Weekly Spotlight Archives - LexisNexis Middle East

UAE: Implementing Regulations to Tax Procedures Law Amended

17/04/202117/04/2021
by Benjamin Filaferro

The UAE’s Cabinet has approved amendments to the Implementing Regulations to the Tax Procedures Law. The amendments extend the tax notification period from 10 to 40 working days. They also cover the time limit for issuing the decision of the Federal Tax Authority to reduce or exempt administrative penalties from 20 to 40 working days from the date of receiving the application.
They also approved a Cabinet Decision on the requirements of the Natural Person Insolvency Law. The law aims to boost the UAE’s competitiveness by making it easier to do business in the country and create more favourable conditions for individuals facing financial difficulties. The debt value which requires a debtor to submit a request to start the insolvency process is set at 250,000 AED.

UAE: Law on Minimum Capital for Banks Issued

09/04/202109/04/2021
by Benjamin Filaferro

The UAE Central Bank has issued a new law on the minimum capital for banks which applies to all banks including branches of foreign banks which work in the UAE.
The law will be effective on the beginning of next month and requires banks which do not yet meet its requirements to do so by no later than 31 December 2023.
The second article of the law requires banks at all times to maintain a minimum level of the paid capital and to keep the required level on a continuous basis as a main condition of their licence.

Qatar: Landmark Arbitration Judgment Issued

02/04/202102/04/2021
by Benjamin Filaferro

Qatar’s International Court and Dispute Resolution Centre First Instance Circuit has issued a landmark arbitration judgment. The judgment in C v D (QFC 0004/2021, [2021] QIC (F) 8) has confirmed the Centre’s status as an opt-in court of arbitration.
It has clarified parties can select the Qatar International Court as the competent court in the arbitration by virtue of an arbitration agreement where neither party is a Qatar Financial Centre registered entity.
It has also approved the position under Qatar Law No. 2/2017 (the Arbitration Law).

Kuwait: Insurance Regulation Division has announced they have issued Kuwait Decision No. 1/2021

26/03/202126/03/2021
by Benjamin Filaferro

Kuwait’s Insurance Regulation Division has announced they have issued Kuwait Decision No. 1/2021 to organise the sector.
The Vice President of the Unit added the Implementing Regulations to the Insurance Law will be published in the next edition of the Official Gazette.
They will cover the issuing of permits, the registration of companies, commitments regarding required solvency, investment policies, arbitration and penalties.

Dubai: Special Tribunal to Resolve Disputes on Sale of Inherited Residential Property Established

19/03/202119/03/2021
by Benjamin Filaferro

Dubai’ Ruler and UAE’s Vice President and Prime Minister has issued Dubai Decision No. 8/2021 establishing a special tribunal to resolve disputes between heirs in relation to the sale of inherited residential property.
It aims to protect the rights and interests of all relevant parties, especially the elderly, minors, single and divorced women, widows and disabled people. Members of the tribunal will include legal, financial and real-estate experts. The Chairman of the Dubai Judicial Council will name the President of the Tribunal.
The special tribunal is authorised to adjudicate and issue rulings on disputes between heirs regarding the sale of inherited residential property under Dubai Decree No. 23/2020 Regulating the Sale of Inherited Residential Properties by Heirs. They will also adjudicate and issue rulings on appeals against the decisions and procedures issued by the Department of Land and Property in Dubai or the Mohammed bin Rashid Housing Establishment.
If the act of partition of the inherited real property is impossible, or if the act of partition of the inherited real property will cause harm or significantly reduce the value of the property, the tribunal may auction the inherited real property and distribute the money between the heirs.
In all its decisions and litigations, the tribunal will have to respect Federal Law No. 11/1992 (as amended) and protect the rights and interests of heirs. The tribunal will not accept or review any case unless the petitioner, or the claimant submits a legal document proving the heirs could not reach an amicable settlement.
Under the Decision, all Dubai courts, including the DIFC Courts and other special tribunals, will not review any petition or appeal related to disputes between heirs in relation to the sale of inherited residential property after the Decision comes into force.
All judgments, decisions and orders issued by the tribunal are final and incontestable and the Execution Court will execute the judgments, decisions and orders issued by the tribunal. They will exercise their authorities in line with the Laws and legislations applied in Dubai and Sharia Law.
The Chairman of the Dubai Judicial Council will name the entity responsible for providing technical and administrative support to the tribunal.
It will be published in the Official Gazette and come into force on its issued date.

