UAE: New Housing Policy Approved

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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UAE: Digital Power of Attorney Services Agreement Signed

Al Bayan, 23 October 2023: The UAE’s Justice Minister has signed a cooperation agreement with the Justice Ministry, the Telecommunications Regulatory Authority and the Digital Government and the Supreme Council for Government Digital Transformation Committee.

The aim is to develop a digital power of attorney service to deliver government services that will allow citizens and residents to authorise others to conduct digital government transactions on their behalf quickly, securely and legally as well as in a way that preserves the rights of all parties.

The new government digital service will also be added to the UAE government’s digital capabilities. All government agencies will be able to provide digital agency service for their services on their websites and applications over the course of the next few months.

Those using this service can choose a specific government entity and a specific service provided by this entity and then submit a request to issue a special power of attorney for another person.

Read the full story here.

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UAE: Landmark Verdict Means Moral Damages Are Payable in Commercial Disputes

Gulf News (United Arab Emirates), 19 October 2023: The UAE Court of Cassation has issued a landmark verdict in a case involving the energy drink brand Power Horse.

Power Horse is an Austrian energy drink brand and has its commercial headquarters in Dubai. The Court ordered Power Horse’s partner in the UAE to pay one million Dollars in compensation to Power Horse.

The dispute arose out of a breach of contract. It means businesses in the UAE must now be extra careful with the terms of their contracts. Before the judgment, only individuals were liable to pay moral damages.

Under Federal Law No. 5/1985 (the Civil Code), claimants can seek moral damages as compensation for any non-financial losses sustained from a breach of contract.

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UAE: Emirates Drug Corporation Established

Al Bayan, 9 October 2023: The UAE’s Cabinet has approved a Federal Law establishing the Emirates Drug Corporation.

It will be responsible for regulating and managing everything related to medical products at a federal level and will have its own legal personality and financial and administrative independence.

Among other things, it will trace medical products across the country, including free zones.

These products include pharmaceutical products, medical aids, healthcare products, biological products, nutritional supplements, cosmetics, veterinary products, fertilisers, agricultural conditioners, growth regulators, plants, pesticides, genetically modified organisms, and their products.

Other medical products may be added by subsequent legislation.

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UAE: Free Zones Council Considering Preferential Free Zones Option

Gulf News (United Arab Emirates), 4 October 2023: Dubai’s Free Zones Council has discussed a range of measures to enable companies to choose their preferred free zones in the Emirate.

The measures will also encourage startups.

In addition, they will enable entrepreneurs to establish in the free zones.

The Council also discussed regulating the free zone-licensed establishments’ mainland activities. These activities include obtaining a permit from the respective licensing authority. They also include coordinating with the relevant free zone authority and opening a branch in the Emirate to carry out business activities from the same location in the free zone, in line with the procedures enforced by the licensing authority. However, specific legal procedures will have to be followed.

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UAE: Mandatory Job Loss Insurance Scheme Now in Force

Gulf News (United Arab Emirates), 1 October 2023: The mandatory job loss insurance scheme is now in force. It means employees will now be fined 400 AED.

Employees who subscribe to the scheme but fail to pay the premiums for more than three months will now have their insurance certificate cancelled and be fined 200 AED.

If employees fail to pay the fines for three months from the due date, the amount will be deducted from their wages through the Wage Protection System, end-of-service gratuity, or any other alternative method deemed acceptable by the Human Resources and Emiratisation Ministry. This penalty will be specified in the relevant Ministerial Decision.

Under the relevant Ministerial Decision, employees will not be eligible for a new work permit until all fines owed are paid within the specified timeframe.

Investors, domestic helpers, temporary contract workers, those under 18, and retirees who are entitled to a pension and have started a new job are exempt.

Employees had to pay a premium to subscribe to the scheme. If they lose their jobs for anything other than disciplinary action or resignation, they will receive financial support for up to three months.

Premiums can be paid monthly, quarterly, bi-annually, or annually. To get the support employees must be subscribed to the scheme for at least 12 months. Subscriptions to the scheme began in January 2023 so if an employee subscribed to it in January, they will become eligible for compensation only if they lose their job after December 2023. If a person subscribes to the scheme this month, they will only become eligible after 12 months have passed.

Private sector employees, federal government departments, and free zones had until 1 October to subscribe to the Involuntary Loss of Employment (ILOE) scheme.

There are two types of plans. Category A is available to employees with a basic salary of 16,000 AED or less. The premium will be five AED plus VAT a month and will provide an employee with 60% of their basic salary up to 10,000 AED a month.

Category B is available to employees with a basic salary of more than 16,000 AED. The premium will be 10 AED plus VAT a month and will provide an employee with 60% of basic salary; up to 20,000 AED a month.

The benefits of the scheme will stop if the beneficiary gets a new job or leaves the UAE.

The employee must not have an existing absconding complaint against them.

Claims must be submitted within 30 days from the date of termination or the settlement of a labour complaint referred to the judiciary.

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UAE: Administrative Penalties for Commercial Agency Law Violations Decision Issued

Gulf News (United Arab Emirates), 11 September 2023: The UAE’s Economy Ministry has issued a Decision specifying the administrative penalties which will be imposed for Commercial Agency Law (Federal Decree-Law No. 3/2022) violations.

Among other penalties under Cabinet Decision No. 89/2023, an international business who sells its goods and services to entities or individuals other than the contracted commercial agent will receive a warning first and may then be fined between 100,000 and AED 400,000. Their goods may also be seized by UAE Customs.

In addition, other offences may see a warning given first and then fines of between 100,000 and 200,000 AED imposed. Goods may also be seized by UAE Customs.

Some repeat offences could see offenders fined up to 400,000 AED.

In addition, the new legislation will apply automatically to existing commercial agency contracts drafted before the new Commercial Agency Law came into force in June. Only contracts not being renewed or being terminated early will be exempt..

The Cabinet Decision has been published in the Official Gazette.

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