UAE Archives - Page 69 of 94 - LexisNexis Middle East

UAE: Payment Systems Regulations Come into Force

19/03/202119/03/2021
by Benjamin Filaferro

The UAE’s Central Bank’s Large-Value Payment Systems Regulation and the Retail Payment Systems Regulation have come into force. They apply to payment systems operating in the UAE and payment systems which offer clearing or settlement in Dirhams outside the UAE. They aim to promote robust financial infrastructure, which is essential for financial stability and consumer protection. They also facilitate the UAE’s international competitiveness. The Large-Value Payment Systems Regulation sets standards for financial infrastructure systems which support wholesale payment activities in the UAE. The Retail Payment Systems Regulation focuses on systems for retail payments, which provide funds transfer, clearing and settlement services related to retail activities. The regulation covers all retail payment systems irrespective of currency or means of exchange in which the transactions are conducted. System operators and settlement institutions of existing large-value payment systems and retail payment systems operating in the UAE must comply with the requirements of these two regulations by the end of the transition period at the end of February 2022.

Weekly Spotlight

Dubai: Special Tribunal to Resolve Disputes on Sale of Inherited Residential Property Established

19/03/202119/03/2021
by Benjamin Filaferro

Dubai’ Ruler and UAE’s Vice President and Prime Minister has issued Dubai Decision No. 8/2021 establishing a special tribunal to resolve disputes between heirs in relation to the sale of inherited residential property.
It aims to protect the rights and interests of all relevant parties, especially the elderly, minors, single and divorced women, widows and disabled people. Members of the tribunal will include legal, financial and real-estate experts. The Chairman of the Dubai Judicial Council will name the President of the Tribunal.
The special tribunal is authorised to adjudicate and issue rulings on disputes between heirs regarding the sale of inherited residential property under Dubai Decree No. 23/2020 Regulating the Sale of Inherited Residential Properties by Heirs. They will also adjudicate and issue rulings on appeals against the decisions and procedures issued by the Department of Land and Property in Dubai or the Mohammed bin Rashid Housing Establishment.
If the act of partition of the inherited real property is impossible, or if the act of partition of the inherited real property will cause harm or significantly reduce the value of the property, the tribunal may auction the inherited real property and distribute the money between the heirs.
In all its decisions and litigations, the tribunal will have to respect Federal Law No. 11/1992 (as amended) and protect the rights and interests of heirs. The tribunal will not accept or review any case unless the petitioner, or the claimant submits a legal document proving the heirs could not reach an amicable settlement.
Under the Decision, all Dubai courts, including the DIFC Courts and other special tribunals, will not review any petition or appeal related to disputes between heirs in relation to the sale of inherited residential property after the Decision comes into force.
All judgments, decisions and orders issued by the tribunal are final and incontestable and the Execution Court will execute the judgments, decisions and orders issued by the tribunal. They will exercise their authorities in line with the Laws and legislations applied in Dubai and Sharia Law.
The Chairman of the Dubai Judicial Council will name the entity responsible for providing technical and administrative support to the tribunal.
It will be published in the Official Gazette and come into force on its issued date.

News developments

UAE: Artists and Social Media Influencer Activities Subject to VAT

12/03/202112/03/2021
by Benjamin Filaferro

The UAE’s Federal Tax Authority has issued a bulletin clarifying that services provided by artists and social media influencers for consideration are subject to VAT. The bulletin specifies VAT applies to these services provided by artists and social media influencers which include any online promotional activities performed on behalf of other businesses for consideration, like promoting a product in a blog or a video or otherwise promoting a business on a social media post. It also includes any physical appearances, marketing and advertising related activities, providing access to any social media influencers’ networks on social media, and any other services the social media influencer may provide for consideration. It clarifies that if an artist or influencer incurs any costs in providing a service and subsequently recovers that cost from their client, the reimbursement falls within the scope of VAT in the UAE.

News developments

Abu Dhabi: Law Firm Has to Refund 72,500 Dirhams to Client

12/03/202112/03/2021
by Benjamin Filaferro

Abu Dhabi’s Court of First Instance has issued a ruling requiring a law firm to pay their client 72.500 AED after they paid the firm 80,000 AED for filing a case but later found out the legal fees owed on the case are only 7,500 AED. They filed a lawsuit, where they demanded a legal consulting firm be made to repay them 72,500 AED. They had given a power of attorney to the owner of the law firm, to file a lawsuit and the firm assured them the lawsuit fee was 80,000 AED. They later found out the fee was 7,500 AED. The court clarified in its ruling there was evidence that the owner of the defendant company did not attend the session set for the decisive oath and there is evidence the defendant was liable to pay the amount.

