News developments
Abu Dhabi’s Global Market has announced amendments to the Insolvency Regulations 2015. The amendments to the 2015 Insolvency Regulations boost the Market’s insolvency framework by providing additional flexibility for administrators following the execution of a deed of company arrangement used to restructure an insolvent company.
Weekly Spotlight
The UAE Central Bank has issued a new law on the minimum capital for banks which applies to all banks including branches of foreign banks which work in the UAE.
The law will be effective on the beginning of next month and requires banks which do not yet meet its requirements to do so by no later than 31 December 2023.
The second article of the law requires banks at all times to maintain a minimum level of the paid capital and to keep the required level on a continuous basis as a main condition of their licence.
News developments
The UAE authorities have announced it has acceded to the Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure. They have also acceded to the Strasbourg Agreement Concerning the International Patent Classification. It comes as the country looks to develop a legal intellectual property framework and legislative environment which support innovation and patents. After joining the Budapest Treaty, Emirati inventors and researchers will be able to benefit from the services of the International Depositary Authority which is recognised by the World Intellectual Property Organisation. The country’s accession to the Strasbourg Agreement will facilitate patent classification and increase the number of patents registered in the country, as well as improve their quality.
News developments
The Real Estate Regulatory Agency at Dubai Land Department has announced it has signed agreements with 27 audit offices to establish and tighten standards and controls for auditing annual budgets for service charges and financial reports for jointly owned properties in the Emirate.
News developments
Abu Dhabi’s Global Market has announced it has introduced a framework to regulate Company Service Providers in the Market. It will come into force on 12 April 2021. The framework has been introduced following a public consultation on the introduction of a commercially balanced and proportionate CSP Framework. It will be administered by the Global Market’s Registration Authority. Affected entities will benefit from a transition period.
News developments
The UAE’s Energy and Infrastructure Ministry has signed a safety permits agreement with Etihad Rail. Under the agreement, they will work together on issuing safety permits for Stage Two of the UAE’s national rail project. Stage Two of the National Rail Network extends from Al Ghuwaifat on the UAE’s border with Saudi Arabia to Fujairah on the east coast. Once it is completed, the network will link ports, manufacturing hubs and cities in the UAE and connect it with the wider GCC rail network. The agreement was signed by the Undersecretary of the UAE’s Energy and Infrastructure Ministry Hassan Mohammed Juma Al Mansouri and for Etihad Rail by its Chief Executive Officer, Shadi Malak.
News developments
The Dubai International Financial Centre has joined the World Alliance of International Financial Centres. They were established in July 2018 in a meeting for the leaders of the international financial leaders in Paris. It represents 19 financial centres worldwide and works to enhance the positions of its members. The Dubai International Financial Centre said it will utilise its membership to cooperate with other financial centres. The Centre also said it will focus on the promotion of companies’ governance and sustainable development and the application of new innovations.
News developments
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’ 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
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.
