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UAE News developments

Dubai: International Arbitration Centre Mediation Rules Come into Force

  • 11/10/202311/10/2023
  • by Tanya Jain

The Mediation Rules approved by the Dubai International Arbitration Centre in July 2023 have come into force. They came into force on 1 October and mean all new mediation requests submitted to the Centre after this date will be governed by the Rules.

This will be subject to the introductory provisions set out in the Rules.

The Rules will apply where the parties have agreed to mediate their dispute at the Centre. Any party may refer a dispute to mediation at the Centre regardless of whether there is a pre-existing agreement to mediate.

Where there is a pre-existing agreement to mediate, the Rules will apply to mediations which start after the date the Rules came into force regardless of the date on which the agreement to mediate was entered into.

The parties may agree in writing to modify the Rules to the extent that the modifications are within the spirit of the Rules and do not render them inoperable, providing the modifications are approved by the mediator.

The aim is for all mediations to be conducted fairly, impartially, efficiently and proportionately with the sum(s) claimed and/or counterclaimed and the complexity of the dispute being taken into account.

The mediator, the parties and the parties’ representatives undertake to conduct the mediation in line with this objective. The party requesting mediation must submit an application to the Centre in the specified form and send a copy to the responding party at the same time.

The responding party will submit a reply in the specified form to the Centre and send a copy to the requesting party at the same time within 15 days of being notified of the application.

The Centre may grant the responding party an extension of up to seven days to file a reply, provided that the request for an extension contains the responding party’s consent that the dispute be referred to mediation under the Rules, if requested.

If no reply is received from the Centre within the specified time limits or within the additional time determined by the Centre in its discretion, it will be considered that the responding party does not consent to the dispute being referred to mediation under the Rules and the mediation will not proceed.

Where the parties reach an agreement to refer the dispute to mediation in line with the Rules, the mediation will start on the date the Centre sends written confirmation to the parties that agreement to this effect has been reached.

The Rules also contain provisions on notifications, communications and calculation of time limits, mediation costs, appointment of mediators, conduct of the mediation and conclusion of the mediation.

In addition, they contain provisions on confidentiality, the functions of the Centre and Arbitration Court, exclusion of liability and document retention.

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United Arab Emirates News developments

UAE: Free Zones Council Considering Preferential Free Zones Option

  • 06/10/202306/10/2023
  • by Tanya Jain

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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United Arab Emirates News developments

UAE: Mandatory Job Loss Insurance Scheme Now in Force

  • 06/10/202306/10/2023
  • by Tanya Jain

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 News developments

Dubai: Land Department Launches Munaqasat Service

  • 05/10/202305/10/2023
  • by Tanya Jain

Gulf News (United Arab Emirates), 2 October 2023: Dubai’s Land Department has announced it has launched a new Munaqasat service to improve transparency in the sector and ensure top-quality services at competitive prices.

It will be available via the Real Estate Regulatory Agency and will regulate tendering processes for all matters related to services and maintenance for jointly owned properties.

It will facilitate and simplify the tender process and establish a direct link between jointly owned property companies and service providers.

Jointly owned properties will have to submit all tenders through the service following the submission of their 2024 budgets which must be submitted by October 2023.

A specialist technical team will then submit tasks, assess firms, and provide recommendations. A finance team will then review the technical aspects and set prices for each necessary service.

The average of the technical and financial scores determines the final tender selection.

Tenders will then be initiated, allowing service providers to participate via the new service. They can register as suppliers, which will give them access to all relevant tenders based on their registered activities.

Additional features will be added by 2024 that will allow property owners to evaluate the performance of service providers. Owners’ committees will also have access to view presented tenders, which will improve transparency further and engage the real estate sector.

It has been launched in line with Dubai’s Digital Strategy.

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LexisNexis Breakfast Seminar | 4th of October | 08:30 AM – 11:00 AM | Waldorf Astoria DIFC

Sold Out LexisNexis Breakfast Seminar | 4th of October | 08:30 AM – 11:00 AM | Waldorf Astoria DIFC

  • 21/09/202329/09/2023
  • by Tanya Jain
We're sorry, but all tickets sales have ended because the event is expired.

  •  04/10/2023
     8:30 AM - 11:00 AM

  REGISTER HERE Mastering Commercial Agencies & Distribution Agreements: Legal Strategies and Risk Management in the MENA Region OVERVIEW Navigating the complexities of commercial agencies and distribution agreements within the MENA region requires not only a keen understanding of international business practices but also a deep grasp of the intricate legal landscape specific to the (more…)

United Arab Emirates News developments

UAE: Administrative Penalties for Commercial Agency Law Violations Decision Issued

  • 21/09/202321/09/2023
  • by Tanya Jain

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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UAE News developments

Dubai: New Training Programme for Prospective Employees to be Launched

  • 20/09/202320/09/2023
  • by Tanya Jain

Khaleej Times (United Arab Emirates), 18 September 2023: Dubai’s Health Authority has announced it is going to launch a new training programme for prospective employees.

The Elite Programme will give prospective Emirati employees training across specialised and advanced programmes to develop their personal, scientific, and professional skills and capabilities.

