Developments modified nexus approach outlined in Ministerial Decision No. 265/2023.

Ministerial Decision No. 265/2023 lists the trading of Qualifying Commodities as a Qualifying Activity, allowing a 0% corporate tax rate for income generated from physical trading of various commodities on recognised stock exchanges. It also covers derivative trading income used for risk hedging in these trading activities.

In addition, it clarifies the scope of Qualifying and Excluded Activities. This provides free zone businesses with transparency.

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News developments

Saudi Arabia: Special Economic Zones Centre to be Established

08/11/202308/11/2023
by Tanya Jain

Arab News, 6 November 2023: Saudi Arabia’s Royal Commission for Riyadh City has announced it is going to establish a Special Economic Zones Centre.

The Centre will help the Commission oversee the special economic zones in Riyadh City.

It will have its own financial and administrative independence, which will allow it to develop new economic zones in Riyadh.

It will be responsible for granting licences to investors in these zones and will offer comprehensive services based on international best practices.

This will facilitate the recruitment of national and international talent and expertise to work with the new businesses and firms in the Centre.

It will also support Riyadh’s transformation into one of the world’s largest city economies. It will do this by creating a competitive regulatory environment for a broad range of economic activities.

It is being established in line with national economic diversification goals.

The Centre will cooperate with the Royal Commission for Cities and Special Economic Zones to develop strategies for the economic areas.

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News developments

Qatar: Details of New Anti-commercial Concealment Law Provided

08/11/202308/11/2023
by Tanya Jain

Qatar Tribune, 3 November 2023: Qatar’s Commerce and Industry Ministry has provided details of a new Anti-commercial Concealment Law.

Qatar Law No. 3/2023 repeals and replaces Qatar Law No. 25/2004.

Concealment includes any non-Qataris practicing a commercial, economic, or professional activity in any of the fields they are not authorised to practice in.

It also includes obtaining profit percentages which are higher than those specified in the company’s articles of association or incorporation document.

In addition, it includes a Qatari individual or a company national, facilitating non-Qataris in engaging in commercial, economic, or professional activities that violate applicable laws in any way.

The new law has been approved in line with the strategy to modernise legal frameworks in the country and foster a more transparent investment climate.

It has also been introduced to keeps up with legislative amendments related to the regulation of non-Qatari capital investment in economic activities.

The Law allows the practice of various economic activities following approved regulations.

The new Law will ensure fair practices in commercial transactions and establish an investment-friendly environment and provide stability to commercial enterprises by permitting reconciliation and legalising the situation of the concealed party, at the expense of the violator.

It encourages concealment cases to be reported and improve collaboration between government entities to tackle concealment.

In addition, it aims to involve society and increase its role in limiting concealment and increase penalties for concealment offences to deter potential offences from being committed.

It also aims to collect the taxes and any other amounts owed to the state because of illegal activities.

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News developments

Oman: Contract Review Powers Decision Approved

08/11/202308/11/2023
by Tanya Jain

Oman Daily Observer, 31 October 2023: Oman’s Sultan has issued a Decree transferring powers related to the revision of contracts from the Justice and Legal Affairs Ministry to the Secretariat General of the Tender Board.

Under Oman Sultani Decree No. 73/2023, the powers to review blueprints of unified model contracts drafted by units of the State’s Administrative Apparatus and other public legal persons in the instances/circumstances stipulated by law will be transferred.

The powers to review the blueprints of contracts whose value exceeds five million Rials and related change orders, irrespective of their values before the signing of the contract or whether any unit of the State’s Administrative Apparatus or other public legal persons might have started implementing the projects will also be transferred.

The review of anything other than unified model contracts covers the procedures that preceded the contract signing process.

The Justice and Legal Affairs Ministry’s technicians and legal advisers who are responsible for reviewing contracts, as well as other staff whose tasks are associated with the revisions or reviews will be transferred to the Secretariat General of the Tender Board.

These employees’ seniority and financial grades will also be transferred. Existing job allowances for these employees will be transferred as well.

The transfer will take place in line with a mechanism agreed by the Justice and Legal Affairs Minister and the Secretary General of the Tender Board. Anything which contradicts or cancels the Decree will be repealed.

