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The UAE through the Federal Decree Law No. 9/2024 (“Amended Law”) issued on 29/07/2024, has amended Article 54 (Individual Labor Disputes) and Article 60 (Fines for prohibited acts) of the Federal Decree Law No. 33 of 2021 regarding the regulation of Employment Relationship (“Labour Law”). CHANGES TO ARTICLE 54 Article 54 of Labour Law provides...
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DIFC amends Prescribed Company Regulations In May 2024, the Dubai International Financial Centre (DIFC) published a consultation paper with proposal for amending the Prescribed Company Regulations in the DIFC. After two-month long consultation and deliberation process, the amended Prescribed Company Regulations have now come into effect on 15th July 2024. Amendments Qualifying requirements An applicant...
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Thomas Paoletti, Managing Partner at Paoletti Law Group, provides expert opinion on ESG in the Middle East – the current situation and what still needs to be done to work towards a more sustainable future. Human-Caused Climate Changes in the Middle East The Middle East region is among the world’s most exposed states to human-caused...
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The Courts in DIFC were set up through Law No. 12 of 2004 concerning Judicial Authorities at the Dubai International Financial Centre (DIFC LAW). The law laid down the establishment of the Court of First Instance as well as the Court of Appeal.  In accordance with this law, the Small Claims Tribunal (SCT) was established...
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The IPO boom in the UAE is poised to reshape the country’s economic landscape and propel it as a global investment destination. The positioning of the United Arab Emirates (UAE) as a global economic powerhouse by the government through economic diversification and government investment has ensured that the country experiences strong economic growth despite global...
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The United Arab Emirates (UAE) stands as a beacon of economic promise in the Gulf, magnetizing global entrepreneurs and businesses with its strategic location, vibrant marketplace, and favorable business environment. For UK enterprises eyeing expansion into the Middle East, the UAE offers a wealth of opportunities that have flourished in recent years. However, conquering this...
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Destination UAE Q1 How are global geopolitical events affecting mobility in your jurisdiction? Geopolitical instability generally influences mobility. However, emigration does not come exclusively from conflict zones, and can be purely economic. The immigration policies of the UAE intend to attract skilled professionals. The policy has helped the UAE attract exceptional talent. The UAE has...
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Paoletti Law Group is excited to host IR Global members in Dubai this month!   Exciting news – the next IR Global ‘On the Road’ conference is taking place in Dubai from the 20-24th February.   We can’t wait to welcome 130+ members to the Anantara Downtown Hotel for an event that promises to support...
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Introduction Engineering, Procurement, and Construction (EPC) contracts are commonly used in the construction and engineering industries, including in the United Arab Emirates (UAE). An EPC contract is a form of agreement where a single contractor takes responsibility for the entire project, from design and procurement to construction and commissioning. EPC contracts cover key concerns such...
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The United Arab Emirates (UAE) is set to host the 28th Conference of the Parties (COP 28). This crucial gathering brings together nations worldwide to address the pressing climate change issues. This isn’t just any meeting; it’s a chance to make some real progress in the fight against climate issues. Think of it as a...
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Numerous global law firms have recently shifted focus from traditional hiring methods to developing customized AI solutions, including personalized versions of ChatGPT for legal applications. While the potential for AI to replace legal professionals has been contemplated, its actual realization may not align with such speculations. The integration of ChatGPT and other AI tools has...
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Current Appetite for Investment in Foreign Companies in UAE In recent years, the United Arab Emirates (UAE) has witnessed a growing appetite for investment in foreign companies, particularly in its economic heart, Dubai and Abu Dhabi. The nation’s strategic location, robust infrastructure, investor-friendly policies, and stable business environment have positioned it as an attractive destination...
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The United Arab Emirates (UAE) has long been a magnet for entrepreneurs and business professionals seeking opportunities in the Middle East. Among the various initiatives aimed at fostering business growth, the RAKEZ Visa for Life program stands out as a game-changer. This innovative scheme offers a pathway for business owners and investors to establish a...
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Welcome to our inaugural newsletter, where we illuminate the world of Engineering, Procurement, and Construction (EPC) contracts, intricately woven with the expertise of The International Federation of Consulting Engineers (FIDIC). In this edition, we journey through the realm of EPC projects, emphasizing the pivotal role of legal consultation and introducing our experienced team’s triumphs in...
