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Dubai: New Rules on Vehicle Impound

24/10/202424/10/2024
by Hannah Gutang

Khaleej Times, 22 October 2024: The Dubai Police will now impound vehicles for up to 30 days for a number of traffic offences.

Using mobile phones while driving, tailgating and sudden deviation are among the offences which will lead to a vehicle being confiscated for 30 days.

Federal Decree-Law No. 14/2024 specifies fines of between Dh400 and Dh1,000 and four black points for these offences. With this amendment, the 30-day impoundment will be an additional penalty in Dubai. Using a phone while driving has been defined as being distracted by devices while driving. Sudden deviation of the vehicle in a manner that poses a danger to lives and property, or traffic safety, and not leaving enough safe distance from the vehicle in front will also lead to a 30-day impoundment.

The additional penalty also applies if a heavy vehicle fails to adhere to lane discipline.

A 14-day impoundment for entering the road without making sure it is clear, reversing the vehicle in a manner that endangers life or property or traffic safety, lane indiscipline, stopping in the middle of the road for no reason, dangerous overtaking, lack of necessary safety and security conditions in the vehicle, stopping a vehicle on the shoulder of the road in non-emergency situations, or overtaking vehicles from the shoulder.

This penalty will also apply when driving a vehicle without a licence plate, driving in a manner that obstructs traffic and making changes to a vehicle’s colour without permission.

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News developments

Bahrain: Considers Laws to Protect Privacy, Family Life

24/10/202424/10/2024
by Hannah Gutang

Al Watan, 21 October 2024: The Foreign Affairs, Defence, and National Security Committee of the Shura Council has discussed a draft law amending certain provisions of the Penal Code, originally promulgated by Bahrain Decree-Law No. 15/1976.

This draft law was prepared based on an amended version submitted by the Shura Council.

Additionally, the committee has reviewed a draft law for the year 2019, which also amends some provisions of the Penal Code promulgated by Bahrain Decree-Law No. 15/1976, as outlined in Bahrain Decree-Law No. 83/2019.

The first draft law aims to aggravate the penalty against anyone who incites passersby in public places to immorality through gestures, words, or any other means.

The draft also includes amending Article 370 of Bahrain Decree-Law No. 15/1976, which stipulates aggravating the penalty for anyone who publishes news, images, or comments related to the private or family secrets of individuals, even if true, if their publication would harm them.

The committee has discussed the second draft law, which aims to protect individuals’ private or family life from infringement and criminalise any act that violates it, due to the misuse of social media or other means, whether by taking or publishing or broadcasting photos.

The draft also aims to aggravate the penalty for anyone who opens a letter or telegram without the consent of the sender, or eavesdrops on a telephone conversation, and to aggravate the penalty for anyone who discloses the letter, telegram, or conversation to someone other than the intended recipient without their permission, whenever such an act would harm others.

The committee has affirmed that the two draft laws aim to develop the Penal Code in line with the changes that have occurred in life in the Kingdom of Bahrain, particularly regarding the prescribed penalties that are no longer commensurate with the gravity of the innovative act, as a deterrent to the violator before committing any crime stipulated in Bahrain Decree-Law No. 15/1976.

For the full story, click here.

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News developments

Abu Dhabi: Digital Notary Service

24/10/202424/10/2024
by Hannah Gutang

The Abu Dhabi Judicial Department has launched a digital notary services platform for conducting notary transactions and attestations using AI technology.

The service provides approved templates and forms of powers of attorney, declarations, and contracts by notary publics. It enables approved transactions to be issued without human intervention, in both Arabic and English languages.

The digital platform has been designed to improve the process for completing notary transactions and authentications by shortening unnecessary steps and reducing the required inputs using user data from the government data interchange after a user has registered with the UAE Pass. It will be particularly useful for land transactions in Abu Dhabi, licensed vehicles, and for commercial licenses issued by the Emirate. It will also be possible to be used for registered cases, and powers of attorney issued by the Judicial Department.

