UAE Archives - Page 13 of 96 - LexisNexis Middle East

Abu Dhabi: ADGM Proposes Consumer Protection Regulations for Retail Sector

22/05/202522/05/2025
by Tanya Jain

ADGM, 15 May 2025: The ADGM Registration Authority (RA) has published Consultation Paper No. 4/2025, detailing the proposed Consumer Protection Regulations for ‘Category C’ retail activities within the ADGM jurisdiction.

This initiative was launched in response to ADGM’s expansion to Al Reem Island and the significant presence of retail licence holders, which has necessitated a robust consumer protection framework. The proposed regulations are designed to safeguard consumer interests and ensure a reliable retail market economy. They impose specific obligations on retail providers, including product labelling, usage instructions, and the requirement to seek Registrar approval for promotions. Retailers must disclose the condition of used or refurbished products at sale, avoid misleading advertisements, and refrain from harmful contract terms. The regulations also require product warranties and procedures for handling defective products.

The RA’s proposals includes establishing a consumer complaint handling channel and empowering the Registrar to assess complaints, issue determinations, and impose financial penalties for regulatory breaches. These measures aim to reinforce consumer confidence and ensure fair practices in the retail sector.

The consultation period for the proposed regulations ends on 8 June 2025.

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News developments

Dubai: Enforces New Compliance Rules for Digital Asset Firms

21/05/202522/05/2025
by Tanya Jain

AInvest, 19 May 2025: Dubai’s Virtual Assets Regulatory Authority (VARA) issued a directive requiring licensed digital asset companies to comply with updated activity-based Rulebooks by 19 June 2025 following the release of Version 2.0 on 19 May 2025.

This update aims to strengthen market integrity and risk oversight by refining controls around margin trading and token distribution services, harmonising compliance requirements, and clarifying definitions for collateral wallet arrangements. It impacts all virtual asset service providers (VASPs) operating within Dubai, obliging them to align with the new rules after a 30-day transition period. VARA has emphasised the importance of this transition period to facilitate adaptation to the updated regulations.

The updated Rulebooks will enhance supervisory mechanisms across various regulated activities, including advisory, broker-dealer, custody, exchange, lending and borrowing, virtual asset management and investment, and VA transfer and settlement services. Key operational terms such as “client assets,” “qualified custodians,” and “collateral requirements” have been defined to ensure consistency and reduce ambiguity in compliance.

In margin trading, VARA tightened leverage thresholds and mandated clearer collateralisation standards to mitigate risks associated with market downturns. The Rulebooks also introduced new token distribution regulations, outlining licensing prerequisites, investor protections, and marketing restrictions, particularly for retail-facing offers.

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News developments

UAE: Federal Tax Authority Clarifies Corporate Tax Rules for REIT Investors

15/05/202515/05/2025
by Hannah Gutang

The Finance World, 7 May 2025: The UAE Federal Tax Authority (FTA) issued a clarification CTP005 on the Taxation of investors in a Real Estate Investment Trust (REIT) that is exempt from Corporate Tax as a Qualifying Investment Fund

The clarification covers the income that will be taxed in the hands of juridical persons that are investors in a REIT and the relevant Tax Period in which the income will be taxed for such investors. It also provides information on the compliance obligations of the REIT and the investors.

A REIT that meets the conditions of Article 10(1) of Federal Decree-Law No. 47/20221 and Article 4(1) of Cabinet Decision No. 34/20252 can make an application to the Federal Tax Authority to be exempt from Corporate Tax as a Qualifying Investment Fund. Where a REIT is exempt from Corporate Tax, the Taxable Income of a juridical person that is an investor in the REIT is adjusted to include 80% of the prorated Immovable Property Income of the REIT. However, if the REIT makes a distribution within nine months from the end of its Financial Year and the investor has not received the dividend distribution due to the disposal of its entire Ownership Interest in the REIT, the investor will not be subject to Corporate Tax on the Immovable Property Income of the REIT.