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Divorce is a complex and emotionally charged process that can have significant legal and personal implications for those involved. In the United Arab Emirates (UAE) divorce proceedings are governed by a combination of Islamic law principles and local legal frameworks. In Abu Dhabi, the divorce proceedings for non-Muslims are governed by the Abu Dhabi Civil...
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Value-added tax (VAT) is a consumption tax that is applied to most goods and services sold in the United Arab Emirates (UAE). The standard VAT rate is 5%, but there are some goods and services that are exempt from VAT or subject to a 0% rate. Businesses that sell goods or services in the UAE...
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Dubai International Financial Centre (DIFC) was established in 2004 as a financial-free zone having an independent legal and regulatory framework aiming to foster growth and economic progress in the nation. DIFC attracts regulated activities related to institutional financial investors providing services like Banking, Capital Markets, Insurance, Capital investment schemes, Business Process Outsourcing, Islamic Finance, broker...
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The United Arab Emirates (UAE) is a popular destination for businesses of all sizes, thanks to its strategic location and business-friendly environment. When considering incorporating a business in the UAE, there are a few things you need to keep in mind. First, you need to decide whether you want to set up your business in...
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The United Arab Emirates, with its investor-friendly policies, is the world’s third fastest emerging economy according to the Foreign Direct Investment Confidence Index. While the United Arab Emirates (UAE) has rapidly emerged as one of the most attractive business economies for investors in recent years, thanks to the country’s strategic location, stable economy and favourable...
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The ADGM Foundations Regime offers a compelling alternative to trusts for individuals, families, and corporations seeking financial planning and structuring solutions. This innovative framework allows High Net Worth Individuals, families, and businesses in the United Arab Emirates (UAE) to access a highly sought-after product from a world-class international financial centre for the first time. ADGM...
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The United Arab Emirates (UAE) has been a favoured business destination for Indians for decades. Recent changes have made an even more compelling case for Indian companies to be in the UAE for their global capability centres (GCC) as well as for their international business needs. India enterprises should be aware of these developments to...
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The United Arab Emirates (UAE) has rapidly emerged as one of the most attractive business economies for investors in recent years. The country’s strategic location, stable economy, and favorable business policies make it an ideal destination for investors looking to expand their operations. At the same time, the country is moving towards stricter compliance rules...
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The Emirate of Dubai has recently, through Law no. 6 of 2023, passed a law to establish a public corporation named “Dubai Business License Corporation” (DBLC) that shall be accountable to the Department of Economy and Tourism. The Corporation will function under the supervision of an Execute Director with a few administrative, financial, and technical...
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In 1994 for the first time the cryptographer Szabo had the idea of being able to record contracts by computer code establishing that their activation was subject to the occurrence of certain conditions. This function took place and still happens through the if/then computer language typical of computer software and protocols. For example, when a...
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GENEVA CONVENTION OF 1999 SHIPS SEIZURE SUMMARY: 1. The case 2. Introduction – 3. The scope of the 1999 Geneva Convention 1. – A Chinese customer requests urgent protection, he has chartered a vessel (transporting petrochemicals) flying the Hong Kong flag. Once the transport was completed, neither the remainder of the expenditure for the galley...
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As each Emirate has some autonomy and authority to enact its own laws and regulations, the rules and regulations governing the sale and acquisition of real estate properties in the United Arab Emirates (UAE) are not always simple to follow. As a result, a dual legal system exists between laws at the federal and Emirate...
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The option of crowdfunding has opened a new gateway for independent innovators and small businesses to seek investments in their innovative projects with promising futures. Crowdfunding enables innovators to seek funds through online campaigns and attract investments of all scales and sizes. The rising popularity of crowdfunding has led to the emergence of multiple platforms...
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The United Arab Emirates’ Ministry of Finance revealed amendments to the provision of Federal Decree-Law No. 17 of 2017 on Excise Tax, effective from 14th October 2022.   The amendments were made to support the business sector, to minimise tax avoidance, to facilitate obligation for taxable individuals and to analyse challenges regarding the application of...