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News developments

Lexis Middle East HR Alert – October 2024 Edition

21/10/202423/10/2024
by Tanya Jain

Welcome to the latest edition of Lexis Middle East HR Alert – October 2024, your definitive guide to staying ahead of the legal and business developments shaping HR in the Middle East. As the region continues to evolve and embrace global standards, it is essential for HR professionals, legal practitioners, and business leaders to remain informed about the changes and trends impacting the workforce.

In this issue, we explore how retirement in Saudi Arabia is changing following the new Social Security Law, Saudi Arabia Cabinet Decision No. 1022/1445, as explained by Zahir Qayum of Mohammed Ayedh AlShahrani Law Firm. We also delve into the approaches being taken in the UAE to reduce working hours, as discussed by Charles Laubach of Afridi & Angell.

In this issue, we explore how retirement in Saudi Arabia is changing following the new Social Security Law. We also delve into the approaches being taken in the UAE to reduce working hours, as discussed by Charles Laubach of Afridi & Angell.

We cover exemption from contributions in the news round-up, stricter penalties for labour law violations in the immigration focus, and a law on safety and contingencies in vital facilities. Gain insights into a case on an employee’s cryptocurrency entitlements in the case focus section. In the HR Profile, Ashutosh Sinha, Managing Partner and Chief Human Resources Officer at Seintiv Talent Solutions, explains how a focus on people, culture, and performance can transform businesses.

Stay updated with the latest business moves, appointments, and promotions, and explore new and proposed laws affecting the MENA region. This issue also includes the UAE’s progressive new law on Psychiatric Health, also known as the Mental Health Law, which aims to enhance mental health support, including in the workplace.

Happy reading!

This edition features a diverse range of content, including:

Feature: Ready to Retire

The new Social Security Law in Saudi Arabia, Cabinet Decision No. 1022/1445, introduces changes to the retirement system. Zahir Qayum of Mohammed Ayedh AlShahrani Law Firm provides an overview of how retirement in Saudi Arabia is being impacted by these legal reforms.

Trend Setter – Reduced Working Hour

The UAE is exploring approaches to reduce working hours for employees, as examined by Charles Laubach of Afridi & Angell. This move aims to enhance work-life balance and productivity in the country’s workforce. Potential measures under consideration include shorter workweeks and flexible work options.

News Round-up: Covering Recent Key Developments – Region-Wide

Stay updated with the latest regional developments, including the exemption from contributions to the Nafis fund. Facilities demonstrating support for Emirati competitiveness may be exempt from partial or total contributions based on MOHRE data and reports.

Immigration Focus

Gain valuable knowledge on the evolving immigration and visa rules across the Gulf Cooperation Council (GCC) countries, with a spotlight on the United Arab Emirates’ tougher penalties for labour law violations.

Immigration Focus: Best and Perhaps Better?

Rekha Simpson, Director, Middle East Immigration, Vialto Partners talks about what has been the most interesting immigration development in the UAE and the changes she is most looking forward to.

Law Changes: New and Proposed MENA Laws

Luke Tapp and Sarah Khasawneh of Pinsent Masons explain new safety and contingency requirements which apply to vital facilities following the issue of Qatar Ministerial Decision No. 25/2024.

Case Focus – DIFC Case No. 1739/2024 issued on 17
July 2024

This case, recommended by Wasel & Wasel, highlights a pivotal issue concerning an employee’s cryptocurrency entitlements. This case has set a robust legal precedent that could influence future cases involving digital currencies in the UAE and beyond.

Enrich your understanding of the HR landscape and stay up-to-date with the latest trends, cases, and policies through the newest issue of Lexis Middle East – HR Alert.

For all the latest industry updates and developments, opt for a free HR Alert subscription!

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.

Lexis Middle East HR Alert_October 2024

Have you read the Lexis® Middle East HR Alert – previous 2024 editions? Click the links below to access and read these editions.

Lexis Middle East HR Alert_January 2024

Lexis Middle East HR Alert_May 2024

Lexis Middle East HR Alert_July 2024

HR Profile: Transforming Talent

Ashutosh Sinha, Managing Partner and Chief Human Resources Officer at Seintiv Talent Solutions explains how a focus on people, culture and performance can transform businesses.

