Abu Dhabi Global Market Amends Fees Regime for Late Submission of Regulatory Returns

The Financial Services Regulatory Authority of Abu Dhabi’s Global Market has announced it has amended its fees regime in relation to the late submission of regulatory returns.

A flat fee of $500 where a regulatory return has become overdue has been adopted.

The scope of the regulatory returns which are subject to this fee have been amended.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.

UAE: Federal Tax Authority Reviews Draft Corporation Tax Law

Gulf News (United Arab Emirates), 20 April 2022: The UAE’s Federal Tax Authority has announced it has reviewed the draft Corporation Tax Law.

They have reviewed the progress on the Law.

Corporation tax will become payable by affected entities on 1 June 2023.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.

UAE: Implementing Regulations to Federal Decree-Law on Entry and Residence of Foreigners Approved

The UAE Cabinet has approved the Implementing Regulations to the Federal Decree-Law on Entry and Residence of Foreigners.

They provide comprehensive information on the types and conditions of entry visas and residence permits.

The new system of entry and residence aims to attract and retain global talent and skilled workers from across the world, boost the competitiveness and flexibility of the job market and foster a high sense of stability among UAE residents and families.

Substantial amendments have been introduced to the Golden Residence Scheme to simplify the eligibility criteria and expand the categories of beneficiaries. This 10-year residence is granted to investors, entrepreneurs, exceptional talents, scientists and professionals, outstanding students and graduates, humanitarian pioneers and frontline heroes.

The amendments allow Golden Residence holders to sponsor their family members, including spouses and children regardless of their age. They also allow them to sponsor support services or domestic labourers without limiting their number. In addition, there is no restriction related to the maximum duration of stay outside the UAE in order to keep the Golden Residence valid.

There are other benefits for family members which allow them to stay in the UAE where the original holder of the Golden Residence dies until the end of their permit duration.

Golden Residence for Scientists is given to scientists and researchers with high achievements and influence in their field based on recommendations from the Emirates Scientists Council.

The candidate should have a PhD or master’s degree in engineering, technology, life sciences and natural sciences from the best universities in the world as well as substantial research achievements.

The Golden Residence for Professionals category has been expanded. The aim is to attract highly skilled workers with educational qualifications and professional experience in all disciplines, including medicine, sciences and engineering, information technology, business and administration, education, law, culture and social sciences.

The applicants should have a valid employment contract in the UAE and should be classified in the first or second occupational level in line with the Human Resources and Emiratisation Ministry’s classification, which is aligned with the International Standard of Classification of Occupations by the International Labour Organisation.

The minimum educational level must be a bachelor’s degree or equivalent and the monthly salary should be at least 30,000 AED.

Golden Residence for Exceptional Talents is granted to top talents in vital fields. It is awarded based on talent only regardless of the educational qualification, employment status, monthly salary or professional level.

It requires the recommendation or approval of a Federal or local Government entity and includes talented individuals in culture, art, sports, digital technology, inventors and innovators and other vital fields.

Real estate investors can obtain Golden Residence when purchasing a property worth at least two million AED.

Under the new amendments, investors are also entitled to obtain the Golden Residence when purchasing a property with a loan from specific local banks. Investors can also obtain Golden Residence when buying one or more off-plan properties worth at least two million AED from approved local real estate companies.

The Implementing Regulations specify flexible requirements for entrepreneurs eligible to obtain the Golden Residence. An entrepreneur should own or be a partner in a start-up which is registered in the country in the SMEs category and which generates annual revenues of at least one million AED.

In addition, obtaining approval for a start-up idea from an official business incubator or from the Economy Ministry or the relevant local authorities is sufficient to obtain the Golden Residence in this category.

If the individual is a founder or one of the founders of a previous entrepreneurial project or projects which was sold for at least seven million AED, they will be entitled to the Golden Residence. The approval of the Economy Ministry or the relevant local authorities is required for projects or ideas.

The Golden Visa for Outstanding Students and Graduates targets high performing students in UAE secondary schools and outstanding graduates from UAE universities and the best 100 universities worldwide, according to specific criteria. This includes their academic performance, cumulative average, the year of graduation and the university classification.

Major improvements include introducing new five-year residence tracks to attract talents, skilled professionals, freelancers, investors and entrepreneurs. More benefits are offered to facilitate family members residence and longer flexible grace periods of up to six months to stay in the country after the residence permit is cancelled or expired, in addition to facilitating and simplifying the requirements of all residence types.