The Decree will be published in the Official Gazette and come into force on its issued date.

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News developments

Dubai: Dubai Financial Services Authority Approves New Crypto Tokens

08/11/202308/11/2023
by Tanya Jain

The Dubai Financial Services Authority has announced that it has approved two new crypto tokens.

They have issued a Notice to this effect in line with GEN Rule 3A.3.4 of the DFSA Rulebook.

They have approved Toncoin (TON) and Ripple (XRP).

The recognition comes into force immediately and remains in force until further notice.

The Notice should be construed in line with GEN section 6.2 as if they are provisions of the Rulebook.

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News developments

Abu Dhabi: ADGM Introduces Landmark Distributed Ledger Technology Foundations Regulations

08/11/202308/11/2023
by Tanya Jain

The Registration Authority of Abu Dhabi’s Global Market (ADGM) has announced it has introduced the world’s first Distributed Ledger Technology Foundations regulatory regime.

The Distributed Ledger Technology Foundations Regulations 2023 are aimed at providing a comprehensive framework for DLT Foundations and Decentralised Autonomous Organisations or DAOs to enable them to operate and issue tokens recognising the unique needs of the Blockchain industry.

The new regime has been introduced in line with the Global Market’s strategy to foster initiatives in the broader blockchain and digital asset realm.

It is an innovative, purpose-built regime that addresses the unique legal requirements of Blockchain Foundations, Decentralised Autonomous Organisations and the broader crypto industry.

It will enable positive transformation across the blockchain and Web3 landscape, which will foster a more transparent and efficient future.

It sets a global benchmark and is aimed to be suitable for Blockchain Foundations, Web3 entities, Decentralised Autonomous Organisations and traditional Foundations looking to improve their operations through Distributed Ledger Technology.

It is anticipated it will revolutionise the industry by providing a unified solution for the needs of digital asset related activities and the broader Foundations landscape.

Finally, it offers an effective way to organise and promote governance while recognising the industry’s need for decentralisation.

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News developments

Kuwait: Corporate Tax Initiative to be Introduced

07/11/202307/11/2023
by Tanya Jain

Arab News, 6 November 2023: The Kuwaiti government has announced it is going to launch a corporate tax initiative.

The plan is being introduced as the country looks to join the Organisation for Economic Co-operation and Development/G20’s Inclusive Framework on base erosion and profit shifting or BEPS.

BEPs refer to tax planning strategies used by multinational entities that exploit gaps and mismatches in tax rules to avoid paying tax.

They are the only GCC country yet to become a member of the Inclusive Framework.

They are going to introduce a Business Profits Tax Law as part of a complete overhaul of the existing tax framework in the country.

The Business Profits Tax Law will introduce a 15% tax on the profits of various operating entities including corporate entities, partnerships, and businesses with separate legal characteristics who have all been established and incorporated in Kuwait or operate in the country.

The plan will be completed by 1 January 2025 and will mean Kuwaiti multinational companies including government entities operating in overseas markets, with annual revenues exceeding 806 million Dollars will be taxed at 15%.

Individuals, micro and small enterprises will be exempt.

The Tax Law will be introduced as an amendment to the country’s existing tax laws in line with the Pillar Two framework being implemented globally.

Only foreign companies carrying out business or trade in Kuwait are taxed on their profits and capital gains income at the moment.

The country’s existing corporate income tax law imposes a tax on the income of any body corporate, wherever it is incorporated, which earns income from a Kuwait source.

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News developments

UAE: New Housing Policy Approved

04/11/202304/11/2023
by Tanya Jain

Khaleej Times (United Arab Emirates), 30 October 2023: The UAE Cabinet has approved the requirements for housing assistance and mortgage transfer.

It will allow citizens to replace or resell their houses and transfer mortgages.

Flexible loan schemes approved for Emiratis will also be offered.

They will be offered by the Sheikh Zayed Housing Programme as part of efforts to provide suitable housing to Emiratis.

Beneficiaries of housing assistance can now apply for a mortgage transfer from one property to another by sending their applications to the Ministry of Energy and Infrastructure.

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