United Arab Emirates Archives - Page 11 of 64

UAE: Trade Licensing Authority’s Decision on Financial Year Sparks Confusion

17/04/202517/04/2025
by Hannah Gutang

The National News, 10 April 2025: A recent decision by a UAE trade licensing authority to standardise the financial year for entities under its jurisdiction to a calendar year has led to confusion among businesses.

A UAE trade licensing authority has required all entities under its jurisdiction to adopt a calendar financial year, running from January 2025 to December 2025. This decision will require thousands of companies to alter their memorandums of association and has caused confusion about the potential tax impact. Previously, businesses which came under the trade licensing authority had the flexibility to choose their financial year based on their month of formation, but the new directive has standardised the period.

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News developments

ADGM: Proposed Amendments to Prudential Framework for Lower-Risk Firms

16/04/202516/04/2025
by Hannah Gutang

ADGM, 9 April 2025: The Financial Services Regulatory Authority (FSRA) in the ADGM has issued a consultation paper proposing amendments to the prudential framework for lower-risk firms.

Consultation Paper No. 2 of 2025, targets Authorised Persons in Categories 2, 3A, 3B, 3C, and 4, as well as potential applicants and professional advisors. It has been proposed the Expenditure Based Capital Minimum (EBCM) requirement for Category 4 firms not holding Client Assets or Insurance Money should be removed, while increasing the Base Capital Requirement (BCR) for most Category 4 firms to $50,000. The FSRA has also suggested applying a BCR of $250,000 for Providing Custody for a Fund, unless it is a Public Fund, and removing the Internal Risk Assessment Process (IRAP) reporting requirement for Category 3B and 3C firms. There is also a proposal to eliminate the professional indemnity insurance (PII) requirement for Branches of Category 3B, 3C, and 4 firms. It is hoped the proposed changes would reduce the regulatory burden for these firms and better reflect the lower prudential risks associated with them. The closing date for comments on these proposals is 21 May 2025. The proposed amendments would modify the current prudential requirements under the FSRA’s Prudential – Investment, Insurance Intermediation, and Banking Rulebook (PRU).

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News developments

UAE: New Tax Rules for Non-Resident Investors in Investment Funds

10/04/202510/04/2025
by Hannah Gutang

Gulf News. 6 April 2025: The UAE Ministry of Finance has issued Cabinet Decision No. 35/2025 for non-resident investors in Qualifying Investment Funds and Real Estate Investment Trusts.

Cabinet Decision No. 35/2025, outlines the conditions under which non-resident juridical investors in Qualifying Investment Funds (QIF) or Real Estate Investment Trusts (REIT) are deemed to have a nexus in the UAE, and therefore are subject to taxation. It has repealed Cabinet Decision No. 56/2023 and follows Cabinet Decision No. 34/2025 concerning Qualifying Investment Funds and Limited Partnerships.

It impacts non-resident juridical investors in QIFs and REITs, specifying that a taxable nexus arises if a QIF or REIT distributes 80% or more of its income within nine months from its financial year-end, either on the date of dividend distribution or the date the ownership interest is acquired. A nexus would also be created if a QIF fails to meet the diversity of ownership conditions during the tax period. Conversely, non-resident investors who are exclusively investing in QIFs and REITs without breaching these conditions would not be considered to have a taxable presence in the UAE.

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News developments

Ajman: New Real Estate Contributions Law

10/04/202510/04/2025
by Hannah Gutang

Ajman has introduced a comprehensive legal framework through Ajman law No. 1/2025 to regulate real estate contributions.

Ajman law No. 1/2025 outlines the procedures and requirements for real estate contributions, including the establishment of a register for real estate contributions, the roles and responsibilities of trustees, and the conditions for the transfer and liquidation of contributions. Real estate contributions are financial or in-kind investments made by an owner or investor into a real estate project or investment vehicle, often in exchange for shares or ownership in the venture. The new law is expected to enhance transparency, protect investors’ rights, and attract more investment into the real estate sector in Ajman. Obligations under the law include the requirement for trustees to manage contributions responsibly, ensure compliance with anti-money laundering regulations, and maintain a minimum ownership stake in the contributions. The law repeals any conflicting provisions in existing legislation and is set to come into effect 30 days after its publication in the official gazette.