There is a new Green Residence for Skilled Employees. This provides five-year residency to skilled employees, without a sponsor or employer. The applicants should have a valid employment contract, and should be classified in the first, second or third occupational level as categorised by the Human Resources and Emiratisation Ministry. The minimum educational level must be a bachelor’s degree or equivalent and the salary should be at least 15,000 AED.

There is also a new Green Residence for Freelancing and Self-Employment. This provides a five-year residency for freelancers and self-employed individuals without a sponsor or employer in the UAE. A freelance/self-employment permit has to be obtained from the Human Resources and Emiratisation Ministry. The minimum education level is a bachelor’s degree or specialised diploma, and the annual income from self-employment for the previous two years should be at least 360,000 AED, or the applicant must prove financial solvency throughout their stay in the country.

In addition, there is a Green Residence for Investor or Partner. This residence permit is introduced to encourage investment and provides five-year residency for investors establishing or participating in commercial activities. It replaces the previous residence which was only valid for two years. Requirements include approval of the investment and proof of investment. If the investor or partner has more than one licence, the total invested capital will be calculated. The approval of the relevant local authorities is mandatory.

The new system provides more benefits to family members, allowing residents to easily issue residence permits for their family members, including spouses and children.

The age of children who may be sponsored has been increased from 18 to 25. There is no longer an age limit for unmarried daughters. Disabled children are granted a residence permit, regardless of their age.

Green Residence holders are allowed to issue residence permits for their first-degree relatives and in all cases the residency of family members will be the validity duration as the original residence holder.

The new system offers visitors to the UAE a variety of visa types for different visit purposes. New types of visas are introduced without a host or sponsor being required for the first time. Major improvements include facilitating the entry requirements for all visa types, offering flexible visa durations which meet the needs of visitors and the purpose of the visit. In addition, all entry visas are available for single or multiple entry and can be renewed for similar period(s) and are valid for 60 days from their issued date.

A new Job Exploration Entry Visa has been introduced to attract young talent and skilled professionals to explore job opportunities available in the country. A sponsor or a host is not required. It is given to those classified in the first or second or third skill level by the Human Resources and Emiratisation Ministry and the fresh graduates of the best 500 universities in the world and the minimum educational level should be a bachelor’s degree or its equivalent.

A Business Entry Visa enables easy entry without a sponsor or host being required. The aim is to encourage investors and entrepreneurs to explore business and investment opportunities in the UAE.

In addition to the regular tourist visa that is sponsored by tourism establishment in the UAE, a five-years multi-entry tourist visa has been introduced. This type does not require a sponsor and it allows individuals to stay in the country for up to 90 days continuously. It may be extended for a similar period, provided the entire period of stay does not exceed 180 days in one year.

This visa requires evidence of having a bank balance of $4,000 or its equivalent in foreign currencies during the last six months before the application is submitted.

Under the amendments, a visitor can apply for an entry permit to visit relatives or friends if they are a relative or friend of a UAE citizen or resident. It does not require a sponsor or a host.

An entry permit for a temporary work mission is available to those who have a temporary work assignment like probation testing or project-based mission. This will be sponsored by the employer. It requires a temporary work contract or a letter from the employer clarifying the visit purpose and proof of health fitness to work.

An entry permit for study and training is aimed at those attending training and study courses and/or participating in internship programmes. The sponsor can be universities or educational or research institutions licenced in the country or Government or private entities. It requires a letter from the entity, clarifying the details of the study or training or internship programme and its duration.

The Regulations will be published in the Official Gazette and come into force 90 days after their publication.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.

UAE: Hacking Crimes and Their Penalties Explained

Alroeya, 12 April 2022: The UAE’s Public Prosecution has explained the crime of electronic hacking under Federal Decree-Law No. 34/2021.

Under Article 2 of Federal Decree-Law No. 34/2021, anyone who electronically hacks a website, an information system, an information network, or an information technology medium will be jailed and/or fined between 100,000 and 300,000 AED.

A jail term of at least six months and a fine of between 150,000 and 500,000 AED will be imposed on anyone where the hacking causes harm, destruction, or suspension of the hacked system.

