United Arab Emirates Archives - Page 22 of 67

UAE: Issues Federal Decree Establishing UAE Aid Agency

14/11/202414/11/2024
by Hannah Gutang

The UAE has issued a Federal Decree No. 27/2024 to establish the UAE Aid Agency, affiliated with the International Humanitarian and Philanthropic Council.

The agency will implement foreign aid programs, focusing on disaster relief, early recovery, post-conflict stabilisation, development, and capacity-building initiatives.

It aims to enhance the impact of the UAE’s global priority foreign aid and maximise positive outcomes in executing humanitarian relief programs and developmental projects worldwide.

The UAE’s leadership has emphasised the country’s commitment to addressing global humanitarian challenges, fostering sustainable development, and collaborating with international partners to create a lasting positive impact, especially in crisis-affected regions.

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News developments

Abu Dhabi: Sets 15% Limit For Exceptional School Fee Hike

14/11/202414/11/2024
by Hannah Gutang

Gulf Insider, 11 November 2024: Private schools in Abu Dhabi are not permitted to raise tuition fees by more than 15% even in exceptional circumstances, and they must meet specific conditions before seeking approval for such an extraordinary increase.

These rules are part of the new education policy recently issued by the Department of Education and Knowledge – Abu Dhabi (ADEK).

ADEK has set the cap for exceptional tuition fee increases based on Abu Dhabi’s Education Cost Index.

To qualify for an exceptional fee increase, schools must demonstrate financial losses over the past two years and provide audited financial statements for this period.

Additionally, they must have been in operation for at least three years, hold a valid licence, and maintain an occupancy rate of at least 80%.

If approved, schools are limited to one exceptional fee increase per academic year.

The Department has emphasised its right to reject any request for fee increases, underscoring that tuition fees should be collected in at least three instalments, going up to ten instalments throughout the academic year.

According to the new policy, schools may collect the first instalment a month before the start of the academic year.

They are also authorised to charge a registration fee of up to 5% of the approved tuition fee, which can be collected from enrolled students up to four months before the academic year begins, and must be deducted from the student’s final tuition fees.

Schools are prohibited from requesting or accepting any financial guarantees from parents as a substitute for tuition payments, and they cannot request a pre-deposit, initial application, or first-time registration fee from parents before the student is enrolled.

The new policy requires schools to itemise tuition fees into six components: tuition fees, educational resource fees, uniform fees, transportation fees, extra-curricular activity fees, and other fees.

These components must be disclosed to parents during registration.

Schools are also allowed to charge administrative fees for board exams, provided they are clearly justified and disclosed on the school’s website.

Embassy-affiliated private schools can apply for an exceptional fee increase, subject to requirements such as justifying the increase, obtaining approval from the school’s Board of Trustees, and providing consent from the relevant embassy or consulate, if applicable. Schools must post detailed tuition payment schedules on their websites and may enter agreements with parents regarding compliance to these schedules.

Under normal circumstances, schools are only allowed to increase fees according to their rating in school inspections, called Irtiqaa, in conjunction with the Education Cost Index (ECI).

The maximum fee increase allowed varies based on the school’s rating, with ‘outstanding’ schools having the highest cap of 3.94% and ‘very weak’ schools limited to a maximum of 2.25%.

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News developments

Lexis Middle East Law Alert: Special Supplement

11/11/202411/11/2024
by Hannah Gutang

Welcome to the Lexis Middle East Law Alert: Special Digital Economy Supplement. This edition offers a preview of the key topics and discussions that will be explored at Ooredoo’s Digital Ecosystem conference, with insightful articles from moderators and panellists leading these sessions. Look forward to the analysis of digital innovation and the policy frameworks shaping transformation across the MENA region.

This supplement features a variety of articles, including:

Feature: The Future of Telecoms

Dr. Bharat Vagadia from Ooredoo Group examines the future of the telecom sector in the MENA region, discussing both technical advancements and regulatory perspectives.

Feature: Consumers: The Right Approach

Ken Wong and Ben Gibson from CMS explore consumer protection approaches within the telecom sector in Saudi Arabia and the UAE.

Feature: Artificial Intelligence

Umar Azmeh, Registrar at the Qatar International Court and Dispute Resolution Centre (QICDRC), analyses how AI is enhancing the GCC’s legal sector, along with its risks and future potential.

Feature: Cloud Computing: Supporting Development

Shahin Yasin from Muayad & Associates provides insights into Iraq’s rising interest in cloud computing across public and private sectors and the legal frameworks needed to facilitate growth.

Feature: Cybersecurity: The Need to Know

Steve Jump from Custodiet explains why understanding a business’ specific cybersecurity needs is essential.

News Round-up: Regional Legal and Regulatory Updates

Stay informed on the latest legal and regulatory changes across the region, including new AI guidelines introduced by the Qatar Central Bank.

Business News Round-up: Battling to Keep Communication Lines Open

Dr. Samer Fares, CEO of Ooredoo Palestine, shares efforts to maintain life-saving communication lines in conflict-affected Gaza.

