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Paoletti Law Group represented by our Managing Partner Thomas Paoletti and Head of Legal for Middle East Francesca Romana Valeri were happy to attend the recently concluded IR MENA CAIRO 2023 in Cairo, Egypt last November 4 – 5, 2023 – hosted by the local firms A&B Consultants Mohamed Badr & Partners, Hassouna & Abou Ali and Links & Gains Law Firm.
We are looking forward to the next IR Global MENA Events.
Thomas Paoletti |
Francesca Romana Valeri
Paoletti Law Group represented by our Managing Partner Thomas Paoletti and Head of Legal for Middle East Francesca Romana Valeri were happy to attend the recently concluded IR MENA CAIRO 2023 in Cairo, Egypt last November 4 – 5, 2023 – hosted by the local firms A&B Consultants Mohamed Badr & Partners, Hassouna & Abou Ali and Links & Gains Law Firm.
We are looking forward to the next IR Global MENA Events.
Thomas Paoletti |
Francesca Romana Valeri
The conference featured an inspiring lineup of industry thought leaders and key speakers who provided valuable insights into the latest global trends and developments. Alongside these sessions, attendees enjoyed various social activities, fostering a vibrant atmosphere for building new connections and strengthening existing relationships.
Thomas’ participation highlighted our ongoing commitment to staying at the forefront of legal and business practices, ensuring we continue delivering the best service to our clients worldwide. We are excited about the innovative ideas and opportunities gained from this global gathering, and we look forward to reconnecting with our network friends, and connections at the next IR Global conference.
Thomas Paoletti
Paoletti Law Group
"class="material with-radius">The conference featured an inspiring lineup of industry thought leaders and key speakers who provided valuable insights into the latest global trends and developments. Alongside these sessions, attendees enjoyed various social activities, fostering a vibrant atmosphere for building new connections and strengthening existing relationships.
Thomas’ participation highlighted our ongoing commitment to staying at the forefront of legal and business practices, ensuring we continue delivering the best service to our clients worldwide. We are excited about the innovative ideas and opportunities gained from this global gathering, and we look forward to reconnecting with our network friends, and connections at the next IR Global conference.
Thomas Paoletti
Paoletti Law Group
">CHANGES TO ARTICLE 54Article 54 of Labour Law provides procedure for settlement of the Individual Labor Disputes raised by employer or employee with the Ministry of Human Resource and Emiratisation (MOHRE). The new provision under the Amended Law, like the previous one, provides for MOHRE to take suitable actions to reach amicable settlement of dispute between the employer and employee.
The Amended law in addition also states that (a) if the above settlement is not complied with, or (b) if the value of the claim does not exceed AED 50,000, the MOHRE shall settle the matter with a decision which shall have the power of writ of execution. Within 15 days of such decision, the same can be taken up before the Court of first instance, which shall make the final-non-appealable decision on the matter within 30 days of filing the lawsuit.
In cases where the amount of dispute is above AED 50,000, the MOHRE shall make an effort to settle the matter and in absence of such settlement refer the matter to a court of competent jurisdiction.
Further sub-clause (9) added to Article 54 imposes a limitation period of two years for filing a lawsuit for violation of the decree law.
CHANGES TO ARTICLE 60
The Amended Law has made changes to Article 60 of the Labour Law which has resulted in increase in fines. While the previous provision of the Labour Law provided for fines ranging from AED 50,000 to AED 200,000, the same has now been amended and increased ranging from AED 100,000 to AED 1,000,000.
These fines shall be applicable to employers who:
1. Employs a worker not authorized to work for him,
2. Employs a juvenile in violation of the Decree Law,
3. Employs a worker and leaves him without work,
4. Uses work permit for purposes other than those designated for their issuance,
5. Closes down an establishment without settling the rights of the employees.
Fictitious Employment
The Amended Law also aims at dealing with fictitious employment of Emirati individuals with the sole aim of complying with minimum Emirati employment targets. It has been found in several cases, that private companies employ Emirati Individuals without assigning them any effective work roles and additionally claiming financial incentives designed by the government for such employment.
Although the Labour Law already provides for a situation wherein a fine was stipulated for leaving an employee without work, the Amended Law has made the same provision more stringent. Changes to Article 60 of the Labour Law states that the employer shall in addition to the above stated fines also be liable for returning any financial incentives that they may have received from the government for each employee. Further, the employer has been expressly forbidden from seeking refund of the financial incentives from the employees.
The Amended Law also provides for settlement of the above dispute wherein employer can avoid criminal prosecution of their acts if they agree to pay 50% of the stipulated fine along with the refund of the financial incentives received by them.
Conclusion
The amendments to the Labour Law have been made with an aim to effectively implement the existing provisions, wherein stricter and shorter timelines have been put in place to settle the dispute between the employer and employee. Further the increase in fines shows the intent of the government to enhance responsible behaviour from the employers.
For more information, you may contact:
Thomas Paoletti
Francesca Romana Valeri
Fauzia Khan
Article 54 of Labour Law provides procedure for settlement of the Individual Labor Disputes raised by employer or employee with the Ministry of Human Resource and Emiratisation (MOHRE). The new provision under the Amended Law, like the previous one, provides for MOHRE to take suitable actions to reach amicable settlement of dispute between the employer and employee.
The Amended law in addition also states that (a) if the above settlement is not complied with, or (b) if the value of the claim does not exceed AED 50,000, the MOHRE shall settle the matter with a decision which shall have the power of writ of execution. Within 15 days of such decision, the same can be taken up before the Court of first instance, which shall make the final-non-appealable decision on the matter within 30 days of filing the lawsuit.
In cases where the amount of dispute is above AED 50,000, the MOHRE shall make an effort to settle the matter and in absence of such settlement refer the matter to a court of competent jurisdiction.
Further sub-clause (9) added to Article 54 imposes a limitation period of two years for filing a lawsuit for violation of the decree law.
CHANGES TO ARTICLE 60
The Amended Law has made changes to Article 60 of the Labour Law which has resulted in increase in fines. While the previous provision of the Labour Law provided for fines ranging from AED 50,000 to AED 200,000, the same has now been amended and increased ranging from AED 100,000 to AED 1,000,000.
These fines shall be applicable to employers who:
1. Employs a worker not authorized to work for him,
2. Employs a juvenile in violation of the Decree Law,
3. Employs a worker and leaves him without work,
4. Uses work permit for purposes other than those designated for their issuance,
5. Closes down an establishment without settling the rights of the employees.
Fictitious Employment
The Amended Law also aims at dealing with fictitious employment of Emirati individuals with the sole aim of complying with minimum Emirati employment targets. It has been found in several cases, that private companies employ Emirati Individuals without assigning them any effective work roles and additionally claiming financial incentives designed by the government for such employment.
Although the Labour Law already provides for a situation wherein a fine was stipulated for leaving an employee without work, the Amended Law has made the same provision more stringent. Changes to Article 60 of the Labour Law states that the employer shall in addition to the above stated fines also be liable for returning any financial incentives that they may have received from the government for each employee. Further, the employer has been expressly forbidden from seeking refund of the financial incentives from the employees.
The Amended Law also provides for settlement of the above dispute wherein employer can avoid criminal prosecution of their acts if they agree to pay 50% of the stipulated fine along with the refund of the financial incentives received by them.
Conclusion
The amendments to the Labour Law have been made with an aim to effectively implement the existing provisions, wherein stricter and shorter timelines have been put in place to settle the dispute between the employer and employee. Further the increase in fines shows the intent of the government to enhance responsible behaviour from the employers.
For more information, you may contact:
Thomas Paoletti
Francesca Romana Valeri
Fauzia Khan
Qualifying requirements
An applicant wishing to establish or continuing a Prescribed Company in the DIFC shall establish one of the following factors:
1. The control of the Prescribed Company is with one or more
(i) GCC persons (a GCC citizen, a body corporate or unincorporated body Controlled by a GCC citizen(s), a body corporate that has any class of its securities listed on a securities exchange in the GCC, the UAE government or person in which the UAE government owns (directly or indirectly) an interest of at least 25%, or such other percentage as approved by the DIFCA), or
(ii) Registered Persons (a legal body incorporated, registered or continued in the DIFC), or
(iii) Authorised Firms (a person who holds a licence from the DFSA or financial services regulator in the UAE or certain other recognised jurisdictions).
2. The Prescribed Company is for the purpose of holding legal title to, or controlling GCC Registrable Assets, or
3. The Prescribed Company shall be for a Qualifying Purpose or
4. The Prescribed Company has a director that is an Employee of a Corporate Service Provider (CSP) having arrangements with the Registrar.
A GCC registrable asset has been defined as an asset or property interest that must be registered with a GCC Authority to establish legal ownership and includes among other things land and real property, shares in companies, partnership interests, intellectual property, etc.
The qualifying requirement relating to the Corporate Service Provider were not part of the proposed amendments but were included after public consultation.
Qualifying Purpose
The Qualifying Purpose as referred above can be any structure which relates to, a) an Aviation structure, b) a Crowdfunding structure, c) an Intellectual Property structure, d) a Maritime structure, e) a Structured Financing.
The amended regulations have removed the DIFC Holding Structure and an Innovation Holding Structure from the definition of Qualifying Purpose. Since the qualifying requirements have been widened, the DIFC thinks that these two structures can be sufficiently covered under the same.
Corporate Service Provider
The provision of Corporate Service Provider (CSP) already existed in the previous version of the regulation. However, the amendments have made it possible wherein a Prescribed Company may continue to function in the DIFC, if an Employee of a CSP is a director in that Prescribed Company. This requires that such a CSP must have an arrangement with the Registrar of the DIFC, wherein the CSP is responsible for assessing the applicant of the Prescribed Company if he complies with the Anti Money Laundering, Unique Beneficial Owner and other such requirements mentioned in Regulation 3.3.2.
Conclusion
The DIFC has through these regulations liberalised the Prescribed Company regime wherein additional applicants shall now be allowed to establish this corporate structure in the DIFC. The changes provide the applicant with increased structuring options that will enable them to expand their business.
For more information, you may contact:
Thomas Paoletti
Fauzia Khan
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Qualifying requirements
An applicant wishing to establish or continuing a Prescribed Company in the DIFC shall establish one of the following factors:
1. The control of the Prescribed Company is with one or more
(i) GCC persons (a GCC citizen, a body corporate or unincorporated body Controlled by a GCC citizen(s), a body corporate that has any class of its securities listed on a securities exchange in the GCC, the UAE government or person in which the UAE government owns (directly or indirectly) an interest of at least 25%, or such other percentage as approved by the DIFCA), or
(ii) Registered Persons (a legal body incorporated, registered or continued in the DIFC), or
(iii) Authorised Firms (a person who holds a licence from the DFSA or financial services regulator in the UAE or certain other recognised jurisdictions).
2. The Prescribed Company is for the purpose of holding legal title to, or controlling GCC Registrable Assets, or
3. The Prescribed Company shall be for a Qualifying Purpose or
4. The Prescribed Company has a director that is an Employee of a Corporate Service Provider (CSP) having arrangements with the Registrar.
A GCC registrable asset has been defined as an asset or property interest that must be registered with a GCC Authority to establish legal ownership and includes among other things land and real property, shares in companies, partnership interests, intellectual property, etc.
The qualifying requirement relating to the Corporate Service Provider were not part of the proposed amendments but were included after public consultation.
Qualifying Purpose
The Qualifying Purpose as referred above can be any structure which relates to, a) an Aviation structure, b) a Crowdfunding structure, c) an Intellectual Property structure, d) a Maritime structure, e) a Structured Financing.
The amended regulations have removed the DIFC Holding Structure and an Innovation Holding Structure from the definition of Qualifying Purpose. Since the qualifying requirements have been widened, the DIFC thinks that these two structures can be sufficiently covered under the same.
Corporate Service Provider
The provision of Corporate Service Provider (CSP) already existed in the previous version of the regulation. However, the amendments have made it possible wherein a Prescribed Company may continue to function in the DIFC, if an Employee of a CSP is a director in that Prescribed Company. This requires that such a CSP must have an arrangement with the Registrar of the DIFC, wherein the CSP is responsible for assessing the applicant of the Prescribed Company if he complies with the Anti Money Laundering, Unique Beneficial Owner and other such requirements mentioned in Regulation 3.3.2.
Conclusion
The DIFC has through these regulations liberalised the Prescribed Company regime wherein additional applicants shall now be allowed to establish this corporate structure in the DIFC. The changes provide the applicant with increased structuring options that will enable them to expand their business.
For more information, you may contact:
Thomas Paoletti
Fauzia Khan
">rising sea levels“.
Nearly 32 countries in the Middle East and Central Asia in pursuance of the Paris Agreement have pledged to contain annual greenhouse gas emissions in 2030 by 13 percent to 21 percent. The governments across the region are keen on reducing their carbon footprint and have made several efforts to achieve their targets. ESG reporting is one such effort at curtailing the extremes of climate change.
UAE and Saudi Arabia’s Efforts at Sustainability
UAE through its Vision 2031 aims to establish itself as a green economy focusing on sustainable development and infrastructure. The Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange both are required to publish annual sustainability reports that align with the GRI standards. Further, these exchanges have also provided guidance and training on ESG reporting to several of the listed entities. The DFM has in addition also prepared an ESG stock index specifically for UAE companies that keeps track of the sustainable practices of these businesses and evaluates their performance. The Securities and Commodities Authority (SCA) has also supported ESG reporting through 32 ESG metrics and indicators that companies are encouraged to disclose.
Under Saudi Arabia’s Vision 2030, the country strives to achieve a diverse and sustainable economy. ESG considerations are impacting investment decisions in the region and hence the Saudi Exchange through its published ESG guidance encourages listed companies to identify ESG factors impacting their businesses to take actions to improve their ESG scores.
Both Saudi Arabia and the United Arab Emirates have set sights on becoming energy transition leaders as they look to carbon capture, utilization, and storage (CCUS), and low-emissions fuels such as hydrogen, ammonia, and methanol, as well as green steel, cement, and aluminum. Both the economies are focusing on emissions-avoiding technologies that reduce emissions intensity, including measures that reduce energy consumption; renewables that replace the primary source of energy; and carbon capture that reduces emissions from point sources.
How Companies Can Overcome the ESG Reporting Challenges?
The reporting challenges posed by different ESG regulations of multiple countries can be overcome through standardization of the reporting framework across the region. Further, automation in reporting measures through a reliable reporting platform ensures accuracy and completeness in ESG reports. Businesses must also rely on various ESG reporting software to ensure efficiency in data collection and reporting. Most importantly businesses must seek regular feedback and review to identify areas for improvement.
The Road Ahead for ESG Reporting
The UAE has committed to various goals like Net Zero by 2050, Vision 2031 and other such goals through COP 28 like the Oil and Gas Decarbonization Charter, and Global Cooling Pledge. These goals are committed to decreasing the rising temperatures and promoting renewable energy. The rising concern for climate change will result in increasing regulations for private sectors resulting in stringent ESG compliances that will help the national governments of UAE and Saudi Arabia to fulfil their climate commitments. Businesses are bound to face increasing challenges while complying with these regulations and hence it is important to stay a step ahead and embrace these changes.
For more information, you may contact:
Thomas Paoletti
Fauzia Khan
Giulia Paoletti
Francesca Romana Valeri
Nearly 32 countries in the Middle East and Central Asia in pursuance of the Paris Agreement have pledged to contain annual greenhouse gas emissions in 2030 by 13 percent to 21 percent. The governments across the region are keen on reducing their carbon footprint and have made several efforts to achieve their targets. ESG reporting is one such effort at curtailing the extremes of climate change.
UAE and Saudi Arabia’s Efforts at Sustainability
UAE through its Vision 2031 aims to establish itself as a green economy focusing on sustainable development and infrastructure. The Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange both are required to publish annual sustainability reports that align with the GRI standards. Further, these exchanges have also provided guidance and training on ESG reporting to several of the listed entities. The DFM has in addition also prepared an ESG stock index specifically for UAE companies that keeps track of the sustainable practices of these businesses and evaluates their performance. The Securities and Commodities Authority (SCA) has also supported ESG reporting through 32 ESG metrics and indicators that companies are encouraged to disclose.
Under Saudi Arabia’s Vision 2030, the country strives to achieve a diverse and sustainable economy. ESG considerations are impacting investment decisions in the region and hence the Saudi Exchange through its published ESG guidance encourages listed companies to identify ESG factors impacting their businesses to take actions to improve their ESG scores.
Both Saudi Arabia and the United Arab Emirates have set sights on becoming energy transition leaders as they look to carbon capture, utilization, and storage (CCUS), and low-emissions fuels such as hydrogen, ammonia, and methanol, as well as green steel, cement, and aluminum. Both the economies are focusing on emissions-avoiding technologies that reduce emissions intensity, including measures that reduce energy consumption; renewables that replace the primary source of energy; and carbon capture that reduces emissions from point sources.
How Companies Can Overcome the ESG Reporting Challenges?
The reporting challenges posed by different ESG regulations of multiple countries can be overcome through standardization of the reporting framework across the region. Further, automation in reporting measures through a reliable reporting platform ensures accuracy and completeness in ESG reports. Businesses must also rely on various ESG reporting software to ensure efficiency in data collection and reporting. Most importantly businesses must seek regular feedback and review to identify areas for improvement.
The Road Ahead for ESG Reporting
The UAE has committed to various goals like Net Zero by 2050, Vision 2031 and other such goals through COP 28 like the Oil and Gas Decarbonization Charter, and Global Cooling Pledge. These goals are committed to decreasing the rising temperatures and promoting renewable energy. The rising concern for climate change will result in increasing regulations for private sectors resulting in stringent ESG compliances that will help the national governments of UAE and Saudi Arabia to fulfil their climate commitments. Businesses are bound to face increasing challenges while complying with these regulations and hence it is important to stay a step ahead and embrace these changes.
For more information, you may contact:
Thomas Paoletti
Fauzia Khan
Giulia Paoletti
Francesca Romana Valeri
Tribunal Fee
In employment matters the SCT charges a fee of 2% of the value of the claim with a minimum of USD 100. Any appeal of a decision made by the SCT in the Court of First Instance (CFI) may be subject to a fee of 1% of the dispute at the CFI.
For rental disputes that do not exceed AED 500,000, the SCT may charge a fee of 5% of the disputed amount with a minimum of USD 100. For other disputes, the SCT may charge a fee of 5% as a Tribunal fee for adjudicating the claims. For such disputes, the appeal to the CFI shall be subject to a fee of 2.5% of the disputed amount.
Procedural Brief
Below are a few features of interest in how the SCT functions:
Thus, the DIFC SCT has greatly contributed towards making the resolution of disputes a very simple and fast process.
For more information, you may contact:
"class="material with-radius">Tribunal Fee
In employment matters the SCT charges a fee of 2% of the value of the claim with a minimum of USD 100. Any appeal of a decision made by the SCT in the Court of First Instance (CFI) may be subject to a fee of 1% of the dispute at the CFI.
For rental disputes that do not exceed AED 500,000, the SCT may charge a fee of 5% of the disputed amount with a minimum of USD 100. For other disputes, the SCT may charge a fee of 5% as a Tribunal fee for adjudicating the claims. For such disputes, the appeal to the CFI shall be subject to a fee of 2.5% of the disputed amount.
Procedural Brief
Below are a few features of interest in how the SCT functions:
Thus, the DIFC SCT has greatly contributed towards making the resolution of disputes a very simple and fast process.
For more information, you may contact:
">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 slowdowns. With a prime focus on economic diversification, the country has seen increased investment in sectors such as tourism, real estate, logistics, financial services and technology-related markets.
Several attractive tax initiatives have drawn young entrepreneurs across the world to make the country their base for business operations, turning the UAE into a regional and global leader in investments in private and public companies. Given the dynamics of the economic landscape, the UAE has emerged as a prominent destination for initial public offerings (IPOs), which reflects the country’s commitment to fostering a robust capital market and attracting global investment.
It is pertinent to analyze the yearly surge in the value of IPOs in the UAE. In 2008, the UAE saw in total six IPOs of a total value of close to a billion dollars. In 2022, the UAE from its 11 issuances saw proceeds of around $ 13.96 billion.
In 2023, UAE firms raised $ 6.07 billion from the eight IPOs that were listed. Although this was a decline from the previous year, the UAE was the most dominant among the GCC countries as this accounted for 56.3 percent of the region’s total issuance proceeds.
In 2024, the Abu Dhabi Stock Exchange may expect listings of private companies including Lulu Group, Spinneys Dubai, Dubai Parkin and Advanced Inhalation Rituals.
The notable increase in the IPOs in the UAE can be attributed to various factors, including the government’s focus on diversification, political stability, financial regulatory reforms and the UAE’s strategic location and position as a global and financial business hub. The IPOs in the UAE have attracted substantial interest from both the retail and institutional investors, resulting in multifold over-subscription and reflecting the region’s growing investor appetite for the emerging growth opportunities.
The UAE’s adoption of international standards in respect of regulatory and market frameworks has helped it to witness massive investments from across the world. Further initiating favourable tax and economic policies has helped the country create a stable business landscape for entrepreneurs and established businesses. Initiatives like Dubai free zones and favourable taxation for foreign investors have led to the UAE accounting for over 30 percent of the foreign direct investment inflow to the MENA region.
The IPO eligibility rules in the UAE only allow profitable entities to be listed on the stock exchange. For onshore companies, the Security and Commodities Authority (SCA) requires the business to show a net operational profit of at least ten percent of the company’s capital for the past two years.
For other companies established in the offshore economic free zone, the criteria are to show profitability for the last two years to get listed on the stock exchanges of Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM). Unlike the mainland, there are no minimum criteria for profit to get listed. Most of the recent IPO candidates in the UAE have come from these free zones.
It is argued by some that the removal of the profitability requirement may boost the number of IPOs as several tech corporations in their initial phases are more focused on growth than on profitability. Companies such as Google, valued stocks today, were unprofitable for years. The criteria of minimum profitability for IPOs denies such technology companies investment opportunities through IPOs.