Weekly Spotlight

Dubai: Dubai’s Crown Prince and Chairman of the Executive Council has issued Dubai Executive Council Decision No. 5/2021

12/03/202112/03/2021
by Benjamin Filaferro

Dubai’s Crown Prince and Chairman of the Executive Council has issued Dubai Executive Council Decision No. 5/2021 issuing the Implementing Regulations to Dubai Law No. 1/2016 on the Financial Regulations of the Government of Dubai.
It specifies the systems, applications and smart financial solutions related to the planning of the Government’s financial resources and requires all Government departments to use the systems, applications and smart financial solutions approved by the Finance Department. All financial operations executed by Government departments through approved systems, applications and smart financial solutions are considered legally enforceable, provided the operations are compliant with applied regulations.
Under the Decision, Government departments can approve their own financial and accounting systems, applications and smart financial solutions provided they comply with the law and regulations issued by the Finance Department, they are compatible with approved systems, applications and smart financial solutions and are pre-approved by the Finance Department and Smart Dubai.
It also regulates the collection and management of public revenue, specifies the authorities and responsibilities of the Director General of the Finance Department in executing the general budget and outlines the authorities and responsibilities of heads of Government entities.
In addition, it states the procedures for Government payments and expenditures, including payments for suppliers and contractors, which should be made within 90 working days from the date of the final handover, or according to the timeframe specified in the contract.
The Director General of the Finance Department will be responsible for issuing all of the decisions and regulations required to ensure the implementation of the Decision. Anything which contradicts or contravenes it will be repealed.
It was published in the Official Gazette on 9 March 2021 and came into force on the same day.

News developments

UAE: National Integrated Energy Model Launched

05/03/202105/03/2021
by Benjamin Filaferro

The UAE’s Energy and Infrastructure Ministry has announced it has launched the National Integrated Energy Model. They launched it together with the Khalifa University and the International Renewable Energy Agency. It will support the formulation of the future energy for the UAE and the design of the next 50 years in the energy sector. It will also provide a roadmap for a new phase of energy sector sustainability and provide a common framework which brings together stakeholders in the energy sector. In addition, it will define the contours of the future as part of the UAE’s efforts to maximise the benefits of this sector by developing strategies and foundations for work in it during the next phase in line with the National Energy Strategy 2050. This Strategy aims to obtain safe and sustainable energy for everyone at competitive prices, increase the efficiency of individual and institutional consumption by 40% by 2050 and increase the contribution of clean energy in the total energy mix produced in the country to 50%. An understanding to develop the energy modelling capabilities with Khalifa University and the International Renewable Energy Agency was also reached. In addition, a partnership bringing the three entities together was established. This will develop the UAE energy model to support the UAE’s approach in this sector. It will also benefit from the experience of the Agency and the research capabilities of Khalifa University to establish a programme to support the review of the energy strategy in the UAE and engage strategic partners to continue developing the energy policy in the country.

News developments

UAE: National Integrated Energy Model Launched

05/03/202105/03/2021
by Benjamin Filaferro

News developments

UAE: Executive Anti-money Laundering and Terrorist Financing Office Established

26/02/202126/02/2021
by Benjamin Filaferro

The UAE’s Cabinet has approved the establishment of an Executive Anti-money Laundering and Terrorist Financing Office. The Executive Office of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) will oversee the implementation of the UAE’s National AML/CFT Strategy and National Action Plan which are aimed at strengthening the country’s anti-financial crime system. Hamid Al Zaabi has been appointed as the Director-General of the Executive Office. It will report to the Higher Committee overseeing the UAE’s National AML/CFT Strategy which is chaired by the Foreign Affairs and International Cooperation Minister.

Weekly Spotlight

Dubai: The International Financial Centre has launched a public consultation on proposed amendments

26/02/202126/02/2021
by Benjamin Filaferro

The Dubai International Financial Centre has launched a public consultation on proposed amendments to some of its key laws. It will end on 28 March 2021.
The proposed amendments will affect the 2019 Employment Law (DIFC Law No. 2/2019 as amended last year by DIFC Law No. 4/2020), the Employment Regulations, the 2020 Data Protection Law (DIFC Law No. 5/2020), the 2019 Insolvency Law (DIFC Law No. 1/2019) and the Insolvency Regulations.
The amendments have been proposed in light of international best practices and the specific factors relating to the DIFC as well as the need to provide an appropriate regulatory environment for businesses to operate in or from the Centre.
The proposed amendments to the Employment Law are aimed at clarifying the application of limitations periods to claims made under the Employment Law, including claims for deductions to an Employee’s Remuneration, the accrual of vacation leave and the duration of the probationary period for short term fixed-term contracts and certain defined terms used in the Law. In addition, they are aimed at amending the basic workplace health and safety requirements under the Employment Law to account for working from home arrangements.
They are also proposing issuing new Employment Regulations to provide further clarity in relation to the Qualifying Scheme regime to bring it in line with the Dubai Financial Services Authority’s Employee Money Purchase Scheme so only a single layer of regulation is applied to these schemes; and make them fit for purpose from a consumer protection perspective.

News developments

UAE: Dubai Government-owned licensing solutions accept crypto-currencies

19/02/202119/02/2021
by Benjamin Filaferro

Kiklabb, the Dubai Government-owned licensing solution, now accepts cryptocurrencies as a payment option for trade licences and visa fees. Kiklabb customers can now pay for services using cryptocurrencies, including Bitcoin, Ethereum and Tether (USDt). Kiklabb is also the first to use a virtual end-to-end business setup experience. Customers can register as well as pay for Dubai trade licences remotely and with a virtual currency, using their smartphone.