Lexis Middle East Law Alert – Ooredoo Digital Economy Supplement

Explore the past editions of the Lexis® Middle East Law Alert and stay up-to-date with the latest news! Click the links below for instant access to older editions.

Lexis Middle East Law Alert_January-February 2024

Lexis Middle East Law Alert_May/June 2024 Edition

Lexis Middle East Law Alert_August-September 2024

Interview: Ahmad Mohamed Al-Kuwari > QNBN

Engineer Ahmad Mohamed Al-Kuwari, CEO of Qatar National Broadband Network (QNBN), discusses the critical role QNBN has played in building Qatar’s digital infrastructure and offers insights into the future direction of the Qatari telecommunications sector.

Any Questions? Can Personal Data Leave Saudi Arabia?

Ken Wong from CMS discusses the regulations on transferring personal data outside of Saudi Arabia.

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News developments

UAE: Tax Loss Utilisation Rules for Companies

08/11/202408/11/2024
by Hannah Gutang

Khaleej Times, 4 November 2024: UAE companies must meet certain conditions to claim tax losses.

Tax losses can be carried forward without limitation provided the same person or persons continue to own at least 50% of the entity with the losses.

If there is a greater than 50% change in ownership, tax losses may still be carried forward provided there is no major change in the nature or conduct of the entity’s business.

Tax losses from one UAE group company may be used to offset the taxable income of another UAE group company where there is 75% or more common ownership and certain other conditions are met.

These conditions include both companies being UAE resident juridical persons, neither being an exempt person or a qualifying free zone business, and their financial statements being prepared using the same accounting standards and financial year.

Tax losses can, subject to certain conditions, be offset against the taxable income of future periods, up to a maximum of 75% of the taxable income in each of those future periods.

Any excess (unused) tax losses can be carried forward and used against taxable income of future tax periods indefinitely.

Example: A taxpayer has a taxable income of Dh360,000 and carried forward losses of Dh300,000.

It can offset (75% x Dh360,000) = Dh270,000 of its losses carried forward in the relevant tax period, reducing its taxable income to Dh90,000.

The amount of tax losses available for carry forward to subsequent tax periods would reduce to Dh30,000 (Dh300,000-Dh270,000).

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News developments

Sharjah: Issues a Decree Establishing the Judicial Council

08/11/202408/11/2024
by Hannah Gutang

Sharjah has issued a decree establishing the Judicial Council in the Emirate, to be chaired by the Deputy Ruler.

The decree states the establishment of a judicial council called the “Judicial Council”, which shall have legal personality and the necessary legal capacity to achieve its objectives and exercise its competencies.

It shall have financial and administrative independence and shall be the highest authority for the judicial system in the Emirate, aiming to assist the Ruler in managing and organising the judicial authority.

The Judicial Council shall be formed under the chairmanship of the Deputy Ruler, and the membership of the Head of the Judicial Department, the Head of the Legal Department of the Government, the Head of the Court of Cassation, the Head of the Judicial Inspection Department, and two members of the judicial authority chosen by the Judicial Council.

A law shall be issued to organise the Judicial Council in the Emirate, in accordance with the legislative procedures followed.

For the full story, click here.

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News developments

Dubai: DFSA Fines Company for Unauthorised, Misleading Financial Promotions

08/11/202408/11/2024
by Hannah Gutang

The Dubai Financial Services Authority (DFSA) has published a Decision Notice against Vedas International Marketing Management (Vedas Marketing) for unauthorised and deceptive Financial Promotions related to the Multibank Group.

The DFSA has stated that it had imposed a financial penalty of US$100,000 (AED367,000) on Vedas Marketing for conducting unauthorised financial promotions about the Multibank Group to individuals located in the DIFC.

Also, for engaging in misleading and deceptive conduct by representing that certain entities in the Multibank Group were regulated by the DFSA, when in fact, none of the promoted entities were.

The Multibank Group offers trading platforms, and the DFSA has made no allegations of wrongdoing against the Multibank Group itself in the Decision Notice.

On 2 June 2024, Vedas Marketing challenged the conclusions in the DFSA’s Decision Notice by referring it to the Financial Markets Tribunal (FMT).

However, the FMT directed on 22 July 2024 that the reference should be struck out due to Vedas Marketing’s failure to pay the required filing fee for the referral.

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News developments

Abu Dhabi: Occupational Safety and Health Awareness

08/11/202408/11/2024
by Hannah Gutang

Al Etihad, 1 November 2024: The Municipality of Abu Dhabi City has stressed to consulting offices and high-risk contracting companies the importance of fully complying with occupational health and safety requirements at construction sites.

It has emphasised the need to meet all standards set by the Abu Dhabi Occupational Safety and Health System.

This came during the awareness workshop organised by the Environment, Health and Safety Department in the Municipal Council hall in the Abu Dhabi City Municipality building, which aimed to enhance the awareness and commitment of consulting offices and contracting companies to preventive measures that would create an ideal, positive, and healthy work environment free of accidents.

The workshop’s topics included explaining the requirements of the Abu Dhabi Occupational Safety and Health System, and the mechanism for monitoring the implementation of these requirements in terms of submitting periodic reports, activity reports, auditing, and others.