The UAE law also enforces several stringent post-IPO regulations. These involve accelerated financial reporting timelines wherein listed companies must disclose their quarterly earnings within 45 days following the end of the reporting period and must report audited financial statements within 90 days from the end of the financial year. Any delay in meeting deadlines may result in a damaging reputation and suspension of the share trading license.
Further, the listed companies must rotate their auditors in line with the SCA rotation rules wherein audit engagement partners have to be changed every three years and the audit firm is to be rotated every six years.
These rules are being enforced to bolster transparency and accountability, as well as to promote independence and objectivity in the UAE’s finance market. With the country positioned as a hub of innovation, the continuous expansion of the IPO market requires the UAE to fortify its reputation globally, wherein the finance teams of these companies are being asked to be more strategic, digital and investor-friendly.
The surge in IPOs in the UAE mirrors the country’s evolution into a dynamic financial hub driven by a range of factors, including economic diversification efforts, regulatory reforms and technological advances. As companies seize the opportunity to access public markets and investors capitalize on the region’s growth potential, the IPO boom in the UAE is poised to reshape the country’s economic landscape and propel it as a global investment destination.
Written By: Thomas Paoletti
Published on: The Arab Weekly
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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 slowdowns. With a prime focus on economic diversification, the country has seen increased investment in sectors such as tourism, real estate, logistics, financial services and technology-related markets.
Several attractive tax initiatives have drawn young entrepreneurs across the world to make the country their base for business operations, turning the UAE into a regional and global leader in investments in private and public companies. Given the dynamics of the economic landscape, the UAE has emerged as a prominent destination for initial public offerings (IPOs), which reflects the country’s commitment to fostering a robust capital market and attracting global investment.
It is pertinent to analyze the yearly surge in the value of IPOs in the UAE. In 2008, the UAE saw in total six IPOs of a total value of close to a billion dollars. In 2022, the UAE from its 11 issuances saw proceeds of around $ 13.96 billion.
In 2023, UAE firms raised $ 6.07 billion from the eight IPOs that were listed. Although this was a decline from the previous year, the UAE was the most dominant among the GCC countries as this accounted for 56.3 percent of the region’s total issuance proceeds.
In 2024, the Abu Dhabi Stock Exchange may expect listings of private companies including Lulu Group, Spinneys Dubai, Dubai Parkin and Advanced Inhalation Rituals.
The notable increase in the IPOs in the UAE can be attributed to various factors, including the government’s focus on diversification, political stability, financial regulatory reforms and the UAE’s strategic location and position as a global and financial business hub. The IPOs in the UAE have attracted substantial interest from both the retail and institutional investors, resulting in multifold over-subscription and reflecting the region’s growing investor appetite for the emerging growth opportunities.
The UAE’s adoption of international standards in respect of regulatory and market frameworks has helped it to witness massive investments from across the world. Further initiating favourable tax and economic policies has helped the country create a stable business landscape for entrepreneurs and established businesses. Initiatives like Dubai free zones and favourable taxation for foreign investors have led to the UAE accounting for over 30 percent of the foreign direct investment inflow to the MENA region.
The IPO eligibility rules in the UAE only allow profitable entities to be listed on the stock exchange. For onshore companies, the Security and Commodities Authority (SCA) requires the business to show a net operational profit of at least ten percent of the company’s capital for the past two years.
For other companies established in the offshore economic free zone, the criteria are to show profitability for the last two years to get listed on the stock exchanges of Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM). Unlike the mainland, there are no minimum criteria for profit to get listed. Most of the recent IPO candidates in the UAE have come from these free zones.
It is argued by some that the removal of the profitability requirement may boost the number of IPOs as several tech corporations in their initial phases are more focused on growth than on profitability. Companies such as Google, valued stocks today, were unprofitable for years. The criteria of minimum profitability for IPOs denies such technology companies investment opportunities through IPOs.
The UAE law also enforces several stringent post-IPO regulations. These involve accelerated financial reporting timelines wherein listed companies must disclose their quarterly earnings within 45 days following the end of the reporting period and must report audited financial statements within 90 days from the end of the financial year. Any delay in meeting deadlines may result in a damaging reputation and suspension of the share trading license.
Further, the listed companies must rotate their auditors in line with the SCA rotation rules wherein audit engagement partners have to be changed every three years and the audit firm is to be rotated every six years.
These rules are being enforced to bolster transparency and accountability, as well as to promote independence and objectivity in the UAE’s finance market. With the country positioned as a hub of innovation, the continuous expansion of the IPO market requires the UAE to fortify its reputation globally, wherein the finance teams of these companies are being asked to be more strategic, digital and investor-friendly.
The surge in IPOs in the UAE mirrors the country’s evolution into a dynamic financial hub driven by a range of factors, including economic diversification efforts, regulatory reforms and technological advances. As companies seize the opportunity to access public markets and investors capitalize on the region’s growth potential, the IPO boom in the UAE is poised to reshape the country’s economic landscape and propel it as a global investment destination.
Written By: Thomas Paoletti
Published on: The Arab Weekly
">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 bustling market demands meticulous planning, cultural savvy, and strategic execution.
Here are 10 indispensable guidelines to navigate the journey of establishing your presence in the UAE:
Understanding the intricacies of the UAE market is paramount before embarking on your business venture. Delve into market dynamics, consumer behaviors, and competitive landscapes to identify viable opportunities and potential challenges. Familiarize yourself with local regulations, business norms, and cultural nuances that shape business operations.
Selecting the appropriate business framework is crucial for success in the UAE. Options range from establishing a mainland company to opting for a free zone setup with tax benefits and full foreign ownership. Evaluate your choices carefully to align with your business goals and navigate regulatory requirements effectively.
Navigating the legal and bureaucratic landscape of the UAE can be complex. Engage legal professional with expertise in the region to guide you through company formation, licensing, visa processes, and compliance matters.
Cultivating alliances and partnerships is key in the UAE. Consider collaborating with local sponsors, distributors, or agents who possess market insights, networks, and cultural sensitivity. Partnering with esteemed local entities can accelerate market entry, enhance credibility, and unlock new opportunities.
Respect for local customs, traditions, and business etiquette is essential for building trust and fostering successful business relationships in the UAE. Invest in cross-cultural training for your team to bridge communication gaps and promote mutual understanding.
Adhering to UAE laws and regulations is fundamental for conducting business operations smoothly. Stay updated on legal requirements related to company registration, licensing, taxation, employment, and intellectual property rights. Uphold transparency and ethical business practices to earn trust and credibility.
Embrace digitalization to drive operational efficiency and innovation. Leverage technology to streamline processes, enhance customer engagement, and optimize marketing strategies. Invest in robust cybersecurity measures to safeguard data and mitigate cyber risks.
Adaptability is key in the UAE’s dynamic business environment. Be prepared to adjust strategies in response to market shifts, emerging trends, and geopolitical developments. Maintain agility and resilience to navigate uncertainties and seize new opportunities.
Customer satisfaction is paramount in the UAE, where discerning consumers expect top-notch products and services. Prioritize personalized solutions, responsive support, and seamless transactions to enhance customer experience. Utilize customer relationship management tools to foster engagement and loyalty.
Cultivate a culture of creativity, innovation, and continuous improvement within your organization. Encourage experimentation and risk-taking to stay ahead of the competition. Empower employees to contribute to company growth and success through innovation.
In conclusion, venturing into the UAE market offers UK businesses a gateway to expansion and growth in the Middle East. By following these guidelines and leveraging expert advice, cultural awareness, and adaptability, entrepreneurs can navigate the nuances of the UAE business landscape and establish a strong presence in this dynamic market. With perseverance, strategic foresight, and a commitment to excellence, UK enterprises can thrive and excel in the UAE’s diverse and vibrant economy.
You may read this blog in London Daily News
For more tips, you may contact:
"class="material with-radius">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 bustling market demands meticulous planning, cultural savvy, and strategic execution.
Here are 10 indispensable guidelines to navigate the journey of establishing your presence in the UAE:
Understanding the intricacies of the UAE market is paramount before embarking on your business venture. Delve into market dynamics, consumer behaviors, and competitive landscapes to identify viable opportunities and potential challenges. Familiarize yourself with local regulations, business norms, and cultural nuances that shape business operations.
Selecting the appropriate business framework is crucial for success in the UAE. Options range from establishing a mainland company to opting for a free zone setup with tax benefits and full foreign ownership. Evaluate your choices carefully to align with your business goals and navigate regulatory requirements effectively.
Navigating the legal and bureaucratic landscape of the UAE can be complex. Engage legal professional with expertise in the region to guide you through company formation, licensing, visa processes, and compliance matters.
Cultivating alliances and partnerships is key in the UAE. Consider collaborating with local sponsors, distributors, or agents who possess market insights, networks, and cultural sensitivity. Partnering with esteemed local entities can accelerate market entry, enhance credibility, and unlock new opportunities.
Respect for local customs, traditions, and business etiquette is essential for building trust and fostering successful business relationships in the UAE. Invest in cross-cultural training for your team to bridge communication gaps and promote mutual understanding.
Adhering to UAE laws and regulations is fundamental for conducting business operations smoothly. Stay updated on legal requirements related to company registration, licensing, taxation, employment, and intellectual property rights. Uphold transparency and ethical business practices to earn trust and credibility.
Embrace digitalization to drive operational efficiency and innovation. Leverage technology to streamline processes, enhance customer engagement, and optimize marketing strategies. Invest in robust cybersecurity measures to safeguard data and mitigate cyber risks.
Adaptability is key in the UAE’s dynamic business environment. Be prepared to adjust strategies in response to market shifts, emerging trends, and geopolitical developments. Maintain agility and resilience to navigate uncertainties and seize new opportunities.
Customer satisfaction is paramount in the UAE, where discerning consumers expect top-notch products and services. Prioritize personalized solutions, responsive support, and seamless transactions to enhance customer experience. Utilize customer relationship management tools to foster engagement and loyalty.
Cultivate a culture of creativity, innovation, and continuous improvement within your organization. Encourage experimentation and risk-taking to stay ahead of the competition. Empower employees to contribute to company growth and success through innovation.
In conclusion, venturing into the UAE market offers UK businesses a gateway to expansion and growth in the Middle East. By following these guidelines and leveraging expert advice, cultural awareness, and adaptability, entrepreneurs can navigate the nuances of the UAE business landscape and establish a strong presence in this dynamic market. With perseverance, strategic foresight, and a commitment to excellence, UK enterprises can thrive and excel in the UAE’s diverse and vibrant economy.
You may read this blog in London Daily News
For more tips, you may contact:
">Destination UAEQ1
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 a safety index of 84.9 and is considered one of the safest countries in the world. Three of its cities are in the top five safest globally. The major attraction that immigrants find in the country is its openness and commitment to pluralism, and it is home to a 90% foreign population,
Q2
Climate concerns are increasingly becoming a decision-making factor in global migration – how is this impacting your jurisdiction?
The entire GCC region is likely to face a climate crisis as many climate-related studies have pointed to the fact that there shall be an increase in temperature up to 5 degrees in the GCC region by the end of this century, meaning that local populations, including in the GCC, will face major health and livelihood challenges in the coming future. As many as 400 million inhabitants of the Middle East will be at risk of exposure to extreme heat waves that may also stoke social and political tensions.
The UAE’s government has been very keen to address global concerns over climate change and has acted to reduce its carbon footprint and the dependence of its economy on fossil fuels. The same is evident from the UAE hosting the recently held COP28 (United Nations Climate Change Conference or Conference of the Parties of the UNFCCC).
The UAE has been at the forefront of acting on climate policies and has set the target of 2050 for the goal of net zero emissions. However, resource-rich countries like the UAE will experience an increase in the rate of immigration from poorer regions despite their own forecasted climatic challenges. The GCC could potentially receive some of the 143 million climate migrants from Southeast Asia, Sub-Saharan Africa, and Latin America, that the World Bank expects could be displaced by 2050.
Q3
How is government policy influencing mobility in your jurisdiction – particularly regarding employment relocation?
The UAE government has introduced massive changes to its labour laws through Federal Decree Law No 33 of 2021. The new law aims to enhance the nation’s labour market’s elasticity, resilience, and sustainability and promote a flexible and competitive business environment for the next 50 years.
Additionally, with these new laws and visa regulations, the UAE is working to create a welcoming environment for foreign individuals and investors, further solidifying the UAE’s position as an attractive destination for living and conducting business.
The law prohibits discrimination, forced labour, harassment and bullying; some of the other new developments in the labour laws that shall apply to private sector employees is the introduction of temporary and flexible work models to allow flexible hiring and working practices.
Furthermore, recent legislative changes have seen an increase in maternity leave provisions, reflecting the government’s commitment to supporting family life and gender equality. Additionally, other initiatives, such as enhanced quality-of-life measures, have been introduced to create a holistic and inclusive environment, making the UAE an even more desirable destination for individuals seeking not only professional opportunities but also a higher quality of life.
Further, the UAE government has made it easier for freelancers to migrate to the jurisdiction by introducing Freelancer Visa. This Visa allows self-employed individuals to sponsor themselves. Workers in the UAE and overseas in specialised fields such as blockchain, AI, and digital currencies can access the freelancer visa.
The new labour law also lays certain obligations on employers, which include providing accommodation, training and other means to ensure the safety and welfare of the employees through insurance, healthcare costs and other entitlements to the employee’s.
Managing Partner
Kindly click here to read the full publication
"class="material with-radius">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 a safety index of 84.9 and is considered one of the safest countries in the world. Three of its cities are in the top five safest globally. The major attraction that immigrants find in the country is its openness and commitment to pluralism, and it is home to a 90% foreign population,
Q2
Climate concerns are increasingly becoming a decision-making factor in global migration – how is this impacting your jurisdiction?
The entire GCC region is likely to face a climate crisis as many climate-related studies have pointed to the fact that there shall be an increase in temperature up to 5 degrees in the GCC region by the end of this century, meaning that local populations, including in the GCC, will face major health and livelihood challenges in the coming future. As many as 400 million inhabitants of the Middle East will be at risk of exposure to extreme heat waves that may also stoke social and political tensions.
The UAE’s government has been very keen to address global concerns over climate change and has acted to reduce its carbon footprint and the dependence of its economy on fossil fuels. The same is evident from the UAE hosting the recently held COP28 (United Nations Climate Change Conference or Conference of the Parties of the UNFCCC).
The UAE has been at the forefront of acting on climate policies and has set the target of 2050 for the goal of net zero emissions. However, resource-rich countries like the UAE will experience an increase in the rate of immigration from poorer regions despite their own forecasted climatic challenges. The GCC could potentially receive some of the 143 million climate migrants from Southeast Asia, Sub-Saharan Africa, and Latin America, that the World Bank expects could be displaced by 2050.
Q3
How is government policy influencing mobility in your jurisdiction – particularly regarding employment relocation?
The UAE government has introduced massive changes to its labour laws through Federal Decree Law No 33 of 2021. The new law aims to enhance the nation’s labour market’s elasticity, resilience, and sustainability and promote a flexible and competitive business environment for the next 50 years.
Additionally, with these new laws and visa regulations, the UAE is working to create a welcoming environment for foreign individuals and investors, further solidifying the UAE’s position as an attractive destination for living and conducting business.
The law prohibits discrimination, forced labour, harassment and bullying; some of the other new developments in the labour laws that shall apply to private sector employees is the introduction of temporary and flexible work models to allow flexible hiring and working practices.
Furthermore, recent legislative changes have seen an increase in maternity leave provisions, reflecting the government’s commitment to supporting family life and gender equality. Additionally, other initiatives, such as enhanced quality-of-life measures, have been introduced to create a holistic and inclusive environment, making the UAE an even more desirable destination for individuals seeking not only professional opportunities but also a higher quality of life.
Further, the UAE government has made it easier for freelancers to migrate to the jurisdiction by introducing Freelancer Visa. This Visa allows self-employed individuals to sponsor themselves. Workers in the UAE and overseas in specialised fields such as blockchain, AI, and digital currencies can access the freelancer visa.
The new labour law also lays certain obligations on employers, which include providing accommodation, training and other means to ensure the safety and welfare of the employees through insurance, healthcare costs and other entitlements to the employee’s.
Managing Partner
Kindly click here to read the full publication
">Thomas Paoletti and Head of Legal for the Middle East Francesca Romana Valeri, will be hosting talks during the event.
Thomas will open the conference with his ‘Welcome to Dubai’ presentation on the investment opportunities in Dubai, focusing on key topics such as ESG, Artificial Intelligence and strategic sectors, with Francesca leading a breakout session exploring ‘Global Talent Strategy.’
For the full schedule of events, download the schedule.
For those attending, we look forward to welcoming you to Dubai!
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Thomas will open the conference with his ‘Welcome to Dubai’ presentation on the investment opportunities in Dubai, focusing on key topics such as ESG, Artificial Intelligence and strategic sectors, with Francesca leading a breakout session exploring ‘Global Talent Strategy.’
For the full schedule of events, download the schedule.
For those attending, we look forward to welcoming you to Dubai!
">Francesca Romana Valeri
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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 turning point. The action unfolds in Dubai from November 30th to December 12th, 2023.
Get ready for something special – it’s not just a conference; it’s a step toward a greener future for everyone and we will keep you posted!
Leadership for COP 28
Dr. Sultan Ahmed Al Jaber is leading the conference as the President-Designate for COP28 UAE. As the Abu Dhabi National Oil Company (ADNOC) CEO, he led a $15 billion decarbonisation strategy and has been an industry pioneer in leading renewable energy initiatives.
Youth Climate Champion has been designated to the Minister of Community Development of UAE, H.E. Shamma Al Mazrui. As Youth Climate Champion, she will engage with local and global stakeholders to provide opportunities for the young in renewable energy roles.
Further, H.E. Razan Al Mubarak will be acting as the UN Climate Change High-Level Champion, and she will be mobilising with different state and non-state actors to promote a unified approach to reach global goals on climate change.
H.E. Mariam Almheiri, as the UAE Minister of Climate Change and Environment, shall support the team of COP 28 and shall ensure that the UAE delivers on its climate targets set out by the Paris Agreement and its Net Zero 2050 strategy.
The Choice of the UAE
The selection of the UAE as the host country for COP 28 is significant for several reasons. Despite being an oil-rich nation, the UAE has proactively diversified its economy and invested in renewable energy. Hosting COP 28 allows the UAE to showcase its commitment to sustainable development and its efforts to transition towards a green economy.
The country’s strategic location also plays a role. The Middle East is particularly vulnerable to the impacts of climate change, from rising temperatures to water scarcity. By hosting COP 28, the UAE emphasises the importance of addressing climate change as a global challenge that requires collective action.
Platforms for Dialogue-Blue Zone and Green Zone
With the expected participation of over 70,000 participants, including heads of state, government officials, industry leaders, academics, and representatives from non-accredited delegates and other voice organisations,
Blue Zone is a UNFCC-managed site open only to nation-state delegates, Observers (NGOs, IGOs, UN Agencies), Media and other World Leaders.
Green Zone, on the other hand, is a space managed by the COP28 UAE Presidency, and it aims to offer a platform to non-accredited delegates like youth groups, civil society, NGOs, the private sector and indigenous groups to have their voices heard and to promote dialogue.
Key Themes and Agendas
COP 28 is expected to focus on a range of critical themes, building on the outcomes of previous conferences. One of the central discussions will revolve around efforts to limit global warming to well below 2 degrees Celsius above pre-industrial levels, as outlined in the Paris Agreement. Countries will be urged to enhance their climate action plans, known as Nationally Determined Contributions (NDCs), to align with this goal.
Renewable energy and decarbonisation will also be in the spotlight. The UAE, known for its ambitious clean energy initiatives, will likely showcase its progress. The conference will explore ways to accelerate the transition to renewable energy sources and reduce reliance on fossil fuels.
Will the World leaders commit more this time?
There has been constant criticism of the leaders attending the COP every year for their refusal to commit more to the cause of achieving the goals of the Paris Agreement, which aimed at reducing the increase in temperature to 2°C or 1.5°C by the end of the century. Civil society around the world shall keep an eye on leaders across the world visiting the COP 28 with an expectation of ambitious goals for countries to achieve individually.
Global Decarbonization Alliance
Another highlight of the event is the involvement of industrialists in the meeting. Indeed, the President of COP 28, as previously noted, also serves as the CEO of ADNOC. This holistic strategy, bringing together leaders from the oil and gas sector and high-emitting industries, alongside global decision-makers, holds promise for long-term success. The President’s primary initiative involves encouraging oil and gas companies to commit to robust climate pledges and unite in establishing a Global Decarbonization Alliance.
Conclusion
COP 28 in the UAE holds great promise for advancing global efforts to combat climate change. As nations come together to negotiate and collaborate, the conference provides an opportunity to reinforce the shared commitment to creating a sustainable and resilient future. The outcomes of COP 28 will not only shape the international climate agenda. Still, they will also determine the trajectory of our planet’s response to one of the greatest challenges of our time.
To know more about this blog, you may contact:
"class="material with-radius">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 turning point. The action unfolds in Dubai from November 30th to December 12th, 2023.
Get ready for something special – it’s not just a conference; it’s a step toward a greener future for everyone and we will keep you posted!
Leadership for COP 28
Dr. Sultan Ahmed Al Jaber is leading the conference as the President-Designate for COP28 UAE. As the Abu Dhabi National Oil Company (ADNOC) CEO, he led a $15 billion decarbonisation strategy and has been an industry pioneer in leading renewable energy initiatives.
Youth Climate Champion has been designated to the Minister of Community Development of UAE, H.E. Shamma Al Mazrui. As Youth Climate Champion, she will engage with local and global stakeholders to provide opportunities for the young in renewable energy roles.
Further, H.E. Razan Al Mubarak will be acting as the UN Climate Change High-Level Champion, and she will be mobilising with different state and non-state actors to promote a unified approach to reach global goals on climate change.
H.E. Mariam Almheiri, as the UAE Minister of Climate Change and Environment, shall support the team of COP 28 and shall ensure that the UAE delivers on its climate targets set out by the Paris Agreement and its Net Zero 2050 strategy.
