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.

Weekly Spotlight: Open Letter Explaining Legislative and Regulatory Priorities in Dubai

This week, Sheikh Mohammed, Ruler of Dubai and Vice President of the UAE, issued an open letter to citizens and residents explaining legislative and regulatory priorities. These included taking a firm stance on Emiratisation, placing controls on property development and ensuring the countries reputation was not damaged by use of social media. As a result, the Cabinet has instructed the National Media Council to control social media sites and ordered the Government Communication Office of the General Secretariat of the Cabinet to monitor live news and social media feeds. In addition, following on from this open letter, Sheikh Hamdan, Crown Prince of Dubai has instructed the General Secretariat of the Executive Council to lead efforts on Emiratisation and has given them a deadline of two weeks to issue a plan with initiatives.

Weekly Spotlight: Establishment of a Special Committee for Legal Claims Involving Meydan

According to international media reports, a special judicial committee will be established to hear legal claims involving Meydan. Meydan is a Government-owned developer. The media reports went on to say the Government suspended all claims against Meydan City Corporation in June as well as its subsidiaries and associated entities. According to the reports, Government insiders have said the Committee could be established this month and will hear and resolve all pending claims against Meydan in two years. It is estimated there are 40 claims to be heard.

Weekly Spotlight: The DIFC is Introducing an Employee Workplace Savings Scheme

The DIFC has announced it has introduced an Employee Workplace Savings scheme. It will come into force in January 2020. Under the scheme, end-of-service benefits in the Centre will migrate from a defined benefit to a funded contribution plan. Employers will be able to opt-out of the scheme in certain circumstances, provided they have been provided with a qualifying alternative scheme certificate by the DIFC Registrar of Companies. The guidelines on this will be provided after 15 September.

A global trust services provider, Equiom will be the master trustee of the scheme, while Zurich Middle East has been appointed scheme administrator. Zurich will be assisted by Mercer as an investment adviser and Smart Pension as a technology services provider.

Ahead of the rollout a DEWS Supervisory Board will be established and its members will be representatives from the DIFC Authority, employer and employee representatives and non-affiliated individuals.

The Board will settle the DEWS trust and the scheme rules with the chosen service providers and oversee the continuing governance and commercial aspects of the scheme which are not subject to regulatory supervision. The regulatory aspects of the master trustee and scheme administrator’s duties will be overseen by the Dubai Financial Services Authority