UAE Archives - Page 73 of 96 - LexisNexis Middle East

UAE: Arabtec Formally Files Insolvent Liquidation Application

18/12/202018/12/2020
by Benjamin Filaferro

Arabtec has formally filed an insolvency liquidation application following the approval of the proposal by their General Assembly. The application covers Arabtec Construction LLC, Arabtec Constructions LLC, Austrian Arabian Readymix Concrete Co LLC and Arabtec Precast LLC also be placed into insolvent liquidation. No applications involving the company’s other subsidiaries have been made. Until an insolvency trustee is appointed, the Company will continue engaging with key stakeholders to explore options to preserve value and where possible avoid these subsidiaries needing to be placed into a formal insolvency process. It follows two months of consultations with all of the company’ relevant stakeholders. Their liabilities are calculated at 18 billion AED.

News developments

UAE: Dubai Financial Service Authority Launches Public Consultation on Proposed Amendments to Employee Money Purchase Regime

18/12/202018/12/2020
by Benjamin Filaferro

The Dubai Financial Service Authority have announced they have launched a public consultation on proposed amendments to the Employee Money Purchase Regime. It ends on 17 January 2021. The aim is to address various practical issues the Authority has encountered in administering the regime. Employees of DIFC businesses, DIFC employers, Operators and Administrators of Employee Money Purchase Schemes, persons offering foreign Employee Money Purchase schemes to DIFC employers and employees, life insurers conducting pension fund management, persons conducting other financial services that involve an interest in an Employee Money Purchase Scheme and persons who intend to carry out any of these activities should review these proposals.

Weekly Spotlight

Abu Dhabi: Global Market Launches Public Consultation on Proposed Auditor Framework Amendments

18/12/202018/12/2020
by Benjamin Filaferro

Abu Dhabi’s Global Market has launched a public consultation on proposed auditor framework amendments. The consultation ends on 28 January 2021. The existing framework governing auditors was based on the UK Companies Act 2006. However, since the framework was initially implemented, international standards have been updated. This includes the enactment of EU legislation covering audit regulation, which has also been incorporated and reflected in the UK’s auditor framework.
If approved, there will also be additional requirements for auditors of public companies and investment funds and additional requirements for auditors of all financial institutions licensed by the Market’s Financial Services Regulatory Authority.
There are also proposals to require auditors to comply with international auditing standards, like audit quality requirements. The amendments would also give the Market’s Registration Authority comprehensive monitoring and enforcement powers, with investigation and sanctioning powers, which align with international standards.
The aim of the amendments to the Market’s 2020 Companies Regulations, Commercial Licensing Regulations 2015, Companies Regulations 2020 (Auditors) Rules 2020, Commercial Licensing Regulations 2015 (Controlled Activities Rules) 2018 and Limited Liability Partnership Rules 2020 is to create a single registration framework with tiered requirements and enhance audit quality requirements.
There will be a 12-month transition period for existing auditors from when the amendments come into force or the auditor re-registers.

News developments

Abu Dhabi: Artificial Intelligence System for Detection of Traffic Violations Introduced

10/12/202010/12/2020
by Benjamin Filaferro

The Abu Dhabi Digital Authority and Abu Dhabi Police have announced they have introduced an artificial intelligence system to detect traffic violations in the Emirate. The Vehicular Attention and Safety Tracker or VAST system will come into force on 1 January 2021 and will enable the automatic detection of seatbelt and mobile phone use violations.

Weekly Spotlight

UAE: Visa Violators Have Until 31 December to Leave

10/12/202010/12/2020
by Benjamin Filaferro

The UAE’s Federal Authority of Identity and Citizenship has announced visa violators have until 31 December to leave. The grace period applies to those whose visas expired before 1 March.
If they leave before 31 December, they will not face fines or administrative penalties.
They are instructed to book flights and leave before 31 December. Those who want to leave from Abu Dhabi, Sharjah and Ras al Khaimah airports must arrive at the airport at least six hours before the flight is due to leave. While those who intend to travel through Dubai and Al Maktoum airports will have to report at the Dubai Civil Aviation Security Centre 48 hours before their flight is due to leave. Any dependants sponsored by the visa violator will also have to leave.

News developments

UAE: Arabtec to File Insolvent Liquidation Application

04/12/202004/12/2020
by Benjamin Filaferro

Arabtec is going to file an insolvency liquidation application as soon as possible with the relevant courts in the UAE. It will be filed following approval at the company’s General Assembly. The application will also request Arabtec Construction LLC, Arabtec Constructions LLC, Austrian Arabian Readymix Concrete Co LLC and Arabtec Precast LLC also be placed into insolvent liquidation. No applications involving the company’s other subsidiaries will be made. Until an insolvency trustee is appointed, the Company will continue engaging with key stakeholders to explore options to preserve value and where possible avoid these subsidiaries needing to be placed into a formal insolvency process. It follows two months of consultations with all of the company’ relevant stakeholders.

