Weekly Spotlight: The UAE’s Central Bank has Announced it will Establish a FinTech Office

The UAE’s Central Bank has announced it will establish a FinTech Office. The Office will help draft regulations for this sector and encourage it to grow. It will also examine assets like cryptocurrencies. It will not compete with other initiatives like the sandboxes in the financial free zones.

The Governor of the Central Bank made the announcement at the Middle East Banking Forum in Abu Dhabi. He added ‘the aim of the office will be to position the Central Bank as the coordinating authority, as an author of prudential and market conduct regulatory requirements and as an enabler and facilitator of fintech activities in the UAE. It will ensure financial innovation continues in the banking sector with the support and facilitation of the national authorities’.

Weekly Spotlight: ADGM has announced new Employment Regulations 2019

The Registration Authority of Abu Dhabi’s Global Market has announced it has issued new Employment Regulations 2019 and Compensation Awards and Limits Rules 2019. The Regulations will come into force on 1 January 2020.

It follows a public consultation earlier this year on proposed amendments to the 2015 Regulations and have been drafted taking into account international standards.

The key changes introduced by the Regulations and Rules include new overtime provisions for employees, aligning certain employees’ entitlements with those onshore, including repatriation flight tickets and sick leave, changes allowing employers and employees more flexibility in negotiating notice periods, introducing protective provisions for those aged between 15 and 18 and introducing a discretionary power to the Market Courts to impose penalties on employers for failing to pay employees’ entitlements due on termination.

Weekly Spotlight: Draft Cryptoasset Regulations Published by UAE’s Securities and Commodities Authority

The UAE’s Securities and Commodities Authority has published draft cryptoasset regulations. Investors, brokers, financial analysts, researchers, media personnel and other interested parties have until 29 October to provide their feedback on them.

The Regulations will encompass all aspects of the crypto assets industry in the UAE ranging from token issuing requirements to trading and safekeeping practices with an emphasis on protecting investor interests to ensure compliance with financial crime prevention measures, cryptoasset sake-keeping standards, information security controls, technology governance practices and conduct of business requirements for all market intermediaries.

Standards and requirements for a wide range of market participants like issuers of securities, investors including qualified investors, custodians, crypto trading platforms, brokers and promoters engaged in crypto asset industry are also covered.

Once they are implemented, market participants will be able to request guidance on specific token issues and regulatory requirements from the Authority as a part of an e-Services System launched by them. The Authority may amend the draft regulations before, on or after this deadline as they are not final.

Weekly Spotlight: Launch in Dubai of a Virtual and Global Business License

Dubai’s Deputy Ruler has announced the launch of a virtual and global business license. It will be available to 101 countries and is the region’s first virtual business license. It will allow freelancers and business people across the world access to a regulated ecommerce platform and allow them to work easily with Dubai-based companies and explore new markets and investment opportunities remotely. It is hoped it is will bring more than 100,000 companies to the Emirate in the creative industries, technology and services sectors. Applications can be submitted to www.vccdubai.ae or through VFS Global offices in 11 locations globally.

Dubai Healthcare City-registered companies can now register onshore. They will only be able to register onshore if they have successfully applied for a no-objection certificate from the Dubai Healthcare City Authority-Regulatory and successfully obtained a commercial permit from Dubai’s Economic Development Department. The regulatory changes are part of new regulations developed by the City and the Economic Development Department.

Weekly Spotlight: The UAE Joins the International Maritime Security Construct

The UAE has announced it has joined the US-led International Maritime Security Construct following recent tanker attacks in the region. The Construct is aimed at protecting maritime navigation and international trade. The Director of the International Security Cooperation Department at the Foreign Affairs and International Cooperation, Ministry made the announcement. The Construct’s task force is headquartered in Bahrain and its members include the US, UK, Australia and Bahrain.

Kuwait’s Trade and Industry Minister has issued a Decision as well, raising the security level at all of the country’s oil and commercial ports. ‘All’ measures must be taken to protect these facilities.

Weekly Spotlight: Statements on the New UAE Government Emiratisation Plan

Recently, with the announcement of Sheikh Mohammed of the new Government plan which included the need to focus on Emiratisation there have been a number of statements made on this issue. Speaking at a meeting to implement the plan, the Deputy Prime Minister, stated that some institutions have been ‘manipulating’ Emiratisation figures and jeopardising the country’s stability in the process. He has added a new way of thinking and a new vision is needed in this area. There will also be greater scrutiny of institutions who are manipulating Emiratisation figures. In addition, the Ruler of Sharjah has announced a new Emiratisation Department will be set up in that Emirate which will be responsible for the hiring of Emiratis in the private sector. In addition, private sector employers with Emirati employees will have to deposit their salaries with the Government who will then pass the money on to Emirati employees after having made sure those salaries match equivalents in the public sector.