Saudi Arabia: MMG Investors Win First Class Action

Arab News, 1 June 2021: MMG investors have been awarded 40.2 million Riyals and won the Kingdom’s first ever class action.

Executives at the construction company, Mohammad Al Mojil Group and an auditor have been ordered to pay.

It follows a ruling by the General Secretariat of Committees for Resolution of Securities Disputes in the case which involved the manipulation of financial statements to give a false impression of the company following its 2008 Initial Public Offering and the subsequent three years.

The Kingdom introduced a new class action regime in 2017 for claims by shareholders of listed companies in the country.

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Saudi Arabia: Cybersecurity Framework Implemented

Arab News, 30 May 2021: Saudi Arabia’s Communications and Information Technology Commission has announced it has started implementing a cybersecurity framework.

It contains a comprehensive set of cybersecurity requirements and controls which will contribute to regulating the communications, IT and postal service sectors.

A risk management methodology has to be adopted and all cybersecurity requirements have to be met by service providers to enable them to effectively deal with cyber threats.

It will apply to service providers in the communications, IT, and postal services sector and is aimed at increasing their security levels.

It aims to ensure adequate cybersecurity measures are adopted in line with best international practices.

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Saudi Arabia: Issuing of Tourist Visas to Resume Soon

Arab News, 27 May 2021: According to Saudi officials, the issuing of tourist visas is going to resume soon.

They were suspended last year because of Coronavirus.

The official added the Saudi Arabian authorities are also working with other Middle Eastern and European nations on a unified protocol to facilitate travel.

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Saudi Arabia: Maximum Overtime Limits Announced

Al Madina, 20 May 2021: Saudi Arabia’s Human Resources and Social Development Ministry has explained the maximum numbers of overtime hours an employee can work in a year is 720 hours.

Under paragraph 31 of the First Penalties Schedule, the employer will be fined 10,000 Riyals for each employee made to work over their working hours under Article 98.

The Ministry added the overtime hours can be increased to more than 720 hours if the employee agrees. For full story click here.

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Saudi Arabia: Jail Terms for Debtors Could be Scrapped

Gulf News (United Arab Emirates), 18 May 2021: According to local media reports, Saudi Arabia’s Justice Ministry is understood to have approved amended debt penalty rules.

Under the amendments, jail terms for debt defaulters will be scrapped.

The amendments also include ending suspension of Government services provided to and financial dealings with defaulters as well as giving defaulters a right to sufficient notice to repay debts before their assets are seized to recover the arrears. During this notice period, defaulters can make representations to the authorised officer and set out their objections to the repossession notice.

Under the new rules, State-owned funds, the house in which the defendant and their legal dependents live cannot be seized. However, the house can be seized if it is mortgaged to the creditor. They may also not seize the transport used by the defendant and their legal dependents unless it is mortgaged to the creditor.

In addition wages and salaries may not be seized unless it is half of the total wage or salary, for the alimony debt and one-third of the total wage, or salary for other debts.

Half of the total wage or salary is allocated to the alimony debt and one-third of the remaining 50% for other debts and in the event of multiple debts like this, one third of the half will be distributed among the creditors in line with the law.

They may also not seize anything which is required for the defendant to practice their profession or the personal requirements of the defendant and Government subsidies provided to the defendant.

A right to ensure fair value and realise balance proceeds will be guaranteed under the new rules. Resisting or suspending execution of attachment on properties will lead to a jail term of up to seven years and a fine of up to 300,000 Riyals.

Declarations of bankruptcy are historically very rare in Saudi Arabia. In most cases, a bankruptcy declaration will lead to a jail term of between five and seven years to ensure the bankruptcy claim was not fraudulent.

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Saudi Arabia: International Central Securities Depositories Instructions Approved

Arab News, 7 May 2021: Saudi Arabia’s Capital Market Authority has announced International Central Securities Depositories Instructions have been approved.

They came into force on 6 May 2021.

The instructions regulate the linkage application process and its conditions, related Depository Centre accounts and additional general provisions.

Also reported in Al Madina on 8 May 2021. Full story available here.

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Saudi Arabia: Citizens to be allowed to travel soon

Almadina, 3 May 2021: The Interior Ministry has stated nationals will be permitted to travel abroad from 17 May 2021 according to specific guidelines.

An official stated that the ministry has issued a statement on the deadline to lift the travel ban, open up land, sea, and air borders fully starting which will start from 1AM on 17 May.

This permission will be given to certain groups only including those who have been vaccinated with either two or one dose of the vaccine (14 days before departure), nationals who have recovered from COVID-19.

Children between the ages eight and 18 are exempt from the vaccination rule, but must present travel insurance from the Saudi Central Bank (SAMA) that will ensure COVID-19 medical care.

Based on health information provided on the Tawakkalna app, citizens who have been infected must have recovered at least six months prior to travel.

The he General Authority of Civil Aviation (GAC)A has sent to all airlines operating from the Kingdom’s airports, including private aviation businesses, details of the procedures, requirements and recommendations for people travelling abroad.

Those travelling overseas will also need to check any requirements at their destination.

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Saudi Arabia: Income Tax Will Not be Introduced

Gulf News (United Arab Emirates), 28 April 2021: Saudi Arabia’s Crown Prince has announced income tax is not going to be introduced in the Kingdom.

They added last year’s decision to increase VAT from 5% to 15% will only be in place for five years.

They made the announcement and issued the clarification during a TV interview to mark the fifth anniversary of the Saudi Vision 2030.

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Saudi Arabia: New Waste Management Law Approved

Al Riyadh, 26 April 2021: Saudi Arabia’s Shoura Council has approved a new Waste Management Law.

It includes jail terms and/or fines up to 30 million Riyals for anyone who stores, burns, treats, or disposes off any waste which represent in any way or form a risk to the public health or damages the environment.

The aim of the law is to regulate the activity of collecting, transporting, sorting, storing, importing, exporting, treating and safely disposing of waste including the necessary care for sites.

Under the law, it is also forbidden to dump waste of any type or bury, burn or throw it outside the designated areas.

For full story see https://www.alriyadh.com/1882550.

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