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A Special Purpose Company (SPC) is a company incorporated in Dubai International Financial Centre (DIFC) only for exempt activities. DIFC being a free zone provides several benefits to an SPC like zero tax, no foreign ownership restrictions, limited liability, and access to world-class infrastructure.   Nature of SPC An SPC cannot have more than three...
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Dubai Financial Services Authority (DFSA) is one of the major regulators of financial institutions in the United Arab Emirates (UAE). It is responsible for the authorization and supervision of such institutions in the Dubai International Financial Centre (DIFC). DIFC, being a financial free zone, is home to various financial institutes like banks, investment firms, security...
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Dubai International Financial Centre (DIFC) was established in 2004 as a financial-free zone having an independent legal and regulatory framework aiming to foster growth and economic progress in the nation. The DIFC was designed to establish Dubai as a gateway to western investment in the region.  DIFC has its unique and independent legal as well...
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In 2019, the United Arab Emirates (UAE) offered an option of a Golden Visa to foreigners for securing their plans of permanent residency in the country. The visa allows foreigners to live, work, study, or conduct business in the country without the need for a national sponsor. Who is eligible? Golden Visa shall be granted...
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ABSTRACT : A case is reported of unlawful reporting against the claimant, the legal representative and sales attorney of a shipbuilding/naval business company, by a banking institution. Compensation is sought for pecuniary and non-pecuniary loss resulting from the unlawful reporting. The claimant received a registered letter communicating the non-payment of a balance, indicating the possible...
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The right of retention is embodied in the right that arises in the hands of a creditor to retain with him an object of another’s property until his claim is satisfied (Art. 2756 Italian Civil Code). The exceptional character of the right of retention does not preclude its extensive regulatory provision: in fact, it is...
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Abu Dhabi Global Market (ADGM) established its Financial Services Regulatory Authority (FSRA) with an aim to shield the financial center from exposure to potential risks and other forms of undesirable impact. The FSRA acts as a regulator of the banks and financial institutions functioning in the ADGM. The regulatory authority is a signatory to 115...
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SPVs are special-purpose companies or entities formed to fulfill a specific object for a limited time. Its nature is independent of the parent company by which it is formed and has its legal status, assets, liabilities, and even separate accounts. This acts as a shield for the parent company and prevents it from bankruptcy when...
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On account of the Covid-19 outbreak, consumers had to rapidly shift to cashless payments and online shopping which resulted in a rise in e-Commerce activities in the United Arab Emirates (UAE). Apart from the role of the pandemic in this transition, some other causes for the surge in e-Commerce activities in the UAE are: Total...
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COVID-19 ushered changes in the functioning of all the major economies around the world. Governments everywhere brought massive reforms to their administrative and legal functioning so as to keep growing effectively amidst Covid-19. The government of the United Arab Emirates (UAE) also adopted various amendments to the laws which have brought massive transformation in how...
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Prevalence of the conditions indicated on the back of the title, or the supplementary (and pejorative) Act of the ministry? Comment on Judgment n. 251/2020 publ. on 26/05/2020 RG n. 1615/2019 The Court of Mantua gives reason to the saver. ABSTRACT: the perimeter of validity of the dictum of the rulings cited below was reiterated...
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Dubai Multi-Commodities Centre, or as we all call it, the DMCC, is one of the top-rated free zones in the United Arab Emirates (UAE). DMCC has been awarded “Global Free Zone of the World” by the Financial Times fDi magazine seven times. The Free Zone has welcomed corporations of all sizes with open arms and...
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The Abu Dhabi Global Market (ADGM) is a significant ecosystem for many ambitious organizations who want to benefit with their banking, wealth management, insurance, capital market activities and asset management in the most effective way. Special Purpose Vehicle (SPV) is a passive holding company that aims to guarantee specific liabilities and assets by isolating legal...
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Foreign companies can promote their market or business in the United Arab Emirates (UAE) by setting up a representative office. For businesses looking to test the market, the Dubai International Financial Center (DIFC) provides a good low-cost option. The office is defined as a cost-effective parent company, enabling people in business to get the advantage...
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Foreign Direct Investment (FDI) in the United Arab Emirates (UAE) achieved significant growth in 2020 compared to 2019. The FDI reached $19.88 billion (44.2%) despite the consequences of the COVID-19 pandemic that severely damaged the world’s volume of investment, trade, and economy. During the same period, the cumulative balance of the FDI increased, achieving 12.9%...
