Abu Dhabi Archives - Page 7 of 24 - LexisNexis Middle East

ADGM: Proposed Amendments to Prudential Framework for Lower-Risk Firms

16/04/202516/04/2025
by Hannah Gutang

ADGM, 9 April 2025: The Financial Services Regulatory Authority (FSRA) in the ADGM has issued a consultation paper proposing amendments to the prudential framework for lower-risk firms.

Consultation Paper No. 2 of 2025, targets Authorised Persons in Categories 2, 3A, 3B, 3C, and 4, as well as potential applicants and professional advisors. It has been proposed the Expenditure Based Capital Minimum (EBCM) requirement for Category 4 firms not holding Client Assets or Insurance Money should be removed, while increasing the Base Capital Requirement (BCR) for most Category 4 firms to $50,000. The FSRA has also suggested applying a BCR of $250,000 for Providing Custody for a Fund, unless it is a Public Fund, and removing the Internal Risk Assessment Process (IRAP) reporting requirement for Category 3B and 3C firms. There is also a proposal to eliminate the professional indemnity insurance (PII) requirement for Branches of Category 3B, 3C, and 4 firms. It is hoped the proposed changes would reduce the regulatory burden for these firms and better reflect the lower prudential risks associated with them. The closing date for comments on these proposals is 21 May 2025. The proposed amendments would modify the current prudential requirements under the FSRA’s Prudential – Investment, Insurance Intermediation, and Banking Rulebook (PRU).

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

UAE: New Tax Rules for Non-Resident Investors in Investment Funds

10/04/202510/04/2025
by Hannah Gutang

Gulf News. 6 April 2025: The UAE Ministry of Finance has issued Cabinet Decision No. 35/2025 for non-resident investors in Qualifying Investment Funds and Real Estate Investment Trusts.

Cabinet Decision No. 35/2025, outlines the conditions under which non-resident juridical investors in Qualifying Investment Funds (QIF) or Real Estate Investment Trusts (REIT) are deemed to have a nexus in the UAE, and therefore are subject to taxation. It has repealed Cabinet Decision No. 56/2023 and follows Cabinet Decision No. 34/2025 concerning Qualifying Investment Funds and Limited Partnerships.

It impacts non-resident juridical investors in QIFs and REITs, specifying that a taxable nexus arises if a QIF or REIT distributes 80% or more of its income within nine months from its financial year-end, either on the date of dividend distribution or the date the ownership interest is acquired. A nexus would also be created if a QIF fails to meet the diversity of ownership conditions during the tax period. Conversely, non-resident investors who are exclusively investing in QIFs and REITs without breaching these conditions would not be considered to have a taxable presence in the UAE.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

Abu Dhabi: School Fee and Cost Rules Outlined

10/04/202510/04/2025
by Hannah Gutang

Emiratalyoum, 3 April 2025: The Abu Dhabi Department of Education and Knowledge (ADEK) has announced a new school fee policy for the 2025-2026 academic year, allowing optional charges for textbooks and uniforms in private schools.

The policy divides school fees into six components: tuition, educational resources, uniforms, transportation, extracurricular activities, and other fees. It allows parents to opt out of certain charges involving devices, textbooks, and uniforms if they choose to use second-hand materials that meet the school’s requirements. Schools are permitted to collect tuition fees in up to ten instalments, providing flexibility for parents.

Schools must publish their approved fees on their websites and adhere to the fee levels set by ADEK. They must also offer detailed payment schedules and can enter into agreements with parents on these schedules. Schools can also charge a registration fee of up to 5% of the approved tuition fees, which can be collected up to four months before the academic year begins. However, any registration fees must be deducted from the final tuition fees, and schools cannot request additional financial guarantees from parents.

In cases of late or non-payment of fees, schools must have a clear and fair policy in place and not impose punitive measures. They must notify parents in writing at least three months before the end of the academic year on the consequences of not re-registering their children due to unpaid fees. Schools are prohibited from barring students from exams due to fee issues. The policy also outlines potential actions for non-payment, including issuing three consecutive warning notices to parents, suspending student registration for up to three days per term, and withholding exam certificates or transfer documents until all fees have been settled.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

UAE: New Stricter Traffic Laws to Enhance Road Safety

03/04/202503/04/2025
by Hannah Gutang

Khaleej Times, 2 April 2025: The UAE has brought into force new traffic laws on 29 March 2025 which impose severe penalties.

