UAE Archives - Page 73 of 94 - LexisNexis Middle East

UAE: Abu Dhabi Foreign Direct Investment License Issued

06/11/202006/11/2020
by Benjamin Filaferro

Abu Dhabi’s Economic Development Department has announced it has issued a foreign direct investment license. It has been issued in line with Federal Decree-Law No. 19/2018 and will enable investors to hold 100% ownership of their businesses in the Emirate. It covers 122 different economic activities in the agricultural, industrial and service sectors.
It targets businesses with total capital of between two and 100 million AED or more. The aim is to encourage more investment into the Emirate, diversify the Emirate’s economy and protect investors.
It will benefit foreign investors and UAE residents, including individuals, legal persons and foreign companies who are engaged in Foreign Direct Investment projects. The license can be applied for through the Department’s Business Centre by submitting the application, obtaining the approval after fulfilling all conditions and completing all the required documents and paying the relevant fees.
It covers agricultural sector activities, like the cultivation of grains, leguminous crops, vegetables, fruits and citrus fruits. Other activities which support crop and livestock production and seed processing for reproduction will also be able to get the license. It covers industrial activities like the manufacturing of food and beverages, Food and Beverage, products, clothing and leather production, wood and cork products and the production of plastics and synthetic rubber in its primary forms, fertilisers, pesticides and other agricultural chemical products. It covers service activities like legal consulting; accounting, auditing and tax advisory services; architectural and engineering activities; medical and dental clinics; veterinary activities; computer programming services; consultancy and research and development activities in science and technology.
The Department added certain activities cannot obtain the license without the approval of the UAE’s Cabinet. Postal and telecommunications services, audio and video media related services, petroleum exploration and production, ground and air transportation services, activities related to investigations, security and military sectors, the manufacturing of weapons, explosives as well as military equipment, devices and clothing, printing and publishing services, banking and finance activities, payment and cash handling systems, commercial agent services; insurance activities, medical retailing like private pharmacies; Haj and Umrah services, employment of labour, servants and recruitment of employees, activities related to poison control centres, blood banks and health quarantines and water, electricity and fisheries services are not covered.

News developments

UAE: Global Market Launches Public Consultation on Proposed Company Service Providers’ Framework

30/10/202030/10/2020
by Benjamin Filaferro

Abu Dhabi Global Market’s Registration Authority has launched a public consultation on its proposed Company Service Providers’ framework. It will end on 24 November 2020. The proposed framework will make it mandatory for particular special purpose vehicles and foundations to appoint Company Service Providers. They will also have to impose regulatory requirements on those providers. The aim of the framework is to protect Global Market entities and adapt to the success and increasing demand for Global Market special purpose vehicles and foundations. These structures have introduced several challenges and risks, particularly for entities which do not have a direct connection to the UAE or the Global Market. Transition periods have been proposed for the affected entities and for existing Company Service Providers wanting to engage in these activities under the new framework.

Weekly Spotlight

UAE: Country’s Commercial Transactions Federal Law No. 18/1993 Amended

30/10/202030/10/2020
by Benjamin Filaferro

The UAE’s Cabinet has approved amendments to the country’s Commercial Transactions Law (Federal Law No. 18/1993). A Decree-Law to this effect has been approved. It will come into force in 2022.
The amendments include changing certain provision covering bounced cheques and the issuing of cheques without value, by providing fast, advanced and civil mechanisms to collect the outstanding payments. The amendments also re-define crimes involving cheques have been redefined.
In addition, several mechanisms and alternatives will be introduced to ensure payments are collected by cheque simply and quickly. For example, banks will have to partially pay the amount after deducting the total amount available to the beneficiary and make bounced cheques an executive document to be executed directly by an appropriate judge in court.
The amendments will introduce several ancillary penalties, including cancelling the cheque books of convicts and preventing them from obtaining new ones for up to five years. They will also be suspended from practising professional or commercial activities. Additional penalties for legal persons except banks and financial institutions will also be introduced. These penalties will include fines and licenses may be suspended for up to six months. Those who repeat violations will have their licenses revoked or dissolved.
Other amendments cover the opening of joint accounts between two and more people. If one of the joint account holders dies or loses legal control, the other joint account holders will have to notify the bank within ten days of the date of death or disqualification. The bank will then have to limit the ability to withdraw from the joint account within a party’s share of the account balance on the day of death or loss of eligibility.
This provision will apply from the day after the Decree-Law is published in the Official Gazette.
The aim of the amendments is to avoid criminal lawsuits and facilitate related procedures, by encouraging reconciliation and encouraging the value of the original cheque to be paid as the main condition a criminal lawsuit to be avoided.