The Choice of the UAE
The selection of the UAE as the host country for COP 28 is significant for several reasons. Despite being an oil-rich nation, the UAE has proactively diversified its economy and invested in renewable energy. Hosting COP 28 allows the UAE to showcase its commitment to sustainable development and its efforts to transition towards a green economy.
The country’s strategic location also plays a role. The Middle East is particularly vulnerable to the impacts of climate change, from rising temperatures to water scarcity. By hosting COP 28, the UAE emphasises the importance of addressing climate change as a global challenge that requires collective action.
Platforms for Dialogue-Blue Zone and Green Zone
With the expected participation of over 70,000 participants, including heads of state, government officials, industry leaders, academics, and representatives from non-accredited delegates and other voice organisations,
Blue Zone is a UNFCC-managed site open only to nation-state delegates, Observers (NGOs, IGOs, UN Agencies), Media and other World Leaders.
Green Zone, on the other hand, is a space managed by the COP28 UAE Presidency, and it aims to offer a platform to non-accredited delegates like youth groups, civil society, NGOs, the private sector and indigenous groups to have their voices heard and to promote dialogue.
Key Themes and Agendas
COP 28 is expected to focus on a range of critical themes, building on the outcomes of previous conferences. One of the central discussions will revolve around efforts to limit global warming to well below 2 degrees Celsius above pre-industrial levels, as outlined in the Paris Agreement. Countries will be urged to enhance their climate action plans, known as Nationally Determined Contributions (NDCs), to align with this goal.
Renewable energy and decarbonisation will also be in the spotlight. The UAE, known for its ambitious clean energy initiatives, will likely showcase its progress. The conference will explore ways to accelerate the transition to renewable energy sources and reduce reliance on fossil fuels.
Will the World leaders commit more this time?
There has been constant criticism of the leaders attending the COP every year for their refusal to commit more to the cause of achieving the goals of the Paris Agreement, which aimed at reducing the increase in temperature to 2°C or 1.5°C by the end of the century. Civil society around the world shall keep an eye on leaders across the world visiting the COP 28 with an expectation of ambitious goals for countries to achieve individually.
Global Decarbonization Alliance
Another highlight of the event is the involvement of industrialists in the meeting. Indeed, the President of COP 28, as previously noted, also serves as the CEO of ADNOC. This holistic strategy, bringing together leaders from the oil and gas sector and high-emitting industries, alongside global decision-makers, holds promise for long-term success. The President’s primary initiative involves encouraging oil and gas companies to commit to robust climate pledges and unite in establishing a Global Decarbonization Alliance.
Conclusion
COP 28 in the UAE holds great promise for advancing global efforts to combat climate change. As nations come together to negotiate and collaborate, the conference provides an opportunity to reinforce the shared commitment to creating a sustainable and resilient future. The outcomes of COP 28 will not only shape the international climate agenda. Still, they will also determine the trajectory of our planet’s response to one of the greatest challenges of our time.
To know more about this blog, you may contact:
">Alberto Bardini"class="material with-radius">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 for global investors seeking lucrative opportunities. The emirate of Dubai’s thriving economy, diverse sectors, and commitment to innovation have further bolstered its allure for foreign investments. Foreign direct investment (FDI) inflows into the UAE have remained consistently high, reflecting investor confidence in the nation’s economic prospects. A proactive and progressive government approach, coupled with a strong regulatory framework, has provided investors with a sense of security
and stability. Additionally, the UAE’s robust trade relations with various countries have facilitated increased investment flows into the Emirates.
Impact of Global Geopolitical and Economic Fluctuations on Commercial Engagements in UAE
Despite UAE’s resilience, the global geopolitical and economic fluctuations have not left the emirate untouched. These fluctuations, ranging from trade tensions to technological disruptions and pandemics, have led to uncertainties and challenges for businesses operating in the UAE. However, the UAE’s dynamic and diversified economy, in the different emirates, has played a crucial role in mitigating some of the adverse effects. Global geopolitical tensions have at times resulted in trade disruptions and fluctuations in commodity prices, which
can impact businesses operating in the UAE. Additionally, the fluctuating economic landscape can influence investor sentiments, causing some degree of cautiousness in investment decisions. However, the UAE’s strategic initiative and commitment to diversification have enabled it to proactively respond to such fluctuations and emerge resiliently.
Attracting Interest and Securing Funding from Investors in the UAE
Businesses seeking to attract interest and secure funding from investors in the UAE must adopt a strategic and proactive approach.
Below I summarize some key considerations to enhance investor appeal based on my experience in UAE:
• Market Research and Targeting: Comprehensive market research is essential to identify sectors and industries with strong growth potential. By honing in on specific market niches, businesses can tailor their commercial proposals to align with investor interests.
• Value Proposition and Differentiation: Articulating a clear and compelling value proposition is critical. Businesses must highlight their unique strengths, differentiators, and competitive advantages to stand out from the competition.
• Strong Financial Projections: Investors seek a thorough understanding of a company’s financial health and projections. Robust financial planning, based on accurate data and realistic assumptions, is crucial to instill invest or confidence.
• Transparency and Governance: Transparent and robust corporate governance practices are highly valued by investors. Companies must demonstrate a commitment to accountability, ethical practices, and risk management.
• Building Relationships: Cultivating strong relationships with potential investors is pivotal. Engaging in networking events, industry conferences, and business forums can foster connections and showcase the potential for fruitful collaborations.
In conclusion, based on my experience as a professional living in the UAE and with extensive experience in the UAE market and business, I bear witness to the remarkable transformation of the UAE into a global business powerhouse.
The current appetite for foreign investment in the emirate is a testament to its enduring allure as a strategic and investor-friendly destination.
While global geopolitical and economic fluctuations pose challenges, the UAE’s adaptability, visionary leadership, and steadfast commitment to diversification fortify its resilience in weathering uncertainties.
To attract interest and secure funding from investors in the UAE, businesses must approach their proposals with meticulous attention to detail. Thorough market research, a compelling value proposition, sound financial projections, robust governance, and proactive relationship building are essential elements that form the bedrock of a strong commercial proposal.
As the Emirates propels forward, businesses embracing a comprehensive and strategic approach, bolstered by legal clarity and compliance, will be at the forefront of UAE’s success story. As a legal consultant, I take pride in assisting companies in navigating the UAE’s business landscape, ensuring they can harness the limitless opportunities that the UAE presents.
TOP TIPS
Building a strong commercial proposal for investors
- Thorough Research: Conduct comprehensive research on the target market, competitors, and investor preferences to tailor the proposal accordingly.
- Compelling Value Proposition: Clearly outline the unique selling points and the value the business brings to investors, emphasizing growth prospects.
- Financial Prudence: Present well-structured financial projections, backed by accurate data, realistic assumptions, and a clear growth trajectory.
- Governance and Ethics: Demonstrate a strong commitment to transparency, good governance, and ethical practices.
- Engagement and Follow-Up: Actively engage with potential investors, respond promptly to inquiries, and follow up diligently to maintain interest.
“The nation’s strategic location, robust infrastructure, investor-friendly policies, and stable business environment have positioned it as an attractive destination for global investors.”
For more information, you may contact: Francesca Romana Valeri
To read the full IR Global Publication, kindly click here
"class="material with-radius">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 for global investors seeking lucrative opportunities. The emirate of Dubai’s thriving economy, diverse sectors, and commitment to innovation have further bolstered its allure for foreign investments. Foreign direct investment (FDI) inflows into the UAE have remained consistently high, reflecting investor confidence in the nation’s economic prospects. A proactive and progressive government approach, coupled with a strong regulatory framework, has provided investors with a sense of security
and stability. Additionally, the UAE’s robust trade relations with various countries have facilitated increased investment flows into the Emirates.
Impact of Global Geopolitical and Economic Fluctuations on Commercial Engagements in UAE
Despite UAE’s resilience, the global geopolitical and economic fluctuations have not left the emirate untouched. These fluctuations, ranging from trade tensions to technological disruptions and pandemics, have led to uncertainties and challenges for businesses operating in the UAE. However, the UAE’s dynamic and diversified economy, in the different emirates, has played a crucial role in mitigating some of the adverse effects. Global geopolitical tensions have at times resulted in trade disruptions and fluctuations in commodity prices, which
can impact businesses operating in the UAE. Additionally, the fluctuating economic landscape can influence investor sentiments, causing some degree of cautiousness in investment decisions. However, the UAE’s strategic initiative and commitment to diversification have enabled it to proactively respond to such fluctuations and emerge resiliently.
Attracting Interest and Securing Funding from Investors in the UAE
Businesses seeking to attract interest and secure funding from investors in the UAE must adopt a strategic and proactive approach.
Below I summarize some key considerations to enhance investor appeal based on my experience in UAE:
• Market Research and Targeting: Comprehensive market research is essential to identify sectors and industries with strong growth potential. By honing in on specific market niches, businesses can tailor their commercial proposals to align with investor interests.
• Value Proposition and Differentiation: Articulating a clear and compelling value proposition is critical. Businesses must highlight their unique strengths, differentiators, and competitive advantages to stand out from the competition.
• Strong Financial Projections: Investors seek a thorough understanding of a company’s financial health and projections. Robust financial planning, based on accurate data and realistic assumptions, is crucial to instill invest or confidence.
• Transparency and Governance: Transparent and robust corporate governance practices are highly valued by investors. Companies must demonstrate a commitment to accountability, ethical practices, and risk management.
• Building Relationships: Cultivating strong relationships with potential investors is pivotal. Engaging in networking events, industry conferences, and business forums can foster connections and showcase the potential for fruitful collaborations.
In conclusion, based on my experience as a professional living in the UAE and with extensive experience in the UAE market and business, I bear witness to the remarkable transformation of the UAE into a global business powerhouse.
The current appetite for foreign investment in the emirate is a testament to its enduring allure as a strategic and investor-friendly destination.
While global geopolitical and economic fluctuations pose challenges, the UAE’s adaptability, visionary leadership, and steadfast commitment to diversification fortify its resilience in weathering uncertainties.
To attract interest and secure funding from investors in the UAE, businesses must approach their proposals with meticulous attention to detail. Thorough market research, a compelling value proposition, sound financial projections, robust governance, and proactive relationship building are essential elements that form the bedrock of a strong commercial proposal.
As the Emirates propels forward, businesses embracing a comprehensive and strategic approach, bolstered by legal clarity and compliance, will be at the forefront of UAE’s success story. As a legal consultant, I take pride in assisting companies in navigating the UAE’s business landscape, ensuring they can harness the limitless opportunities that the UAE presents.
TOP TIPS
Building a strong commercial proposal for investors
- Thorough Research: Conduct comprehensive research on the target market, competitors, and investor preferences to tailor the proposal accordingly.
- Compelling Value Proposition: Clearly outline the unique selling points and the value the business brings to investors, emphasizing growth prospects.
- Financial Prudence: Present well-structured financial projections, backed by accurate data, realistic assumptions, and a clear growth trajectory.
- Governance and Ethics: Demonstrate a strong commitment to transparency, good governance, and ethical practices.
- Engagement and Follow-Up: Actively engage with potential investors, respond promptly to inquiries, and follow up diligently to maintain interest.
“The nation’s strategic location, robust infrastructure, investor-friendly policies, and stable business environment have positioned it as an attractive destination for global investors.”
For more information, you may contact: Francesca Romana Valeri
To read the full IR Global Publication, kindly click here
">Managing Partner, Thomas Paoletti and our Partner in Italy, Luana Mainini, recently represented #PaolettiLawGroup at IR Global’s 11th Annual Conference in Amsterdam last week.
Whilst visiting the Dutch capital, Thomas experienced a full range of networking opportunities, informative presentations, inspirational speakers, breakout sessions, and social activities.
Thomas and Luana’s trip was also enriched by meeting 400+ IR Global peers from across 80+ jurisdictions, who travelled from across the globe to attend the event.
This enables Paoletti Law Group to serve our clients across the globe and showcases the depth of expertise we have as part of the IR Global network.
We look forward to welcoming you all to Dubai in February.
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Whilst visiting the Dutch capital, Thomas experienced a full range of networking opportunities, informative presentations, inspirational speakers, breakout sessions, and social activities.
Thomas and Luana’s trip was also enriched by meeting 400+ IR Global peers from across 80+ jurisdictions, who travelled from across the globe to attend the event.
This enables Paoletti Law Group to serve our clients across the globe and showcases the depth of expertise we have as part of the IR Global network.
We look forward to welcoming you all to Dubai in February.
">https://myoceanviewdental.com/xanax-online/ is proved from our side. Long-term cooperation with the providers brought confidence in them. As for them as medicine – it is defined as effective one for short-term management. Please consult with your attending doctor if it is the best choice for you. Also remember to follow the instruction and dosing.
For more information, please contact:
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For more information, please contact:
">Understanding EPC Contracts: A 360-Degree Perspective. What are we talking about?
EPC contracts epitomize a holistic project delivery approach, merging design, procurement, and construction under one umbrella.
EPC contracts represent a project delivery approach where a singular contractor is responsible for design, procurement, and construction. These contracts are mainly employed for intricate, large-scale endeavors, offering clients a centralized point of contact throughout the project lifecycle.
The International Federation of Consulting Engineers (FIDIC) has formulated a suite of standard contract forms for EPC projects, comprising the Red Book, Yellow Book, and Silver Book. The Red Book corresponds to conventional design-bid-build projects, the Yellow Book pertains to plant and design-build ventures, and the Silver Book caters to EPC turnkey undertakings.
Thorough scrutiny of the multifaceted EPC contract by both the client and contractor before signing is imperative. The document should precisely delineate the scope of work, the obligations of each party, payment terms, and procedures for dispute resolution.
EPC contracts present several merits, including consolidating responsibility under one entity and simplifying communication and coordination. Additionally, the efficiency of project completion is often heightened due to the integrated nature of the EPC contractor’s role. Moreover, a significant portion of risk can be shifted to the EPC contractor, safeguarding the client’s financial interests.
However, this contract type is accompanied by certain drawbacks, such as escalated costs due to the EPC contractor’s premium for undertaking increased risk. It also curtails flexibility for the client to effect changes post-contract signing, and the intricate nature of the EPC contract can potentially lead to interpretational conflicts between the parties.
EPC contracts present a versatile project delivery method suitable for diverse clients. Nevertheless, a meticulous assessment of its pros and cons is essential before adoption. Here are some key considerations:
By adhering to these guidelines, clients can enhance the likelihood of successful EPC projects. The multifaceted nature of EPC contracts necessitates meticulous evaluation to ensure that project goals are achieved with minimized conflicts and optimized efficiency.
In the world of EPC, success demands a blend of strategy, experience, and legal finesse. At Paoletti Law Group, we stand by your side as stalwart navigators, propelling you toward triumphant project delivery. With FIDIC’s wisdom as our North Star and our team’s EPC triumphs as our compass, your journey is destined for excellence!
Stay tuned for the next edition, where we unravel more EPC mysteries and empower you with insights that matter.
For more information, you may contact:
References:
https://www.fidic.org/ | https://iccwbo.org/ | https://www.asce.org/ | https://www.construction-institute.org/ | https://www.pmi.org/
"class="material with-radius">
EPC contracts epitomize a holistic project delivery approach, merging design, procurement, and construction under one umbrella.
EPC contracts represent a project delivery approach where a singular contractor is responsible for design, procurement, and construction. These contracts are mainly employed for intricate, large-scale endeavors, offering clients a centralized point of contact throughout the project lifecycle.
The International Federation of Consulting Engineers (FIDIC) has formulated a suite of standard contract forms for EPC projects, comprising the Red Book, Yellow Book, and Silver Book. The Red Book corresponds to conventional design-bid-build projects, the Yellow Book pertains to plant and design-build ventures, and the Silver Book caters to EPC turnkey undertakings.
Thorough scrutiny of the multifaceted EPC contract by both the client and contractor before signing is imperative. The document should precisely delineate the scope of work, the obligations of each party, payment terms, and procedures for dispute resolution.
EPC contracts present several merits, including consolidating responsibility under one entity and simplifying communication and coordination. Additionally, the efficiency of project completion is often heightened due to the integrated nature of the EPC contractor’s role. Moreover, a significant portion of risk can be shifted to the EPC contractor, safeguarding the client’s financial interests.
However, this contract type is accompanied by certain drawbacks, such as escalated costs due to the EPC contractor’s premium for undertaking increased risk. It also curtails flexibility for the client to effect changes post-contract signing, and the intricate nature of the EPC contract can potentially lead to interpretational conflicts between the parties.
EPC contracts present a versatile project delivery method suitable for diverse clients. Nevertheless, a meticulous assessment of its pros and cons is essential before adoption. Here are some key considerations:
By adhering to these guidelines, clients can enhance the likelihood of successful EPC projects. The multifaceted nature of EPC contracts necessitates meticulous evaluation to ensure that project goals are achieved with minimized conflicts and optimized efficiency.
In the world of EPC, success demands a blend of strategy, experience, and legal finesse. At Paoletti Law Group, we stand by your side as stalwart navigators, propelling you toward triumphant project delivery. With FIDIC’s wisdom as our North Star and our team’s EPC triumphs as our compass, your journey is destined for excellence!
Stay tuned for the next edition, where we unravel more EPC mysteries and empower you with insights that matter.
For more information, you may contact:
References:
https://www.fidic.org/ | https://iccwbo.org/ | https://www.asce.org/ | https://www.construction-institute.org/ | https://www.pmi.org/
">Francesca Romana Valeri
References
References
Olbia 24 July 2023. The phenomenon of boats left in a state of neglect (in shipyards or ports) is also widespread among the nautical companies of Gallura. A problem that companies are called to manage independently and that can also lead to holes in the balance sheet. However, there are tools that allow you to overcome the stalemate phase. The most effective and used is the “right of retention”, which consists of an action of self-protection to be initiated before the judicial bodies. On the subject, Confindustria Centro Nord Sardegna, together with Cna Gallura and Confartigianato Gallura; in collaboration with the associated firm Paoletti Law Group of Verona (which has a long experience in the field of maritime law), has recently promoted a training event aimed at operators in the sector.
In the conference room of the DoubleTree hotel in Olbia, lawyers Alberto Bardini and Sabrina Pangrazio took stock of the “right of retention”, illustrating the main solutions to be adopted to unblock situations of abandonment of boats in shipyards or ports, with a property completely disappeared or manifestly insolvent. These are in fact registered movable property, which often occupy precious space for other uses and which often constitute complicated cases to be solved, especially if the boat is from a non-EU country. In the face of liabilities for certain corporate realities caused precisely by situations of this type, there is also the further problem of the liability of the director of the company for lack of credit protection.
The only way to go is to see the ownership of the abandoned property recognized with the assignment of the boat to the shipyard, in order to return from the expenses. In short, it is a matter of obtaining an asset that can then be sold or used to cover the loss occurred over the years for custody in the shipyard or in the port.
Complicating the picture, however, is the problem of the “flags of convenience” of certain boats. If the flag is of an EU state, the procedure is clear. If it is other states; the example of a boat flying the British flag but from the crown islands, such as Man or Jersey; A highly qualified legal specialization is required to unravel the issue and allow the judge to apply foreign law, as required by the rules, and resolve the judgment.
The procedures of release or assignment of ownership to the shipyard of abandoned boats are also applied in the Sardinian courts; in particular in that of Tempio Pausania, competent for the north-east of the island, as was recalled during the meeting. It ended with the interventions of the operators of the sector who formulated several questions confirming the topicality of the problem analyzed.
For more information, you may contact:
Blog Source: Right of retention on abandoned boats, the event in Olbia (sardegnareporter.it)
Related Blogs on our website:
ABSTRACT : ABANDONED SHIPS – Analisys, “The right to retain”. A comparison of the “modus vivendi” that “the right of retain” adopts in different legal systems and a concrete case.
MARITIME CREDITS"class="material with-radius">
Olbia 24 July 2023. The phenomenon of boats left in a state of neglect (in shipyards or ports) is also widespread among the nautical companies of Gallura. A problem that companies are called to manage independently and that can also lead to holes in the balance sheet. However, there are tools that allow you to overcome the stalemate phase. The most effective and used is the “right of retention”, which consists of an action of self-protection to be initiated before the judicial bodies. On the subject, Confindustria Centro Nord Sardegna, together with Cna Gallura and Confartigianato Gallura; in collaboration with the associated firm Paoletti Law Group of Verona (which has a long experience in the field of maritime law), has recently promoted a training event aimed at operators in the sector.
In the conference room of the DoubleTree hotel in Olbia, lawyers Alberto Bardini and Sabrina Pangrazio took stock of the “right of retention”, illustrating the main solutions to be adopted to unblock situations of abandonment of boats in shipyards or ports, with a property completely disappeared or manifestly insolvent. These are in fact registered movable property, which often occupy precious space for other uses and which often constitute complicated cases to be solved, especially if the boat is from a non-EU country. In the face of liabilities for certain corporate realities caused precisely by situations of this type, there is also the further problem of the liability of the director of the company for lack of credit protection.
The only way to go is to see the ownership of the abandoned property recognized with the assignment of the boat to the shipyard, in order to return from the expenses. In short, it is a matter of obtaining an asset that can then be sold or used to cover the loss occurred over the years for custody in the shipyard or in the port.
Complicating the picture, however, is the problem of the “flags of convenience” of certain boats. If the flag is of an EU state, the procedure is clear. If it is other states; the example of a boat flying the British flag but from the crown islands, such as Man or Jersey; A highly qualified legal specialization is required to unravel the issue and allow the judge to apply foreign law, as required by the rules, and resolve the judgment.
The procedures of release or assignment of ownership to the shipyard of abandoned boats are also applied in the Sardinian courts; in particular in that of Tempio Pausania, competent for the north-east of the island, as was recalled during the meeting. It ended with the interventions of the operators of the sector who formulated several questions confirming the topicality of the problem analyzed.
For more information, you may contact:
Blog Source: Right of retention on abandoned boats, the event in Olbia (sardegnareporter.it)
Related Blogs on our website:
ABSTRACT : ABANDONED SHIPS – Analisys, “The right to retain”. A comparison of the “modus vivendi” that “the right of retain” adopts in different legal systems and a concrete case.
