Weekly Spotlight: Changes Announced by the DIFC to Will Registration Rules for Non-Muslims

The DIFC has announced changes to will registration rules for non-Muslims, which will now accommodate all resident and investor assets across the whole of the Emirates, and assets held outside the UAE which will be effective from 1 July 2019.

Those wishing to take advantage of this change will be able to amend existing wills registered with the courts free of charge until 31 August 2019. The Wills Service Centre is a joint initiative of the Government of Dubai and the DIFC Courts which gives non-Muslims living and investing in the UAE the option to pass on their assets and or appoint guardians for their children, in accordance with the instructions in their Will.

Weekly Spotlight: New Robo-Advisor Regulations Issued by the ADGM

Abu Dhabi’s Global Market Financial Services Regulatory Authority has announced it has issued new digital investment manager or robo-advisor regulations. These advisors or managers provide investment management services using algorithm-based tools and technology.

The Regulations cover the regulatory permissions which may be required to provide digital investment services in or from the Global Market and how the Financial Services Regulatory Authority will apply its authorisation criteria in technology governance, suitability and disclosure and newer areas like algorithm governance. The Authority’s requirements on algorithm governance, are closely calibrated to match international best practices and incorporate principles of fairness, transparency and accountability. These include requirements for human oversight over the design, performance and security of the algorithm model, ensuring the algorithm model is not affected by possible behavioural biases, adequate safeguards to protect the integrity of the algorithm model and ensuring the outcomes produced by the algorithm model are explainable, traceable and repeatable.

The Authority will allow digital investment managers to hold lower prudential capital if they meet the stipulated criteria and requirements.

Weekly Spotlight: Amendments to the UAE Maritime Law Being Considered

The UAE’s Infrastructure Development Minister and Chairman of the Federal Transport Authority has announced amendments to the country’s existing maritime law are being considered. They are aimed at improving maritime operations in the country and encouraging more investment into the sector.

If approved, it will amend Federal Law No. 26/1981 and has been circulated for consultation and feedback. Some of the relevant parties have provided their feedback but feedback from others is pending. The amended law is expected to come into force early next year. Among other things, it will allow those who want to own maritime businesses to own 100% of them and will also introduce a new dispute resolution system. The new dispute resolution centres will report to the Federal Transport Authority. In addition, it will update the maritime lien rules and establish a maritime navigation chamber. They will be responsible for representing private sector interests and a new maritime development fund will also be set up. The chamber will also become a member of the International Chamber of Navigation.

Weekly Spotlight: UAE Foreign Investment Rules Approved

The UAE’s Cabinet has approved revisions to the country’s foreign investment rules which will see 100% foreign ownership allowed in 13 sectors and 122 areas of economic activity in the country. The aim is to encourage more foreign investment into the country and improve the country’s growth. These sectors include renewable energy, space, agriculture and manufacturing. Investors will also be provided with an opportunity to buy various shares in various economic activities including the production of solar panels, power transformers, green technology and hybrid power plants. It also includes transport and storage, to allow investors to own projects in ecommerce transport, supply chain, logistics and cold storage for pharmaceutical products. The governments of the individual Emirates will determine the ownership percentage of foreign investors in these activities.

Weekly Spotlight: New Anti-Money Laundering System Launched by the Central Bank of the UAE

The UAE’s Central Bank has announced it has launched a new anti-money laundering system and is the first GCC country to adopt it. The new system means all financial institutions in the country will have to report any suspicious transactions through goAML. They must register with the system by 27 June. Any transactions over 60,000 AED must be reported. goAML has been developed with the UN Office on Drugs and Crime. It aims to step up intelligence, identify complex, organised criminal activities and curb them.

Elsewhere, Saudi Arabia has become the region’s first Financial Action Task Force member. Previously the Kingdom was an observer of the anti-money laundering body and they were one of the only Middle Eastern jurisdictions not to be included in a blacklisting of countries earlier this year. The organisation makes recommendations to governments on combating money laundering and terrorist-financing.