It will give them the chance to gain experience and gradually take on additional roles, tasks, and responsibilities for one year.

Those who prove their competency during training will be appointed based on their progress.

The Programme has been launched to improve Emiratisation rates at the Authority and attract more specialist Emirati talent.

Trainees will receive monthly financial rewards as well as the opportunity to be trained and gain hands-on experience in tasks and responsibilities necessary for the industry.

The Programme will be launched soon and Emiratis interested in applying can apply via the Dubai Careers website.

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United Arab Emirates News developments

Umm AlQuwain: New Property Laws Introduced

  • 13/09/202313/09/2023
  • by Tanya Jain

Arabian Business, 6 September 2023: Umm Al Quwain’s Ruler has introduced new property laws for the Emirate. The laws will regulate new rules on mortgages, property prices and investors’ rights, among other things. They have been issued to help develop and implement plans to drive growth in the sector and support the Emirate’s urban development plans.

Umm Al Quwain Law No. 2/2023 will allow an Interim Real Estate Register to be established and property registration activities in the Emirate to be regulated.

Umm Al Quwain Law No. 3/2023 will regulate real estate development activities in the Emirate, the pricing of all real estate projects and provide real estate escrow accounts, in line with regulations that ensure the rights of investors, real estate companies and property developers are protected.

Umm Al Quwain Law No. 4/2023 amends Umm Al Quwain Law No. 3/2007 on real estate escrow accounts in the Emirate. It sets out guidelines to help regulate real estate sales transactions better and ensure the compliance of all relevant parties with the regulation issued by the Real Estate Foundation.

Umm Al Quwain Law No. 5/2023 covers the regulation of mortgage registration activities through the Umm Al Quwain Municipality Department in line with the regulations issued by the UAE Central Bank and the settlement of issues and violations related to unregistered mortgages.

Umm Al Quwain Law No. 6/2023 relates to protecting the rights of investors where there are delays or hurdles in real estate development projects, as well as ensuring these projects are completed, when possible. It also provides for a special committee to handle issues related to cancelled and incomplete real estate projects to be established.

Finally, Umm Al Quwain Law No. 7/2023 amends Umm Al-Quwain Law No. 2/2005 on the regulation of real estate brokerage activities in the Emirate and sets out legislation and guidelines to regulate all brokerage activities.

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United Arab Emirates News developments

UAE: Federal Tax Authority Issues Corporate Tax Guide

  • 13/09/202313/09/2023
  • by Tanya Jain

The UAE’s Federal Tax Authority has announced it has issued a Corporate Tax Guide. The Guide has been issued following the issuing of Federal Decree-Law No. 47/2022 on the Taxation of Corporations and Businesses (Corporate Tax Law) on 3 October 2022 and its publication in the Official Gazette on 10 October 2022.

The law provides the legislative basis for imposing a federal tax on corporations and business profits in the UAE. The provisions of the law will apply to tax periods commencing on or after 1 June 2023.

Various Cabinet and Ministerial Decisions have since been published. The Guide is aimed at providing general guidance on corporate tax in the UAE with a view to making the provisions of the Corporate Tax Law as understandable as possible to readers.

It provides readers with an overview of the main corporate tax rules and procedures, including the determination of the corporate tax base, the calculation of corporate tax, the filing of corporate tax returns and other related compliance requirements and assistance with the most common questions businesses might have. In addition, the guide explains where further assistance should be sought if there are questions about the guide’s contents or areas not specifically dealt with in the guide.

It covers the fundamentals of the corporate tax regime in the UAE, including what corporate tax is, who is subject to it, what types of income are taxable and how a taxable person’s corporate tax liability is calculated as well. Finally, the guide explains the corporate tax administration process, from Tax Registration and record keeping to submitting returns and making payments.

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UAE News developments

Dubai: DIFC Data Protection Regulation Amendments Enacted

  • 13/09/202313/09/2023
  • by Tanya Jain

The Dubai International Financial Centre (DIFC) has announced it has enacted amendments to its Data Protection Regulations.

Among other amendments, the Centre has enacted the region’s first regulations on the processing of personal data via autonomous and semi-autonomous systems such as Artificial Intelligence or generative, machine learning technology. Regulation 10 creates space for the DIFC to be a platform for interoperability of the many and varied guidelines and principles issued by sovereign governments and non-governmental organisations. The creation of a plug-and-play space for the application of best-fit principles to Artificial Intelligence technology development is fundamental, responsible and ethical processing of personal data in such systems.

The amendments also provide clarity on personal data breach assessments and reporting obligations. This will include situations where a temporary custodian finds personal data that has been inadvertently left behind or lost.

In addition, they provide clarity on the use and collection of personal data for marketing and communication purposes, particularly in terms of appropriate notices when employing systems that may impair data individuals’ rights to restrict or remove their personal data, default cookies settings and conditions for consent.

They also provide clarity on investigations and the enforcement powers of the Commissioner when a controller or processor may employ unfair or deceptive practices.

The Commissioner’s Office is also considering testing use cases through participation in a regulatory sandbox comprised of technology developers, users, regulators and non-governmental or quasi-governmental organisations.

Guidance to accompany the updated Regulations will be issued in due course.

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