LexisNexis Middle East

UAE: Artists and Social Media Influencer Activities Subject to VAT

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

The UAE’s Federal Tax Authority has issued a bulletin clarifying that services provided by artists and social media influencers for consideration are subject to VAT. The bulletin specifies VAT applies to these services provided by artists and social media influencers which include any online promotional activities performed on behalf of other businesses for consideration, like promoting a product in a blog or a video or otherwise promoting a business on a social media post. It also includes any physical appearances, marketing and advertising related activities, providing access to any social media influencers’ networks on social media, and any other services the social media influencer may provide for consideration. It clarifies that if an artist or influencer incurs any costs in providing a service and subsequently recovers that cost from their client, the reimbursement falls within the scope of VAT in the UAE.

News developments

Saudi Arabia: Accounting and Auditing New Law Reduces Experience Requirement

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

Saudi Arabia’s Accounting and Auditing Law, which has recently been approved by the Cabinet amends the title of the Saudi Authority for Chartered Accountants to the Saudi Authority for Auditors and Accountants. It authorises the issuing of licenses to practice accounting and auditing for part timers and reduces the experience requirement to a year instead of three years.

News developments

Qatar: New Contracts for Domestic Workers on the Way

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

Following the issuing of Qatar Law No. 15/2017 by the Administrative Development, Labour and Social Affairs Ministry, an official at the International Labour Organisation Project Office in Qatar has announced new contracts will soon be issued to domestic workers coming to Qatar. They will specify their working hours, tasks and leave and overtime entitlements. Domestic workers will not be able to work more than two hours overtime and there are provisions on how compensation for overtime will be calculated. It will be calculated on the same basis as overtime for workers covered by the Labour Law. Domestic workers will also be entitled to the same sick leave benefit as any other workers in Qatar. Both domestic workers and employers will be able to terminate the contract providing they give reasonable notice. The new contract also specifies domestic workers should not be charged for their recruitment. These costs should be paid by the employer. The new contract aims to equalise the rights between domestic workers and workers covered by the Qatari Labour Law. It will reduce miscommunication in employment relationships and improve transparency in tasks between employers and domestic workers.

News developments

Bahrain: Minimum Salary for Sponsoring Family Members Increased

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

Bahrain’s Interior Minister has issued a Decision to increase the minimum monthly salary requirement for expatriates looking to sponsor their family members. Previously, the minimum monthly salary requirement was 250 Dinars. It has now been increased to 400 Dinars. To sponsor children who are over 24 or parents, the minimum monthly salary has to be at least 1,000 Dinars. They must also have valid health insurance in Bahrain. The Nationality, Passports and Residence Affairs may issue exceptions.

News developments

Abu Dhabi: Law Firm Has to Refund 72,500 Dirhams to Client

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

Abu Dhabi’s Court of First Instance has issued a ruling requiring a law firm to pay their client 72.500 AED after they paid the firm 80,000 AED for filing a case but later found out the legal fees owed on the case are only 7,500 AED. They filed a lawsuit, where they demanded a legal consulting firm be made to repay them 72,500 AED. They had given a power of attorney to the owner of the law firm, to file a lawsuit and the firm assured them the lawsuit fee was 80,000 AED. They later found out the fee was 7,500 AED. The court clarified in its ruling there was evidence that the owner of the defendant company did not attend the session set for the decisive oath and there is evidence the defendant was liable to pay the amount.

Weekly Spotlight

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.

News developments

UAE: National Integrated Energy Model Launched

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

The UAE’s Energy and Infrastructure Ministry has announced it has launched the National Integrated Energy Model. They launched it together with the Khalifa University and the International Renewable Energy Agency. It will support the formulation of the future energy for the UAE and the design of the next 50 years in the energy sector. It will also provide a roadmap for a new phase of energy sector sustainability and provide a common framework which brings together stakeholders in the energy sector. In addition, it will define the contours of the future as part of the UAE’s efforts to maximise the benefits of this sector by developing strategies and foundations for work in it during the next phase in line with the National Energy Strategy 2050. This Strategy aims to obtain safe and sustainable energy for everyone at competitive prices, increase the efficiency of individual and institutional consumption by 40% by 2050 and increase the contribution of clean energy in the total energy mix produced in the country to 50%. An understanding to develop the energy modelling capabilities with Khalifa University and the International Renewable Energy Agency was also reached. In addition, a partnership bringing the three entities together was established. This will develop the UAE energy model to support the UAE’s approach in this sector. It will also benefit from the experience of the Agency and the research capabilities of Khalifa University to establish a programme to support the review of the energy strategy in the UAE and engage strategic partners to continue developing the energy policy in the country.

News developments

UAE: National Integrated Energy Model Launched

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

News developments

Saudi Arabia: Merged Insurance Companies Exempt From Qualification Financial Requirement

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

Saudi Arabia’s Cooperative Health Insurance Council has announced it is exempting merged small and medium insurance companies from the financial requirement for qualification. They will be exempt for up to three years in line with new terms and conditions. The aim of the policy is to improve the quality of health services by creating economic entities able to offer high quality services as part of the 2022-2024 health strategy to empower the health insurance sector. The official spokesperson for the Council said they have prepared the initiative and a work plan to support the merging of insurance companies. They have also signed an agreement with the Competition General Authority to encourage companies to merge.

News developments

Oman: New Industrial City Proposed

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

Oman’s Public Establishment for Industrial Estates or Madayn has announced it is proposing building a new Industrial City. It will be built at Al Mudhaibi in North Al Sharqiyah Governorate. It will be one of an increasing network of manufacturing clusters which will help boost jobs generation and GDP growth in the Sultanate. They have invited qualified engineering consultancy firms to bid for its contract to design the infrastructure facilities for the 14 million square metre industrial city. It will be the first industrial park of its kind in the governorate and will provide a manufacturing and processing base for industries focused on commercialising the rich mineral potential of the wider region, among other things. The successful bidder will have to master-plan the development of the new industrial city in several stages and design the basic infrastructure and supervise the overall initial development as well. Construction work on a new industrial city at Ibri in Al Dhahirah Governorate, a first in that part of the country is also about to begin. It will be located on the road leading to the Oman-Saudi Arabia border and will include a variety of industrial, commercial and service activities like light and medium industries, commercial area, administrative offices, industrial workshops and warehouses. They are being built and introduced as part of Oman’s 2040 Vision.