News developments

UAE: Abu Dhabi Public Consultation on Proposed Amendments to Application of English Law Regulations 2015

25/10/202025/10/2020
by Benjamin Filaferro

The Abu Dhabi Global Market has launched a public consultation on proposed amendments to its Application of English Law Regulations (AELRs) 2015. The consultation ends on 15 November 2020. The Regulations are the cornerstone of the Market’s legislative framework. Since their introduction in 2015, certain English Statutes in the Regulations have been amended in England. The amendments made in England have no legal effect in the Global Market, unless they are incorporated by the Board of the Global Market into the Regulations. The aim of the proposed amendments is to enhance the current Regulations by reflecting and incorporating appropriate amendments made in England to the English Statutes, as well as introducing additional English statutes.

Weekly Spotlight

UAE: Bankruptcy Law Amendments Approved

25/10/202025/10/2020
by Benjamin Filaferro

The UAE’s Cabinet has approved amendments to the country’s Bankruptcy Law.
The amendments to Federal Decree-Law No. 9/2016 add new provisions in terms of ’emergency situations’ which interrupt trade or investment. The aim is to enable individuals and businesses to overcome credit challenges in times of extreme events like pandemics, natural and environmental disasters and wars.
They are also aimed at ensuring obligations are met and losses are mitigated against in cases of default without prejudice to the Law and enable creditors to secure their rights.
The new amendments also state the debtor will be exempt from starting procedures to declare bankruptcy. If the debtor files an application which would be approved by the relevant court, they may reach a settlement with creditors. They may request a grace period, or negotiate a debt settlement period of up to 12 months.
In addition, the relevant court, where a bankruptcy application is approved, will not take any proceedings involving the debtors’ funds which are needed to keep businesses running during the set period in case they default on debt because of an emergency.
Finally, the amendments offer the possibility of getting new financing in line with specific terms and conditions to secure the liquidity needed to recover businesses and enable them to survive challenges in time of emergencies.
The amendments are part of the Government’s moves to develop the legal and legislative frameworks in various sectors, particularly the economic sector.

News developments

Dubai: International Financial Centre Becomes Region’s First Fully Accredited Member of Global Privacy Assembly

17/10/202017/10/2020
by Benjamin Filaferro

The Dubai International Financial Centre has announced the Centre has become the region’s first fully accredited member of Global Privacy Assembly. The Centre will work with Global Privacy Assembly Members to implement global best practice in data protection and privacy to support sustainable business growth and shape the future of finance, whilst effectively fulfilling privacy mandates. It follows the enactment of the Centre’s Data Protection Law (DIFC Law No. 5/2020). It also reinforces key privacy principles including accountability, safeguards for international transfers and support of data subjects’ rights especially in terms of emerging technology issues.

News developments

UAE: Guidelines for Payment Orders in Commercial Matters Approved

17/10/202017/10/2020
by Benjamin Filaferro

The Head of Abu Dhabi’s Judicial Department has issued a Decision approving the guidelines for performance orders in commercial matters. The aim is to enhance the business environment in the Emirate and boost the Emirate’s position as an attractive environment for foreign investment and capital. This will also be achieved by activating fair and simplified litigation systems and provide fast and effective mechanisms for dispute resolution. The guidelines address all questions and inquiries, so court officers can familiarise themselves with these provisions in a way which guarantees the issuing of the payment order and the access by interested parties to their rights without delay.

News developments

UAE:Abu Dhabi Investment Office Signs Cooperation Agreement with Israel Institute Export

09/10/202009/10/2020
by Benjamin Filaferro

Abu Dhabi’s Investment Office has signed a cooperation agreement with the Israel Export Institute to boost bilateral trade opportunities between the Emirate and Israel. The Office is currently in talks with more than 85 Israeli companies in several sectors about doing business in the Emirate. The remote signing of the agreement was attended by the Director General of the Abu Dhabi Investment Office, Dr. Tariq bin Hindi, the Chairman of the Board of Directors of the Israel Export Institute, Adif Baruch and the Director General of the Institute, Gadi Arieli.

News developments

UAE:Abu Dhabi’s Khalifa Fund for Enterprise on Development Announced the Launch of an SME Rating Classification

02/10/202002/10/2020
by Benjamin Filaferro

Abu Dhabi’s Khalifa Fund for Enterprise on Development has announced it is going to launch an SME rating classification. It will provide SMEs with an overview of their operations and performance and the rating will help them identify their strengths and weaknesses. The aim is to help them grow and boost their operations. It will launch as a web-based solution and will be used by Khalifa Fund counsellors when assessing businesses who are making applications to the Fund.

News developments

UAE:Federal Law No. 8/1980 Concerning The Regulation Of Women Labour

25/09/202025/09/2020
by Benjamin Filaferro

Following the issuing of an equal wages Decree by the UAE’s President, under Article 32 of Federal Law No. 8/1980, it came into force on 25 September. The amendment to Federal Law No. 8/1980 was contained in Federal Decree-Law No. 6/2020. It states the new Article 32 will say ‘Female employees shall receive wages equal to that of Males if they perform the same work or another of equal value’.