UAE: Drone Flying Operations Suspended for Owners, Practitioners and Enthusiasts

The UAE’s Interior Ministry has announced it is stopping all flying operations for owners, practitioners and enthusiasts of drones from 22 January 2022.

This will include drones and light sports aircrafts.

It will apply to air and sail spots as well.

They introduced the suspension together with the General Authority for Civil Aviation and in line with the relative guidelines.

They issued the Decision following reports of recent misuse.

Entities which have work contracts or commercial or advertising projects which rely on filming using drones must communicate with the permit authorities to take the necessary exceptions and permits to carry out their work and projects during this period to avoid any consequences which affect the timing of these projects.

Anyone performing these activities during the suspension period or disregarding guidelines will be penalised.

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UAE: First Space Economic Zone to be Established

The UAE Space Agency and Masdar have announced they have agreed to establish the country’s first Space Economic Zone in Masdar City to create an integrated business ecosystem to propel start-ups and SMEs.

It will be one of many space-tech hubs which the UAE Space Agency will launch to create a competitive private sector, build national capabilities and contribute to the UAE’s economic growth for the next 50 years.

The Zone will offer world-class infrastructure and an environment which encourages the development of the national space industry. Businesses will be offered an integrated package of benefits including incubation, office space, mentorship, networking, investment opportunities, priority access to Government contracts and closer cooperation with leading global research centres.

The cooperation agreement was signed on the sidelines of the Abu Dhabi Sustainability Week 2022.

It was signed for the Space Agency by its Director General, His Excellency Salem Butti Salem Al Qubaisi and for Masdar by its CEO, Mohamed Al Ramahi.

Under the agreement, the Masdar City Free Zone will offer tailor-made business licenses for space-related companies across the launch sector, satellite communication, logistics, data analysis, science, technology, engineering, among other things.

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UAE: Cabinet Decisions Redefining Administrative Fines for Tax Issued

Alroeya, 19 January 2022: The UAE’s Cabinet has issued two decisions redefining the administrative fines which will be imposed for Tax Law violations committed before 28 June 2021 in the State.

It will be 30% of the total unpaid fines by that date provided certain conditions are met.

Taxpayers will only have to pay 30% of the unpaid taxes if they paid the outstanding amount by 31 December 2021.

If the taxpayer didn’t pay the full tax owed or 30% of the total administrative fines by 31 December 2021, they can pay both by 31 December 2022.

The second decision will come into force at the start of March and gives the committee formed by a Decision by the Chairman of the Authority the right to approve the payment of the administrative fines in instalments. For full story, click here.

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Dubai: Drone-related Activity Permits Suspended

Khaleej Times (United Arab Emirates), 18 January 2022: Dubai’s Civil Aviation Authority has announced it has suspended the issuing of all no-objection certificates and permits for drone-related activities until further notice.

The notification has been sent to all of those who have received no-objection certificates.

No reason for the suspension was given.

Drone operators need a no-objection certificate from the Authority to fly Unmanned Aerial Vehicles in the Emirate and to fly drones during events, commercial purposes, aerial filming or advertising purposes or personal non-commercial use.

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UAE: Implementing Regulations to Labour Law Approved

The National, 14 January 2022: The UAE’s Cabinet has approved the Implementing Regulations to the Labour Law.

They guarantee employee rights and allow flexibility to use other kinds of working models.

The Cabinet also approved a new Sports Law to regulate sports activities in the country.

In addition, they approved new patent registration regulations for inventors and protect the right to research microorganisms.

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Dubai: New Procedures for Visiting Foreign Yachts

Albayan, 11 January 2022: The Dubai Maritime City Authority has adopted new measures to facilitate necessary procedures for the inspection of foreign yachts visiting the Emirate of Dubai in support of the “Dubai Winter Destination Yachting” initiative.

The Executive Director of the Dubai Maritime City Authority, stressed that the decision came in line with the authority’s aim of strengthening the distinguished position of the Emirate of Dubai as a leading global destination in the marine sector and the framework of supporting the “Dubai is a winter destination for yachts” initiative. The authority has begun coordination with Dubai Customs in implementing inspection procedures for visiting foreign yachts by Dubai Customs inspectors upon their arrival at the marina.

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Dubai: New Law on Rights of People With Disabilities

Alroeya, 10 January 2022: The Dubai Ruler, has issued Dubai Law No. 3/2022 on the rights of people with disability in the emirate of Dubai.

HRH Hamdan Bin Mohamed Bin Rashid Al Maktoum has also issued Dubai Decision 1/2022 of the Executive Council promulgating the executive regulation of this law.

The aim of the law is to make sure that practices in Dubai are aligned with the international best practices, especially in relation to rights provided for by the international agreement to those with a disability.

The law will seek to include the opinions of disabled people when policies and legislation that may affect their quality of life are being drafted.

Disabled people are entitled to inclusive education, and job opportunities in all sectors, as well as access to rehabilitation, health care and social services.

They are also entitled to all services such as worship, the police and legal services, and relevant entities should provide them with the ability to access data and information through various platforms and inform them about their legal rights.

