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Lexis Middle East Gulf Tax – Winter 2025 Edition News developments

Lexis Middle East Gulf Tax – Winter 2025 Edition

  • 16/12/202516/12/2025
  • by Hannah Gutang

Brought to You by Tolley+ Middle East

The Winter 2025 Edition of Lexis Middle East Gulf Tax brings readers a sharp and timely exploration of evolving tax regulations and practices across the GCC region. This issue is rich with expert insights, legislative updates, and practical guidance for tax professionals navigating an increasingly complex landscape.


FEATURE: WHAT TO TAKE INTO ACCOUNT

Ghulam Ali of Rosemont Partners outlines how new rules on the accounts and audit of tax groups and ADGM Qualifying Free Zone Persons illustrate the challenging overlap between tax compliance and licensing authority requirements.


FEATURE: PILLAR TWO: THE NEXT CHAPTER

Mubeen Khadir and Shashank Chandak of KPMG explore the active measures GCC states are taking to legislate for Pillar Two and implement its requirements. Their insights highlight what could come next as regional progress intersects with global developments and differing jurisdictional approaches.


TAX NEWS ROUND-UP

A focused summary of the latest tax treaty updates and regulatory developments across the Gulf, offering essential insights for professionals navigating multi-jurisdictional tax environments.


PRACTICAL FOCUS: FAMILY WEALTH STRUCTURES

Authored by Jacopo Crivellaro of Baker McKenzie, this article reviews the UAE FTA’s CTP008 guidance on family wealth structures and recommends that families and advisers check compliance, evaluate restructuring needs, verify Article 17 status, and ensure arm’s-length pricing is met.


TAX PROFESSIONAL PROFILE: THE PUBLIC SECTOR POSITION

Tiago Albuquerque Dias, Head of Tax at EWEC, highlights that the complexities of exemption status within the public sector present unique challenges that demand a specialised analytical approach.


ANY QUESTIONS? HOW TO DEAL WITH RETROACTIVE CHANGE?

Markus Susilo of Baker Tilly delves into the legal and practical implications that may occur in the UAE when new tax legislation takes effect retroactively.


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Lexis Middle East Gulf Tax – Winter 2025

Have you read the Lexis® Middle East Gulf Tax – Past editions? Click the links below to access them.

Lexis Middle East Gulf Tax | Summer 2025

Lexis Middle East Gulf Tax | Spring 2025

Lexis Middle East Gulf Tax | Autumn 2024

Lexis Middle East Gulf Tax | Summer 2024

Kuwait: Central Bank Unveils New Cybersecurity Framework News developments

Kuwait: Central Bank Unveils New Cybersecurity Framework

  • 11/12/202511/12/2025
  • by Hannah Gutang

The Central Bank of Kuwait has introduced a comprehensive cyber and operational resilience framework aimed at strengthening the digital security measures within the country’s financial sector and will serve as the primary regulatory guideline for all local banks and financial institutions operating in Kuwait.

The framework establishes standardised protocols for cybersecurity and operational resilience across Kuwait’s banking system. It marks the first unified approach to digital security management within the country’s financial services sector.

Under the new regulations, financial institutions will need to comply with specific requirements designed to protect their digital infrastructure and maintain operational continuity. The framework addresses various aspects of cyber defence and institutional resilience, creating a structured approach to managing technological risks in the banking sector.

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Kuwait: New Anti-Drug Law Issued News developments

Kuwait: New Anti-Drug Law Issued

  • 05/12/202505/12/2025
  • by Tanya Jain

Kuwait Times, 26 November 2025: Kuwait Decree-law No. 59/2025 on combating drugs and psychotropic substances, has been issued creating a single comprehensive legal framework that merges and replaces the country’s previous drug-control laws.

The new law has 84 Articles in 13 chapters, and will take effect two weeks after its is published in the Official Gazette..

Under Article 83 of Kuwait Decree-law No. 59/2025, Kuwait Law No. 74/983 on drug control and Kuwait Law No. 48/1987 on psychotropic substances, will be repealed and replaced.

This will consolidate legislation on drug and psychotropic substances into a single unified framework designed to enhance legal clarity, administrative efficiency and consistency across enforcement authorities.

