Newsletter Archives - Page 197 of 209 - LexisNexis Middle East

Weekly Spotlight: ADGM announced that businesses registered with them will also be licenced to operate onshore in Abu Dhabi

19/11/201711/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in the Abu Dhabi Global Market, where they have announced businesses who register to operate with them will also be licenced to operate onshore in Abu Dhabi. It follows an agreement between the Global Market and Abu Dhabi’s Economic Development Department. Under the agreement, entities established in the Global Market will be able to hold dual licences providing they satisfy and fulfil the requirements of each jurisdiction and operate according to their rules and regulations. Entities with dual licences will not have to be physically present in Abu Dhabi. However financial service firms will still be subject to the relevant regulatory obligations and applicable laws, including any licencing requirements which may be imposed by any Federal financial service regulators.

Elsewhere, the Market’s Financial Services Regulatory Authority has launched a consultation on its proposed Remote Membership Framework plus other miscellaneous amendments aimed at boosting its capital market regime. The consultation ends on 2 January 2018. If approved, brokers from outside the Global Market would be able to access the Market’s exchanges and clearing houses. This would expand international investor participation in the Market, facilitates cross-border flows and increase liquidity for the Market’s capital market.

UAE: draft law approved to regulate and care for mosques

18/11/201711/12/2019
by Benjamin Filaferro

The UAE’s Federal National Council has approved a draft law to regulate and care for mosques. Under the law, employees must be qualified to work in mosques and anyone who belongs to illegal groups or organisations, practices illegal political or organisational activities or preaches without a licence or approval will not be able to issue fatwas or teach the Holy Quran outside mosques. Anyone who violates the Law will be fined between 20,000 and 50,000 AED and/or jailed for up to three months. Anyone who begs at mosques or interferes with the Imam while they are calling worshippers to prayer or whilst they are preaching will be fined 5,000 AED and or jailed for up to three months.

Bahrain: Amendments to the Kingdom’s Commercial Companies Law approved

18/11/201711/12/2019
by Benjamin Filaferro

The Economic and Financial Commission of Bahrain’s Shoura Council has approved amendments to the Kingdom’s Commercial Companies Law. The amendments to Bahrain Decree-Law No. 21/2001 are contained in Bahrain Decree No. 57/2017. The Commission has referred the amendments to the Council Office Authority to present to the Council at its next session. The aim of these amendments is to improve the Kingdom’s international business rating.

Weekly Spotlight: Bahrain stipulates the requirements for lawyers regarding anti-money laundering and terrorist financing

12/11/201711/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Bahrain, where the Kingdom’s Justice, Islamic Affairs and Endowments Minister, Shaikh Khalid bin Ali Al-Khalifa has issued an Edict stipulating the requirements for lawyers and foreign legal firms regarding anti-money laundering and terrorist financing. The Edict has been issued in line with the Middle East and North Africa Financial Action Task Force (MENAFATF) criteria on anti-money laundering and terrorist financing as well as UN conventions, agreements and UN Security Council Resolutions.

Under Bahrain Edict No. 64/2017, lawyers’ offices, foreign legal offices and firms have to comply with Bahrain Law No. 4/2001 regarding the prohibition and combating of money laundering and terrorist financing to ensure their operations are not used for money laundering or terrorist financing. It makes it mandatory to notify the follow-up and monitoring unit at the Interior Ministry’s Financial Investigation Directorate about any suspicious or abnormal activities, when conducting transactions on behalf of their customers. This includes real estate transactions, fund and asset management and all types of banking. Lawyers’ offices, foreign legal offices and firms have to verify the information provided by their customers as well as clients who demand legal opinions regarding the powers of attorney and write down details in special records accredited by the Justice, Islamic Affairs and Endowments Ministry and inform the follow-up unit about any suspicious information.

The Edict defines ‘suspicious’ and ‘abnormal activities’ as ‘operations which are suspected to be linked, directly or indirectly, to the crimes involving money-laundering and terror funding’. Licensed lawyers and foreign firms have to open accounts for professional purposes in a bank accredited by the Central Bank and all payments or funds collected from or on behalf of customers have to be deposited in the bank. Lawyers and foreign firms also have to set up special e-records to register all lawyers’ activities and legal opinions provided to customers. These records have to include the customer’s name and data, the subject of the power of attorney or legal opinion, date of the service provided to customers, the amount of money paid to the firm, the financial transaction serial number, name of the bank and date of the transfer.

Elsewhere, the Chairman of the Kingdom’s Economic and Financial Affairs Committee, Jalal Kathem has announced tobacco and fizzy and energy drinks have been listed on the VAT list. These commodities will be subject to 5% VAT because they are not considered basic commodities. This will see the cost of tobacco packets increase by roughly 60% while energy drinks will increase by 100%.

