

The UAE’s Securities and Commodities Authority has announced it will disclose the names of those who violate its provisions in line with Securities and Commodities Authority Decision No 30/2016. The aim is to protect investors and enhance the principles of sound and fair practices. It is also aimed at improving the efficiency of UAE capital markets. The Securities and Commodities Authority will investigate any alleged violations before publishing their details. If a violation has occurred, the Authority will publish the names and job titles of violators along with the type of infringement(s) and the penalty imposed on its website. Violators will be able to appeal an infringement decision. During this time their details will not be published.
This week the spotlight is on immigration developments across the GCC. According to local media reports in Kuwait, a cap on expatriates is being considered by the country’s population committee. Expatriates account for two thirds of the country’s total 4.4 million population. The Committee has also recommended the number of visas allotted to citizens to hire domestic workers is reduced by up to 50% and the number of visas allotted for security companies with Government contracts is reduced by approximately 25%. The Committee has gone on to recommend a time limit of about 10 to 20 years is set for expatriates in certain employment categories to stay in the country. After this period, they will have to leave and will not have right to return. The Committee has proposed the number of visas anyone living in the country can apply for annually is reduced. This will be done together with the General Information Systems Department at the Interior Ministry. Finally the Committee has called for a law to double fines for breaching residency rules and a law to punish anyone who helps or incites any expatriate worker to escape from their sponsors to be introduced.
Meanwhile in Qatar, the work visa rules for expatriate employees have been amended. However the rules for obtaining family visas and residency permits for spouses and children remain unchanged. To get a family visa, private sector employees will have to earn between 7,000 and 10,000 Riyals each month. They will also need to provide a certified marriage document, their salary certificate and bank statements for six months. Government employees will only have to provide their salary certificate. All applicants will receive a text message advising them of the application outcome. Under the new rules, employers will have to get approval for work visas from the Administrative Development, Labour and Social Affairs Ministry first. They will then have to apply to the Interior Ministry. Employers will be able to get visa approval without providing names and when they sign the employment contract with the worker they will need to present a passport copy, the employment contract and the Ministry’s approval to get the employee’s entry visa.
A senior economist has said the Governments of the Gulf Cooperation Council (GCC) could increase VAT from 5 to 10% by 2020. In addition, the Governments of Bahrain, Kuwait, Oman and Saudi Arabia are looking at introducing a 10% tax on business profits. Qatar already has this type of tax and the UAE imposes 20% on the profits of foreign banks.
Oman’s Government is considering adopting a governance structure as part of plans to open the door for Public Private Partnership (PPP) projects in the Sultanate. A new PPP law has already been drafted and is likely to be enacted soon. It could adopt some of the existing bodies and functions under the existing Privatisation Law. It also sets out a legal framework for the procurement of PPP projects in the country.
Dubai’s Health Authority has issued the first fines for non-compliance with the Emirate’s health Insurance Law. It has fined 25 health centres, clinics, insurance brokers and insurance companies between 10,000 and 80,000 AED. In addition it has referred six clinics for potential fraudulent activities to the prosecution authorities but has not named them.
This week the spotlight is on tax developments in the GCC and wider Middle East, where Saudi Arabia has confirmed no income tax will be imposed on individuals and corporation tax will not be imposed on institutions this side of 2020. The confirmation follows previous comments in 2016 suggesting there were no plans to introduce income, property or commodities taxes as part of the Saudi Vision 2030. A 50% tax on soft drinks and 100% tax on tobacco and energy drinks will be introduced by June 2017. Elsewhere, an expatriate levy which will have to be paid by sponsors by September 2017 and will have to be paid for each expatriate employee. The fee will rise to 800 Riyals by 2020. It has also been confirmed VAT will stay at 5% until 2020.
Meanwhile in Jordan, Jordanian taxpayers who do not submit their 2016 tax returns by 30 April will be fined it has been announced. The fines will be between 100 and 500 Dinars. A weekly fine of 4,000 Dinars will also be applied. Tax returns can be filed online.
Dubai’s Land Department is working on a new rent law and is awaiting approval from the legislative committee. The law is aimed at reducing landlord-tenant disputes and stabilise rental market volatility. It’s understood it will come into force in June. The Land Department is also looking at introducing Real Estate Investment Trusts regulations (REITs).
Saudi Arabia’s Commercial Transactions Law has been amended. The aim is to tackle the issue of bounced cheques. Article 4(2) of the law has been amended to request the relevant authorities increase the penalties for individuals who commit offences regarding bounced cheques. These include jail sentences and naming and shaming those who issue cheques which then bounce.
Dubai’s Land Department has announced new rent regulations are under consideration. The aim is to reduce landlord-tenant disputes and stabilise the Emirate’s rental market. No further details have been given but the draft is ready and will be sent to the Legislative Council soon. It follows the introduction of new measures to improve market transparency, including mandatory use of a unified rental lease form. Department officials are also working on introducing new rental security deposit and unit handover forms.
This week the spotlight is on legal and regulatory developments in Bahrain, where an Investment Limited Partnership Law passed by Bahrain’s Parliament in August 2016 and published in Bahrain Official Gazette, issue 3273 has now come into force. It marks a first for Bahrain and for the wider Gulf Cooperation Council region as Bahrain Edict No. 18/2016 enables investors to establish limited partnerships ‘on-shore’ as well as ‘off-shore’ in free zones. It also allows new LLPs to be incorporated and existing partnerships to convert to LLPs.
Elsewhere, the Kingdom’s Government is set to issue special ID cards to all investors from other Gulf Cooperation Council (GCC) countries. The aim is to help investors conduct hassle-free transactions at various service departments in the Kingdom. The move follows directives from the country’s Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, HRH Prince Salman bin Hamad Al Khalifa to provide GCC residents and investors with more facilities.