Chapter One defines all key terms including licensing procedures, narcotic and psychotropic substances, chemical precursors, preparations, production, import, export, cultivation, transport, smuggling, promotion, possession and related medical and administrative terminology. It also includes definitions for addicts, users, treatment centres, rehabilitation facilities, records and prescriptions.

Chapter Two establishes the Supreme Council for Combating Drugs and Psychotropic Substances, which will be responsible for forming a national strategy, improving inter-ministerial coordination, enhancing prevention and awareness, strengthening treatment and rehabilitation services and ensuring compliance with international drug-control conventions.

The health ministry will be required to establish dedicated rehabilitation and addiction treatment centres including separate facilities for those under 21. Private medical units will also be able to provide treatment services subject to ministerial licensing and oversight. The interior ministry will set up specialist correction and rehabilitation centres for inmates who are convicted under the law, providing them medical, social and reintegration programme which are separate from general prison populations.

Chapters three to seven will regulate all licensing related to the import, export, transport, possession, dispensing, production, manufacture and cultivation of narcotics, psychotropic substances, and preparations. Only licensed entities will be able trade, dispense or manufacture controlled substances, and prohibited plants may only be cultivated by authorized government bodies, research institutions, universities or licensed centers.

Chapter Nine outlines strict penalties for trafficking, production or cultivation intended for trafficking. Sentencing wll potentially include the death penalty or life imprisonment, in addition to fines ranging from KD 100,000 to KD 2 million, or an equivalent to the value of seized substances. Lesser offenses will carry life imprisonment and fines between KD 50,000 and KD 500,000. Organisng an international drug-trafficking operation will be punishable by death, while participation in these groups will carry sentences of life imprisonment and fines from KD 20,000 to KD 50,000.

Chapter Ten encourages voluntary treatment by granting immunity from prosecution to addicts who seek rehabilitation before charges are filed against them. Rehabilitation centres will have to maintain confidentiality of all patient information and surrender any substances handed over by patients to the ministry for proper disposal.

Chapter Eleven governs verdicts and their execution, allowing courts to suspend certain sentences but prohibiting appeals of detention orders issued for rehabilitation purposes. It also permits exemptions for offenders who voluntarily report crimes or assist investigations.

Public prosecution will be empowered to investigate and prosecute all offenses, and criminal courts will hold jurisdiction over cases involving narcotics and psychotropic substances. The law applies to offenses committed within Kuwait and to acts committed abroad that contribute to crimes occurring domestically. Kuwaiti nationals may also be prosecuted for drug offenses committed overseas, except when acquitted by foreign courts or after serving a foreign sentence.

Chapters Twelve and Thirteen specify arrest procedures, investigative powers and administrative oversight. Authorised judicial officers will be able to access government, private and licensed facilities to inspect compliance and seize prohibited substances. The law emphasises inter-ministerial cooperation, public-private partnership in treatment and rehabilitation, and ongoing evaluation of enforcement measures to ensure alignment with international standards.

The new law comes into force on 15 December 2025.

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Kuwait: Introduces New Digital Commerce Law News developments

Kuwait: Introduces New Digital Commerce Law

  • 27/11/202527/11/2025
  • by Hannah Gutang

Economy Middle East , 19 November 2025: Kuwait’s Cabinet has approved a comprehensive Digital Commerce Law that introduces specific measures to regulate online business activities and resolve e-commerce disputes, establishing new regulatory bodies and digital business protocols.

The law creates specialised Digital Dispute Resolution Committees to handle e-commerce conflicts and implements a Regulatory Sandbox framework for testing new technologies. It also introduces formal recognition of electronic documents, digital signatures, and online contracts within the legal system.

Under the new legislation, digital merchants will operate under a unified legal definition, with streamlined licensing procedures now in place for online businesses. The Ministry of Commerce and Industry will coordinate implementation efforts across government departments and private sector entities.

The framework provides specific legal mechanisms for consumer protection in digital transactions and establishes clear protocols for dispute resolution. Officials have confirmed that dedicated committees will oversee the swift resolution of conflicts arising from online commercial activities.