In-House Profile: Practitioner Perspective

Sarah Malik, the CEO of SOL International, examines best practices for performance management, particularly when evaluating and providing feedback to directors and senior-level professionals.

Policy Pointers: Mental Health

Emily Aryeetey, Partner at Stephenson Harwood LLP, contributes her expertise on the Mental Health Law that came into force on 30 May 2024 which aims to enhance mental health support, including the workplace.

Moves and Changes

Stay informed about the latest business news, significant appointments, and promotions across the region, ensuring you are up-to-date with the key players in the market.

News developments

UAE: Eases Corporate Tax Compliance for Businesses

18/10/202418/10/2024
by Hannah Gutang

The National, 14 October 2024: The UAE’s Ministry of Finance has cancelled economic substance reporting requirements for companies with a financial year ending after 31 December 2022.

This move aims to help companies focus on compliance with the UAE corporate tax system.

The amendment to Cabinet Decision No. 57/2020 on economic substance requirements aims to enhance efficiency and tax compliance across the country, ensuring accurate application of tax legislation by all entities subject to it.

The UAE has introduced a federal corporate tax with a standard statutory rate of 9% starting from the financial year beginning on or after 1 June 2023.

It brought the income of companies exceeding Dh375,000 ($102,100) within the taxable bracket, while taxable profits below that level will be subject to a tax of 0%.

While companies are no longer required to submit economic substance notifications or reports for financial years ending after 31 December 2022, they remain responsible for fulfilling compliance obligations for previous years and paying any penalties imposed by the Federal Tax Authority (FTA).

The UAE has also announced a deadline extension for corporate tax returns and payments for some entities.

Businesses with short tax periods ending on or before 29 February 2024, can now file their returns and make payments by 31 December 2024.

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News developments

Saudi Arabia: Insurance Unveils Details of New Retirement System

18/10/202418/10/2024
by Hannah Gutang

Ean Libya, 14 October 2024: The Saudi General Organisation for Social Insurance announced the details of the new retirement system and the minimum age for early retirement.

The organisation has stated that the minimum age for early retirement for subscribers to the new system is 55 years old.

The organisation has announced that one of the conditions for obtaining a retirement pension is having 30 years of service for the retiree, with their cessation of work subject to the provisions of the system when they wish to receive the retirement pension.

It has been explained that the retirement age in the new system is 65 years old, but retirement can be taken ten years before this age.

It has been pointed out that the minimum retirement pension will be 4,000 riyals for those whose subscription period is 40 years.

If the subscription period is less than that, this minimum will be reduced for each 12 months of subscription and each month proportionately, provided that it does not fall below 2,000 riyals.

Regarding the mechanism for calculating the retirement pension, the Saudi General Organisation for Social Insurance has explained that the average wage or salary will be calculated based on the highest wages or salaries subject to subscription for 180 months of the subscription periods in the new system.

Then, the average wage is multiplied by 2.25%, and the result is multiplied by the number of subscription months, then divided by twelve.

In the case of early retirement, the subscriber will be deducted 3% for each year that their subscription period falls short of 40 years.

The Saudi General Organisation for Social Insurance has also pointed out an increase in the subscription deduction rate by 0.5% for each year during the next four years, raising the deduction rate from the employee’s salary from 9% to 11%, in addition to a ‘sand’ deduction of 0.75%, bringing the total deduction from the employee’s salary to 11.75% monthly.

For the full story, click here.

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News developments

Qatar: New Incentives and Parental Support in Qatar’s Civil Service Law

18/10/202418/10/2024
by Hannah Gutang

Mubasher, 9 October 2024: Qatar’s Council of Ministers has approved a comprehensive Water Law and new regulations for the protection of industrial designs and models.

The Water Law aims to ensure water security, conserve water resources, protect them from depletion or pollution, enhance the efficiency of water services and their usage, maintain water quality standards, and ensure proper maintenance and operation of water facilities.