Federal Decree-Law No. 14/2024 On Traffic Regulation was issued on 30 September 2024 but came into force on 29 March 2025. It provides for stringent penalties for various traffic offences including imprisonment and fines up to Dh200,000. The law aims to address serious offences including jaywalking, driving under the influence, and driving without a proper licence. Road safety experts have welcomed the changes but state that there needs to be stricter enforcement and cultural shifts in the UAE to promote road safety.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

UAE: New Zakat Law Approved

27/03/202527/03/2025
by Hannah Gutang

Khaleej Times, 19/03/2025: The UAE has approved a new zakat draft law, imposing fines of up to Dh1 million and imprisonment for illegal collection.

The Federal National Council (FNC) has passed a comprehensive federal law regulating the collection, distribution, and management of zakat across the UAE. The decision, led by the Chairman of the General Authority for Islamic Affairs, Endowments, and Zakat, aims to enhance transparency and accountability in the administration of zakat funds. The new law governs all aspects of zakat processes, including the investment of surplus funds in line with Sharia principles, and applies to all individuals and entities engaged in zakat activities within the UAE, including those in free zones. Certain organisations may be exempted by the Cabinet, provided they meet registration and reporting requirements.

The law introduces strict penalties for violations. Collecting, receiving, or distributing zakat without authorisation is considered a crime against public funds, punishable by imprisonment, fines of up to Dh1 million, or both. Misuse of funds, unauthorised deductions, and submitting false documents may result in further fines and imprisonment. Authorised entities also face fines of up to Dh1 million for violations such as distributing zakat abroad without permits, failing to comply with regulations, or mismanaging investments. All entities must regularise their status within a year of the law’s enactment, with an option for extension.

A key feature of the law is the creation of the ‘National Zakat Platform,’ which is a unified digital system to monitor authorised entities, beneficiaries, and fund allocations. This platform aims to ensure zakat funds are distributed efficiently to rightful beneficiaries and managed transparently. The law also restricts zakat distribution outside the UAE to exceptional circumstances like natural disasters, requiring official approval through the platform.

The law maintains the religious integrity of zakat by requiring investment surplus to be used exclusively for zakat purposes, and bars deductions for managing authorities. After extensive debates, the FNC upheld the original provision allowing traditional zakat giving to relatives and acquaintances without the need for excessive administration.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

Abu Dhabi: Enforces Fines for Unlicensed Building Facade Modifications

27/03/202527/03/2025
by Hannah Gutang

Khaleej Times, 22 March 2025: Abu Dhabi’s Department of Municipalities and Transport (DMT) has introduced fines for unlicensed facade modifications on commercial buildings, facilities and establishments.

This decision aligns with Abu Dhabi Law No. 2/2012 on the Maintenance of Building General Appearance in the Emirate of Abu Dhabi, which aims to maintain a sustainable and visually appealing urban environment in the Emirate. The regulations prohibit the addition of tools, equipment, or any changes to building facades without the appropriate licence.

Property owners and commercial establishments are now required to obtain proper permits before making any facade modifications. Violators will face fines of Dh1,000 for the first offence, Dh2,000 for a second violation, and Dh4,000 for any third or repeated offences. The regulations also extend to unauthorised fencing, enclosing, or covering of properties, with fines ranging from Dh3,000 to Dh10,000 for repeated violations.

These measures are part of the DMT’s ongoing efforts to preserve the aesthetic integrity of public spaces, and came into force on 16 March 2025. The regulations mirror the provisions of Abu Dhabi Law No. 2/2012, which prohibits actions that negatively impact the cultural, architectural, or aesthetic features of public areas.

In addition to facade regulations, the DMT has issued reminders on the laws on abandoned vehicles, with fines for leaving vehicles in a way that distorts the public appearance. These fines range from Dh500 for first-time offenders to Dh2,000 for repeated violations.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

UAE: Pioneers Drone Air Navigation Certification

20/03/202520/03/2025
by Hannah Gutang

Gulf Today, 13 March 2025: The UAE General Civil Aviation Authority (GCAA) has launched the region’s first national regulation for certifying air navigation service providers for drones, known as CAR Airspace Part Uspace.

This groundbreaking regulation establishes a comprehensive framework for organisations aiming to offer air navigation services for unmanned aircraft, ensuring they comply with stringent operational and safety standards.

The regulation adopts a holistic approach, addressing all critical aspects of certifying drone air navigation service providers.