The Ministry has indicated that implementation will begin immediately following ratification, with coordination planned between various government bodies to establish the new regulatory structure.

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Kuwait: Introduces Three-Month Limit for Court Order Implementation News developments

Kuwait: Introduces Three-Month Limit for Court Order Implementation

  • 20/11/202520/11/2025
  • by Hannah Gutang

Arab Times, 12 November 2025: Kuwait’s Public Prosecution has established a new three-month deadline for the implementation of court rulings, as part of amendments to the country’s Penal Code under Kuwait Decree-Law No. 87/2025.

The announcement modifies Article (58 bis) of Kuwait Law No. 31/1970 and requires all court orders to be executed within three months of the enforcement notice being served.

Under the new regulations, failure to implement court decisions within the specified timeframe will be treated as a criminal offence. The Public Prosecution has confirmed it will pursue legal action against any individuals or authorities who deliberately delay or refuse to execute final court rulings beyond the prescribed period.

The three-month window applies to all state authorities, institutions, and individuals who are subject to court orders. The timeframe has been established to allow implementing bodies sufficient opportunity to take necessary enforcement measures.

The Public Prosecution’s statement outlined that the implementation of court rulings is now a mandatory legal requirement rather than an optional measure. The office will monitor compliance and initiate accountability procedures against those who fail to meet the deadline.

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Kuwait: Launches Smart Licence System for Business Permits News developments

Kuwait: Launches Smart Licence System for Business Permits

  • 14/11/202514/11/2025
  • by Hannah Gutang

Al Qabas, 10 November 2025: Kuwait’s Ministry of Commerce and Industry has issued a directive requiring government agencies to implement a new smart licence system featuring integrated barcodes for business permits.

The new system mandates the use of embedded barcodes as the primary method for regulatory authorities to electronically verify commercial licence data.

Under the new directive, regulatory bodies must transition from paper-based procedures to the digital verification system when checking business permits. The smart licence will serve as the standard format for commercial licensing documentation across government departments.

The ministry has instructed all relevant government agencies to begin implementing the new system immediately. The digital licences will incorporate barcode technology to enable swift electronic verification of business permit details by regulatory authorities.

This development represents the latest phase in Kuwait’s transition towards fully digital government services, with the smart licence system designed to standardise business permit verification across all government departments.

For the full story, click here.

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Kuwait: Mandates Electronic Tracking of Private Sector Working Hours News developments

Kuwait: Mandates Electronic Tracking of Private Sector Working Hours

  • 07/11/202507/11/2025
  • by Hannah Gutang

Arab Times, 2 November 2025: Kuwait has introduced new regulations requiring private sector employers to digitally record and display working hours, rest periods and holidays.

Under Kuwait Decision No. 15/2025, employers must enter comprehensive workplace scheduling information into a new electronic system managed by the Public Authority for Manpower (PAM).

The mandatory digital records must include: daily working hours, rest periods, weekly rest days and official holidays.

Employers are required to maintain up-to-date records, with any schedule changes to be logged immediately in the system. The digital data will serve as the official reference for workplace inspections.

The resolution stipulates that employers must print and prominently display the approved schedules at work sites, making them accessible to both staff and inspectors. This new electronic system replaces all previous paper-based documentation methods.

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Kuwait: Municipality Updates Building Specifications News developments

Kuwait: Municipality Updates Building Specifications

  • 30/10/202530/10/2025
  • by Hannah Gutang

Al Anba, 27 October 2025: Kuwait Municipality has announced significant modifications to the building specifications and commercial ratios for the Educational, Cultural, and Entertainment Centre project on Abdullah Al-Ahmad Street.

The revised plans detail three distinct building plots. Plot A will feature a 40-storey building, including three underground parking levels, 14 floors dedicated to cultural, entertainment, educational, and commercial rental spaces, and 25 floors allocated for either hotel accommodation, administrative offices, or a combination of both.

Plot B will comprise an 11-storey structure, incorporating three underground parking levels. The ground floor through to the tenth floor will house rental spaces for cultural, entertainment, educational, and commercial activities, topped by a recreational roof area featuring green spaces and complimentary children’s play facilities.

Plot C will be developed as a public car park building with six floors above ground and three basement levels. The rooftop will be converted into a free public skating garden.