MARITIME CREDITS">Thomas Paoletti
"class="material with-radius">
">Thomas Paoletti "class="material with-radius">
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 business policies, at the same time it is moving towards stricter compliance rules to curb illegal activities.
Has the UAE got the balance right?
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 and has emerged as an economic leader in the Middle East region. The UAE has grown by 7.6% in 2022, which showcases its economy’s strong comeback after the economic slumber caused by COVID-19.
New research from the Boston Consulting Group shows that the Emirates is expected to see financial wealth reach $800bn in 2027 with an annual growth rate of almost ten per cent.
The country has excellent infrastructure, including world-class ports and airports, making it easy for investors to transport goods and services across the globe. In addition, the UAE has invested heavily in its transportation and logistics infrastructure, making it an important hub for global trade.
In 2020, UAE changed its company law by allowing 100% foreign investments in most business activities (except Activities of Strategic Effect). This removed a major block for the foreign investors legally bound to involve UAE nationals in their investments in the country. This measure will bring new players to the market previously dominated by UAE nationals
The UAE has recently been actively pursuing bilateral trade agreements with countries worldwide. These agreements aim to boost trade and investment flows between the UAE and its trading partners while providing a platform for deeper economic cooperation. For example, the recent agreements signed with India, the UK, Israel, South Africa and Turkey along with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are expected to positively impact the UAE’s economy by increasing trade and investment flows in a range of sectors.
For instance, a year after signing India-UAE Comprehensive Economic Partnership Agreement, bilateral trade between the two nations grew by 27.5%. The UAE’s foreign trade hit 2.2 trillion dirhams ($599 billion) in 2022, up 17% on the year, while it has signed bilateral trade agreements with global partners spanning India, Israel and Indonesia.
In 2021, the United Arab Emirates, to celebrate the 50th anniversary of the nation, launched a series of programmes to stimulate and diversify its economy, seeking to attract some $150 billion in new foreign investment in the coming decade. These fifty new projects and initiatives included easing visa regulations to attract foreign workers, measures to boost technological development in the country, attracting software engineers and coders, along with other steps to increase trade.
The rapidly-changing regulatory environment is one of the biggest challenges businesses face in the UAE.
The government constantly introduces new laws and regulations, and businesses must comply with these. This can be time-consuming and expensive, particularly for small and medium-sized enterprises (SMEs) with limited resources. Additionally, the legal system in the UAE can be complex and opaque, making it difficult for businesses to navigate.
These regulations have been implemented to ensure businesses operate transparently and responsibly while protecting the interests of investors, customers and employees.
The increased flow of money brings a risk of increased illegal activities including money-laundering and terror financing. To mitigate these risks, the UAE has enacted several laws and regulations known as the Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) laws. These measures include conducting customer due diligence, maintaining accurate records and reporting suspicious transactions to the relevant authorities.
UAE has created a mechanism to recognise an entity’s Ultimate Beneficiary Owners (UBOs), which requires the business entities to maintain adequate and up-to-date information about their shareholders and their ultimate beneficiary owners. In addition, the UAE has also established the Financial Intelligence Unit, which is responsible for collecting and analysing information on money-laundering and terrorist financing activities in the country.
The UAE government 2021 also introduced massive changes to the labour laws, which aimed at curbing discrimination, forced labour, harassment and bullying. The law fixes working hours and provides detailed provisions related to maternity benefits for women. The UAE has also established a Labour Market Regulatory Authority, which monitors and enforces labour laws in the country.
The nation is fast becoming a hub of start-ups and technology-driven businesses, making the UAE a global leader in innovation in the coming years. As a result, it is moving away from the traditional energy-driven economic model and is becoming a top attractive investment site. However, businesses need regular guidance from experts to tackle the complex legal and compliance framework of each Emirate. To succeed in the UAE, businesses must understand these challenges and develop strategies to comply with the regulations while still achieving their business objectives. This may include investing in local expertise and careful planning and executing compliance strategies.
Article written by Thomas Paoletti
Published in The Arab Weekly
"class="material with-radius">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 business policies, at the same time it is moving towards stricter compliance rules to curb illegal activities.
Has the UAE got the balance right?
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 and has emerged as an economic leader in the Middle East region. The UAE has grown by 7.6% in 2022, which showcases its economy’s strong comeback after the economic slumber caused by COVID-19.
New research from the Boston Consulting Group shows that the Emirates is expected to see financial wealth reach $800bn in 2027 with an annual growth rate of almost ten per cent.
The country has excellent infrastructure, including world-class ports and airports, making it easy for investors to transport goods and services across the globe. In addition, the UAE has invested heavily in its transportation and logistics infrastructure, making it an important hub for global trade.
In 2020, UAE changed its company law by allowing 100% foreign investments in most business activities (except Activities of Strategic Effect). This removed a major block for the foreign investors legally bound to involve UAE nationals in their investments in the country. This measure will bring new players to the market previously dominated by UAE nationals
The UAE has recently been actively pursuing bilateral trade agreements with countries worldwide. These agreements aim to boost trade and investment flows between the UAE and its trading partners while providing a platform for deeper economic cooperation. For example, the recent agreements signed with India, the UK, Israel, South Africa and Turkey along with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are expected to positively impact the UAE’s economy by increasing trade and investment flows in a range of sectors.
For instance, a year after signing India-UAE Comprehensive Economic Partnership Agreement, bilateral trade between the two nations grew by 27.5%. The UAE’s foreign trade hit 2.2 trillion dirhams ($599 billion) in 2022, up 17% on the year, while it has signed bilateral trade agreements with global partners spanning India, Israel and Indonesia.
In 2021, the United Arab Emirates, to celebrate the 50th anniversary of the nation, launched a series of programmes to stimulate and diversify its economy, seeking to attract some $150 billion in new foreign investment in the coming decade. These fifty new projects and initiatives included easing visa regulations to attract foreign workers, measures to boost technological development in the country, attracting software engineers and coders, along with other steps to increase trade.
The rapidly-changing regulatory environment is one of the biggest challenges businesses face in the UAE.
The government constantly introduces new laws and regulations, and businesses must comply with these. This can be time-consuming and expensive, particularly for small and medium-sized enterprises (SMEs) with limited resources. Additionally, the legal system in the UAE can be complex and opaque, making it difficult for businesses to navigate.
These regulations have been implemented to ensure businesses operate transparently and responsibly while protecting the interests of investors, customers and employees.
The increased flow of money brings a risk of increased illegal activities including money-laundering and terror financing. To mitigate these risks, the UAE has enacted several laws and regulations known as the Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) laws. These measures include conducting customer due diligence, maintaining accurate records and reporting suspicious transactions to the relevant authorities.
UAE has created a mechanism to recognise an entity’s Ultimate Beneficiary Owners (UBOs), which requires the business entities to maintain adequate and up-to-date information about their shareholders and their ultimate beneficiary owners. In addition, the UAE has also established the Financial Intelligence Unit, which is responsible for collecting and analysing information on money-laundering and terrorist financing activities in the country.
The UAE government 2021 also introduced massive changes to the labour laws, which aimed at curbing discrimination, forced labour, harassment and bullying. The law fixes working hours and provides detailed provisions related to maternity benefits for women. The UAE has also established a Labour Market Regulatory Authority, which monitors and enforces labour laws in the country.
The nation is fast becoming a hub of start-ups and technology-driven businesses, making the UAE a global leader in innovation in the coming years. As a result, it is moving away from the traditional energy-driven economic model and is becoming a top attractive investment site. However, businesses need regular guidance from experts to tackle the complex legal and compliance framework of each Emirate. To succeed in the UAE, businesses must understand these challenges and develop strategies to comply with the regulations while still achieving their business objectives. This may include investing in local expertise and careful planning and executing compliance strategies.
Article written by Thomas Paoletti
Published in The Arab Weekly
">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 Foundations serve a wide range of purposes, including wealth management and preservation, family succession planning, tax planning, asset protection, corporate structuring, and fulfilling public interest objectives. They provide a powerful mechanism for consolidating various family assets into a single top holding entity. By utilizing a Foundation to hold family assets—be it business interests, properties, financial investments, or other valuable holdings—clear instructions can be legally established for the transfer of these assets upon succession.
Benefits of a Foundation:
Establishing a Foundation provides a higher degree of certainty and confidence that assets will be distributed according to the Founder’s wishes, with the Foundation continuing perpetually after the Founder’s demise. ADGM Foundations are designed to be fast and straightforward to set up and manage, with clear ongoing reporting requirements and competitive pricing.
Key steps to establish an ADGM Foundation-
We strongly recommend seeking guidance from legal advisors with expertise in setting up Foundations in ADGM as legal advisors can provide insights, assist with legal compliance, and help navigate the incorporation process.
Conclusion: The ADGM Foundations Regime offers individuals, families, and businesses the opportunity to leverage a secure and well-regulated platform for their financial planning and structuring needs. The regime empowers stakeholders with greater control over their assets, preserving wealth, and providing a robust framework for intergenerational succession planning. With its ease of use, flexibility, and adherence to international standards, the ADGM Foundations Regime stands as a valuable addition to the UAE’s financial ecosystem.
For more details or any guidance please feel free to contact us.
"class="material with-radius">
ADGM Foundations serve a wide range of purposes, including wealth management and preservation, family succession planning, tax planning, asset protection, corporate structuring, and fulfilling public interest objectives. They provide a powerful mechanism for consolidating various family assets into a single top holding entity. By utilizing a Foundation to hold family assets—be it business interests, properties, financial investments, or other valuable holdings—clear instructions can be legally established for the transfer of these assets upon succession.
Benefits of a Foundation:
Establishing a Foundation provides a higher degree of certainty and confidence that assets will be distributed according to the Founder’s wishes, with the Foundation continuing perpetually after the Founder’s demise. ADGM Foundations are designed to be fast and straightforward to set up and manage, with clear ongoing reporting requirements and competitive pricing.
Key steps to establish an ADGM Foundation-
We strongly recommend seeking guidance from legal advisors with expertise in setting up Foundations in ADGM as legal advisors can provide insights, assist with legal compliance, and help navigate the incorporation process.
Conclusion: The ADGM Foundations Regime offers individuals, families, and businesses the opportunity to leverage a secure and well-regulated platform for their financial planning and structuring needs. The regime empowers stakeholders with greater control over their assets, preserving wealth, and providing a robust framework for intergenerational succession planning. With its ease of use, flexibility, and adherence to international standards, the ADGM Foundations Regime stands as a valuable addition to the UAE’s financial ecosystem.
For more details or any guidance please feel free to contact us.
">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 benefit from the UAE business ecosystem.
Foreign investors previously faced restrictions on ownership in various sectors. However, the UAE government has significantly reformed foreign direct investment rules and improved its international competitiveness. A key reform was the UAE Federal Decree by Law No. (26) of 2020, allowing foreign investors to own 100% of their businesses in certain sectors outside the free zones. Foreign companies can now establish a presence in the UAE without having a local partner, boosting economic growth and diversification.
The Golden Visa programme enables eligible individuals and their families to reside in the UAE for extended periods, making it easier to run a business from the UAE. Previously, residency permits were usually linked to employment, making it difficult for business owners to retain talent and provide stability. The Golden Visa is a simple programme with very few restrictions.
Free Zones have been the backbone of business growth in the UAE with considerable advantages for businesses, such as 100% foreign ownership, tax exemptions, and streamlined processes. Each free zone specializes in a particular industry, such as technology, finance, media and logistics, enabling businesses to benefit from a supportive ecosystem tailored to their sector. These zones offer state-of-the-art infrastructure, access to global markets, and proximity to major transportation hubs, facilitating seamless operations and international trade.
The UAE has streamlined business setup procedures, reduced bureaucracy, and enhanced investor confidence. The establishment of online portals, such as the Abu Dhabi Business Center and Dubai Economy, allows entrepreneurs to complete procedures and obtain licences efficiently. The introduction of e-platforms and digital services has simplified administrative tasks, making it easier for businesses to operate.
The UAE has actively encouraged innovation and entrepreneurship. Initiatives such as the Dubai Future Accelerators and Dubai Startup Hub support startups, attract talent and facilitate collaboration between entrepreneurs, investors, and government entities. The government’s commitment to innovation is reflected in the creation of dedicated innovation districts, such as the Dubai Internet City and the Abu Dhabi Global Market. These provide ecosystems conducive to technological advances and business development.
Last year, the UAE and India signed a Comprehensive Economic Partnership Agreement, increasing the opportunities for India businesses to expand into the UAE market. Trade between the nations has increased by 27.5%, with a target of USD115 billion worth of trade within five years.
Tariffs have been reduced on a wide range of goods. The services sector has been liberalised in areas such as IT, finance, healthcare, tourism and education. Increased protection for investments in both directions has created a stable and secure environment for cross-border investments. Protection of intellectual property rights has been strengthened and general economic cooperation has led to joint ventures and collaboration.
Businesses can be set up through mainland companies, free zones, and offshore entities, each with particular advantages. Licences and approvals are available from government authorities for a wide range of activities, including trading, manufacturing and providing professional and other services. Comprehending the legal structure, understanding the market, adhering to regulations and embracing the local culture will lead to the establishment of a successful and thriving business.
The geographical proximity of India and the UAE, with deep cultural and historical connections, makes good business sense for companies from both to work together. Straightforward and credible UAE legal structures enable India companies to make global advances; UAE companies can enter the India market to reap the benefits of a thriving economy with robust manufacturing and fintech ecosystems.
Foreign investors previously faced restrictions on ownership in various sectors. However, the UAE government has significantly reformed foreign direct investment rules and improved its international competitiveness. A key reform was the UAE Federal Decree by Law No. (26) of 2020, allowing foreign investors to own 100% of their businesses in certain sectors outside the free zones. Foreign companies can now establish a presence in the UAE without having a local partner, boosting economic growth and diversification.
The Golden Visa programme enables eligible individuals and their families to reside in the UAE for extended periods, making it easier to run a business from the UAE. Previously, residency permits were usually linked to employment, making it difficult for business owners to retain talent and provide stability. The Golden Visa is a simple programme with very few restrictions.
Free Zones have been the backbone of business growth in the UAE with considerable advantages for businesses, such as 100% foreign ownership, tax exemptions, and streamlined processes. Each free zone specializes in a particular industry, such as technology, finance, media and logistics, enabling businesses to benefit from a supportive ecosystem tailored to their sector. These zones offer state-of-the-art infrastructure, access to global markets, and proximity to major transportation hubs, facilitating seamless operations and international trade.
The UAE has streamlined business setup procedures, reduced bureaucracy, and enhanced investor confidence. The establishment of online portals, such as the Abu Dhabi Business Center and Dubai Economy, allows entrepreneurs to complete procedures and obtain licences efficiently. The introduction of e-platforms and digital services has simplified administrative tasks, making it easier for businesses to operate.
The UAE has actively encouraged innovation and entrepreneurship. Initiatives such as the Dubai Future Accelerators and Dubai Startup Hub support startups, attract talent and facilitate collaboration between entrepreneurs, investors, and government entities. The government’s commitment to innovation is reflected in the creation of dedicated innovation districts, such as the Dubai Internet City and the Abu Dhabi Global Market. These provide ecosystems conducive to technological advances and business development.
Last year, the UAE and India signed a Comprehensive Economic Partnership Agreement, increasing the opportunities for India businesses to expand into the UAE market. Trade between the nations has increased by 27.5%, with a target of USD115 billion worth of trade within five years.
Tariffs have been reduced on a wide range of goods. The services sector has been liberalised in areas such as IT, finance, healthcare, tourism and education. Increased protection for investments in both directions has created a stable and secure environment for cross-border investments. Protection of intellectual property rights has been strengthened and general economic cooperation has led to joint ventures and collaboration.
Businesses can be set up through mainland companies, free zones, and offshore entities, each with particular advantages. Licences and approvals are available from government authorities for a wide range of activities, including trading, manufacturing and providing professional and other services. Comprehending the legal structure, understanding the market, adhering to regulations and embracing the local culture will lead to the establishment of a successful and thriving business.
The geographical proximity of India and the UAE, with deep cultural and historical connections, makes good business sense for companies from both to work together. Straightforward and credible UAE legal structures enable India companies to make global advances; UAE companies can enter the India market to reap the benefits of a thriving economy with robust manufacturing and fintech ecosystems.
The UAE has grown by 7.6% in 2022, which showcases its economy’s strong comeback after the economic slumber caused by Covid-19. The country has excellent infrastructure, including world-class ports and airports, making it easy for investors to transport goods and services across the globe. In addition, the UAE has invested heavily in its transportation and logistics infrastructure, making it an important hub for global trade.
In 2020, UAE changed its company law by allowing 100% foreign investments in most business activities (except Activities of Strategic Effect). This removed a major block for the foreign investors legally bound to involve UAE nationals in their investments in the country. This measure will bring new players to the market previously dominated by UAE nationals.
The UAE has been actively pursuing bilateral trade agreements with countries worldwide recently. These agreements aim to boost trade and investment flows between the UAE and its trading partners while providing a platform for deeper economic cooperation. For example, the recent agreements signed with India, the UK, Israel, South Africa, and Turkey and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are expected to positively impact the UAE’s economy by increasing trade and investment flows in a range of sectors. For instance, a year after signing India-UAE Comprehensive Economic Partnership Agreement, bilateral trade between the two nations grew by 27.5%. The UAE’s foreign trade hit 2.2 trillion dirhams ($599 billion) in 2022, up 17% yearly, and it has signed bilateral trade agreements with global partners spanning India, Israel and Indonesia.
In 2021, the United Arab Emirates, to celebrate the 50th anniversary of the nation, launched a series of programs to stimulate and diversify its economy, seeking to attract some $150 billion in new foreign investment in the coming decade. These fifty new projects and initiatives included easing visa regulations for attracting foreign workers, measures to boost technological development in the country, attracting software engineers and coders, and other measures to increase trade.
The rapidly changing regulatory environment is one of the biggest challenges businesses face in the UAE. The government constantly introduces new laws and regulations, and businesses must comply with these laws. This can be time-consuming and expensive, particularly for small and medium-sized enterprises (SMEs) with limited resources.
Additionally, the legal system in the UAE can be complex and opaque, making it difficult for businesses to navigate. These regulations have been implemented to ensure businesses operate transparently and responsibly while protecting stakeholders’ interests, such as investors, customers, and employees. The increased flow of money brings a risk of increased illegal activities like money laundering and terror financing. To mitigate these risks, the UAE has enacted several laws and regulations to combat them known as the Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) laws. These measures include conducting customer due diligence, maintaining accurate records, and reporting suspicious transactions to the relevant authorities. UAE has created a mechanism to recognise an entity’s Ultimate Beneficiary Owners (UBOs), which requires the business entities to maintain adequate and up-to-date information about their shareholders and the ultimate beneficiary owners.
In addition, the UAE has also established the Financial Intelligence Unit, which is responsible for collecting and analysing information on money laundering and terrorist financing activities in the country. The UAE government 2021 also introduced massive changes to the labour laws, which aimed at curbing discrimination, forced labour, harassment, and bullying. The law fixes working hours and provides detailed provisions related to maternity benefits which women can avail of. The UAE has also established a Labor Market Regulatory Authority, which monitors and enforces labour laws in the country. The nation is fast becoming a hub of startups and technology-driven businesses, making UAE a global leader in innovation in the coming years. As a result, it is moving away from the traditional energy-driven economic model and is becoming a top attractive investment site. However, businesses need regular guidance from experts to tackle the complex legal and compliance framework of each Emirate. To succeed in the UAE, businesses must understand these challenges and develop strategies to comply with the regulations while still achieving their business objectives. This may include investing in local expertise and careful planning and executing compliance strategies.
For more information, you may contact:
To read the full IR Global Publication, kindly click here
"class="material with-radius">The UAE has grown by 7.6% in 2022, which showcases its economy’s strong comeback after the economic slumber caused by Covid-19. The country has excellent infrastructure, including world-class ports and airports, making it easy for investors to transport goods and services across the globe. In addition, the UAE has invested heavily in its transportation and logistics infrastructure, making it an important hub for global trade.
In 2020, UAE changed its company law by allowing 100% foreign investments in most business activities (except Activities of Strategic Effect). This removed a major block for the foreign investors legally bound to involve UAE nationals in their investments in the country. This measure will bring new players to the market previously dominated by UAE nationals.
The UAE has been actively pursuing bilateral trade agreements with countries worldwide recently. These agreements aim to boost trade and investment flows between the UAE and its trading partners while providing a platform for deeper economic cooperation. For example, the recent agreements signed with India, the UK, Israel, South Africa, and Turkey and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are expected to positively impact the UAE’s economy by increasing trade and investment flows in a range of sectors. For instance, a year after signing India-UAE Comprehensive Economic Partnership Agreement, bilateral trade between the two nations grew by 27.5%. The UAE’s foreign trade hit 2.2 trillion dirhams ($599 billion) in 2022, up 17% yearly, and it has signed bilateral trade agreements with global partners spanning India, Israel and Indonesia.
In 2021, the United Arab Emirates, to celebrate the 50th anniversary of the nation, launched a series of programs to stimulate and diversify its economy, seeking to attract some $150 billion in new foreign investment in the coming decade. These fifty new projects and initiatives included easing visa regulations for attracting foreign workers, measures to boost technological development in the country, attracting software engineers and coders, and other measures to increase trade.
The rapidly changing regulatory environment is one of the biggest challenges businesses face in the UAE. The government constantly introduces new laws and regulations, and businesses must comply with these laws. This can be time-consuming and expensive, particularly for small and medium-sized enterprises (SMEs) with limited resources.
Additionally, the legal system in the UAE can be complex and opaque, making it difficult for businesses to navigate. These regulations have been implemented to ensure businesses operate transparently and responsibly while protecting stakeholders’ interests, such as investors, customers, and employees. The increased flow of money brings a risk of increased illegal activities like money laundering and terror financing. To mitigate these risks, the UAE has enacted several laws and regulations to combat them known as the Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) laws. These measures include conducting customer due diligence, maintaining accurate records, and reporting suspicious transactions to the relevant authorities. UAE has created a mechanism to recognise an entity’s Ultimate Beneficiary Owners (UBOs), which requires the business entities to maintain adequate and up-to-date information about their shareholders and the ultimate beneficiary owners.