Dubai: Dubai’s Crown Prince and Chairman of the Executive Council has issued Dubai Executive Council Decision No. 5/2021

12/03/202112/03/2021
by Benjamin Filaferro

Dubai’s Crown Prince and Chairman of the Executive Council has issued Dubai Executive Council Decision No. 5/2021 issuing the Implementing Regulations to Dubai Law No. 1/2016 on the Financial Regulations of the Government of Dubai.
It specifies the systems, applications and smart financial solutions related to the planning of the Government’s financial resources and requires all Government departments to use the systems, applications and smart financial solutions approved by the Finance Department. All financial operations executed by Government departments through approved systems, applications and smart financial solutions are considered legally enforceable, provided the operations are compliant with applied regulations.
Under the Decision, Government departments can approve their own financial and accounting systems, applications and smart financial solutions provided they comply with the law and regulations issued by the Finance Department, they are compatible with approved systems, applications and smart financial solutions and are pre-approved by the Finance Department and Smart Dubai.
It also regulates the collection and management of public revenue, specifies the authorities and responsibilities of the Director General of the Finance Department in executing the general budget and outlines the authorities and responsibilities of heads of Government entities.
In addition, it states the procedures for Government payments and expenditures, including payments for suppliers and contractors, which should be made within 90 working days from the date of the final handover, or according to the timeframe specified in the contract.
The Director General of the Finance Department will be responsible for issuing all of the decisions and regulations required to ensure the implementation of the Decision. Anything which contradicts or contravenes it will be repealed.
It was published in the Official Gazette on 9 March 2021 and came into force on the same day.

Qatar: Artificial Intelligence Committee to be Established

05/03/202105/03/2021
by Benjamin Filaferro

Qatar’s Cabinet has approved a draft Cabinet Decision to establish an Artificial Intelligence Committee. Under the Decision, the Committee will report to the Transport and Telecommunication Ministry. It will have three members from the Ministry and a representative from the Qatar Computing Sciences College, a representative from the Interior Ministry, Education and Higher Education Ministry, the Commerce and Industry Ministry, Qatar Science & Technology Park, Hamad Bin Khalifa University, Qatar National Research Fund and Qatar Development Bank. It will be responsible for setting workflows to follow up on and implement Qatar’s Artificial Intelligence Strategy and supervise the programmes and initiatives related to this area as well as give recommendations on the planning and programmes for training human resources in this area. In addition, it will support start-ups in this area as well as scientific research.

Dubai: The International Financial Centre has launched a public consultation on proposed amendments

26/02/202126/02/2021
by Benjamin Filaferro

The Dubai International Financial Centre has launched a public consultation on proposed amendments to some of its key laws. It will end on 28 March 2021.
The proposed amendments will affect the 2019 Employment Law (DIFC Law No. 2/2019 as amended last year by DIFC Law No. 4/2020), the Employment Regulations, the 2020 Data Protection Law (DIFC Law No. 5/2020), the 2019 Insolvency Law (DIFC Law No. 1/2019) and the Insolvency Regulations.
The amendments have been proposed in light of international best practices and the specific factors relating to the DIFC as well as the need to provide an appropriate regulatory environment for businesses to operate in or from the Centre.
The proposed amendments to the Employment Law are aimed at clarifying the application of limitations periods to claims made under the Employment Law, including claims for deductions to an Employee’s Remuneration, the accrual of vacation leave and the duration of the probationary period for short term fixed-term contracts and certain defined terms used in the Law. In addition, they are aimed at amending the basic workplace health and safety requirements under the Employment Law to account for working from home arrangements.
They are also proposing issuing new Employment Regulations to provide further clarity in relation to the Qualifying Scheme regime to bring it in line with the Dubai Financial Services Authority’s Employee Money Purchase Scheme so only a single layer of regulation is applied to these schemes; and make them fit for purpose from a consumer protection perspective.

Bahrain: The King of Bahrain has ratified and issued Bahrain Law No. 4/2021

19/02/202119/02/2021
by Benjamin Filaferro

The King of Bahrain has ratified and issued Bahrain Law No. 4/2021 issuing the Corrective Justice Law for Children and protecting them from ill-treatment after it was approved by the Shura Council and Parliament. The law aims to achieve corrective justice.
Courts called “Child Correctional Justice Courts” will be established in Bahrain with the jurisdiction to adjudicate on criminal cases arising from crimes committed by children over the age of 15 years at the time of committing the crime.
A committee called “Judicial Committee” has also been established to examine cases of exposure of the child to danger or ill-treatment referred to it by the competent prosecution office. A centre called the Child Protection Centre has also been established in the Ministry concerned with Social Development Affairs. This will develop plans and programmes to ensure the protection of children from abuse. The law also specifies penalties for those who incite or coerce a child to commit crimes, prepare them for that, or assist them and facilitate this.

Saudi Arabia: Raft of Judicial Reforms including a new Civil Transactions Law Announcement

12/02/202112/02/2021
by Benjamin Filaferro

Saudi Arabia’s Crown Prince has announced a raft of judicial reforms including a new Civil Transactions Law are on the way. A new Personal Status Law, Penal Code for Discretionary Sanctions and Law of Evidence will also be introduced.
Once the draft laws are finalised, they will be referred to the Cabinet and other relevant bodies to consider. Once the Cabinet and other relevant bodies have reviewed them, they will be submitted to the Shoura Council to consider. They will be drafted in line with Sharia Law and the Kingdom’s international and regional treaty obligations.
They will help clarify the lines of accountability and ensure the consistency of legal references to limit discrepancies in court rulings. Discrepancies in court rulings have led to a lack of clarity in the rules governing incidents and practices as well as prolonging cases which are not based on established legal provisions and creating a lack of a clear legal framework for individuals and businesses.

Category: <span>Weekly Spotlight</span>