The municipality has also adjusted the rental space allocation, stipulating that commercial activities, including retail shops, restaurants, and cafes, must not exceed 60% of the total rental area. The remaining minimum 40% is designated for educational, cultural, and entertainment activities.

For the full story, click here.

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Kuwait: Approves New Laws on International Crimes and Missing Persons News developments

Kuwait: Approves New Laws on International Crimes and Missing Persons

  • 24/10/202524/10/2025
  • by Hannah Gutang

Arab Times, 15 October 2025: Kuwait’s Cabinet has approved two new draft laws addressing international crimes and the protection of missing persons.

The first decree-law establishes legal frameworks for prosecuting four major international crimes: genocide, crimes against humanity, war crimes, and acts of aggression.

The second law focuses on protecting missing persons and their families’ rights, including provisions for determining their fate and providing compensation.

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

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Lexis Middle East HR Alert – October 2025 Edition News developments

Lexis Middle East HR Alert – October 2025 Edition

  • 22/10/202522/10/2025
  • by Tanya Jain

Welcome to the October 2025 edition of the Lexis Middle East HR Alert, your essential update on the latest employment law and HR developments across the GCC and wider MENA region.

This month, we examine the far-reaching implications of Oman’s new personal income tax and what it means for employers. We also explore emerging regional trends such as pay transparency, new immigration and visa frameworks, and recent legal reforms affecting workplace compliance.

Stay informed, compliant, and connected with the developments shaping the future of HR in the region.

Happy reading!


This edition features a diverse range of content, including:

FEATURE: INCOME TAX: EMPLOYER ANGLE

Asrujit Mandal of BDO examines how Oman’s introduction of the GCC’s first personal income tax will affect employers, from payroll adjustments to compliance obligations.


TREND SETTER: PAY TRANSPARENCY

Ibrahim Mohamed of HAS Law Firm explores how international pay transparency trends, driven by recent US and EU legislation, could influence HR policies and legal frameworks across the GCC.


NEWS ROUND-UP: COVERING RECENT KEY DEVELOPMENTS – REGION-WIDE

A summary of the latest HR and employment law updates, including Oman’s new mandatory professional licensing requirements and other regional regulatory changes.


IMMIGRATION FOCUS: WORK PRMIT CLASSIFICATION

Ali Ibrahim of Vialto Partners breaks down Ministerial Decision No. 4602/1447, which introduces a new skill-based structure for Saudi work permits and its implications for employers.


LAW CHANGES: NEW AND PROPOSED MENA LAWS

A round-up of key legislative updates, including Bahrain’s new first aid law explained by Sama Ghareeb of Zu’bi & Partners, following Ministerial Decision No. 16/2025.


CASE FOCUS

Reem Elkordi of HAS Law Firm highlights a recent Dubai case addressing payment rights for suspended employees and its significance for HR and legal compliance.


MOVES AND CHANGES

A regional overview of the latest executive movements, leadership appointments, and HR leadership changes across key industries.


Enrich your understanding of the HR landscape and stay up-to-date with the latest trends, cases, and policies through the newest issue of Lexis Middle East – HR Alert.


For all the latest industry updates and developments, opt for a free HR Alert subscription!

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

Lexis Middle East HR Alert_October 2025

Have you read the Lexis® Middle East HR Alert – previous editions? Click the links below to access and read these editions.

Lexis Middle East HR Alert_May 2025
Lexis Middle East HR Alert_July 2025
Lexis Middle East HR Alert_January 2025

HR PROFILE: THE SCALE OF THE CHALLENGE

Ida Mozayani, Vice President of Talent & Operations, Bain Middle East discusses her approach to scaling Bain’s regional operations while maintaining a strong, consistent organisational culture.


IN-HOUSE PROFILE: PRACTITIONER PERSPECTIVE

Mary Rintu Raju, NYK Law Firm looks at the UAE legal position where an employee works overseas on secondment or on a cross-border project.


POLICY POINTERS: COMMISSION

Sarah Khasawneh from Pinsent Masons along with Emma Noble & Jennifer Green shares guidance on managing commission structures effectively and ensuring compliance with regional employment laws.


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