In addition, the UAE has also established the Financial Intelligence Unit, which is responsible for collecting and analysing information on money laundering and terrorist financing activities in the country. The UAE government 2021 also introduced massive changes to the labour laws, which aimed at curbing discrimination, forced labour, harassment, and bullying. The law fixes working hours and provides detailed provisions related to maternity benefits which women can avail of. The UAE has also established a Labor Market Regulatory Authority, which monitors and enforces labour laws in the country. The nation is fast becoming a hub of startups and technology-driven businesses, making UAE a global leader in innovation in the coming years. As a result, it is moving away from the traditional energy-driven economic model and is becoming a top attractive investment site. However, businesses need regular guidance from experts to tackle the complex legal and compliance framework of each Emirate. To succeed in the UAE, businesses must understand these challenges and develop strategies to comply with the regulations while still achieving their business objectives. This may include investing in local expertise and careful planning and executing compliance strategies.
For more information, you may contact:
To read the full IR Global Publication, kindly click here
">Thomas Paoletti
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">
For inquiries, you may contact:
If you want to read the full IR Global Publication, kindly click here
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If you want to read the full IR Global Publication, kindly click here
">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 (bunker), nor
the spare parts (total of the credit requested in return, 350,000.00 euros) was returned to the customer.
We have discovered through the AIS system that the ship was sailing in Italian waters, near Genoa, which thus becomes the Court competent for the seizure, seizure which is notifed
by the Coast Guard, Port Authority. The activity is aimed at inducing the debtor to quickly pay
the total amount or most of it in order not to have the ship seized for a long period.
2. – The seizure of a ship is mainly an instrument of the creditor who often remains without enforceable
title and is forced to use this measure to ensure the realization of his credit by preventing the debtor from carrying out dispositions capable of reducing the consistency of his own heritage. In maritime credits, reference is often made to preventing the departure of the debtor’s ship which remains stranded at the port
3. – The first international text which led to the unification of the rules on the institution of the precautionary attachment of seagoing vessels was the Brussels Convention of 1952 drawn up on the
initiative of the Comité Maritime International. The Brussels Convention, following the Anglo-Saxon model, allows the ship to be attached only for certain maritime credits and on the condition that they are strictly connected with the seized ship and also burden the ship owner both at the time the credit is born and at the time when the seizure is carried out. Exceptionally and with limitations, the seizure of the “sister ship” is also permitted, as well as the ship that has been transferred to a third party during the seizure.
The new Convention adopted on March 12, 1999 on the attachment of ships, entered into force on September 14, 2011. However, to date the majority of States with significant shipping traffic have remained in the application of the provisions of the 1952 Convention.
The new Convention contains provisions which sanction the scope of application in a far more extensive
way than what was established by the provision of art. 2 of the 1952 Convention. Precisely, according to
the provisions of articles 2 §1 and 8 §1 of the new Convention, the court of a Contracting State
may order the seizure of a ship or the revocation of the same regardless of whether
the ship belonged to a Contracting State or not.
The conservative seizure is ordered even if in the clause having jurisdiction or in the arbitration clause it
had been agreed otherwise, i.e. that the claim would be brought before the Court of a State other than the
one where the seizure was carried out and would be decided according to the rules of that State (art. 2
§3). The 1999 Geneva Convention contains an extensive list of definitions and terms used, with all the
necessary additions to the 1952 Convention. In addition to the term ‘detention’, the new Convention also
refers to the ‘restriction on removal’ to offer solutions to legislations that do not provide for the detention
of ships in their rules and to also include the development that took place in Anglo-Saxon law with the “
Mareva Injunction” “Freezing Orders” of the Civil Procedure Rules 1999 19.
To know more, you may contact:
"class="material with-radius">
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 (bunker), nor
the spare parts (total of the credit requested in return, 350,000.00 euros) was returned to the customer.
We have discovered through the AIS system that the ship was sailing in Italian waters, near Genoa, which thus becomes the Court competent for the seizure, seizure which is notifed
by the Coast Guard, Port Authority. The activity is aimed at inducing the debtor to quickly pay
the total amount or most of it in order not to have the ship seized for a long period.
2. – The seizure of a ship is mainly an instrument of the creditor who often remains without enforceable
title and is forced to use this measure to ensure the realization of his credit by preventing the debtor from carrying out dispositions capable of reducing the consistency of his own heritage. In maritime credits, reference is often made to preventing the departure of the debtor’s ship which remains stranded at the port
3. – The first international text which led to the unification of the rules on the institution of the precautionary attachment of seagoing vessels was the Brussels Convention of 1952 drawn up on the
initiative of the Comité Maritime International. The Brussels Convention, following the Anglo-Saxon model, allows the ship to be attached only for certain maritime credits and on the condition that they are strictly connected with the seized ship and also burden the ship owner both at the time the credit is born and at the time when the seizure is carried out. Exceptionally and with limitations, the seizure of the “sister ship” is also permitted, as well as the ship that has been transferred to a third party during the seizure.
The new Convention adopted on March 12, 1999 on the attachment of ships, entered into force on September 14, 2011. However, to date the majority of States with significant shipping traffic have remained in the application of the provisions of the 1952 Convention.
The new Convention contains provisions which sanction the scope of application in a far more extensive
way than what was established by the provision of art. 2 of the 1952 Convention. Precisely, according to
the provisions of articles 2 §1 and 8 §1 of the new Convention, the court of a Contracting State
may order the seizure of a ship or the revocation of the same regardless of whether
the ship belonged to a Contracting State or not.
The conservative seizure is ordered even if in the clause having jurisdiction or in the arbitration clause it
had been agreed otherwise, i.e. that the claim would be brought before the Court of a State other than the
one where the seizure was carried out and would be decided according to the rules of that State (art. 2
§3). The 1999 Geneva Convention contains an extensive list of definitions and terms used, with all the
necessary additions to the 1952 Convention. In addition to the term ‘detention’, the new Convention also
refers to the ‘restriction on removal’ to offer solutions to legislations that do not provide for the detention
of ships in their rules and to also include the development that took place in Anglo-Saxon law with the “
Mareva Injunction” “Freezing Orders” of the Civil Procedure Rules 1999 19.
To know more, you may contact:
">Thomas Paoletti "class="material with-radius">
For Investors
Risks Involved
The regulations aim at educating the prospective investor or the lender about the inherent risks associated with Crowdfunding since the seekers of such investments are mostly new business ideas. Hence there is an inherent risk of loss involved while investing in these businesses.
The crowdfunding platform has an obligation to make investors aware of such risks through disclaimers. For instance, the DFSA rulebook obligates the platforms to disclose detailed information about past loan defaults that have occurred on the platform.[2]
Other information
The crowdfunding operator must make the investors aware of the functionality of the platform and make them aware of the following:[3]
The platforms cannot use a single legal entity to provide regulated and unregulated crowdfunding services. Since these regulations apply to investments and loans, the platform must not be utilised to seek donations.[4]
For Issuers and Borrowers
The platform must conduct due diligence to ensure correct information about the identity of such individuals or body corporates. The platform must seek their business proposals and ensure the commitment and expertise of the individuals involved in the business they seek funds for.[5]
[1] https://dfsaen.thomsonreuters.com/rulebook/cob-111-guidance-0
[2] https://dfsaen.thomsonreuters.com/rulebook/cob-1132
[3] https://dfsaen.thomsonreuters.com/rulebook/cob-1133
[4] https://dfsaen.thomsonreuters.com/rulebook/cob-1134-guidance
[5] https://dfsaen.thomsonreuters.com/rulebook/cob-1136
To know more, you may contact:
"class="material with-radius">
For Investors
Risks Involved
The regulations aim at educating the prospective investor or the lender about the inherent risks associated with Crowdfunding since the seekers of such investments are mostly new business ideas. Hence there is an inherent risk of loss involved while investing in these businesses.
The crowdfunding platform has an obligation to make investors aware of such risks through disclaimers. For instance, the DFSA rulebook obligates the platforms to disclose detailed information about past loan defaults that have occurred on the platform.[2]
Other information
The crowdfunding operator must make the investors aware of the functionality of the platform and make them aware of the following:[3]
The platforms cannot use a single legal entity to provide regulated and unregulated crowdfunding services. Since these regulations apply to investments and loans, the platform must not be utilised to seek donations.[4]
For Issuers and Borrowers
The platform must conduct due diligence to ensure correct information about the identity of such individuals or body corporates. The platform must seek their business proposals and ensure the commitment and expertise of the individuals involved in the business they seek funds for.[5]
[1] https://dfsaen.thomsonreuters.com/rulebook/cob-111-guidance-0
[2] https://dfsaen.thomsonreuters.com/rulebook/cob-1132
[3] https://dfsaen.thomsonreuters.com/rulebook/cob-1133
[4] https://dfsaen.thomsonreuters.com/rulebook/cob-1134-guidance
[5] https://dfsaen.thomsonreuters.com/rulebook/cob-1136
To know more, you may contact:
">Thomas Paoletti "class="material with-radius">
Guided by the theme, Shaping the future, we look to how we can better organise for a post pandemic future, and how as leaders we embrace the changes to be a future ready company. As companies face an uncertainty this is the opportunity to learn new tools from the experts to create new modes within your organisation that are more flexible, integrated, inclusive, and resilient.
IR GLOBAL – a multi-disciplinary professional services network that provides legal, accountancy, financial advice to companies and individuals around the world.
Here is a brief interview of our Managing Partner Mr. Thomas Paoletti and how IR Global is relevant to him and to his business.
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Guided by the theme, Shaping the future, we look to how we can better organise for a post pandemic future, and how as leaders we embrace the changes to be a future ready company. As companies face an uncertainty this is the opportunity to learn new tools from the experts to create new modes within your organisation that are more flexible, integrated, inclusive, and resilient.
IR GLOBAL – a multi-disciplinary professional services network that provides legal, accountancy, financial advice to companies and individuals around the world.
Here is a brief interview of our Managing Partner Mr. Thomas Paoletti and how IR Global is relevant to him and to his business.
">Thomas Paoletti "class="material with-radius">
The website of the Federal Authority for Identity and Citizenship provides a portal for applying for a Golden Visa.
Adderall is the best drug for ADHD. I used to take other meds, like Strattera and Ritalin, but the result wasn’t the one I was hoping for. Half a year ago, I began treatment with Adderall from https://www.mcmedicalnj.com/adderall. My current dose is 40 mg a day. I split it into three intakes with the last one at 5 p.m. Sometimes I feel mouth dryness, so I try to drink more water. Overall, I’m fine.
For more information, you may contact:
"class="material with-radius">The website of the Federal Authority for Identity and Citizenship provides a portal for applying for a Golden Visa.
Adderall is the best drug for ADHD. I used to take other meds, like Strattera and Ritalin, but the result wasn’t the one I was hoping for. Half a year ago, I began treatment with Adderall from https://www.mcmedicalnj.com/adderall. My current dose is 40 mg a day. I split it into three intakes with the last one at 5 p.m. Sometimes I feel mouth dryness, so I try to drink more water. Overall, I’m fine.
For more information, you may contact:
">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 termination of the contract and the initiation of the reporting procedure at the CAI (Centrale d’allarme interbancaria) after the expiration of the 4-day deadline.
Despite the claimant’s immediate activation in the Bank’s notice to proceed, the claimant learns from the Bank that the activation procedure had already been initiated through an outside agency.
The illegality of the report is subsequently confirmed by the Bank through the acceptance of the complaint proposed by the applicant.
In the event of non-acceptance, an urgent appeal to the Judge can be made, pursuant to Article 700 of the Italian Civil Code. (Italian Civil Procedure Code).
The Bank, in this case, proceeds to cancel the report.
The appellant experiences a number of negative consequences from the unlawful reporting, both as a natural person and as a legal person. In fact, he has his mandate as credit broker by outside entities revoked as a result of the unlawful report. The claimant suffers not only damage in the pecuniary sphere, resulting from the impossibility of access to credit and from the vulnus to his banking credibility, but also damage to his name and the honorability of his person.
The pecuniary damage, derived from the accessory obligations of good faith of the contractual relationship, turns out to be established according to precise compensatory criteria that verify the contraction of income (emergent damage) and loss of earnings (loss of profit).
As for non-pecuniary damage, the Bank does not follow the new guidelines about the illegal signaling procedures (the duty to use a particular prudence and investigations on the solvency of the person to be reported) and causes injury to the image, honor, and reputation of the plaintiff. It is proposed to recognize the right to compensation, even in the absence of objective proof, arising from the damage in re ipsa caused by the banking institution’s failure to take the necessary precautions and care that the case requires.
The consolidation of case law on the subject establishes that the regulations on the Bank’s risk center do not escape the regulations on personality rights (personal data processing and right to image). Therefore, the case is within the Article 2050 of the Civil Code case in question, whereby the compensability of non-pecuniary damage is to be understood in the form of reparation. Damages are to be liquidated equitably through the prudent appreciation of the Judge.
To know more, please contact:
Alberto Bardinimailto:a.bardini@paoletti.com
"class="material with-radius">The claimant received a registered letter communicating the non-payment of a balance, indicating the possible termination of the contract and the initiation of the reporting procedure at the CAI (Centrale d’allarme interbancaria) after the expiration of the 4-day deadline.
Despite the claimant’s immediate activation in the Bank’s notice to proceed, the claimant learns from the Bank that the activation procedure had already been initiated through an outside agency.
The illegality of the report is subsequently confirmed by the Bank through the acceptance of the complaint proposed by the applicant.
In the event of non-acceptance, an urgent appeal to the Judge can be made, pursuant to Article 700 of the Italian Civil Code. (Italian Civil Procedure Code).
The Bank, in this case, proceeds to cancel the report.
The appellant experiences a number of negative consequences from the unlawful reporting, both as a natural person and as a legal person. In fact, he has his mandate as credit broker by outside entities revoked as a result of the unlawful report. The claimant suffers not only damage in the pecuniary sphere, resulting from the impossibility of access to credit and from the vulnus to his banking credibility, but also damage to his name and the honorability of his person.
The pecuniary damage, derived from the accessory obligations of good faith of the contractual relationship, turns out to be established according to precise compensatory criteria that verify the contraction of income (emergent damage) and loss of earnings (loss of profit).
As for non-pecuniary damage, the Bank does not follow the new guidelines about the illegal signaling procedures (the duty to use a particular prudence and investigations on the solvency of the person to be reported) and causes injury to the image, honor, and reputation of the plaintiff. It is proposed to recognize the right to compensation, even in the absence of objective proof, arising from the damage in re ipsa caused by the banking institution’s failure to take the necessary precautions and care that the case requires.
The consolidation of case law on the subject establishes that the regulations on the Bank’s risk center do not escape the regulations on personality rights (personal data processing and right to image). Therefore, the case is within the Article 2050 of the Civil Code case in question, whereby the compensability of non-pecuniary damage is to be understood in the form of reparation. Damages are to be liquidated equitably through the prudent appreciation of the Judge.
To know more, please contact:
Alberto Bardinimailto:a.bardini@paoletti.com
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">Thomas Paoletti "class="material with-radius">
Source – Statista
e-Commerce sales have been taking constant giant leaps starting from 2020. Moreover, the year 2020 brought lockdown and social distancing protocols that led to an instant surge in the registration of online business licenses. In just the first few months of that year, the consumer demand for online business services increased a great deal. By 2025, the UAE market’s population is expected to have access to the internet and mobile devices at a rate of about 100 percent, according to the Dubai Chamber of Commerce and Industry.
With consumers prioritizing their satisfaction in the products and services they purchase, the e-commerce industry continues to grow faster. Since the pandemic, the use of online payment apps has also increased at many outlets, markets, taxis, theatres, etc. As per the recent data, 30% of the UAE’s population are known as digital natives who have raised the volume of online shopping. The UAE government’s Smart Dubai 2021 initiative to build a robust digital economy is also praiseworthy. UAE is certainly growing at a rapid pace to explore the exclusive potential of the e-Commerce market.
For more information, please contact:
"class="material with-radius">
Source – Statista
e-Commerce sales have been taking constant giant leaps starting from 2020. Moreover, the year 2020 brought lockdown and social distancing protocols that led to an instant surge in the registration of online business licenses. In just the first few months of that year, the consumer demand for online business services increased a great deal. By 2025, the UAE market’s population is expected to have access to the internet and mobile devices at a rate of about 100 percent, according to the Dubai Chamber of Commerce and Industry.
With consumers prioritizing their satisfaction in the products and services they purchase, the e-commerce industry continues to grow faster. Since the pandemic, the use of online payment apps has also increased at many outlets, markets, taxis, theatres, etc. As per the recent data, 30% of the UAE’s population are known as digital natives who have raised the volume of online shopping. The UAE government’s Smart Dubai 2021 initiative to build a robust digital economy is also praiseworthy. UAE is certainly growing at a rapid pace to explore the exclusive potential of the e-Commerce market.
For more information, please contact:
">Thomas Paoletti
"class="material with-radius">
">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 in relation to the fact that the discrepancy between the ministerial prescriptions and what is indicated on the bonds offered for subscription (back of the Postal Bond) cannot lead to believe that the negotiation agreement, in which the subscription transaction is substantiated, has a different content from that stated by the securities, what is indicated on the back of the bond prevails (on average, 40/50% more than what is paid by the Post Office). The saver obtained an injunction calculated on the contractual conditions indicated on the back of the bonds.
Italian Post (in its quality as a Bank) opposed (arguing, among other things, lack of passive legitimacy, an objection not accepted).
Italian Post contested the applicability of the conditions stamped on the back of the title for the quantification of interest, (as referred to by the counterparty), invoking instead the provision referred to in Ministerial Act no. 13/6/1986.
The art. 173 of the then “current postal code” already referred to above provided that changes in the interest rate of interest-bearing postal bonds, could also be extended to previously issued bonds.
In the opinion of the Supreme Court of Cassation, a different solution must be reached in the case submitted to it, similar to the present one, in which the issue of the security is subsequent to the decree amending the interest rates: “This, however, does not authorize us to totally devalue the relevance of the wording reported on the bonds themselves even when – as happened in this case – during the course of the relationship no new ministerial decree concerning the interest rate has been made and no changes have therefore occurred with respect to the situation existing at the time of subscription of the bonds “.
The discrepancy between the ministerial prescriptions and what is indicated on the bonds offered for subscription by the office to the applicants can then be relevant for any internal responsibility profiles of the administration, but cannot lead to believe that the negotiation agreement, in which the transaction is still of subscription is substantiated, has had as its object a content diverging from that stated by the same bonds.
This position – for the specific case in question – was indeed indirectly confirmed by another recent ruling made by the Supreme Court.
We are talking about evolving jurisprudence that spares no surprises, both in the judgments, of merit, and in further appeal.
In our opinion, however, given the considerable difference in the calculation of the amounts, (we are talking, for bonds of the years 87/92 of at least 40/50% less, as a liquidation “proposed” by Italian Post, compared to the calculation made according to the negotiation agreement (back of the title), it is worth try the judgment, also for the speed with which injunction can be obtained, often immediately enforceable (in consideration of the nature of the credit).
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"class="material with-radius">
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 in relation to the fact that the discrepancy between the ministerial prescriptions and what is indicated on the bonds offered for subscription (back of the Postal Bond) cannot lead to believe that the negotiation agreement, in which the subscription transaction is substantiated, has a different content from that stated by the securities, what is indicated on the back of the bond prevails (on average, 40/50% more than what is paid by the Post Office). The saver obtained an injunction calculated on the contractual conditions indicated on the back of the bonds.
Italian Post (in its quality as a Bank) opposed (arguing, among other things, lack of passive legitimacy, an objection not accepted).
Italian Post contested the applicability of the conditions stamped on the back of the title for the quantification of interest, (as referred to by the counterparty), invoking instead the provision referred to in Ministerial Act no. 13/6/1986.
The art. 173 of the then “current postal code” already referred to above provided that changes in the interest rate of interest-bearing postal bonds, could also be extended to previously issued bonds.
In the opinion of the Supreme Court of Cassation, a different solution must be reached in the case submitted to it, similar to the present one, in which the issue of the security is subsequent to the decree amending the interest rates: “This, however, does not authorize us to totally devalue the relevance of the wording reported on the bonds themselves even when – as happened in this case – during the course of the relationship no new ministerial decree concerning the interest rate has been made and no changes have therefore occurred with respect to the situation existing at the time of subscription of the bonds “.
The discrepancy between the ministerial prescriptions and what is indicated on the bonds offered for subscription by the office to the applicants can then be relevant for any internal responsibility profiles of the administration, but cannot lead to believe that the negotiation agreement, in which the transaction is still of subscription is substantiated, has had as its object a content diverging from that stated by the same bonds.
This position – for the specific case in question – was indeed indirectly confirmed by another recent ruling made by the Supreme Court.
We are talking about evolving jurisprudence that spares no surprises, both in the judgments, of merit, and in further appeal.
In our opinion, however, given the considerable difference in the calculation of the amounts, (we are talking, for bonds of the years 87/92 of at least 40/50% less, as a liquidation “proposed” by Italian Post, compared to the calculation made according to the negotiation agreement (back of the title), it is worth try the judgment, also for the speed with which injunction can be obtained, often immediately enforceable (in consideration of the nature of the credit).
To know more, kindly contact:
">https://rosarydental.com/oral-surgery/xanax-generic/. Our medical center has been providing Xanax for people suffering from panic and anxiety disorder. It is not a cure but have shown its effectiveness as short management. We always remind our patients that it is not harmless and that should no overdose it. Otherwise you can get impaired motor functions or even get into coma.
For assistance and information, please contact:
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For assistance and information, please contact:
">
For any further queries related to SPVs please contact us;
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For any further queries related to SPVs please contact us;
">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 of the no share capital requirements.Here are the easy steps to opening a representative office in Dubai:
You will need to appoint a Local Service Agent of UAE nationality.
Once the trade name and business activity are finalized, the firm can seek approval from the Department of Economic Development (DED).