News developments

UAE: Abu Dhabi Global Market Launches Public Consultation on Third Party Financial Technology Provider Regulatory Framework

04/12/202004/12/2020
by Benjamin Filaferro

The Financial Services Regulatory Authority of Abu Dhabi’s Global Market has launched a public consultation on a proposed regulatory framework for third party financial technology or FinTech services in the Global Market. It ends on 7 January 2021. Third Party Providers do not hold their customers’ funds but instead act as intermediaries in the relationship between customers and other financial institutions. In other jurisdictions like the UK and Australia, the growth of these entities has been accompanied by the introduction of Open Banking and Open Finance frameworks, which give customers more control over their data. The proposed regulatory framework prepares and regulates these FinTech firms to work with financial institutions in a secure and efficient way. This will protect the data and interests of their customers. It also provides a strong foundation on which to build an Open Finance strategy to support business growth and financial innovation in the digital platform economy.

Weekly Spotlight

UAE: Abu Dhabi Global Market Launches Consultation on Proposed New Data Protection Regulation

27/11/202027/11/2020
by Benjamin Filaferro

The Abu Dhabi Global Market has announced it has launched a public consultation on proposed new Data Protection Regulations. The consultation ends on 19 December 2020. If approved, they will replace the Data Protection Regulations 2015 and because of the significant changes they will introduce for Data Controllers and Data Processors, there will be a 12-month transition period for existing entities regulated by the Global Market and six months for new entities. They include a provision to establish an independent Office of Data Protection which will be led by a Commissioner of Data Protection. They will have the power to monitor compliance with the regulatory framework and ensure non-compliance is appropriately treated. The aim is to increase the protection of personal data processed and controlled in the Global Market and will aim to align with the EU’s General Data Protection Regulations which were introduced in 2018.

Weekly Spotlight

UAE: UAE’s President has issued amendments to the country’s Commercial Companies Law (Federal Law No. 2/2015)

27/11/202027/11/2020
by Benjamin Filaferro

The UAE’s President has issued amendments to the country’s Commercial Companies Law (Federal Law No. 2/2015). Under the amendments, Federal Decree-Law No. 19/2018 will be repealed and the requirement for onshore companies to have a major UAE shareholder will be removed. The removal of the major UAE shareholder requirement is aimed at helping companies reduce overhead costs, make it easier for foreign investors in the country to do business and enable them to operate more flexibly.
In addition to that, the requirement for a UAE national or UAE owned company to be appointed as an agent will be abolished. Requirements for a company chair to be an Emirati and the board of directors to have an Emirati majority will also be repealed. They mean companies will be able to be fully established by non-Emiratis regardless of nationality.
Under other changes, joint stock and limited liability company provisions will be amended. Among other changes, the chair or senior executives of a company will be able to be removed if they are found guilty of fraud or abuse of authority. Shareholders will also now be able to sue a company in civil law for any failures of duty which cause damage. In addition, electronic voting at annual general meetings will be allowed.
There are also amendments aimed at boosting local capital market liquidity by amending the rules for companies wanting to go public. A company wanting to go public will have to have the approval of the relevant authorities and will be able to sell up to 70% of the company instead of the existing 30%.
The amendments will also allow local authorities to continue determining the level of participation by Emiratis in any company. Companies in strategic sectors, like oil and gas exploration, utilities and transport and State-owned entities will be exempt from the amendments. In terms of capital increases or decreases in public companies, a company will be able to approve its capital increase by issuing bonds and converting them into shares.
The Securities and Commodities Authority will be able to establish the controls and procedures required for evaluating in-kind shares and the names of stakeholders attending the general assembly meetings of companies.
Under the new Article 10 to Federal Law No. 2/2015, a committee including representatives of the relevant authorities will oversee activities which have a strategic impact and the measures required to license companies operating in these areas. Following the recommendation of the committee, the Cabinet will state which activities will be considered to have a strategic impact and the measures to enable these companies to be licensed.
Affected companies will have one year to comply from when the amendments come into force. However, this may be extended by an appropriate Ministerial Decision proposed by the Economy Minister.
While most of the amendments come into force next month, the changes related to foreign ownership, agency and boards of directors will come into force six months after they are published in the Official Gazette.

News developments

Abu Dhabi: Global Market Signs FinTech Cooperation Agreement with Israel Securities Authority

20/11/202020/11/2020
by Benjamin Filaferro

The Financial Services Regulatory Authority of Abu Dhabi’s Global Market has announced it has signed a FinTech cooperation agreement with Israel’s Securities Authority. The agreement is a first in the region and provides a framework for information sharing and facilitating the movement of start-ups, knowledge and talent between the two countries. The two bodies will work together to promote economic growth in financial services by adopting new technology and boosting their respective FinTech sectors. The agreement will allow information on trends, services and products to be exchanged and facilitate the collaborative development of FinTech initiatives between the two bodies. Both jurisdictions will also work together on professional knowledge transfer, accelerator programmes and promote the development of relevant technologies, like digital payments and blockchain. The agreement will also allow FinTech start-ups to access information from the respective jurisdictions through a single point of contact.