A REIT must provide specific information in respect of the period to which the distribution relates, or the relevant Financial Year of the REIT, as the case may be. This includes the amount of Immovable Property Income of the REIT; whether the REIT is a distributing fund for such Financial Year; and the amount of tax depreciation deduction for each investment property.; any disposals of investment property for which a tax depreciation deduction was previously claimed. A REIT is not required to provide investors with information that is not relevant to the investor’s Corporate Tax obligations or which the investor has an obligation to keep in their own records, such as the investor’s own acquisition cost or disposal proceeds of an Ownership Interest in the REIT.

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News developments

Dubai: Smart Building Policy

15/05/202515/05/2025
by Hannah Gutang

Gulf News, 9 May 2025: Sheikh Hamdan has approved a smart building policy design to reduce consumption of water and energy.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Chairman of the Executive Council, has approved the new policy measures in alignment with the objectives of the Dubai Social Agenda 33 and the Dubai Economic Agenda D33. The policy is being led by the Dubai Municipality. It outlines standards for smart buildings that use renewable energy, intelligent water networks, smart parking, automated climate control, and real-time monitoring systems.

It aims to reduce power consumption in buildings by 25%, water use by 15%, and operational costs by 20%,

At present, adoption of the policy is purely voluntary in new buildings, but it will be backed up by initiatives to encourage adoption by investors and developers in due course.

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News developments

UAE: Securities Authority Imposes Disciplinary Actions for Market Violations

08/05/202508/05/2025
by Tanya Jain

Mubasher, 6 May 2025: The UAE Securities and Commodities Authority (SCA) has issued a financial penalty of AED 100,000 to an investor for engaging in pre-emptive trading activities.

The relevant regulation governs trading, clearing, settlement, transfer of ownership, and custody of securities.

In a separate disciplinary action, the SCA revoked a preliminary approval of an employee holding the position of “Promotion Manager” at a licensed company. The revocation followed the employee’s proven misconduct during an examination on the UAE’s financial systems and regulations.

For full story, click here.

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News developments

Sharjah: Law to Regulate Judicial Authority

08/05/202508/05/2025
by Tanya Jain

Mubasher, 6 May 2025: The Ruler of Sharjah has approved a draft law on the organization of the judicial authority in the emirate.

The law outlines the formation of the Judicial Council, which includes key judicial figures such as the President of the Judicial Department, the Head of the Legal Department of the Sharjah Government, and the Attorney General, among others. The council is tasked with ensuring the independence, integrity, and neutrality of the judiciary, aligning with the emirate’s vision for a developed judicial system.

Key responsibilities of the council include setting general policies, proposing and reviewing legislation related to the judiciary, overseeing judicial operations, and organising restorative justice. The council will also handle appointments, promotions, and retirements of judicial members, ensuring adherence to legal standards.

The law mandates the creation of a judicial code of conduct and allows for the outsourcing and privatization of judicial services, with specific regulations and fees. It also requires the preparation of an annual report on judicial achievements and challenges, submitted to the Ruler.

For full story, click here.

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News developments

Dubai: Public Prosecution Launches ‘Reconciliation is Better’ Initiative

08/05/202508/05/2025
by Tanya Jain

Gulf News, 30 April 2025: The “Reconciliation is Better” initiative has been launched by Dubai Public Prosecution, as part of a comprehensive plan to enhance dispute resolution through amicable settlements.

This initiative, aligned with international best practices, aims to establish a global benchmark for judicial excellence and support the objectives of the Dubai Plan 2030. It provides a practical alternative to traditional legal proceedings, promoting a culture of tolerance and social harmony, which are central to Dubai’s leadership vision of a cohesive society.

The decision impacts parties involved in legal disputes by offering them a pathway to resolve issues amicably. It allows prosecutors to guide willing parties towards fair and lawful settlements, reducing the reliance on lengthy legal proceedings.

By streamlining the process, the initiative will conserve resources and significantly reduced legal costs, reinforcing Dubai’s commitment to providing exceptional services and quality of life.

The law prohibits concealing infections or spreading them, whether intentionally or unintentionally, and requires individuals to comply with measures to prevent the spread of disease, following guidelines issued by relevant authorities and healthcare providers.

