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

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.