Next step is to receive approval from the UAE Ministry of Economy (MOE). While applying, make sure all the documents, including the Memorandum, certification of incorporation, and Article of Association, will have to be translated into Arabic, attested and notarized.
Once the MOE approves the application, you will need to apply to the DED for the license for establishing the representative office.
To know more, please contact:
"class="material with-radius">
Here are the easy steps to opening a representative office in Dubai:
You will need to appoint a Local Service Agent of UAE nationality.
Once the trade name and business activity are finalized, the firm can seek approval from the Department of Economic Development (DED).
Next step is to receive approval from the UAE Ministry of Economy (MOE). While applying, make sure all the documents, including the Memorandum, certification of incorporation, and Article of Association, will have to be translated into Arabic, attested and notarized.
Once the MOE approves the application, you will need to apply to the DED for the license for establishing the representative office.
To know more, please contact:
">We are delighted to share with you our latest contribution to IR Global’s June 2022 Publication, entitled ”Distressed Companies: How to help financially distressed businesses”.
Three questions for our three experts from UAE and Italy with their top tips and legal insight
1)With the recent spike in insolvencies across the globe, do you believe that the number of distressed companies will increase in the coming years? How will your firm be assisting?
2)Why is Chapter 11 an attractive tool for international companies and your clients?
3)What are the trends and opportunities regarding distressed businesses in your jurisdiction? What advice are you giving your clients to take advantage of the distressed environment?
To read our contribution kindly click:
"class="material with-radius">Three questions for our three experts from UAE and Italy with their top tips and legal insight
1)With the recent spike in insolvencies across the globe, do you believe that the number of distressed companies will increase in the coming years? How will your firm be assisting?
2)Why is Chapter 11 an attractive tool for international companies and your clients?
3)What are the trends and opportunities regarding distressed businesses in your jurisdiction? What advice are you giving your clients to take advantage of the distressed environment?
To read our contribution kindly click:
">An Increase in FDI inflows to the UAE
The UAE attracted a Foreign Direct Investment of $20.7 billion in 2021, according to the Economic Ministry.
UAE Ranked First in West Asian Countries in Terms of FDI Inflows
The UAE ranked 1st in the West Asia region for Foreign Direct Investment, 54.4% of the total region, amounting to $36.547 billion. Compared to the year 2019, the region’s inflow increased by 9.4%.
The United Arab Emirates ranked first in North Africa and the Middle East region, accounting for about 40.2% inflow of the total FDI to the region, increasing to $49.4 billion.
The UAE Indexed First in FDI 2020
The United Arab Emirates succeeded in achieving top ranks in the Middle East, West Asia and North Africa Region in terms of Foreign Direct Investment (FDI). In 2020, it ranked 15th in FDI inflows and 13th globally in FDI outflows.
For more information, kindly contact:
"class="material with-radius">
The UAE attracted a Foreign Direct Investment of $20.7 billion in 2021, according to the Economic Ministry.
UAE Ranked First in West Asian Countries in Terms of FDI Inflows
The UAE ranked 1st in the West Asia region for Foreign Direct Investment, 54.4% of the total region, amounting to $36.547 billion. Compared to the year 2019, the region’s inflow increased by 9.4%.
The United Arab Emirates ranked first in North Africa and the Middle East region, accounting for about 40.2% inflow of the total FDI to the region, increasing to $49.4 billion.
The UAE Indexed First in FDI 2020
The United Arab Emirates succeeded in achieving top ranks in the Middle East, West Asia and North Africa Region in terms of Foreign Direct Investment (FDI). In 2020, it ranked 15th in FDI inflows and 13th globally in FDI outflows.
For more information, kindly contact:
">‘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 Emirates, Abu Dhabi Global Market, released the consultation paper on 21st March, 2022. The paper has more than a page dedicated to NFTs and other virtual assets.
The document proposes that companies holding the license from the financial regulator of a free zone are allowed to do NFT trading. The chief regulator of a free zone, the Financial Services Regulatory Authority (FSRA), describes NFTs and digital assets as intellectual property in the proposal papers.
Moreover, it also suggests that virtual asset custodians and multilateral trading facilities (MTFs) can run the NFT marketplaces. In addition, NFT’s transaction will require parties’ involvement to meet the terms of sanction rules and anti-money laundering.
However, the documents are also clear that at this point, FSRA is not offering a formal regulatory context for NFTs.
Authorities have asked for opinions from stakeholders about the sorts of NFTs that are allowed to trade on MTFs, also the tactics to incorporate the involvement of third parties.
Abu Dhabi- Primary Economic Zone
Abu Dhabi Global Market is the primary economic zone in the UAE with service providers for a virtual asset. In 2018, it became the first to release a regulatory framework for digital assets. In comparison, in the last week of March, the Dubai Multi Commodities Center, another emirate’s economic zone, granted a crypto license for Binance exchange and FTX.
The UAE has also adopted the first law to regulate cryptocurrencies and virtual assets such as NFTs. According to the new law, the UAE will set up a Dubai Virtual Assets Regulatory Authority (VARA) to regulate the assets.
Furthermore, Giants like Binance have been offering their services in West Asia. Recently it has got a license for a crypto service provider in the Gulf market of Bahrain.
To know more, kindly contact:
"class="material with-radius">
The document proposes that companies holding the license from the financial regulator of a free zone are allowed to do NFT trading. The chief regulator of a free zone, the Financial Services Regulatory Authority (FSRA), describes NFTs and digital assets as intellectual property in the proposal papers.
Moreover, it also suggests that virtual asset custodians and multilateral trading facilities (MTFs) can run the NFT marketplaces. In addition, NFT’s transaction will require parties’ involvement to meet the terms of sanction rules and anti-money laundering.
However, the documents are also clear that at this point, FSRA is not offering a formal regulatory context for NFTs.
Authorities have asked for opinions from stakeholders about the sorts of NFTs that are allowed to trade on MTFs, also the tactics to incorporate the involvement of third parties.
Abu Dhabi- Primary Economic Zone
Abu Dhabi Global Market is the primary economic zone in the UAE with service providers for a virtual asset. In 2018, it became the first to release a regulatory framework for digital assets. In comparison, in the last week of March, the Dubai Multi Commodities Center, another emirate’s economic zone, granted a crypto license for Binance exchange and FTX.
The UAE has also adopted the first law to regulate cryptocurrencies and virtual assets such as NFTs. According to the new law, the UAE will set up a Dubai Virtual Assets Regulatory Authority (VARA) to regulate the assets.
Furthermore, Giants like Binance have been offering their services in West Asia. Recently it has got a license for a crypto service provider in the Gulf market of Bahrain.
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">New Law below with the action points for working employees.
Unlimited Contracts Elimination
Under the New Law Article 8, unlimited contracts are replaced with contracts of a fixed term of three years.
Flexible Working Hours
The New Law has introduced flexible working arrangements for part-time and remote working jobs. The Implementing Regulations have clarified that working hours will be reduced by two hours in the Holy month of Ramadan.
Minimum Wage
The New Law has set a minimum wage for the private sector employees, determined by the UAE Cabinet.
Harassment Provisions and Anti-Discrimination
Under the New Law, employers are prohibited discrimination based on race, gender, nationality, color, social origins, and religion or disability.
Women Empowerment
The New Law states equal pay for working women doing the same job as men. The Cabinet will determine the value of the work later.
Annual Leaves
Full-time employers can take 30 days of paid annual leave if the service length is more than one year or two days per month if the service length is between six months and one year.
Conclusion
Undoubtedly, the New Law has considered the best standards of requirement in the working environment and employment practices. It ensures the interest of employees and employers in a balanced manner.
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Unlimited Contracts Elimination
Under the New Law Article 8, unlimited contracts are replaced with contracts of a fixed term of three years.
Flexible Working Hours
The New Law has introduced flexible working arrangements for part-time and remote working jobs. The Implementing Regulations have clarified that working hours will be reduced by two hours in the Holy month of Ramadan.
Minimum Wage
The New Law has set a minimum wage for the private sector employees, determined by the UAE Cabinet.
Harassment Provisions and Anti-Discrimination
Under the New Law, employers are prohibited discrimination based on race, gender, nationality, color, social origins, and religion or disability.
Women Empowerment
The New Law states equal pay for working women doing the same job as men. The Cabinet will determine the value of the work later.
Annual Leaves
Full-time employers can take 30 days of paid annual leave if the service length is more than one year or two days per month if the service length is between six months and one year.
Conclusion
Undoubtedly, the New Law has considered the best standards of requirement in the working environment and employment practices. It ensures the interest of employees and employers in a balanced manner.
To know more information, kindly contact us:
">1) DIAC in the DIFC2) Legal Costs
The lack of provision of any award for the legal costs of the parties is resolved in the new rules. Now, the fees of experts and lawyers, along with other costs, are included in the cost of the arbitration.
3) Joinder
The recently published rules allow the consolidation of various claims into one arbitration under the same agreement.
4) Interim Measures
The rules also address exceptional procedures, such as emergency arbitrators or interim measures.
5) Third-party funding
With a proper and authentic disclosure being made to all the parties involved, the new rules of 2022 permit third-party funding arrangements.
Conclusion
The 2022 Rules not only improves the approach to arbitration but also brings the existing rules in line with other international arbitration centers in the world. Now, it is up to the courts to see how these new rules are adopted, executed, and eventually regulated in the judicial setting.
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"class="material with-radius">2) Legal Costs
The lack of provision of any award for the legal costs of the parties is resolved in the new rules. Now, the fees of experts and lawyers, along with other costs, are included in the cost of the arbitration.
3) Joinder
The recently published rules allow the consolidation of various claims into one arbitration under the same agreement.
4) Interim Measures
The rules also address exceptional procedures, such as emergency arbitrators or interim measures.
5) Third-party funding
With a proper and authentic disclosure being made to all the parties involved, the new rules of 2022 permit third-party funding arrangements.
Conclusion
The 2022 Rules not only improves the approach to arbitration but also brings the existing rules in line with other international arbitration centers in the world. Now, it is up to the courts to see how these new rules are adopted, executed, and eventually regulated in the judicial setting.
For more information, please contact:
">Thomas Paoletti "class="material with-radius">"class="material with-radius">
">Thomas Paoletti "class="material with-radius">
It is always a good idea to have a Will recorded in the UAE, especially if you have assets here. A locally registered Will guarantees legal certainty for the inheritance of your possessions, as well as the appointment of guardians for minor children, if any.
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"class="material with-radius">It is always a good idea to have a Will recorded in the UAE, especially if you have assets here. A locally registered Will guarantees legal certainty for the inheritance of your possessions, as well as the appointment of guardians for minor children, if any.
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">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 into after the marriage has been solemnized.
Although in the United Arab Emirates (UAE) the property is individually held by the spouse and the concept of common matrimony property does not exist, the concept of Muslim marriage as a contract makes the application of prenuptial agreement a bit complex subject to understand.
The personal law in the UAE like the Personal Status Law (Federal Decree 28 of 2005) is the primary legislation that deals with the matters of marriage, divorce, inheritance, alimony, etc. The application of the law is different as per the nationality and the religion of the person involved.
The UAE has supported the viewpoint that expatriates are free to choose the law of their jurisdiction for its application in the UAE for solving personal disputes. Thus, the legality of pre-nuptial agreements is not questionable if the spouse belongs to a country where such agreements are legal. For instance, if a spouse is a citizen of the United Kingdom, the pre-nuptial agreement between them can be legally enforced as such agreements are considered valid in the UK.
Article 20 of the Personal Status Law lays down that the contract of a marriage cannot legitimize what is illegitimate and cannot ban what is legitimate. Further, a contract of marriage inconsistent with the foundations of the marriage is void. Any condition in the contract which may be consistent with the foundations of the marriage but is illicit as per the law of the UAE is also considered void, while the contract remains valid.
Although Article 20 leaves enough scope for including terms in the marriage contract which could be of the nature of the prenuptial agreement, however, the general consensus is that the terms must not violate the Sharia Law. The post-nuptial agreements can only be considered valid if they are consistent with the conditions of the contract i.e. offer, consideration, and acceptance.
Furthermore, pre/post-nuptial agreements are particularly relevant when it comes to properties based outside the UAE and in countries that recognize and enforce this type of agreement, as long as certain basic conditions are met, such as financial disclosure and separate legal counselling. It is critical to have a contract that governs such properties, especially if the wife is a foreign national.
To sum up, when drafting a pre/post-nuptial agreement to protect rights to matrimonial assets, it is critical to seek legal advice so that, in the case of UAE nationals, the scope of such conditions does not conflict with Sharia principles, and in the case of expatriates, whether Muslim or non-Muslim, there is no bias toward one party.
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Although in the United Arab Emirates (UAE) the property is individually held by the spouse and the concept of common matrimony property does not exist, the concept of Muslim marriage as a contract makes the application of prenuptial agreement a bit complex subject to understand.
The personal law in the UAE like the Personal Status Law (Federal Decree 28 of 2005) is the primary legislation that deals with the matters of marriage, divorce, inheritance, alimony, etc. The application of the law is different as per the nationality and the religion of the person involved.
The UAE has supported the viewpoint that expatriates are free to choose the law of their jurisdiction for its application in the UAE for solving personal disputes. Thus, the legality of pre-nuptial agreements is not questionable if the spouse belongs to a country where such agreements are legal. For instance, if a spouse is a citizen of the United Kingdom, the pre-nuptial agreement between them can be legally enforced as such agreements are considered valid in the UK.
Article 20 of the Personal Status Law lays down that the contract of a marriage cannot legitimize what is illegitimate and cannot ban what is legitimate. Further, a contract of marriage inconsistent with the foundations of the marriage is void. Any condition in the contract which may be consistent with the foundations of the marriage but is illicit as per the law of the UAE is also considered void, while the contract remains valid.
Although Article 20 leaves enough scope for including terms in the marriage contract which could be of the nature of the prenuptial agreement, however, the general consensus is that the terms must not violate the Sharia Law. The post-nuptial agreements can only be considered valid if they are consistent with the conditions of the contract i.e. offer, consideration, and acceptance.
Furthermore, pre/post-nuptial agreements are particularly relevant when it comes to properties based outside the UAE and in countries that recognize and enforce this type of agreement, as long as certain basic conditions are met, such as financial disclosure and separate legal counselling. It is critical to have a contract that governs such properties, especially if the wife is a foreign national.
To sum up, when drafting a pre/post-nuptial agreement to protect rights to matrimonial assets, it is critical to seek legal advice so that, in the case of UAE nationals, the scope of such conditions does not conflict with Sharia principles, and in the case of expatriates, whether Muslim or non-Muslim, there is no bias toward one party.
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">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 corporation’s or other business’s net income or profit, and it will apply to all UAE enterprises. The UAE Corporate Tax shall be applicable from next year on the financial years beginning on or after 1 June 2023 and the Federal Tax Authority will be responsible for the administration, collection, and enforcement of UAE Corporate Tax.Although the actual legislation and regulation are yet to be introduced, initial information points out that a standard 9% statutory tax will be applicable on businesses with net profits above AED 375,000. A 0% tax rate shall however be applicable to businesses making profits up to AED 375,000 which will ensure UAE’s commitment of continuous support towards startups and small businesses across the nation. Furthermore, a different tax rate will be applicable to large multinational enterprises.
The tax regulations which will be introduced in future laws shall aim at achieving the several objectives which are necessary for the growth of the nation. This new tax regime is designed for UAE’s alignment with global tax standards and will help the nation fulfill its commitment to the international efforts on tax transparency and countering harmful tax practices. While taxing the big businesses the policy will ensure that small and micro businesses operate hurdle-free with its 0% Corporate Tax policies for profits below AED 375,000. Only businesses that extract natural resources will continue to be subject to the Emirate corporate taxation and will be exempted from the UAE Corporate Tax. More information relating to other UAE Corporate Tax exemptions and exclusions will be provided in the comprehensive legislation to be passed in the future.
The Corporate Tax however is not to be confused with a personal income tax which is usually applicable on individuals on their salary, dividends, capital gains, or income from real estate holdings. The Corporate Tax is only applicable to the profits or income generated from the business or commercial activities undertaken by individuals. The UAE will still remain free from income tax imposed on individuals.
The Corporate Tax policy does not aim at imposing a withholding tax on domestic or cross-border transactions. Corporate Tax shall also not be imposed on capital gains and dividend distribution under certain conditions which are yet to be made clear. Free zone businesses will also be subject to UAE Corporate Tax, however the UAE Corporate Tax regime will maintain the Corporate Tax benefits currently available to free zone enterprises that meet all the regulatory criteria and do not conduct any business with mainland UAE.
The UAE Ministry of Foreign Affairs intends to release further information on the Corporate Tax regime by the middle of 2022.
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"class="material with-radius">Although the actual legislation and regulation are yet to be introduced, initial information points out that a standard 9% statutory tax will be applicable on businesses with net profits above AED 375,000. A 0% tax rate shall however be applicable to businesses making profits up to AED 375,000 which will ensure UAE’s commitment of continuous support towards startups and small businesses across the nation. Furthermore, a different tax rate will be applicable to large multinational enterprises.
The tax regulations which will be introduced in future laws shall aim at achieving the several objectives which are necessary for the growth of the nation. This new tax regime is designed for UAE’s alignment with global tax standards and will help the nation fulfill its commitment to the international efforts on tax transparency and countering harmful tax practices. While taxing the big businesses the policy will ensure that small and micro businesses operate hurdle-free with its 0% Corporate Tax policies for profits below AED 375,000. Only businesses that extract natural resources will continue to be subject to the Emirate corporate taxation and will be exempted from the UAE Corporate Tax. More information relating to other UAE Corporate Tax exemptions and exclusions will be provided in the comprehensive legislation to be passed in the future.
The Corporate Tax however is not to be confused with a personal income tax which is usually applicable on individuals on their salary, dividends, capital gains, or income from real estate holdings. The Corporate Tax is only applicable to the profits or income generated from the business or commercial activities undertaken by individuals. The UAE will still remain free from income tax imposed on individuals.
The Corporate Tax policy does not aim at imposing a withholding tax on domestic or cross-border transactions. Corporate Tax shall also not be imposed on capital gains and dividend distribution under certain conditions which are yet to be made clear. Free zone businesses will also be subject to UAE Corporate Tax, however the UAE Corporate Tax regime will maintain the Corporate Tax benefits currently available to free zone enterprises that meet all the regulatory criteria and do not conduct any business with mainland UAE.
The UAE Ministry of Foreign Affairs intends to release further information on the Corporate Tax regime by the middle of 2022.
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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 arbitral award and issuance of enforcement order to the president of the court. The party requesting enforcement shall also submit the original award or its certified copy, a copy of the arbitration agreement, an Arabic translation of the arbitral award, and a copy of the minutes of deposit of the award in the court.The president of the court or any other delegated judge is bound to order the recognition and enforcement of the award within 60 days of the request unless a case is made for nullification of the arbitral award.
Article 53 lays down a variety of objections that can be raised against the arbitral award by lodging an action in nullity or during the examination of the arbitral award for enforcement. Article 53 provides eight grounds for which proof has to be provided to seek an annulment. A few of the grounds are that (1) there was no arbitration agreement or the agreement was null and void, (2) A party was incapacitated at the time of conclusion of the arbitration agreement. (3) there was a violation of natural justice (4) the law applied by the arbitral award is not the one agreed by the parties.
Importantly, the court can also on its initiative refuse to enforce an award if it finds that the subject matter of the dispute was not capable of arbitration or if the arbitral award was in conflict with the public order and the public morality of the state.
Nullification of the arbitral award shall result in termination of the award in whole or in part. The court may stay the nullification process to enable the Arbitral Tribunal to correct the error which might lead to the annulment of the arbitral award. An order of nullity issued by a court is considered final and may only be subject to appeal by cassation, which is an extraordinary remedy.
The court examining the actions of nullity may order to stay the enforcement of an arbitral award if an application of annulment is based on serious grounds, however, it is not obligated to do so.
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The president of the court or any other delegated judge is bound to order the recognition and enforcement of the award within 60 days of the request unless a case is made for nullification of the arbitral award.
Article 53 lays down a variety of objections that can be raised against the arbitral award by lodging an action in nullity or during the examination of the arbitral award for enforcement. Article 53 provides eight grounds for which proof has to be provided to seek an annulment. A few of the grounds are that (1) there was no arbitration agreement or the agreement was null and void, (2) A party was incapacitated at the time of conclusion of the arbitration agreement. (3) there was a violation of natural justice (4) the law applied by the arbitral award is not the one agreed by the parties.
Importantly, the court can also on its initiative refuse to enforce an award if it finds that the subject matter of the dispute was not capable of arbitration or if the arbitral award was in conflict with the public order and the public morality of the state.
Nullification of the arbitral award shall result in termination of the award in whole or in part. The court may stay the nullification process to enable the Arbitral Tribunal to correct the error which might lead to the annulment of the arbitral award. An order of nullity issued by a court is considered final and may only be subject to appeal by cassation, which is an extraordinary remedy.
The court examining the actions of nullity may order to stay the enforcement of an arbitral award if an application of annulment is based on serious grounds, however, it is not obligated to do so.
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">(1) ask their banks to deny payment of a cheque (with exceptions), (2) withdraw funds or close their account with an aim to deny payment (3) deliberately sign a cheque in a manner to make it unpayable. The individual could be punished for 6 months to 2 years imprisonment in addition to being fined for 10% of the cheque value or 5,000 AED. The new amendments have removed the penal provisions for drawing or endorsing a cheque of an account with insufficient funds. The penalty for repeat offenders shall be double.
Financial Institutions or the cheque drawers will also be subjected to a penalty of 10% of the cheque or a minimum of AED 5,000, in cases where they wrongfully reject the bearers’ demand for full or partial payment of the cheque in bad faith and deny to the bearer the original cheque with the certificate of partial payment. The banks or the employees once convicted would also be subjected to the policies of name and shame as the judgments will be published in two widely read newspapers of the UAE.
As per these amendments, if a person is convicted of the offence of cheque bounce, his checkbook could be withdrawn and he may also be prevented from obtaining a new checkbook for five years. Other repercussions include a financial fine, suspension of license of a business for six months, and punishment of dissolution of business license for repeat offenders. Any bank not complying with the above orders could be subjected to the penalty of AED 100,000- 200,000.