For full story see https://www.alroeya.com/173-76/2280432-%D8%A7%D9%84%D9%86%D9%8A%D8%A7%D8%A8%D8%A9-%D8%A7%D9%84%D8%B9%D8%A7%D9%85%D8%A9-%D9%84%D9%84%D8%A5%D9%85%D8%A7%D8%B1%D8%A7%D8%AA-%D8%AA%D9%88%D8%B6%D8%AD-%D8%AC%D8%B1%D9%8A%D9%85%D8%A9-%D8%A7%D9%84%D8%A7%D8%AE%D8%AA%D8%B1%D8%A7%D9%82-%D8%A7%D9%84%D8%A5%D9%84%D9%83%D8%AA%D8%B1%D9%88%D9%86%D9%8A-%D9%88%D8%B9%D9%82%D9%88%D8%A8%D8%AA%D9%87%D8%A7.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.

Dubai: Decree to Subject Public-Interest Entities to Financial Regulatory Oversight Issued

Arabian Business, 11 March 2022: Dubai’s Ruler has issued a Decree to ensure the finances of public-interest entities are overseen regulatorily.

Under the Decree, these entities will have to maintain up-to-date financial and administrative records so Dubai’s Community Development Authority can review them when necessary.

The Director-General of the Community Development Authority will issue a Decision about the scope of the Authority’s regulatory oversight of these entities.

It will include sources of the entity’s funding and income and nature of their expenditure.

In addition, public-interest entities should comply with transparency standards outlined by the Decree and appoint an external auditor to audit their finances.

If the entities fail to comply with the Decree, the Director-General of the Authority is authorised to take action against the entity.

This may include disciplinary action.

The Authority can also issue recommendations to the relevant authorities to dissolve the entity.

The Decree repeals any other legislation which may contradict it.

It will be published in the Official Gazette and come into force on its issued date.

Also reported in Al Bayan on 10 April 2022. For full story see https://www.albayan.ae/uae/news/2022-04-10-1.4411786.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.

Dubai International Financial Centre Launches Consultation on Proposed Amendments to Prescribed Company Regulations

The Dubai International Financial Centre has launched a consultation on proposed amendments to the DIFC Prescribed Company Regulations. It ends on 4 May 2022.

The key amendments include consolidating and expanding the definition of Qualifying Applicant, consolidating and expanding the definition of Qualifying Purpose, disapplying certain provisions of the Companies Law, DIFC Law No. 5/2018 in respect of private companies for Prescribed Companies whose Qualifying Purpose is a Structured Financing or a Crowdfunding Structure.

There are also miscellaneous amendments.

The amendments are aimed at improving the DIFC’s regulatory framework and providing further structuring options for businesses operating in or from the Centre.

Also reported in Al Bayan on 5 April 2022. For full story see https://www.albayan.ae/economy/uae/2022-04-05-1.4408733.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.

Dubai: Provision of Digital Services Law Approved

Dubai’s Ruler has issued Dubai Law No. 9/2022 on the regulation of the provision of digital services in the Emirate.

It has been issued to accelerate the Emirate’s digital transformation, improve the provision of digital services and promote the digitisation of services in the public and private sectors.

Under the Law and relevant decisions, Government entities and judicial authorities, including the Dubai Courts and Dubai Public Prosecution, as well as non-Government entities in Dubai, have to provide digital services to their customers.

The Chairman of the Executive Council will issue a decision on the roadmap for the implementation of the Law in line with the recommendations of the Digital Dubai Authority.

The Law outlines the conditions for providing digital services and adopting digital identities for obtaining subscribed services as well as cybersecurity requirements set by Dubai Electronic Security Centre.

It also covers the conditions for electronic payment solutions approved by the Department of Finance, service continuity in the event of disruptions, digital services approved by the Digital Dubai Authority and provision of services in Arabic, English and other languages.

Under the Law, digital services provided in Dubai must be user-friendly and accessible to disabled people free of charge.

The Digital Dubai Authority, together with the General Secretariat of the Executive Council of Dubai and the Dubai Electronic Security Centre can exempt an entity from any of these conditions.

The Law states customers have to update their information submitted to digital service providers and adhere to terms and conditions outlined by the entity. Under the Law, customers will be held accountable for misusing the service and not adhering to required procedures.

In addition, under the Law, an entity can outsource its digital services to a public or private company, subject to the approval of relevant authorities and the Finance Department.

The outsourcing contract should clearly outline the responsibilities of each party, including contract duration and confidentiality requirements, as well as the rules for providing digital services.

The Director General of the Digital Dubai Authority, together with the General Secretariat of The Executive Council will issue the decisions and technical requirements required to implement the Law. These decisions will have to be published in the Official Gazette and the technical requirements published on the Digital Dubai Authority’s official website.