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Abu Dhabi, the capital of the United Arab Emirates (UAE), is all set to trade in virtual assets as the country has released a ‘consultation paper’ for trade guidelines. Financial experts have initiated steps to bring digital assets such as non-fungible tokens (NFTs) under the directory framework. The Free Zone Company and financial hub of...
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The Ministry of Human Resources and Emiratisation announced the New United Arab Emirates (UAE) Labor Law (Federal Decree-Law No.33 of 2021) (“New Law”), which came into effect on 2nd February 2022. The New Law addresses changes in the work environment, recognizes the need for flexible working structures and aligns the relationship between the UAE laborers...
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Dubai International Arbitration Centre (DIAC) has finally released its much-awaited arbitration rules for 2022 on the 2nd March of this year. The recent DIAC Arbitration rules 2022 became effective on 21st March 2022 and is applicable to all the arbitration that will happen on and after the mentioned publishing date. The publishing of new rules...
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The United Arab Emirates (UAE) government passed the Federal Trademarks Law No. 36 of 2021 (“New Law”) which replaced the earlier Trademark law of 1992. The New Law came into effect on 2nd January 2022. The New Law has made considerable changes to the legal domain of trademark. The New Law broadens the scope of...
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The post covid amendments made to UAE’s Bankruptcy Law of 2016 are a drastic but necessary step to deal with the steep fall in the growth and profits of the companies based in the United Arab Emirates (UAE). In November 2021 the UAE government introduced the Federal Decree-Law 35 of 2021 to provide clarification to...
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The Federal Decree-Law no. 45 on the Protection of Personal Data came into force on 2nd January 2022. The new law applies to the processing of personal data (1) of a data subject who resides in the UAE, (2) by any controller or processor residing in the state, whether processing the data inside or outside...
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Inheritance means handing over assets of a deceased individual to the legally entitled descendants and family members. It is usually advised to have a registered Will as in absence of it, several undesirable situations may arise, like freezing of bank accounts, investments, and a prolonged litigation process which could prove to be costly. The inheritance...
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A Prenuptial agreement is a type of a written agreement between a couple yet to be married and consists of terms and conditions defining the distribution of the assets of the spouse during their marriage and post their divorce. There are also postnuptial agreements, which are essentially the same as prenuptial agreements but are entered...
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In January 2022, the Ministry of Finance of the United Arab Emirates (UAE) announced the introduction of a Federal Corporate Tax on business profits. Measures have been undertaken to incorporate the global best practices and reduce the compliance burden on the UAE businesses. The Corporate Tax is a type of direct tax placed on a...
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The Federal Law No. 6 of 2018 on Arbitration is the primary legislation regulating Arbitration across the country. Article 52 of the law states that every arbitral award issued according to the present law shall be binding and enforceable like a court order. Article 55 requires a person to submit a request for recognition of...
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Intending to discourage increasing crimes of bounced cheques, the UAE government had through Federal Decree Law No 14 of 2020 made changes to the provisions of the Commercial Transaction Law of 1993. The amendment decree came into effect on January 2022. The law has been changed to only punish individuals who (1) ask their banks...
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Law 165/2021 has made some interesting changes to articles 1 and 3 of DL 127/2021 regarding the control of green certifications in the workplace. The first interesting change is the one that authorizes public and private workers to submit a written request to the employer, stating their willingness to provide a copy of a valid...
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The Commercial Company Law of the United Arab Emirates (UAE) deals with the Mergers of companies across the nation. Article 283 of the Federal Law No. (2) of 2015 on Commercial Companies, allows a company with a special resolution passed by the General Assembly to merge with another company through the conclusion of a ‘Merger...
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The Emirate of Dubai has through Decree no. 34 of 2021 (the “Decree”), made major changes to the functioning of the Dubai International Arbitration Centre (DIAC). The Decree has abolished both ‘the Emirate Maritime Arbitration Centre’ as well as the ‘the Dubai International Financial Centre Arbitration Institute’ and has transferred their employees, assets, rights, and...
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Dubai International Financial Center (DIFC) was established in 2004 as a financial free zone having independent legal and regulatory framework aiming to foster growth and economic progress in the nation. DIFC has its unique and independent legal as well as regulatory framework in the United Arab Emirates (UAE). Special DIFC court have been created for...