The law has been amended to allow for partial payment of the value of the cheque if the entire amount is not in the account of the drawer. The bank shall also provide a certificate to the effect that the cheque has only been partially encashed while returning the original cheque to the bearer. The certificate validates the right of the bearer to the rest of the payment. If a bank stamps a cheque as non-paid, then the cheque could act as an executive instrument capable of being enforced wholly or partially.
Banks have been now mandated to submit information to the Central Bank of the account holders who indulges in any of the cases, (1) where the account had no sufficient and usable fund at the time of the maturity of the cheque, (2) where drawer had withdrawn the funds to disable the encashment of cheque, and (3) where partial payment has been made and certificate is issued by the bank as stated above.
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"class="material with-radius">Financial Institutions or the cheque drawers will also be subjected to a penalty of 10% of the cheque or a minimum of AED 5,000, in cases where they wrongfully reject the bearers’ demand for full or partial payment of the cheque in bad faith and deny to the bearer the original cheque with the certificate of partial payment. The banks or the employees once convicted would also be subjected to the policies of name and shame as the judgments will be published in two widely read newspapers of the UAE.
As per these amendments, if a person is convicted of the offence of cheque bounce, his checkbook could be withdrawn and he may also be prevented from obtaining a new checkbook for five years. Other repercussions include a financial fine, suspension of license of a business for six months, and punishment of dissolution of business license for repeat offenders. Any bank not complying with the above orders could be subjected to the penalty of AED 100,000- 200,000.
The law has been amended to allow for partial payment of the value of the cheque if the entire amount is not in the account of the drawer. The bank shall also provide a certificate to the effect that the cheque has only been partially encashed while returning the original cheque to the bearer. The certificate validates the right of the bearer to the rest of the payment. If a bank stamps a cheque as non-paid, then the cheque could act as an executive instrument capable of being enforced wholly or partially.
Banks have been now mandated to submit information to the Central Bank of the account holders who indulges in any of the cases, (1) where the account had no sufficient and usable fund at the time of the maturity of the cheque, (2) where drawer had withdrawn the funds to disable the encashment of cheque, and (3) where partial payment has been made and certificate is issued by the bank as stated above.
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">Thomas Paoletti "class="material with-radius">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 Contract’. The provision allows even a company under liquidation to merge with another company.
Article 284 of the law then lays down the necessary clauses which the merger contract needs to demonstrate. The merger contract shall lay down the Memorandum of Association (MOA) and Articles of Association (AOA) of the acquirer company or the new company to be formed as a result of the merger. The contract also needs to state the name and addresses of the board members and proposed managers of the company being created by the merger. Lastly, the contract needs to lay down the method of transferring the stocks or shares of the target company into the new company.
This draft merger contract needs to be submitted before the General Assembly of both the companies getting merged which needs its approval equivalent to the one required to amend the MOA of that company. When the proposal of the merger is presented before the General Assembly, it is necessary to present the merger contract. The merger contract shall make the shareholders clear that shareholders having more than 20% stake in the company can challenge the merger in a competent court within 30 days from the date of approval of the General Assembly.
Article 287 allows partners of a company (except joint-stock company) objecting to the merger to restore the value of their shares.
The law also provid
es for the merging of holding and subsidiary companies and allows their mergers without the conclusion of a merger contract. The subsidiary company(s) merely needs to pass the special decision with the majority enumerated for amending the MOA.
The merging companies also need to notify their creditors of the decision within 10 days of approval by their General Assembly. The company shall deal with the objections of the creditors, and shareholders and any failure to settle such claims shall entitle the objectors to challenge the merger in the court, where they can seek the merger’s suspension. If no objection is raised to the merger, it shall constitute as implied consent to the merger decision. Once the Ministry’s or Security and Commodities Authority’s approval is received, it shall result in termination of the corporate entity of the target company.
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"class="material with-radius">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 Contract’. The provision allows even a company under liquidation to merge with another company.
Article 284 of the law then lays down the necessary clauses which the merger contract needs to demonstrate. The merger contract shall lay down the Memorandum of Association (MOA) and Articles of Association (AOA) of the acquirer company or the new company to be formed as a result of the merger. The contract also needs to state the name and addresses of the board members and proposed managers of the company being created by the merger. Lastly, the contract needs to lay down the method of transferring the stocks or shares of the target company into the new company.
This draft merger contract needs to be submitted before the General Assembly of both the companies getting merged which needs its approval equivalent to the one required to amend the MOA of that company. When the proposal of the merger is presented before the General Assembly, it is necessary to present the merger contract. The merger contract shall make the shareholders clear that shareholders having more than 20% stake in the company can challenge the merger in a competent court within 30 days from the date of approval of the General Assembly.
Article 287 allows partners of a company (except joint-stock company) objecting to the merger to restore the value of their shares.
The law also provid
es for the merging of holding and subsidiary companies and allows their mergers without the conclusion of a merger contract. The subsidiary company(s) merely needs to pass the special decision with the majority enumerated for amending the MOA.
The merging companies also need to notify their creditors of the decision within 10 days of approval by their General Assembly. The company shall deal with the objections of the creditors, and shareholders and any failure to settle such claims shall entitle the objectors to challenge the merger in the court, where they can seek the merger’s suspension. If no objection is raised to the merger, it shall constitute as implied consent to the merger decision. Once the Ministry’s or Security and Commodities Authority’s approval is received, it shall result in termination of the corporate entity of the target company.
For any more information please feel free to contact us.
">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 obligations to the DIAC.All the agreements which had set the jurisdiction of the above-mentioned abolished arbitration centres still stand valid and the arbitration in disputes surrounding such agreements shall now be done by the DIAC. The ongoing arbitration proceedings will continue and shall be supervised by the DIAC.
The DIAC was established in 2004 to provide efficient and impartial administration of commercial disputes. The DIAC aims at reaching out to other international or regional arbitration centres through the exchange of expertise, arbitrators, and other resources to achieve the objectives of the centre. Other functions include ensuring the enforcement of arbitration orders through MOUs with various national and international courts. These functions in totality aim at achieving the objectives of the DIAC to promote ADR as the primary method of dispute resolution for financial and commercial disputes.
The Decree sets the DIAC as the primary centre for conducting arbitration proceedings if parties have not specifically mentioned any other place. The decree-law also provides for arbitration through other electronic and modern technological methods.
The DIAC will have a board of directors with a total of 9 members including a Chairman and Vice-Chairman. The Board will function to achieve the objectives of the DIAC along with the creation of rules and by-laws on the lines of best international policies to regulate the arbitration proceedings. Further, the board is responsible for administrative responsibilities of the centre including approval of the annual budget and deciding remuneration of employees. The Board is further responsible to propose future policies by conducting studies on the functioning of arbitration, conciliation, and other ADR methods.
The Decree establishes an Arbitration Court with a total of 13 members including a president and vice president. The objective of the Arbitration Court is to undertake general supervision of the ADR methods offered by the DIAC and ensure its proper and timely use. The members shall be appointed pursuant to the resolution of the board of directors. The court shall have the power to ensure effective implementation of the provision of this law and the rules adopted by the DIAC and the parties to the disputes. The court is also responsible for appointing arbitration tribunal and conciliation panels.
Further, the Arbitration Court is also responsible for determining fees for services provided by DIAC like arbitration, conciliation, and others.
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"class="material with-radius">All the agreements which had set the jurisdiction of the above-mentioned abolished arbitration centres still stand valid and the arbitration in disputes surrounding such agreements shall now be done by the DIAC. The ongoing arbitration proceedings will continue and shall be supervised by the DIAC.
The DIAC was established in 2004 to provide efficient and impartial administration of commercial disputes. The DIAC aims at reaching out to other international or regional arbitration centres through the exchange of expertise, arbitrators, and other resources to achieve the objectives of the centre. Other functions include ensuring the enforcement of arbitration orders through MOUs with various national and international courts. These functions in totality aim at achieving the objectives of the DIAC to promote ADR as the primary method of dispute resolution for financial and commercial disputes.
The Decree sets the DIAC as the primary centre for conducting arbitration proceedings if parties have not specifically mentioned any other place. The decree-law also provides for arbitration through other electronic and modern technological methods.
The DIAC will have a board of directors with a total of 9 members including a Chairman and Vice-Chairman. The Board will function to achieve the objectives of the DIAC along with the creation of rules and by-laws on the lines of best international policies to regulate the arbitration proceedings. Further, the board is responsible for administrative responsibilities of the centre including approval of the annual budget and deciding remuneration of employees. The Board is further responsible to propose future policies by conducting studies on the functioning of arbitration, conciliation, and other ADR methods.
The Decree establishes an Arbitration Court with a total of 13 members including a president and vice president. The objective of the Arbitration Court is to undertake general supervision of the ADR methods offered by the DIAC and ensure its proper and timely use. The members shall be appointed pursuant to the resolution of the board of directors. The court shall have the power to ensure effective implementation of the provision of this law and the rules adopted by the DIAC and the parties to the disputes. The court is also responsible for appointing arbitration tribunal and conciliation panels.
Further, the Arbitration Court is also responsible for determining fees for services provided by DIAC like arbitration, conciliation, and others.
To know more, kindly contact:
">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 the free zone dealing with all claims and disputes arising from or within the DIFC.The DIFC courts in collaboration with the government of Dubai started a joint initiative of DIFC courts Wills Service for the non-Muslims of the UAE. The service was introduced in the year 2014 through DIFC’s resolution and was reaffirmed by the Dubai government in 2017 through its law No 15 of 2017. The detailed law and rules provide for effective mechanism providing speed, efficiency, and certainty of judicial enforcement of these wills.
The aim of the service is to provide testamentary freedom to non-Muslims residing in the UAE. In absence of this service the property of such individuals was devolved in accordance with the Sharia law upon the death of the individual and not in accordance with his or her wish.
The DIFC wills gives non-Muslims an option to pass their assets or appoint guardians of the children below 21 years residing in Dubai. Non-Muslims investing in the UAE or having assets in the country can prepare the DIFC will. The DIFC wills can be prepared only by the draftsman registered with DIFC courts Wills Service. The registration of the will takes place at the designated DIFC office, and it is mandatory for the testator to be present at the same office.
The Wills Services include registration of a Full Will, Property Will, Financial Assets Will, Business Owner Will and Guardianship Will. In case where an individual wants to distribute his assets and wishes to appoint a guardian of the children, he or she can register a Full Will instead of two separate Property and Guardianship wills. The Business Owner Will can encompass up to five separate shareholdings in any company incorporate in the UAE. The Financial Assets Will can encompass up to ten separate accounts or joint accounts in banks which are registered and situated in the UAE. The Property Will can encompass up to five real estate properties situated in the UAE.
In response to the challenges posed by Covid-19, DIFC Wills Services Centre has allowed the facility of online video conferencing to register a DIFC Will remotely.
References
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"class="material with-radius">The DIFC courts in collaboration with the government of Dubai started a joint initiative of DIFC courts Wills Service for the non-Muslims of the UAE. The service was introduced in the year 2014 through DIFC’s resolution and was reaffirmed by the Dubai government in 2017 through its law No 15 of 2017. The detailed law and rules provide for effective mechanism providing speed, efficiency, and certainty of judicial enforcement of these wills.
The aim of the service is to provide testamentary freedom to non-Muslims residing in the UAE. In absence of this service the property of such individuals was devolved in accordance with the Sharia law upon the death of the individual and not in accordance with his or her wish.
The DIFC wills gives non-Muslims an option to pass their assets or appoint guardians of the children below 21 years residing in Dubai. Non-Muslims investing in the UAE or having assets in the country can prepare the DIFC will. The DIFC wills can be prepared only by the draftsman registered with DIFC courts Wills Service. The registration of the will takes place at the designated DIFC office, and it is mandatory for the testator to be present at the same office.
The Wills Services include registration of a Full Will, Property Will, Financial Assets Will, Business Owner Will and Guardianship Will. In case where an individual wants to distribute his assets and wishes to appoint a guardian of the children, he or she can register a Full Will instead of two separate Property and Guardianship wills. The Business Owner Will can encompass up to five separate shareholdings in any company incorporate in the UAE. The Financial Assets Will can encompass up to ten separate accounts or joint accounts in banks which are registered and situated in the UAE. The Property Will can encompass up to five real estate properties situated in the UAE.
In response to the challenges posed by Covid-19, DIFC Wills Services Centre has allowed the facility of online video conferencing to register a DIFC Will remotely.
References
Kindly contact us, to know more:
">The Data Protection Law is set to go into force at the beginning of 2022, and is being designed keeping in view the objective of protecting the privacy of the people and institutions and limiting the private companies from generating profits out of personal data.If you would like to know more about Xanax, please check the full description, instructions and precautions on https://rosarydental.com/oral-surgery/xanax-generic/. It is also better to consult with your attending doctor since it is only for short management and is not a treatment. Please also remember that mixing it with alcohol might strongly improve its sedative functions and harm you.
All firms operating in the UAE, along with those firms outside of the UAE processing personal data of the UAE residents, will need to evaluate their activities and make changes to comply with the new Data Protection Law.
For more information, please contact:
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If you would like to know more about Xanax, please check the full description, instructions and precautions on https://rosarydental.com/oral-surgery/xanax-generic/. It is also better to consult with your attending doctor since it is only for short management and is not a treatment. Please also remember that mixing it with alcohol might strongly improve its sedative functions and harm you.
All firms operating in the UAE, along with those firms outside of the UAE processing personal data of the UAE residents, will need to evaluate their activities and make changes to comply with the new Data Protection Law.
For more information, please contact:
">Thomas Paoletti
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Thomas Paoletti the founder and Managing Partner of Paoletti Legal Consultants LLP
has shared his insights and expertise on below questions.
QUESTION ONE:
What are the most important steps to identifying commercial opportunities before entering a new market in the UAE – and what are the most common commercial mistakes you have seen businesses make?
The UAE has a long and proud history of trade and finances, which makes it simultaneously an open space for entrepreneurship and a difficult and competitive market; for this reason, any company that seeks to engage in the UAE’s market first has to secure a sizable initial capital to spend in the first stages of its business, independently of the specific trade or business that it wishes to conduct, to deal with the country’s high competition. The UAE is also a very diverse country (more than 89% of its population being expats) with a very diverse economy, so the key to successful market entry has less to do with investment and marketing, and more to do with adaptation to the local cultural landscape. Some mistakes that should be avoided by investors and businesses when introducing their brands, products and services in the UAE are related to:
• investing in a product that sells poorly in a particular UAE social and cultural context.
• compliance with local laws, rules and regulations such as registration of businesses and economic substance which can result in fines and closure of companies.
• Underestimation of the influence of culture and tradition of the market and its rules.
QUESTION TWO
Local market intelligence is vital to exploring commercial viability in a new market. How has Covid impacted access to this information, and how can businesses make fully informed market entry decisions as Covid disruptions continue?
Local market intelligence is necessary to gather authentic information for market research and strategy formulation. Market intelligence analysts used this information to help businesses avoid investment risks by identifying potential threats and opportunities. With the advent of Covid-19, the physical ability of people to reach markets was affected, which made the traditional method of data collection impossible. Generally speaking, all global open markets have been hit hard by the Covid-19 pandemic, especially financial markets, since these are supported by complex networks of information and delicate infrastructures that have been effectively shut down by the various governments and institutions of the world as a safety measure to avoid economic collapse and recession. This unexpected turn of events has led to a drop in investment from foreign capital and entrepreneurs, leading thus
to a reduction of the market itself in the UAE; nevertheless, the UAE’s government has successfully implemented measures to
sustain the economy, such as:
• A series of record-breaking stimulus packages for existing businesses in the UAE and the foreign direct investments in the country.
• A gradual re-opening of the financial infrastructures and centres. Added to this, there is much that companies and businesses can do to support the economic recovery and even end up with benefits from the restructuring of the market; to this end, it is recommended that businesses invest in digital technology and Fourth Generation industries such as space technology, Artificial Intelligence, cyber security, and Biometric databases. This last point is crucial to regain the capacity to gather and process data related to the various segments of the market, since Biodata is the cutting-edge technology that is being used to create large databases of information about the consumers and their habits, ideas, expectations, etc.
QUESTION THREE
How can businesses identify and evade barriers to commercial success in a new market – from cultural and language differences to competitors and other new market entrants?
It is paramount for commercial success that companies integrate themselves into the local customs, mores, traditions and idiosyncrasy of the consumers, so as to “become” part of the community. To counter this, it is important to show cooperation and respect to the local consumers by engaging in social welfare activities and campaigns that help establish a connection between the business and the people. Finally, in this cultural setting, it is of the utmost importance and relevance that companies and investors take a risk on segments of the market that are underdeveloped in some of the emirates, and avoid the common mistake of clustering in the financial centres, where the competition is most rife and accelerated; this will help open up new venues of the economy, contributing to the economic growth of the rest of the federation, and establishing a firm position in the market. Challenges posed by competitors and new market entrants could be dealt with by professional consultants that can help identify structural problems and provide personalised and objective steps to tackle competitors and new market entrants. With more than 15 years of experience in the UAE and 25 years in the international market, our team provides companies and investors with the market analysis and strategy along with incorporating business strategy appropriate to navigate in the constantly evolving UAE business world.
To read the full publication, kindly click here.
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Thomas Paoletti the founder and Managing Partner of Paoletti Legal Consultants LLP
has shared his insights and expertise on below questions.
QUESTION ONE:
What are the most important steps to identifying commercial opportunities before entering a new market in the UAE – and what are the most common commercial mistakes you have seen businesses make?
The UAE has a long and proud history of trade and finances, which makes it simultaneously an open space for entrepreneurship and a difficult and competitive market; for this reason, any company that seeks to engage in the UAE’s market first has to secure a sizable initial capital to spend in the first stages of its business, independently of the specific trade or business that it wishes to conduct, to deal with the country’s high competition. The UAE is also a very diverse country (more than 89% of its population being expats) with a very diverse economy, so the key to successful market entry has less to do with investment and marketing, and more to do with adaptation to the local cultural landscape. Some mistakes that should be avoided by investors and businesses when introducing their brands, products and services in the UAE are related to:
• investing in a product that sells poorly in a particular UAE social and cultural context.
• compliance with local laws, rules and regulations such as registration of businesses and economic substance which can result in fines and closure of companies.
• Underestimation of the influence of culture and tradition of the market and its rules.
QUESTION TWO
Local market intelligence is vital to exploring commercial viability in a new market. How has Covid impacted access to this information, and how can businesses make fully informed market entry decisions as Covid disruptions continue?
Local market intelligence is necessary to gather authentic information for market research and strategy formulation. Market intelligence analysts used this information to help businesses avoid investment risks by identifying potential threats and opportunities. With the advent of Covid-19, the physical ability of people to reach markets was affected, which made the traditional method of data collection impossible. Generally speaking, all global open markets have been hit hard by the Covid-19 pandemic, especially financial markets, since these are supported by complex networks of information and delicate infrastructures that have been effectively shut down by the various governments and institutions of the world as a safety measure to avoid economic collapse and recession. This unexpected turn of events has led to a drop in investment from foreign capital and entrepreneurs, leading thus
to a reduction of the market itself in the UAE; nevertheless, the UAE’s government has successfully implemented measures to
sustain the economy, such as:
• A series of record-breaking stimulus packages for existing businesses in the UAE and the foreign direct investments in the country.
• A gradual re-opening of the financial infrastructures and centres. Added to this, there is much that companies and businesses can do to support the economic recovery and even end up with benefits from the restructuring of the market; to this end, it is recommended that businesses invest in digital technology and Fourth Generation industries such as space technology, Artificial Intelligence, cyber security, and Biometric databases. This last point is crucial to regain the capacity to gather and process data related to the various segments of the market, since Biodata is the cutting-edge technology that is being used to create large databases of information about the consumers and their habits, ideas, expectations, etc.
QUESTION THREE
How can businesses identify and evade barriers to commercial success in a new market – from cultural and language differences to competitors and other new market entrants?
It is paramount for commercial success that companies integrate themselves into the local customs, mores, traditions and idiosyncrasy of the consumers, so as to “become” part of the community. To counter this, it is important to show cooperation and respect to the local consumers by engaging in social welfare activities and campaigns that help establish a connection between the business and the people. Finally, in this cultural setting, it is of the utmost importance and relevance that companies and investors take a risk on segments of the market that are underdeveloped in some of the emirates, and avoid the common mistake of clustering in the financial centres, where the competition is most rife and accelerated; this will help open up new venues of the economy, contributing to the economic growth of the rest of the federation, and establishing a firm position in the market. Challenges posed by competitors and new market entrants could be dealt with by professional consultants that can help identify structural problems and provide personalised and objective steps to tackle competitors and new market entrants. With more than 15 years of experience in the UAE and 25 years in the international market, our team provides companies and investors with the market analysis and strategy along with incorporating business strategy appropriate to navigate in the constantly evolving UAE business world.
To read the full publication, kindly click here.
">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 for the next 50 years.Along with provisions prohibiting discrimination, forced labor, harassment and bullying, some of the other new development in the labor laws which shall apply to private sector employees have been listed below:
1. It is now allowed for juveniles above 15 years of age to work for 6 hours a day with requisite permissions and subject to few limitations.
2. Temporary and Flexible work models have been introduced to allow flexible hiring and working practices for the employees.
3. Detailed provisions have been introduced in relation to probation workers. The probation period is still fixed to 6 months, but now according to the new law the employer shall have to give a 14-day written notice before terminating any employee while the employee shall have to submit a 30-day notice if they want to submit their resignation during the probation period.
4. Minimum wage will be set for employees in the private sector.
5. The law grants protection and support to employees by making it illegal for an employer to withhold the employee’s documents such as passport.
6. Certain obligation have been laid on employers which includes providing accommodation, training and other means to ensure safety and welfare of the employees through insurance, healthcare costs and other entitlements to the employee’s family upon his or her death.
7. The legislation provides for detailed provisions relating to maternity leave of the female employees. A provision of 45 day fully paid leave and a 15 day of half paid leaves have been provided along with several other rights.