The law was drafted by the Qatar General Electricity and Water Corporation (Kahramaa) and will now be referred to the Shura Council for further deliberation.

Additionally, the Council approved the executive regulations for Qatar Law No. 10/2020; on the protection of designs and industrial models.

For the full story, click here.

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News developments

Oman: Ministry Issues Notice Regarding Lost Sea Passports

18/10/202418/10/2024
by Hannah Gutang

The Arabian Stories, 9 October 2024: The Transport, Communications and Information Technology Ministry in Oman has issued a crucial reminder for seafarers regarding the protocol for lost identity documents, specifically sea passports.

In the event of a lost sea passport, seafarers are urged to act swiftly.

The first step is to report the loss to the nearest Royal Oman Police station, providing full details of the missing document.

Following this, it is essential to notify the Transport, Communications, and Information Technology Ministry by visiting the General Directorate of Maritime Affairs at the Ministry’s General Diwan building.

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News developments

Kuwait: FATF Report Exposes Weaknesses in Money Laundering Efforts

18/10/202418/10/2024
by Hannah Gutang

Arab Times, 9 October 2024: The Financial Action Task Force (FATF) has highlighted significant gaps and weaknesses in Kuwait’s system for combating money laundering and terrorist financing.

While Kuwait possesses a sufficient legal and supervisory framework, it faces serious shortcomings in delivering effective outcomes, particularly in understanding, investigating, and prosecuting these types of crimes.

Kuwait demonstrates a basic understanding of money laundering risks at the national level but has a limited grasp of terrorist financing risks.

Authorities need to enhance their understanding by conducting comprehensive assessments of various sectors and the misuse of legal entities.

Although Kuwait has increased money laundering investigations, securing convictions without proving the underlying predicate offense remains challenging.

Most prosecuted cases involve straightforward instances of self-laundering.

Investigations and prosecutions related to terrorist financing appear limited, with many cases failing to result in convictions at trial.

While Kuwait has a legal framework for implementing targeted financial sanctions, the necessary actions to freeze assets linked to terrorism or proliferation are not adequately reflected in domestic law.

Kuwait needs to adopt a more risk-based approach to protect its non-profit sector from potential terrorist financing abuse.

The financial intelligence unit generates information to initiate inquiries and investigations related to money laundering, but investigations into terrorist financing largely rely on foreign intelligence.

Kuwait has made confiscating proceeds of crime a policy objective, and law enforcement has successfully seized valuable assets, including properties and items located abroad.

Banks and larger financial institutions generally possess a solid understanding of their risks and obligations.

However, supervisors in both the financial and non-financial sectors need to concentrate more on beneficial ownership issues, as the lack of understanding in this area means that Kuwait lacks complete and reliable beneficial ownership information.

FATF has provided several recommendations for Kuwait to strengthen its anti-money laundering and terrorism financing framework.

These include updating the risk assessment to encompass a broader range of factors, conducting a comprehensive assessment of the risks of legal entity misuse, considering a wider array of money laundering and terrorist financing methods, investigating and prosecuting various types of terrorist financing activities, identifying potential terrorist financing activities associated with currency movements.

Additionally, ensuring the legal implementation of targeted financial sanctions without delay, proactively using financial sanctions to deprive terrorists of their assets, and publishing a complete list of individuals subject to financial sanctions.

Furthermore, conducting a thorough assessment of terrorist financing risks in non-profit organisations, reviewing and removing barriers that deter non-profit organisations, deepening the understanding of crimes that generate money laundering proceeds, and ensuring authorities have access to legal entity information.

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News developments

Dubai: Doctors To Get New AI Assistant

18/10/202418/10/2024
by Hannah Gutang

Khaleej Times, 15 October 2024: Dubai Health introduced the AI-powered Ambient Voice Solution (AVS), which is designed to record conversations during consultations, convert patient complaints into precise medical terminology, and generate comprehensive reports after each visit.

Physicians will still double-check all information provided by the AI before filing it, ensuring accuracy and maintaining the highest standards of care.

The AI assistant not only improves documentation efficiency but also enhances patient interaction.

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