It has established a comprehensive framework to promote public health and safeguard community and environmental well-being. It outlines a focus on disease prevention, healthcare, food and product safety and sustainable efforts to improve overall quality of life.

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News developments

UAE: FTA Clarified VAT Treatment of Barter Transactions

01/05/202501/05/2025
by Tanya Jain

The Federal Tax Authority has issued a public clarification on the VAT treatment of barter transactions in the UAE.

The announcement clarified that, with barter transactions, the value of a supply is determined by combining any monetary consideration received with the market value of the non-monetary component, after excluding the tax element. This clarification specifically relates to taxable persons and VAT registrants – including social media influencers, restaurants, farmers, accounting firms, and furniture dealers – and has imposed an obligation on each party to issue tax invoices and account for VAT on both monetary and non-monetary components in accordance with the prescribed valuation rules. The clarification referenced Federal Decree-Law No. 8/2017 on Value Added Tax and Cabinet Decision No. 52/2017. This reinforces the way the current legal framework operates.

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News developments

Dubai: New Public Health Law Impacts Travellers

01/05/202501/05/2025
by Tanya Jain

Gulf News, 25 April 2025: Travellers entering Dubai are to be required to follow specific health protocols as a result of a new health law.

Dubai Law No. 5/2025 on Public Health outlines a wide-ranging framework to improve community health, reduce disease transmission, and align public health practices with international standards.

It introduces strict obligations for travellers, individuals, and healthcare providers, while also clarifying the roles of government entities in safeguarding health and the environment.

Travellers must adhere to official health protocols, provide requested information at Dubai’s entry points and report any suspected or confirmed communicable diseases.

Anyone who is infected or suspected of having a communicable disease must avoid contact that could spread their illness. The law states individuals must refrain from travelling or moving, except to healthcare facilities, without the approval of the Dubai Health Authority.

Those who are travelling while ill, must observe hygiene measures such as wearing masks and maintaining physical distancing in line with approved guidelines.

It aims to minimise any health risks affecting individuals and communities in Dubai through precautionary measures and evidence-based practices that align with both local and international health regulations.

It also promotes greater coordination and collaboration at all levels to strengthen preparedness and response to any public health challenges in the emirate. and aims to increase public awareness of health risks and prevention methods by fostering a sustainable environment that attracts investment.

In addition, it has also formally defined the roles and responsibilities of relevant authorities in managing communicable diseases.

These authorities include local government entities tasked with overseeing public health in Dubai, such as Dubai Health Authority, Dubai Municipality, the Dubai Environment and Climate Change Authority, the Dubai Academic Health Corporation and the Dubai Corporation for Ambulance Services.

The law has outlined the responsibilities of the relevant authorities in food safety, specified obligations for food-related establishments and set out some rules for consumer product activities.

It has also detailed responsibilities in areas such as built environmental health, labour accommodations, pest control and the Dubai Health Authority’s role in managing health risks, emergencies and crises.

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News developments

Abu Dhabi: New Rights for Caregivers

01/05/202501/05/2025
by Tanya Jain

Gulf News, 23 April 2025: The Department of Community Development – Abu Dhabi has announced programmes under its Barakatnu initiatives which will give new rights to the elderly and their caregivers.

These include the right to obtain temporary alternative care for senior citizens. Care is provided for up to eight hours a day once a week for a total 48 days a year to enable caregivers to attend to their personal responsibilities and spend time with their families. In addition, the Government Empowerment Authority is offering to Obtain Approval for Flexible Working Systems for Caregivers. This scheme will allow caregivers to obtain a certificate which grants them access to flexible work policies in government entities.

The Department of Municipalities and Transport is offering a service to Additional Units for Special Cases Approval, which will allow families to make structural modifications to their homes in order to create dedicated, private, and comfortable living spaces for senior family members.

The Abu Dhabi Housing Authority has also set up a number of initiatives which will allow senior citizens to obtain home improvements, extend the repayment of housing loans to reduce pressure on caregivers and provide buying and selling house grants to allow families to move closer to each other.

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