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The United Arab Emirates (UAE) has become a major financial hub of the world where multinational corporations are establishing their base. The large-scale digitization of the economy post-Covid-19 generated massive quantities of data which the corporations used for improving their businesses. The ability of data to generate wealth makes it the ‘new oil’. However, data...
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The United Arab Emirates’s (UAE) government in September 2021, announced its projects of the 50 intending to transform the UAE over the next 50 years. This set of economic and development projects have captivated the interest of foreign investors as this project is aimed at providing the nation and its residents a sustainable future. Amongst...
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Cyberbullying is a modern phenomenon that has arisen as a product of two distinct convergent changes in XXIst century society, these are: Globalization: The increasing interconnectivity of individuals and groups through technology and global markets, which leads in turn to an increase in the abundance of telecommunications and electronic networks. Social Media: Tied in some...
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The UAE government has introduced some massive changes to labor laws of the nation through the new Federal Decree Law No 33 of 2021. The new law which will take effect from February 2022, is aimed at enhancing elasticity, resilience, and sustainability of the nation’s labor market and to promote flexible and competitive business environment...
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IR GLOBAL  – a multi-disciplinary professional services network that provides legal, accountancy, financial advice to companies and individuals around the world. After the pandemic, the team has finally welcomed its members back to London for the annual conference and celebrated its 10th (11) year anniversary! Paoletti Law Group was honored to be a Headline sponsor...
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The economy of the United Arab Emirates began as a mostly subsistence economy, based on fishing, pearl diving and dessert-accommodated transportation; nonetheless, there is an aspect of this economy that has stayed regular and unchanging from these early days to the discovery and extraction of oil: Trade. Since before the advent of modern civilization, the...
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On October 15 came into force the obligation under DL No. 127/2021, for employers to check the possession of the Green Pass obtained as a result of vaccination or the negative outcome of an antigenic or molecular swab to all employees, as well as suppliers and consultants called to work within the company. The text...
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In the legal system of the United Arab Emirates, the issue of employment and industrial relations is guided by a common law structure similar to that of the medieval Lex Mercatoria in Europe, in which the employers, employees and competitors could resolve their disputes through arbitration and mediation; the advantage of this system is that...
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The judicial process in the United Arab Emirates is fairly like most other countries, with one important difference: This has to do with the fact that instead of an accusatory system, it is an inquisitorial system.   For this reason, it is understandable that most investors, workers, and citizens in general prefer a more conciliatory...
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Intending to curb money laundering, financial fraud, tax evasion, and terror finance, the UAE government is taking steps to ensure financial transparency. Many individuals take the advantage of the complex corporate ownership structures and indulge in such activities harming the interests of governments across the world. One important step to curb such activities is recognizing...
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In the year 2015, the United Arab Emirates (UAE) government established a federal entity by the name of Gender Balance Council to develop and implement the gender balance agenda in the country. The council aimed at increasing female participation in decision-making positions. The overall objective was to position the UAE as a model for gender...
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The United Arab Emirates (UAE) with its exotic shopping malls is a prime attraction point for shoppers. If tourists buy products from a shop participating in the ‘Tax Refund for Tourists Scheme’ they can claim refunds for the Value Added Tax paid on the products. This scheme is only available for individuals leaving the country...
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The United Arab Emirates (UAE) had made the necessary changes to its anti-fraud provision by bringing in Federal Law No. 19 of 2016 to especially deal with commercial fraud cases. This law applies to the entire territory of the UAE along with the free zones across the UAE. Commercial fraud has been defined as an...
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Can my Employer Retain my Passport? There have been numerous instances in the past where individuals have complained of their passports being retained by their employers. The vulnerable position of an expatriate worker further deteriorates when the employer takes away his or her passport. Holding of a passport by an employer discourages an individual from...
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The recent amendments to the Commercial Company Law in 2020, allowed 100% foreign ownership for a business established in the mainland UAE. This amendment to the Commercial Company law allows 100% foreign investment without the requirement of having an Emirati as 51% owner for registration of an Onshore Company in the United Arab Emirates (UAE)....