It includes contracting, training, quality assurance, safety, future planning, auditing, and certification.

The primary objective is to integrate drone operations seamlessly into the existing aviation ecosystem, ensuring a cohesive, efficient, and safe airspace through licensed entities specialising in drone air navigation services.

The Director-General of the GCAA has highlighted the importance of this milestone, noting that the regulation is a testament to the UAE’s commitment to safety, efficiency, and innovation in aviation.

As drone operations are projected to double soon, this proactive regulatory framework is poised to serve as a model for integrating drone and commercial aviation, reinforcing the UAE’s status as a regional aviation leader.

The Assistant Director-General of Aviation Safety Affairs has emphasised that the regulation is crucial for safely incorporating advanced drone technology into UAE airspace.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

Abu Dhabi: Enacts Law to Restructure Independent Customs Administration

20/03/202520/03/2025
by Hannah Gutang

Abu Dhabi has enacted a law to reorganise the General Administration of Abu Dhabi Customs.

This administration, operating under the Abu Dhabi Department of Economic Development, now holds an independent legal status.

It is tasked with proposing policies and strategic plans for customs operations, facilitating trade, ensuring regulatory compliance, and safeguarding society from illegal activities.

The administration’s responsibilities include managing customs offices, implementing customs policies, and coordinating with authorities to regulate the import, export, and transit of goods.

It also oversees the inspection and valuation of goods, collection of duties and taxes, and management of free zones and customs warehouses.

Additionally, the administration is involved in facilitating the movement of goods, regulating customs clearance, and monitoring customs brokers.

It plays a crucial role in combating smuggling and customs-related crimes by investigating violations and enforcing legal measures.

The administration also handles conciliation settlements and the management of seized goods and customs exemptions.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

UAE: Cabinet Approves Executive Regulations for Legal Professionals

14/03/202514/03/2025
by Hannah Gutang

Gulf Today, 12 March 2025: The UAE Cabinet has recently approved new executive regulations aimed at enhancing the legal profession and legal consultation sector within the country.

These regulations are designed to bolster the judicial system, improve the nation’s rule of law indicators, and ensure effective justice through partnership and integration.

Key aspects of the regulations include the criteria and procedures for lawyers transitioning from practicing before lower courts to the Federal Supreme Court.

They also outline the requirements for trainee lawyers, the responsibilities of supervising lawyers, and the licensing process for non-national lawyers practicing in the UAE.

Additionally, the regulations cover the registration and re-registration of legal researchers and advisors, as well as their powers and responsibilities.

The regulations further detail the establishment and management of law and legal consultation firms, including licensing, suspension, and liquidation processes.

They also address the equivalency of university qualifications for legal professionals.

Lawyers’ rights and duties, their relationship with clients, and fee structures are clearly defined.

The regulations also specify conditions under which lawyers may engage in commercial activities.

Confidentiality obligations for legal researchers, advisors, and representatives are emphasised, with exceptions only in cases of preventing crimes or when required by law.

The Cabinet has also approved a regulatory framework for professional law and legal consultancy firms, aiming to enhance the legal environment and regulate the practice of legal professions according to best practices.

This framework allows Emirati lawyers and legal consultants to establish professional companies, either individually or in partnership with international firms, provided certain conditions are met.

Permitted legal forms for professional companies include partnerships, limited liability companies, and one-person limited liability companies.

All partners must be licensed professionals, ensuring compliance to Federal Decree-Law No. 34/2022 and its executive regulations.

To obtain a professional company licence, applicants must be registered Emirati lawyers or legal advisors, have certified articles of association, and secure professional insurance to cover liability for errors, thereby protecting clients’ rights and fostering trust in the legal services offered.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

News developments

UAE: Approves Remote Work for Government Entities Outside the Emirates

13/03/202513/03/2025
by Hannah Gutang

Khaleej Times, 10 March 2025: The UAE has announced the approval of a remote work system for government entities, allowing employees to operate from outside the country.

While remote work has been a part of federal entities since 2017, this marks the first instance of extending the policy to employees based internationally.

The system is expected to enable the UAE to access specialised skills and knowledge from around the world, enhancing the execution of projects and studies for federal entities.

The relevant authorities will be responsible for identifying roles suitable for remote work from outside the UAE.

Additionally, the country will establish guidelines outlining the conditions and responsibilities for contracted employees.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.