UAE Archives | Page 2 of 20 | LexisNexis Middle East

DIFC: Group Health Scheme for Registered Firms

08/06/202008/06/2020
by Benjamin Filaferro

The Dubai International Financial Centre (DIFC), has signed a memorandum of understanding (MoU) with EC3 Brokers to implement a Group Health Insurance Master Policy. The Group Health scheme will be available to over 2,400 active registered firms in DIFC who provide health insurance for mandatory health cover to their 25,600 staff and their dependents. As part of the agreement, EC3 Brokers will act as an intermediary to facilitate the tendering process to shortlist the insurer and the third party administrator contractual partners in the UAE. Criteria will be agreed by both DIFC and EC3 Brokers. The idea is to reduce costs for firms operating in the DIFC.

Weekly Spotlight

Weekly Spotlight: New DIFC Data Protection Law Enacted

08/06/202008/06/2020
by Benjamin Filaferro

The Ruler of Dubai has enacted the new DIFC Data Protection DIFC Law No. 5/ 2020. The new law will come into effect from 1 July 2020 and current DIFC Data Protection Law, DIFC Law No. 1/2007, will remain in effect until this date. New DIFC Data Protection Regulations which set out the procedures for notifications to the Commissioner of Data Protection, accountability, record keeping, fines and adequate jurisdictions for cross-border transfers of personal data have also been issued.

The DIFC’s updated Data Protection Law and Regulations set out expectations for Controllers and Processors in the DIFC on several key privacy and security principles. The Data Protection Law combines the best practices from a variety of current, global data protection laws, including the EU’s General Data Protection Regulation (GDPR), the California Consumer Privacy Act and other advance technology agnostic concepts. They will enable DIFC to continue to build upon the Centre’s reputation as a leading global financial centre while also promoting ethical data sharing. The new Data Protection Law and Regulations provide a framework that will support DIFC’s bid for adequacy recognition by the European Commission, the UUK and other jurisdictions, easing data transfer compliance requirements for DIFC businesses.

The changes legislate for accountability of Controllers and Processors through compliance programmes requirements, appointing data protection officers where necessary, conducting data protection impact assessments and imposing contractual obligations that protect individuals and their personal data. Enhanced rights of individuals are clarified in terms of data usage by entities that collect and manage personal data, including contractual clarity on such rights when engaging with vendors of emerging technologies, such as Blockchain and Artificial Intelligence (AI). Permit options for cross-border data transfers and special category personal data processing have been removed. The new Law and Regulations include appropriate data sharing structures between government authorities, which represent a key step forward in data sharing standards within the UAE and the region.

General fines for serious breaches of the Law, in addition to or instead of administrative fines, and ncreased maximum fine limits, have been introduced. In light of the current global pandemic, while DIFC Law No. 5/ 2020 will be effective from 1 July 2020, businesses to which it applies have a grace period of three months, until 1 October 2020, to prepare to comply with it, after which it becomes enforceable.

News developments

UAE: New draft movable assets law

29/05/202029/05/2020
by Benjamin Filaferro

The UAE’s Federal National Council has approved a draft movable assets law. If approved further, it will repeal Federal Law No. 20/2016 on the Mortgage of Moveable Property to Secure Debt. It will now apply to tangible and intangible assets as well as existing and future assets. In addition, it will cover rights to claim payments on funds deposited with financial institutions and give a right to enforce obligations of counterparties under a contract. Receivables, credit balances with banks and other financial institution, written instruments transferable by delivery or endorsement, including commercial papers like promissory notes, bank certificates and bills of lading, vehicles and equipment will also be covered. Animals, animal products and agricultural crops will be covered by the law as well. However, movable assets which guarantee wage rights, worker benefits, public funds, endowment funds and funds held by diplomats and consulates and international government organisations are not covered by the draft law. ‘Secured obligations’ will be required, which will include all current and future obligations of the debtor or borrower. An upper limit of the amount secured will have to be provided and this threshold will be laid out in subsequent legislation. Under the law, a ‘security interest’ will be enforceable against third-parties and have priority over other debts. The first security interest registered will have priority over later ones. A new Register for Rights Over Movable Assets will be established and the Finance Minister will recommend the assets which should be added to this Register. Anyone who violates the law will be jailed and/or fined 60,000 AED.