UAE: Requirements for employment sponsorship transfer between companies have been tightened

11/11/201711/12/2019
by Benjamin Filaferro

With immediate effect, the UAE’s General Directorate of Residence and Foreigners Affairs has tightened the requirements for employment sponsorship transfer between companies located in the same free trade zone. As a result, all foreign nationals must now undergo a medical examination and obtain a new Emirates ID card. They will be issued a new employment residency permit with a validity of up to three years whereas previously, the visa was issued for the remainder of the initial visa’s validity. Transferee’s dependent’s residency permits are unaffected by this change.

Qatar: Decree-Law amending the country’s 2005 Investment Free Zones Law issued

11/11/201711/12/2019
by Benjamin Filaferro

Qatar’s Emir has issued a Decree-Law amending the country’s 2005 Investment Free Zones Law. Qatar Decree-Law No. 21/2017 amends Qatar Law No. 34/2005. It will come into effect on its issued date and will be published in the Official Gazette.

Weekly Sportlight: Dafza has announced it is going to launch the region’s first e-commerce free zone

05/11/201711/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Dubai, where the Chairman of Dubai’s Airport Freezone Authority (Dafza) has announced it is going to launch the region’s first e-commerce free zone. Dubai CommerCity will be a 2.7-billion AED, 2.1-million square feet joint venture between Dafza and Wasl Asset Management Group. It will be located in the Umm Ramool area and will be strategically placed to be near Dubai’s International Airport. This will provide direct access to e-commerce stakeholders in the MENA region and South Asia. The free zone project will be implemented in two phases. 50% of the project will be completed in both phases. The aim is to accelerate the growth of the e-commerce market in the region, which is expected to reach $20 billion in 2020 in the GCC countries. Over the next five years, e-commerce sector is expected to account for 10% of Dubai’s retail sales. These sales are expected to reach 200 billion AED by the end of this year.

Elsewhere the UAE’s Vice President, Prime Minister and Dubai Ruler has issued a Law regulating inheritance, wills and probate for non-Muslims. It comes into force on its issued date and will be published in the Official Gazette. Dubai Law No. 15/2017 will apply to the wills and assets of non-Muslims based in the Emirate including the DIFC. It creates a clear legal framework for non-Muslims to create wills in line with their wishes. It also outlines clear legal procedures to encourage residents to register their wills and manage their assets in Dubai. It will establish a Non-Muslim Wills and Probate Registry in both the DIFC and Dubai Courts. The heads of these Courts will develop its regulations, policies and procedures. It will specify the legal requirements for wills and probate for non-Muslims as well as the liabilities and obligations of the beneficiaries of wills. In addition it will specify the responsibilities and limitations of will executors as well the regulations governing inheritance and the distribution and management of the estate as well as appeal procedures. Disputes will be adjudicated by the Dubai Courts or DIFC Courts, depending on where the wills are registered. Any non-Muslim will registered at the DIFC or Dubai Courts before this Law will remain valid.

KSA: New tourism visa plans

04/11/201711/12/2019
by Benjamin Filaferro

According to local newspaper reports, Saudi Arabia’s Government has approved new tourism visa plans. To begin with visas will only be issued to tourists using authorised tour operators. The announcement comes as the Kingdom looks to encourage more tourism.

GCC: VAT is likely to be introduced at different times across the GCC region

04/11/201711/12/2019
by Benjamin Filaferro

According to senior International Monetary Fund officials, VAT is likely to be introduced at different times across the GCC region. They had intended to introduce VAT simultaneously in January but so far only Saudi Arabia and the UAE look like they will do so. When it is introduced VAT will be introduced at 5%. It will require significant administrative and technical changes including detailed regulations and making sure all affected companies are registered. However all six GCC states remain committed to introducing it.

Qatar: Cabinet has approved a draft industrial zones law

29/10/201711/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Qatar, where the country’s Cabinet has approved a draft industrial zones law and referred it to the Advisory Council for further consideration. It defines industrial zones as areas designated for industrial purposes in line with its provisions, including lands, installations and facilities erected on it. Under the law, the establishment of industrial zones will be decided by a Cabinet Decision following a recommendation from the Energy and Industry Minister and the relevant authorities in the country. All natural resources which appear or lie in the industrial zone territory will be State property and tenants will be adequately compensated for the loss of full or partial use of these lands. No industrial establishment will be able to be founded in the industrial zones without authorisation from relevant authorities in the State and after Energy and Industry Ministry approval.

The Cabinet also approved a draft law to protect national products and tackle any practices which may harm them internationally but in line with World Trade Organisation agreements. ‘Harmful practices’ are defined as ‘dumping, dedicated subsidy and increase in imports’. ‘Dumping’ is defined as ‘exporting a product to the country at a price below the normal value of its counterpart in the exporting country’. A committee to enforce the law will be established at the Economy and Commerce Ministry. Its members will have experience in WTO agreements and Ministry representatives and relevant entities. It will have the power to receive reports on violations of the law and review them as well as carry out the necessary investigations. It will also be able to propose appropriate measures and practices to be taken regarding complaints referred to it and submit relevant proposals to the Minister. In addition, they will be able to propose preventive measures to protect national products in line with the law. Based on Committee recommendations the Minister will take appropriate measures to enforce the law.

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