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News developments

Abu Dhabi: School Fee and Cost Rules Outlined

10/04/202510/04/2025
by Hannah Gutang

Emiratalyoum, 3 April 2025: The Abu Dhabi Department of Education and Knowledge (ADEK) has announced a new school fee policy for the 2025-2026 academic year, allowing optional charges for textbooks and uniforms in private schools.

The policy divides school fees into six components: tuition, educational resources, uniforms, transportation, extracurricular activities, and other fees. It allows parents to opt out of certain charges involving devices, textbooks, and uniforms if they choose to use second-hand materials that meet the school’s requirements. Schools are permitted to collect tuition fees in up to ten instalments, providing flexibility for parents.

Schools must publish their approved fees on their websites and adhere to the fee levels set by ADEK. They must also offer detailed payment schedules and can enter into agreements with parents on these schedules. Schools can also charge a registration fee of up to 5% of the approved tuition fees, which can be collected up to four months before the academic year begins. However, any registration fees must be deducted from the final tuition fees, and schools cannot request additional financial guarantees from parents.

In cases of late or non-payment of fees, schools must have a clear and fair policy in place and not impose punitive measures. They must notify parents in writing at least three months before the end of the academic year on the consequences of not re-registering their children due to unpaid fees. Schools are prohibited from barring students from exams due to fee issues. The policy also outlines potential actions for non-payment, including issuing three consecutive warning notices to parents, suspending student registration for up to three days per term, and withholding exam certificates or transfer documents until all fees have been settled.

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News developments

UAE: New Stricter Traffic Laws to Enhance Road Safety

03/04/202503/04/2025
by Hannah Gutang

Khaleej Times, 2 April 2025: The UAE has brought into force new traffic laws on 29 March 2025 which impose severe penalties.

Federal Decree-Law No. 14/2024 On Traffic Regulation was issued on 30 September 2024 but came into force on 29 March 2025. It provides for stringent penalties for various traffic offences including imprisonment and fines up to Dh200,000. The law aims to address serious offences including jaywalking, driving under the influence, and driving without a proper licence. Road safety experts have welcomed the changes but state that there needs to be stricter enforcement and cultural shifts in the UAE to promote road safety.

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News developments

UAE: New Zakat Law Approved

27/03/202527/03/2025
by Hannah Gutang

Khaleej Times, 19/03/2025: The UAE has approved a new zakat draft law, imposing fines of up to Dh1 million and imprisonment for illegal collection.

The Federal National Council (FNC) has passed a comprehensive federal law regulating the collection, distribution, and management of zakat across the UAE. The decision, led by the Chairman of the General Authority for Islamic Affairs, Endowments, and Zakat, aims to enhance transparency and accountability in the administration of zakat funds. The new law governs all aspects of zakat processes, including the investment of surplus funds in line with Sharia principles, and applies to all individuals and entities engaged in zakat activities within the UAE, including those in free zones. Certain organisations may be exempted by the Cabinet, provided they meet registration and reporting requirements.

The law introduces strict penalties for violations. Collecting, receiving, or distributing zakat without authorisation is considered a crime against public funds, punishable by imprisonment, fines of up to Dh1 million, or both. Misuse of funds, unauthorised deductions, and submitting false documents may result in further fines and imprisonment. Authorised entities also face fines of up to Dh1 million for violations such as distributing zakat abroad without permits, failing to comply with regulations, or mismanaging investments. All entities must regularise their status within a year of the law’s enactment, with an option for extension.

A key feature of the law is the creation of the ‘National Zakat Platform,’ which is a unified digital system to monitor authorised entities, beneficiaries, and fund allocations. This platform aims to ensure zakat funds are distributed efficiently to rightful beneficiaries and managed transparently. The law also restricts zakat distribution outside the UAE to exceptional circumstances like natural disasters, requiring official approval through the platform.

The law maintains the religious integrity of zakat by requiring investment surplus to be used exclusively for zakat purposes, and bars deductions for managing authorities. After extensive debates, the FNC upheld the original provision allowing traditional zakat giving to relatives and acquaintances without the need for excessive administration.

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News developments

Abu Dhabi: Enforces Fines for Unlicensed Building Facade Modifications

27/03/202527/03/2025
by Hannah Gutang

Khaleej Times, 22 March 2025: Abu Dhabi’s Department of Municipalities and Transport (DMT) has introduced fines for unlicensed facade modifications on commercial buildings, facilities and establishments.