News developments

Dubai International Financial Centre Amends Real Property Regulations

15/05/202014/05/2020
by Benjamin Filaferro

The Dubai International Financial Centre Authority has enacted amendments to the 2018 Real Property Regulations which came into force on 12 November 2018. This was when the Real Property Law, DIFC Law No. 10/2018 was enacted. The amendments come into force today and mean the enforcement and compliance regimes under DIFC Law No. 10/2018 and the Real Property Regulations are brought into line with the DIFC Operating Regulations which came into force on 12 November 2018. This has been done by explicitly categorising all Real Property Law contraventions as offences, providing a mechanism for fines to be enforced and the Decision Making Procedures applied. The Regulations also now identify a separate form of notification for Indirect Interest transfers and provide the Registrar with the power to make default assessments of the Transfer Fee with the onus of evidence reversed.

News developments

UAE: Foreign Ownership of Maritime Businesses Allowed

09/05/202007/05/2020
by Benjamin Filaferro

The UAE Government has announced foreign ownership of maritime businesses in the country are now allowed. It follows the issuing of the positive list which is the official list of the commercial activities in which 100% foreign ownership is allowed. The Maritime Standard Company said all shipping companies and maritime activities operating in the country previously had to have a local partner. However, this requirement is no longer required under the new rules.

News developments

Abu Dhabi: Global Market Amends Commercial Legislation

07/05/202007/05/2020
by Benjamin Filaferro

The Abu Dhabi Global Market has announced it has amended its commercial legislation. They have issued new Companies Regulations. The 2020 Regulations repeal the Companies Regulations 2015 (as amended). They have also amended the 2017 Foundations Regulations and 2015 Limited Liability Partnership Regulations. In addition, they have issued amendments to the 2018 Beneficial Ownership and Control Regulations and 2015 Real Property Regulations. Finally, they have issued new Limited Liability Partnership Rules. Among other changes, the requirement to issue paper certificates and licenses electronically has been abolished and the definition of ‘members of the same family’ in the Companies Regulations have been amended. The term Annual Returns has also been amended to Confirmation Statements and the current ban on foreigners owning freehold land in Al Maryah Island has been lifted.

News developments

UAE: Draft Consumer Protection Law Discussed

02/05/202030/04/2020
by Benjamin Filaferro

The Financial, Economic and Industrial Affairs Committee of the UAE’s Federal National Council has discussed a draft consumer protection law. The aim of the new law is to benefit consumers and protect them from being exploited by suppliers. Consumers will be able to contact the relevant authorities at the Economy Ministry to submit fraud and exploitation complaints. The relevant authorities will obtain the correct information on goods purchased by consumers and raise consumer awareness about their rights and obligations.

News developments

Abu Dhabi: Commercial Bank Sues NMC Health

25/04/202023/04/2020
by Benjamin Filaferro

Abu Dhabi Commercial Bank has announced it is suing NMC Health. The case has been filed with the Emirate’s Attorney General. The case has been filed against various individuals at the hospital operator. They are suing the Bank to protect its commercial interests. ADCB has $981 million exposure to the entity. NMC is $6.6 billion in debt and it share value has fallen by more than 50% since December 2019.

News developments

Abu Dhabi: Commercial Bank Sues NMC Health

18/04/202017/04/2020
by Benjamin Filaferro

News developments

UAE: Amendments to the Rules on Transfer of Employees, Salary Payments and Recruitment

10/04/202014/04/2020
by Sanahine Kassabian

Following the publication last week of Ministerial Decision No. 279/2020 on employment of non-citizen employees in the private sector during the COVID-19 crisis which changed rules on transfer of employees, salary payments and recruitment, the UAE’s Ministry of Human Resources and Emiratisation has published an addendum to the Decision. This addendum was referred to in Article 5 of Ministerial Decision No. 279/2020. Article 5 says companies looking to reduce the wages of a non-citizen employee temporarily during the relevant period have to conclude a ‘temporary additional appendix’ to the labour contract between the two parties, provided it expires with the expiration of the term of the contract or the period of validity of this Decision, whichever is earlier. It goes on to say the appendix can be renewed with the approval of both parties and two copies must be prepared. Both the employer and employee should keep a copy. The employer will have to submit it to the Human Resources and Emiratisation Ministry when asked to do so.

Tag: UAE