All digital service providers in Dubai must comply with the Law within a year of it being implemented.

The Chairman of the Executive Council can extend this deadline for a similar period based on the recommendations of the Digital Dubai Authority.

The Law states Federal and local legislations on digital transactions and digital signatures will apply to digital services in Dubai.

The Law will be published in the Official Gazette and come into force on its published date.

Also reported in Alroeya on 4 April 2022. For full story, click here.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.

UAE: Sustainable Green Building Codes Launched

The UAE has announced it has launched a range of new green building codes.

They were launched to help save energy and water during Expo 2020 Dubai’s Water Week.

The Energy and Infrastructure Minister introduced the list of terms, conditions and specifications which Government buildings and organisations should uphold to get sustainable and environmentally-friendly.

They specify a list of standards, conditions and requirements which will ensure a more sustainable environment for future generations, reduce energy and water consumption, mitigate the carbon footprint of construction and building sites and improve the quality of buildings and their surrounding environment.

They aim to unify local and federal efforts and goals related to energy and water efficiency standards at the national level and contribute to creating high-efficiency buildings. They also aim to work on updating current construction manuals and streamline the development of new guidelines and regulations which align with the UAE’s objectives for the next 50 years as well as its plans to become a global leader in the field of sustainable economic development.

The codes were prepared by the Ministry together with relevant federal and local authorities in line with the UAE Energy Strategy 2050 and the Water Security Strategy 2036. Also reported in Alroeya on 25 March 2022. For full story, click here.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.

Abu Dhabi Global Market Launches Consultation on Proposals to Boost Capital Markets Framework

The Financial Services Regulatory Authority of Abu Dhabi’s Global Market has announced it has launched a consultation on proposals to boost its capital markets framework. It ends on 20 May 2022.

The amendments cover virtual assets, spot commodities, securities, derivatives, benchmarks and emissions allowances.

The consultation has been launched as the Market looks to transition to Virtual Assets Framework 2.0. There are proposed amendments on the requirements on the use, sharing and reuse of public keys, risk disclosure requirements and allowing regulated MTF/Custodian groups in the Global Market to carry out non-fungible token activities.

The Market is also proposing to introduce a new and novel regulatory framework regulating spot commodity trading. If approved, they would become the first international financial centre in the Middle East and North Africa region to offer a framework for the regulation of spot commodities and emission allowances. There are also proposed amendments on mining and petroleum listed entities and new regulatory requirements for benchmarking activities.

In addition, the Market is proposing to improve its regulatory framework by enabling offers and listings by petroleum and mining companies and attracting growing companies by offering more flexible capital structures and avenues to raise capital.

Among other things, there is a proposal to include offering new shares to new investors, representing up to 20% of a company’s existing share capital a year, without triggering the pre-emptive, anti-dilution rights of existing shareholders.

There are also proposals to strengthen its requirements in line with International Organisation of Securities Commissions and comparable jurisdictions in respect of continuous disclosure obligations, preference securities and weighted voting rights.

They are aimed at benefiting markets-related activities, including Virtual Assets, Securities, Derivatives, Commodities and Benchmarks.

They are also aimed at reinforcing and securing the Market’s market-leading capital market ecosystem across the Middle East and North Africa region.

They will affect Recognised Investment Exchanges, Recognised Clearing Houses, MTFs, OTFs, Remote Bodies, Remote Members, Offerors, Issuers, Listed Entities, Reporting Entities and Sponsors.

They will enable greater participation in the primary and secondary markets and ensure market participants continue to operate in line with the highest regulatory standards.

If approved, the amendments will affect the Authority’s Financial Services and Markets Regulations, the Market Rules, Market Infrastructure Rules, General Rules, Conduct of Business Rules, Islamic Finance Rules and Fees Rules.

The existing Rules of Market Conduct will also be replaced with a Code of Market Conduct.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.

UAE to Join Singapore Convention on Mediation

The UAE will join the Singapore Convention on Mediation. It aims to help facilitate international trade and investment and promote mediation as a means of resolving cross-border commercial disputes.

They will become the 56th signatory to the Convention.

The announcement was made at the Abu Dhabi Global Market’s dispute resolution forum, RESOLVE 2022.

The Convention will provide the UAE with a uniform and efficient mechanism to enforce the terms of agreements in other jurisdictions similar to the New York Convention on the Recognition and Enforcement of Arbitral Awards does for international arbitral awards.

To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.