This decision aligns with Abu Dhabi Law No. 2/2012 on the Maintenance of Building General Appearance in the Emirate of Abu Dhabi, which aims to maintain a sustainable and visually appealing urban environment in the Emirate. The regulations prohibit the addition of tools, equipment, or any changes to building facades without the appropriate licence.

Property owners and commercial establishments are now required to obtain proper permits before making any facade modifications. Violators will face fines of Dh1,000 for the first offence, Dh2,000 for a second violation, and Dh4,000 for any third or repeated offences. The regulations also extend to unauthorised fencing, enclosing, or covering of properties, with fines ranging from Dh3,000 to Dh10,000 for repeated violations.

These measures are part of the DMT’s ongoing efforts to preserve the aesthetic integrity of public spaces, and came into force on 16 March 2025. The regulations mirror the provisions of Abu Dhabi Law No. 2/2012, which prohibits actions that negatively impact the cultural, architectural, or aesthetic features of public areas.

In addition to facade regulations, the DMT has issued reminders on the laws on abandoned vehicles, with fines for leaving vehicles in a way that distorts the public appearance. These fines range from Dh500 for first-time offenders to Dh2,000 for repeated violations.

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Publications

Lexis Middle East Law Alert: March-April 2025 Edition

27/03/202527/03/2025
by Hannah Gutang

Welcome to the March-April 2025 edition of Lexis Middle East Law Alert, a premier source for in-depth analysis of the evolving legal landscape across the MENA region. This issue provides a detailed examination of significant legal reforms and updates that are poised to shape the future of law and business in the area.

In this edition, the focus is on pivotal legal reforms and updates within the MENA region, with particular emphasis on the newly enacted Omani Banking Law (Oman Sultani Decree No. 2/2025) and the revised Qatar International Centre for Conciliation and Arbitration (QICCA) Arbitration Rules. These legislative advancements are designed to modernise existing legal frameworks, bolster global competitiveness, and adeptly incorporate technological innovations within their respective domains. The Omani Banking Law marks a significant shift from a complex regulatory framework to a streamlined legal structure, enhancing the regulation of financial institutions and addressing digital banking. Meanwhile, the updated QICCA Arbitration Rules introduce technology-driven procedures and expedited processes, focusing on customer-centric reforms to improve dispute resolution competitiveness. Despite differences in jurisdiction and sector focus, both reforms reflect a strategic commitment to embracing technological advancements and refining regulatory details to meet contemporary business needs.

Stay informed with Lexis Middle East Law Alert, your source for the latest legal developments and insights from across the MENA region.

FEATURE: BANKING REVOLUTION

Sakshi Puri and Asad Vellani from Al Tamimi & Co discuss the implications of Oman Sultani Decree No. 2/2025 on the country’s banking and financial sectors.

FEATURE: AIMING FOR BEST PRACTICE

Alexander Whyatt, Neil Donald, and Omid Mousavi from Eversheds Sutherland outline the new arbitration rules implemented by QICCA, aimed at making the arbitration process more efficient and straightforward.

IN-HOUSE PROFILE: POWER, POLICIES, AND LEGAL PROWESS

Padideh Ahmadi, Group Legal Counsel at Energetech, shares valuable insights into industry trends, regulatory developments, and the art of balancing legal risks with business strategy, drawing from her journey from law school to spearheading commodity and renewable energy deals.

IN-HOUSE PROFILE: PRACTITIONER PERSPECTIVE

Hayden Morgan from Pinsent Masons discusses the implications of a new UAE law aimed at mitigating the effects of climate change.

MOVERS AND SHAKERS

An overview of significant appointments and career advancements in the legal sector across the region, emphasising key changes transforming the professional environment.

CONTRACT WATCH: CLOUD COMPUTING

David Walker, Partner at ASAR – Al Ruwayeh & Partners in Bahrain, explains Bahrain Law No. 1/2025, which was introduced in January 2025 to regulate timesharing in residential units and establish a legal framework for such arrangements.

Lexis Middle East Law Alert_March-April 2025

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TAX AND FINANCE ROUND-UP

Stay updated on the latest tax and financial developments in the region, with a focus on the recent UAE Tax Disputes regulations.