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Abu Dhabi Global Market (ADGM) established in 2013 by the Abu Dhabi Chamber of Commerce, is an international financial center and a free zone, located in Al Maryah Island in Abu Dhabi, UAE. It became fully operational in 2015. ADGM aims to promote Abu Dhabi as a global financial center and an effective contributor to...
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The United Arab Emirates (UAE) introduced Value Added Tax (VAT) through Federal Law no (8) of 2017, to generate a new source of income to fund the nation’s high quality public services. The new tax was implemented to decrease the nation’s dependence on natural resources like oil and petroleum. VAT is imposed on every value...
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UAE Bankruptcy Law amendment The Cabinet of the United Arab Emirates (UAE) has through an amendment in 2020 made an effort to help the businesses facing an Emergency Financial Crisis (EFC) because of the spread of Covid-19 and the subsequent lockdowns. The debtors have been exempted temporarily from the obligatory filing of bankruptcy after 30...
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Intending to discourage increasing crimes of bounced cheques, the United Arab Emirates (UAE) government has, through Federal Decree Law No 14 of 2020, made changes to the provisions of the Commercial Transaction Law of 1993. The amendment decree will come into effect in January 2022. The law has been amended to allow for partial payment...
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The Covid-19 pandemic has brought many fold challenges to global economy which affected the daily lives of people across the world. The pandemic required a push from our governments to undo the damages and to initiate structural reforms required to strengthen the economies. The government of the United Arab Emirates has recently initiated long awaited...
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Foreigners and immigrants account for almost 89% of the population of the United Arab Emirates. It was only recently in 2002 that the foreigners were allowed to buy property in specified areas around the UAE. Through Regulation (3) of 2006, Emirate of Dubai determined the areas where foreign nationals were allowed to acquire ‘Real Property’-...
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The United Arab Emirates (UAE) is known for its world class malls and state of the art facilities provided in the same. The E-commerce business while already thriving got a big boost during this pandemic when people relied on online platforms for even grocery shopping. Despite having the best shopping malls, many companies in the...
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The United Arab Emirates (UAE) provides resident visa to an individual and his/her dependents if he/she (1) is employed by a company, (2) is employed in the government sector (3) has invested in a business (4) has a property, in the UAE. Additionally, university sponsored students and elderly foreigners who want to retire and reside...
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The post Covid amendments made to the UAE’s Bankruptcy Law of 2016 are a drastic but necessary step to deal with the steep fall in the growth and profits of the companies based in the United Arab Emirates (UAE). The resulting fall in growth of companies amid the Covid-19 crisis not only affected their profits...
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The UAE is the major regional hub and the commercial capital for the Middle East. It has one of the most liberal trade regimes in the Gulf. The position of the UAE means it is the centre of traffic between Europe, Africa, and Asia. As a gateway between these regions, the UAE holds the potential...
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In this post I want to go into practical detail and answer a series of questions investors ask themselves when they decide to implement a process of internationalization here in the Emirates. Tackling and solving these first questions is fundamental to the success of the whole venture, because building such a project is a bit...
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Starting a business? Get in touch with a layer. Let’s start with a practical situation. After a trip to Dubai, an Italian entrepreneur in the food industry decides to enter the market there, realizing the Emirate offers many opportunities, particularly in light of the upcoming Expo 2020. Now, what can he do to get some...
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Also in the law fields is better to prevent. Over the years medicine https://rosarydental.com/oral-surgery/buy-ventolin/ has taught families the importance of prevention, of taking care of ourselves to stay healthy and avoid illness. Unfortunately, the legal profession has not followed the same example and, even today, it’s common to hear the same opinion of a client...
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.In the last post I dealt with this subject – the importance of the written contract – which could seem banal, but which, on the contrary, is an issue that ought to be clearly put on the table. And so I’ve decided to go into further detail about this in a second article. If in the...
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If you lose a 2 million dollar project because you forgot to finalize a contract, what can you do? Nothing, I’m afraid. If something like this happens, you can’t react afterwards and hope to fix it. That contract is lost forever. I’m not speaking about a hypothetical case, but of a real occurrence. Here in...
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Today I want to discuss joint ventures and, in particular, a real case I dealt with a few months ago. But first I think it’s useful to spend some introductory words on what a joint venture is and what forms it can take. The term Joint Venture defines a form of collaboration among enterprises, with...
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