The new law seeks to ensure disabled people have access to banking services and opportunities to participate in various sports and entertainments.

A new committee, called the Higher Committee to Protect the Rights of People of Determination, will be created and will include representatives from relevant bodies and those representing disabled people.

The committee will oversee all affairs concerning disabled people in Dubai, and implement policies, plans and initiatives to protect their rights.

It will also propose legislation which aims to protecting the rights of people with disabilities and integrating them into society.

The Community Development Authority in Dubai will issue ID cards for people with disabilities registered in the Emirate which will help them access facilities and services allocated to them.

The new law replaces Dubai Law No. 2/2012 on the Protection of the Rights of People with Disabilities in Dubai and will be effective from the date of its publication in the official gazette.

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UAE: DAFZ launches ‘Talent Pass’ licence

Alroeya, 9 January 2022: The Dubai Crown Prince and Chairman of Dubai Executive Council has issued directives to launch a Talent Pass licence by Dubai Free Zone “DAFZ”.

The licence will be for economic activities related to freelancing and economic activities which are related to the media, education, technology, art, marketing, and consultancy operations operated by qualified individuals.

The licence will be available to all individuals from around the world who have specialised skills to help group the business environment in the free zone and strengthen the position of Dubai as hub for innovators and gifted individuals.

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Cybercrime: Business Email Compromise and the Quincecare Duty of Care

Business Email Compromise

Business email compromise is a form of cyber fraud whereby a hacker targets and obtains access to a business email account, imitates the business and emails fraudulent payment requests to the hacked company’s bank.     

Quincecare Duty of Care (‘Quincecare’) 

In the 1992 case of Barclays Bank plc v Quincecare Ltd the English courts found that a bank owes an implied contractual and co-extensive tortious duty of care to act with reasonable care and skill when performing a customer’s instructions, and not to act on those instructions where it believes the instructions will facilitate a fraud on the account holder.  

The Quincecare duty has been developed and upheld: the UK Supreme Court upheld a claim for damages under the duty in the case of Singularis Holdings Ltd (in liquidation) v Daiwa Capital Markets Europe Ltd [2019] UKSC 50, and the English Court of Appeal held that in certain circumstances banks may be required to investigate the payment instruction.  

What happened?

We recently acted on a matter that involved the Quincecare duty. Our claimant client was a shipping logistics provider specialising in transporting raw materials for use in the steel making industry. The defendant opponent was our client’s bank based in the DIFC.

It was not in dispute that the claimant was the victim of a cyber hack. Via a phishing email the hackers were able to access and take control of the claimant’s systems, forge invoices and send fraudulent payment instructions to the bank, on which the bank acted and paid out monies to the fraudster.

It was the claimant’s case that there were a number of red flags in the fraudulent instructions that put the bank on inquiry, and that the bank’s failure to spot these and  execute  the fraud resulted in it breaching its Quincecare duty.

The bank argued that it was under no obligation to inquire as to the purpose of any transfer seemingly authorised by instruction nor to  identity  the transferee. It also sought to argue that that there was a difference between whether payment out was made from funds owed by a bank to its customer, or from funds which the bank had agreed to advance to its customer on overdraft.

The question before the DIFC court was, in the emerging domain of business email cyber fraud, who was to bear the loss, the customer or the bank? The answer was fact-specific.

What was decided?

The DIFC court noted the number of red flags in connection with the fraudulent instructions, not least that the fraud did not follow the established payment request procedure of the parties and that the purpose of the payments was outside of the claimant’s normal business and mandate.

The DIFC court found that the bank had reasonable grounds for believing that the payment instructions were an attempt to misappropriate the customer’s funds. It also found that the bank did owe a Quincecare duty of care to its customer/the claimant  to refrain from paying out on fraudulent payment instructions where it had such reasonable grounds to believe it was an attempt to misappropriate the money.

It further found that the duty bites  at the time of compliance with the instruction to the bank to pay out, and that the claimant was equally harmed whether it was its own money or the bank’s money (i.e. an overdraft).

The court dismissed the bank’s argument that the claimant was contributorily negligent for failing to ensure that his email systems were secure.

Why is this significant?

The DIFC court found overwhelmingly in favour of our claimant client and ordered that it did not have to repay to the bank the misappropriated funds, and that the bank pay damages in consequential losses and costs on the basis that the claimant was wholly successful.  

Given the common law precedent of the DIFC courts, financial institutions in the DIFC should be aware of the judgment and the application of the Quincecare duty of care in this jurisdiction.

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UAE: Dubai World Trade Centre to Become a Zone Supporting Virtual and Crypto Assets

Alroeya, 20 December 2021: It has been announced that Dubai World Trade Centre will be turned into a comprehensive zone that supports the organisation and supervision of virtual and crypto assets.

This will include their products, digital exchange, and operators of these products in Dubai.

The aim is to reflect Dubai’s wish to create new approaches in the economic and financial sectors which will help attract talent and those who work in promising areas of this specialisation.

The Dubai World Trade will work with the private sector and other relevant bodies to build a legislative and supervisory system for digital assets. For full story, click here.

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