LEGAL ROUND-UP

Keep informed with our legal round-up, featuring the latest DIFC regulations concerning its judicial and administrative roles.

LAW MONITOR

Discover the recent legal progressions in the GCC, with a focus on the newly implemented competition law regulations in the UAE.

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News developments

Lexis Middle East HR Alert – March 2025 Edition

24/03/202524/03/2025
by Hannah Gutang

Welcome to the March 2025 edition of Lexis Middle East HR Alert, your indispensable guide to understanding the dynamic legal and business environment affecting HR in the Middle East. As the region continues to evolve and harmonise with international standards, it is crucial for HR professionals, legal advisors, and business leaders to remain informed about the latest developments and trends impacting the workforce. This issue highlights significant amendments to Saudi and UAE labour laws, emphasising enhanced worker protection and strict compliance measures.

In Saudi Arabia, updates to Cabinet Decision No. 219/1426 clarify the enforcement roles of the Ministry of Human Resources and Social Development and the Ministry of Interior, with increased fines for unauthorised employment ranging from 200,000 to 500,000 Riyals. The UAE’s Federal Decree-Law No. 9/2024 introduces amendments aimed at improving employer compliance, notably imposing fines of up to one million AED for employing workers fictitiously, with potential multiplication based on the number of workers involved. Additionally, Oman has implemented a new scheme requiring monthly employer contributions to the Social Insurance Organisation, ensuring expatriate employees receive their end-of-service gratuity dues more efficiently. Our comprehensive analysis delves into the implications of these legislative changes for HR practices across the region, exploring how these updates will affect compliance strategies, employee relations, and overall workforce management.

Stay ahead of the curve with Lexis Middle East HR Alert, as we provide you with the insights needed to navigate the complexities of HR in the Middle East.

Happy reading!

This edition features a diverse range of content, including:

Feature: A More Flexible Approach

Ben Brown and Sarit Thomas of Clyde & Co explore the greater adaptability afforded to employees and employers following the revisions to the ADGM’s Employment Regulations, set to be implemented on April 1, 2025.

Trend Setter: Recruitment

Mary Rintu from NYK Law analyses how the shift towards prioritising practical skills over experience in hiring may offer both opportunities and challenges for employers in the UAE.

News Round-up: Covering Recent Key Developments – Region-Wide

Keep up-to-date with the most recent regional developments, including a consultation on DIFC Employment Law.

Immigration Focus

Deepen your knowledge of the changing immigration and visa rules in the Gulf Cooperation Council (GCC) nations, emphasising the grace period for visa violators in Qatar.

Law Changes: New and Proposed MENA Laws

Balall Maqbool, Hamood Al Rawahi, and Mehdi Al Lawati of DLA Piper Middle East discuss Oman Ministerial Decision No. 13/2025 and the newly introduced regulations on part-time work in Oman.

Case Focus: QFC Employment Standards Office v Meinhardt BIM Studios LLC [2024] QIC (F) 24

Umar Azmeh, Registrar at QICDRC, highlights the importance of this case, comparing it to Donoghue v Stevenson [1932] AC 562, a landmark in negligence law. The QFC Employment Standards Office (ESO) is crucial in enforcing the QFC Employment Regulations 2020 through its investigations and guidance.

Enrich your understanding of the HR landscape and stay up-to-date with the latest trends, cases, and policies through the newest issue of Lexis Middle East – HR Alert.

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HR Profile: People and Technology

Uchenna Okpara Izuagba, Chief Human Resources Officer at Gastronaut Hospitality, asserts that prioritising employee needs and leveraging technology are essential for success in the UAE hospitality industry.

In-House Profile: Practitioner Perspective

Sarah Malik, Pavithra Rajendran, and Sara Nassif from SOL International outline the main aspects of UAE health and safety laws and the National Standard for the Occupational Safety and Health Management System (OSHMS).

Policy Pointers: Sponsorship transfers

Sarah Khasawneh, Associate at Pinsent Masons, highlighted that recent legal reforms in Qatar have changed the sponsorship transfer process by eliminating the need for NOC. Employees can now switch jobs without their current employer’s approval, improving worker mobility.

Moves and Changes

Stay updated on the newest business trends, significant appointments, and promotions in the region to stay connected with the market’s key influencers.