The workshop was keen to raise the level of knowledge of newly registered construction and contracting entities about the requirements of the Abu Dhabi Occupational Safety and Health System.

Through these awareness workshops, the Municipality of Abu Dhabi City emphasises the necessity of maintaining the safety of workers in the construction sector and preserving their general health, as it is a top priority, as this sector is one of the most sensitive activities compared to all other sectors and businesses.

For the full story, click here.

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News developments

UAE: Regulator Sets Requirements for End-of-Service Gratuity Investment Funds

31/10/202431/10/2024
by Hannah Gutang

Mubasher, 28 October 2024: The UAE Securities and Commodities Authority (SCA) has established eight key requirements for companies licensed to manage end-of-service gratuity savings funds within the country.

These requirements are part of the optional alternative system for end-of-service benefits, known as the “savings scheme.”

Financial institutions that have obtained licenses from the SCA have highlighted that the most crucial requirements include determining the contribution rate, ensuring a safe investment of funds to address concerns about potential losses, and specifying the timing for receiving entitlements upon termination of employment.

The requirements also cover the possibility of employees increasing their contributions to maximise benefits, as well as the option to continue investing their entitled funds in the fund after termination of employment.

Additionally, the benefits for participating employees and employers who contribute to these funds have been outlined.

The SCA has granted the first-of-its-kind licences to “National Bonds Corporation” and “Daman Investments” to manage end-of-service gratuity savings funds within the UAE.

This move aims to facilitate the safe and reliable investment of employee gratuities, ensuring the protection of their rights and increasing the value of their entitlements while enhancing the UAE’s position as an attractive destination for work and investment in the region.

According to the National Bonds Corporation, the basic employer contribution rate for their capital-protected investment fund is 5.83% of the employee’s basic monthly salary for full-time employees with less than five years of service, and 8.33% for those with more than five years of service.

Employees can also voluntarily contribute a percentage of their salary or a fixed monthly amount, subject to a maximum of 25% of their annual salary.

Participating employees are entitled to receive all basic contributions made by their employer to the alternative end-of-service gratuity system, along with any accrued returns during the contribution period, within 14 days of termination of employment.

Beneficiaries have the option to continue investing their entitled funds in the fund, and employees can withdraw part or all of their voluntary contributions or investment returns at any time during their employment, subject to conditions set by the fund manager.

For the full story, click here.

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News developments

ADGM: Enhancing Regulatory Framework for Sustainable Financial Practices

31/10/202431/10/2024
by Hannah Gutang

The ADGM Financial Services Regulatory Authority (FSRA) has published a Consultation Paper aimed at enhancing its regulatory framework to ensure continued alignment with the guidelines outlined by the Basel Committee on Banking Supervision (BCBS).

The key areas of enhancements to the regulatory framework pertain to corporate governance expectations, requirements around notifications to the FSRA, related party transactions, provisioning for credit exposures, stress testing expectations, designation of domestic systemically important banks, and expectations around the management of country risk and transfer risk.

This consultation paper is of interest to all Authorised Persons operating in ADGM or seeking to do so, particularly banks, insurers, and entities authorised to provide credit or manage profit-sharing investment accounts (PSIAu) in ADGM.

The FSRA seeks feedback to establish a regulatory environment built on a solid foundation that supports sustainable financial practices.

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News developments

UAE: FTA Publishes New Guide on Tax Residency and Tax Residency Certificate

24/10/202424/10/2024
by Hannah Gutang

On 18 October 2024, the UAE Federal Tax Authority (FTA) had published a new guide titled Tax Residency and Tax Residency Certificate – Tax Procedures Guide (TGPTR1).

The guide covers various aspects of tax residency, reviewing the relevant criteria under UAE tax laws and double taxation agreements (DTAs) and offering several examples.

It provides guidance on how a UAE tax resident can obtain a Tax Residency Certificate (TRC) or request the FTA’s stamp on an original TRC form issued by another jurisdiction.

One of the key aspects the guide addresses relates to the Place of Effective Management (POEM) as a criterion for determining UAE corporate tax residency.

The guide analyses the facts and circumstances that need to be considered when deciding if key management and commercial decisions, on the basis of which POEM is determined, are made in the UAE or elsewhere.

It indicates various criteria for identifying persons who make key management and commercial decisions for the company, outlining three tests: the board of directors test, the delegation of authority test, and the shareholder activity test.

The guide offers various examples of when the POEM is in the UAE (e.g., board meetings held virtually when the majority of directors are physically located in the UAE) or not (e.g., when key management and commercial decisions are made in the UAE on an occasional or one-off basis).

The guide also explains who can qualify for the TRC and the procedures to follow to obtain it.

A TRC cannot be obtained for future periods or periods exceeding 12 months.

When a TRC is needed for the current period, the FTA will review the application after three months into the period for juridical persons, as soon as the criteria to be a Tax Resident are met for natural persons, and one day into the period for Government Entities and Government Controlled Entities.

The new guide is essential for those handling corporate tax in the UAE or navigating global tax responsibilities.

Although not legally binding, it will certainly help businesses and individuals optimise their tax strategies.

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