8. The law provides for comprehensive mechanisms and provisions for reprimanding an employee which include giving warnings, deduction of wage, temporary suspension, dismissal with severance pay and other such measures. Separate provisions have been provided for serious cases of wrongs where an employee could be dismissed without a notice.
9. Employees or their heirs have been exempted from paying any judicial fee if their legal claims against the employer falls under or upto AED 100,000.
10. The law prohibits an employee from competing or participating in any competing project in the same business for two years from the date of expiry of their employment contract.
11. The law also prohibits indefinite periods of employment contract and has limited the period of the contract to three years which can be renewed upon expiration. Existing unlimited employment contracts are to be converted into fixed term employment contracts within one year of enforcement of the law.
To know more about this information, contact us at:
"class="material with-radius">Along with provisions prohibiting discrimination, forced labor, harassment and bullying, some of the other new development in the labor laws which shall apply to private sector employees have been listed below:
1. It is now allowed for juveniles above 15 years of age to work for 6 hours a day with requisite permissions and subject to few limitations.
2. Temporary and Flexible work models have been introduced to allow flexible hiring and working practices for the employees.
3. Detailed provisions have been introduced in relation to probation workers. The probation period is still fixed to 6 months, but now according to the new law the employer shall have to give a 14-day written notice before terminating any employee while the employee shall have to submit a 30-day notice if they want to submit their resignation during the probation period.
4. Minimum wage will be set for employees in the private sector.
5. The law grants protection and support to employees by making it illegal for an employer to withhold the employee’s documents such as passport.
6. Certain obligation have been laid on employers which includes providing accommodation, training and other means to ensure safety and welfare of the employees through insurance, healthcare costs and other entitlements to the employee’s family upon his or her death.
7. The legislation provides for detailed provisions relating to maternity leave of the female employees. A provision of 45 day fully paid leave and a 15 day of half paid leaves have been provided along with several other rights.
8. The law provides for comprehensive mechanisms and provisions for reprimanding an employee which include giving warnings, deduction of wage, temporary suspension, dismissal with severance pay and other such measures. Separate provisions have been provided for serious cases of wrongs where an employee could be dismissed without a notice.
9. Employees or their heirs have been exempted from paying any judicial fee if their legal claims against the employer falls under or upto AED 100,000.
10. The law prohibits an employee from competing or participating in any competing project in the same business for two years from the date of expiry of their employment contract.
11. The law also prohibits indefinite periods of employment contract and has limited the period of the contract to three years which can be renewed upon expiration. Existing unlimited employment contracts are to be converted into fixed term employment contracts within one year of enforcement of the law.
To know more about this information, contact us at:
">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 for #IRGlobal’s 10th year annual conference held in London last 23 October to 26 October 2021.
Here is a brief interview of our Managing Partner Mr. Thomas Paoletti.
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 for #IRGlobal’s 10th year annual conference held in London last 23 October to 26 October 2021.
Here is a brief interview of our Managing Partner Mr. Thomas Paoletti.
This form must contain information regarding the relevant activities that the company as engaged in each year, starting from January 1st 2019, proceeding according to the fiscal year of the company; however, companies are not obliged to present the form if, in a given fiscal year, they have not obtained any income from the relevant activity mentioned above.
The ultimate administrative authority under the Resolutions is the National Assessing Authority (NAA), whose function is to file and gather all the forms received by the respective regulatory authorities of each RA, as defined by the Law; after this process has finished, the NAA examines and evaluates each form and decides which companies have successfully fulfill their obligations.
If a company or individual does not comply with the Regulations and presents the aforementioned form, then they will be subject to administrative, tributary and/or penal sanctions, such as up to 50,000 Dirhams fine for not presenting the form and/or failing the Economic Substance Test; another example of the penalties expressed in article 14 of the Cabinet Resolution N 57 of 2020, is a fine of 400,000 Dirhams for failing to present the Economic Substance Report (ESR) and/or failing the Economic Substance Test (EST) for a second consecutive fiscal year. There are also penalties for providing inaccurate information in the ESR; finally, if the decision of the NAA is unfavorable for the Licensee or Exempted Licensee, they have the right to appeal the sentence directly to the NAA administration.
To know more about this regulation, please contact:
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This form must contain information regarding the relevant activities that the company as engaged in each year, starting from January 1st 2019, proceeding according to the fiscal year of the company; however, companies are not obliged to present the form if, in a given fiscal year, they have not obtained any income from the relevant activity mentioned above.
The ultimate administrative authority under the Resolutions is the National Assessing Authority (NAA), whose function is to file and gather all the forms received by the respective regulatory authorities of each RA, as defined by the Law; after this process has finished, the NAA examines and evaluates each form and decides which companies have successfully fulfill their obligations.
If a company or individual does not comply with the Regulations and presents the aforementioned form, then they will be subject to administrative, tributary and/or penal sanctions, such as up to 50,000 Dirhams fine for not presenting the form and/or failing the Economic Substance Test; another example of the penalties expressed in article 14 of the Cabinet Resolution N 57 of 2020, is a fine of 400,000 Dirhams for failing to present the Economic Substance Report (ESR) and/or failing the Economic Substance Test (EST) for a second consecutive fiscal year. There are also penalties for providing inaccurate information in the ESR; finally, if the decision of the NAA is unfavorable for the Licensee or Exempted Licensee, they have the right to appeal the sentence directly to the NAA administration.
To know more about this regulation, please contact:
">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 of the DL had also found the approval of the Data Protection Authority already on October 12 in all its aspects.
But what are the ways of control of the green certificate?
Currently, the possibilities are limited to the exhibition of the paper format, the control of the photo, eventually kept on the Smartphone of the green certificate and the scanning through App C19 of the QR Code associated with the Green Pass.
Recently introduced is the Greeenpass50+ system, which can be used through the INPS platform, thanks to which, by querying the National DGC Platform, which in this case acts as an intermediary, it is possible to verify Green Passes starting from the tax codes of employees known to the institute.
It is important to emphasize that the verification activities should be carried out only against employees actually in service and for whom it is therefore expected to have real access to the workplace at the time of the check.
The use of the Greeenpass50+ service involves three distinct phases:
The accreditation phase, in which the employers will have to register the company and appoint the verifiers, i.e. the individuals who will proceed to the green pass verifications;
The second phase will be the elaborative one, in which it will be the INPS itself by accessing the national platform DGC to retrieve information on the possession of the green pass of the employees;
And finally, the third phase, that of verification, is in which the previously appointed verifiers will access the service to control and verify the possession of the green pass of the employees of accredited companies after selecting the names for which to verify the possession of certification.
It is good to clarify that these methods will not be, or at least we hope, the only ones to be used.
In fact, further control methods are being studied that can also be adopted by Public Administrations, and specifically, we are talking about:
Open-source packages released by the Ministry of Health;
The creation of a special section of the NoiPA website for the control of the green certificate of the public employees adhering to the platform;
and finally, a system of connection between offices that can manage the control of the validity of the green certificate for PAs with more than 1000 employees.
Having clarified what are, or will be, the methods and modalities of control, the question we must ask ourselves is: “What will the verification consist of?”
And it was precisely the Data Protection Authority to answer this question, stating that: “The verification activity shall not involve the collection of data of the interested party in any form, except those strictly necessary, in the work environment, to the application of the measures resulting from the lack of possession of the certification. The system used for the verification of the Green Pass shall not store the QR code of the green certifications subject
to verification, nor extract, consult, record or otherwise process for other purposes the information detected”.
The indications of the Data Protection Authority are, therefore very clear, NO to the storage of the QR code, NO to the extraction of information for purposes other than those related to knowing if you are in possession of green certification or if you should apply the measures resulting from the lack of possession of the same.
Based on the above, what will those who want to be in compliance with current regulations have to do?
The first step will certainly be to provide adequate training to the staff in charge of control; this must be appointed by the owner of the company with a specific letter of appointment and will have a crucial role since it will be entrusted not only with the mere control of the Green Pass, but also with the rejection of all proposals, and there will be some, of those who will propose: “I’ll leave you a copy”, “take a picture of it” or even worse “take note of the data and the deadline”.
Another activity will be the adjustment of the privacy register in which it will be necessary to make a note of the control activity of the Green Pass and also of the fact that the data will not be treated for purposes other than knowing whether or not the certification itself has been issued.
The same applies to the information in which, as recommended by authoritative voices, it will be advisable to provide broad formulas but at the same time the specific indication that no data relating to green certification will be processed for different purposes.
A final mention concerns the consent forms, which also need to be revised in a broad form, without prejudice to the impossibility of processing.
What sanctions are foreseen in case of non-compliance with the regulations both on the employer side and of the workers?
On the employer’s side, the applicable sanctions will be both an administrative fine for an amount between € 400.00 and € 1000.00 and a fine established by the Privacy Code, up to 10 million euros.
Any other breaches will be sanctioned according to art. 83 par. 3 and 4, which specifically states “administrative fines up to 10 000 000 euros, or for companies, up to 2% of the total annual worldwide turnover of the previous year……”.
On the employee’s side, on the other hand, we will find not only the sanction of suspension from work but also salary, but also the administrative sanction from € 600,00 to € 1500,00 imposed based on the communication that the employer will have to forward to the police Prefect’s office and finally the sanctions provided for by the collective agreement of the sector will be applied.
A particular case is that of the dismissal of the employee who refuses the vaccine, a circumstance on which more normative references would be necessary.
The Paoletti Law Group will be able to assist you in all of the obligations relating to the Privacy Law both in the drafting phase of the DPIA (Data Protection Impact Assessment) and the PIA (Privacy Impact Assessment) and in the adaptation phase to the changes introduced by DL n. 127/2021 as well as in all of the practices relating to the adaptation of the Privacy Law necessary for companies that intend to operate in the EU market and beyond.
To know more, please contact:
"class="material with-radius">But what are the ways of control of the green certificate?
Currently, the possibilities are limited to the exhibition of the paper format, the control of the photo, eventually kept on the Smartphone of the green certificate and the scanning through App C19 of the QR Code associated with the Green Pass.
Recently introduced is the Greeenpass50+ system, which can be used through the INPS platform, thanks to which, by querying the National DGC Platform, which in this case acts as an intermediary, it is possible to verify Green Passes starting from the tax codes of employees known to the institute.
It is important to emphasize that the verification activities should be carried out only against employees actually in service and for whom it is therefore expected to have real access to the workplace at the time of the check.
The use of the Greeenpass50+ service involves three distinct phases:
The accreditation phase, in which the employers will have to register the company and appoint the verifiers, i.e. the individuals who will proceed to the green pass verifications;
The second phase will be the elaborative one, in which it will be the INPS itself by accessing the national platform DGC to retrieve information on the possession of the green pass of the employees;
And finally, the third phase, that of verification, is in which the previously appointed verifiers will access the service to control and verify the possession of the green pass of the employees of accredited companies after selecting the names for which to verify the possession of certification.
It is good to clarify that these methods will not be, or at least we hope, the only ones to be used.
In fact, further control methods are being studied that can also be adopted by Public Administrations, and specifically, we are talking about:
Open-source packages released by the Ministry of Health;
The creation of a special section of the NoiPA website for the control of the green certificate of the public employees adhering to the platform;
and finally, a system of connection between offices that can manage the control of the validity of the green certificate for PAs with more than 1000 employees.
Having clarified what are, or will be, the methods and modalities of control, the question we must ask ourselves is: “What will the verification consist of?”
And it was precisely the Data Protection Authority to answer this question, stating that: “The verification activity shall not involve the collection of data of the interested party in any form, except those strictly necessary, in the work environment, to the application of the measures resulting from the lack of possession of the certification. The system used for the verification of the Green Pass shall not store the QR code of the green certifications subject
to verification, nor extract, consult, record or otherwise process for other purposes the information detected”.
The indications of the Data Protection Authority are, therefore very clear, NO to the storage of the QR code, NO to the extraction of information for purposes other than those related to knowing if you are in possession of green certification or if you should apply the measures resulting from the lack of possession of the same.
Based on the above, what will those who want to be in compliance with current regulations have to do?
The first step will certainly be to provide adequate training to the staff in charge of control; this must be appointed by the owner of the company with a specific letter of appointment and will have a crucial role since it will be entrusted not only with the mere control of the Green Pass, but also with the rejection of all proposals, and there will be some, of those who will propose: “I’ll leave you a copy”, “take a picture of it” or even worse “take note of the data and the deadline”.
Another activity will be the adjustment of the privacy register in which it will be necessary to make a note of the control activity of the Green Pass and also of the fact that the data will not be treated for purposes other than knowing whether or not the certification itself has been issued.
The same applies to the information in which, as recommended by authoritative voices, it will be advisable to provide broad formulas but at the same time the specific indication that no data relating to green certification will be processed for different purposes.
A final mention concerns the consent forms, which also need to be revised in a broad form, without prejudice to the impossibility of processing.
What sanctions are foreseen in case of non-compliance with the regulations both on the employer side and of the workers?
On the employer’s side, the applicable sanctions will be both an administrative fine for an amount between € 400.00 and € 1000.00 and a fine established by the Privacy Code, up to 10 million euros.
Any other breaches will be sanctioned according to art. 83 par. 3 and 4, which specifically states “administrative fines up to 10 000 000 euros, or for companies, up to 2% of the total annual worldwide turnover of the previous year……”.
On the employee’s side, on the other hand, we will find not only the sanction of suspension from work but also salary, but also the administrative sanction from € 600,00 to € 1500,00 imposed based on the communication that the employer will have to forward to the police Prefect’s office and finally the sanctions provided for by the collective agreement of the sector will be applied.
A particular case is that of the dismissal of the employee who refuses the vaccine, a circumstance on which more normative references would be necessary.
The Paoletti Law Group will be able to assist you in all of the obligations relating to the Privacy Law both in the drafting phase of the DPIA (Data Protection Impact Assessment) and the PIA (Privacy Impact Assessment) and in the adaptation phase to the changes introduced by DL n. 127/2021 as well as in all of the practices relating to the adaptation of the Privacy Law necessary for companies that intend to operate in the EU market and beyond.
To know more, please contact:
">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 it provides a less constrictive or monolithic legal body, which in turns allows for simple solutions to individual cases, that build up to become accepted customs for the rest of the market.
Nevertheless, to truly understand this legal system, it is important to address the deeper origins of the UAE´s concept of employment and work; these origins lie in the beginnings of Islam, and the value system that derives from this faith, that has guided the law and social traditions of the UAE since its founding.
Unlike both the Liberal and Marxist views on work as a necessary evil, typical of western society, Islamic tradition upholds a positive and empowering view of work and effort; sloth and laziness are not only frowned upon, but outright rejected by Islamic jurisprudence as a path to damnation.
Being a mostly Muslim country, the UAE promotes this concept of work, not only as a necessity, but a blessing and a privilege, and therefore, an aspect of society that must be encouraged and protected; this mindset, coupled with the unique geopolitical position of the United Arab Emirates, forms the basis for the economic, industrial and financial policies of the UAE´s government.
In this context of promoting work and protecting employment, as well as guaranteeing a free market open for foreign investment (critical for UAE economy), the UAE´s government has created since 2002 a space for free exchange and development of foreign capital, as well as a common law system to settle disputes peacefully, known as the Dubai International Financial Center or DIFC for short.
Legally and judicially speaking, the DIFC is independent from the government and has its own well-defined jurisdiction in matters pertaining financial controversies within the business center of the Dubai Emirate.
The DIFC holds a specialized court named the Small Claims Tribunal, in charge of mediating disputes between employers and employees within the DIFC jurisdiction; the court itself is simple, acting as an arbiter instead of a judge, allowing the parties to resolve their issue through public communication rather than adversarial trial.
The requirements for a case to be taken by the SCT are three:
- That the amount disputed does not exceed 500,000 Dirhams; or
- That the claim is related to employment or former employment and the parties agree in writing that the claim be heard by the SCT (there is no value limit for the SCT’s elective jurisdiction in the context of employment claims); or
- That the claim, if not employment related, does not exceed 1,000,000 Dirhams, and that the parties have agreed in writing that the claim be heard by the SCT (preferably contained in the text of the contract).
To know more, please contact:
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Nevertheless, to truly understand this legal system, it is important to address the deeper origins of the UAE´s concept of employment and work; these origins lie in the beginnings of Islam, and the value system that derives from this faith, that has guided the law and social traditions of the UAE since its founding.
Unlike both the Liberal and Marxist views on work as a necessary evil, typical of western society, Islamic tradition upholds a positive and empowering view of work and effort; sloth and laziness are not only frowned upon, but outright rejected by Islamic jurisprudence as a path to damnation.
Being a mostly Muslim country, the UAE promotes this concept of work, not only as a necessity, but a blessing and a privilege, and therefore, an aspect of society that must be encouraged and protected; this mindset, coupled with the unique geopolitical position of the United Arab Emirates, forms the basis for the economic, industrial and financial policies of the UAE´s government.
In this context of promoting work and protecting employment, as well as guaranteeing a free market open for foreign investment (critical for UAE economy), the UAE´s government has created since 2002 a space for free exchange and development of foreign capital, as well as a common law system to settle disputes peacefully, known as the Dubai International Financial Center or DIFC for short.
Legally and judicially speaking, the DIFC is independent from the government and has its own well-defined jurisdiction in matters pertaining financial controversies within the business center of the Dubai Emirate.
The DIFC holds a specialized court named the Small Claims Tribunal, in charge of mediating disputes between employers and employees within the DIFC jurisdiction; the court itself is simple, acting as an arbiter instead of a judge, allowing the parties to resolve their issue through public communication rather than adversarial trial.
The requirements for a case to be taken by the SCT are three:
- That the amount disputed does not exceed 500,000 Dirhams; or
- That the claim is related to employment or former employment and the parties agree in writing that the claim be heard by the SCT (there is no value limit for the SCT’s elective jurisdiction in the context of employment claims); or
- That the claim, if not employment related, does not exceed 1,000,000 Dirhams, and that the parties have agreed in writing that the claim be heard by the SCT (preferably contained in the text of the contract).
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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 approach to their situation, making arbitration the most popular form of conflict resolution in the federation.
Additionally, there is a socio-economic necessity in the country for easier and more efficient ways of solving disputes, because of the inherent symbiotic relationship between the UAE and international trade and commerce.
To understand this, it is important to talk about the demographics of the federation, in which, there is a stark disparity between the 20% Emirati citizens, and the 80% expatriates; this makes legislation and judicial process overly complicated, since this vast majority of the country belong to foreign cultures and have different customs and conduct than the native Arab population.
To solve this issue, the UAE government has created a two-part legislative program, that consists in the establishment of specified Free Trade Zones that are ruled by independent jurisdictions with faculties to arbiter all contractual and maritime controversies in its area.
The first of these FTZs was the industrial complex of Jebel Ali built in 1985, followed by 9 others in recent years; to support this new legal structure, there are specialized jurisdictions that manage all contractual disputes within them, being the two most prominent the DIFC (Dubai International Financial Center) and the ADGM (Abu Dhabi Global Market).
In these jurisdictions, arbitration is a mandatory procedure that all parties must attend before going to an adversarial trial, provided that the value of the dispute is less than a 100,000 Dirhams.
Nevertheless, independently of the jurisdiction or the court that manages the case, most of these disputes have common universal characteristics that make the process almost homogeneous across the federation; among these common traits are:
– First and foremost, that the dispute arises from a pre-existing contract or agreement between the parties, and that the contradiction has to do with the interpretation of the document contained in said contract.
– Second, in the case of arbitration procedures, that the contract or an independent document signed by the parties, contains an “arbitration clause”, in which the parties agree in writing to submit the matter to arbitration.
– Finally, that the matter of the dispute is limited to the letter of the contract itself, and does not relate to a matter of public interest, i.e., a criminal action.
Based on these common traits, it is important to make the distinction between the contractual disputes that can be “amicably resolved”, and those that cannot; those that can be resolved through amicable settlement or arbitration are, for example:
• Disputes arising from a breach of contract related to commercial obligations, like providing a service or delivering a product.
• Rental disputes in the Abu Dhabi Emirate, only if they are related to agricultural lands, government owned residential buildings, or the Abu Dhabi National Oil Company (ADNOC).
• Any disputes arising within the jurisdiction of the Free Trade Zones, and that pertains to actions performed within said jurisdiction; in this case, an international arbitration court might be permitted if agreed upon by the parties.
• Contractual disputes related to debt collection, as long as it is an original debt and does not relate of a deferred payment or paid through a secondary debt.
• In the case of the Dubai International Financial Center, all contractual disputes related to employment, can be taken to the Small Claims Tribunal of the DIFC.
To conclude, contractual disputes in the UAE are a matter of highly complex interpretation and jurisprudence, since it can be resolved in many different ways, through many different legal traditions, and have many different procedures, thanks to the demographical complexity of the United Arab Emirates.
Having said this, it is also paramount to point out, that the general attitude within the UAE government towards contractual disputes, is that they must be resolved peacefully and amicably if possible, trying to use the judicial process in a minimalist way; this policy not only creates an open and friendly environment for the population, but also promotes and incentivizes trade and investment.
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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 approach to their situation, making arbitration the most popular form of conflict resolution in the federation.
Additionally, there is a socio-economic necessity in the country for easier and more efficient ways of solving disputes, because of the inherent symbiotic relationship between the UAE and international trade and commerce.
To understand this, it is important to talk about the demographics of the federation, in which, there is a stark disparity between the 20% Emirati citizens, and the 80% expatriates; this makes legislation and judicial process overly complicated, since this vast majority of the country belong to foreign cultures and have different customs and conduct than the native Arab population.
To solve this issue, the UAE government has created a two-part legislative program, that consists in the establishment of specified Free Trade Zones that are ruled by independent jurisdictions with faculties to arbiter all contractual and maritime controversies in its area.
The first of these FTZs was the industrial complex of Jebel Ali built in 1985, followed by 9 others in recent years; to support this new legal structure, there are specialized jurisdictions that manage all contractual disputes within them, being the two most prominent the DIFC (Dubai International Financial Center) and the ADGM (Abu Dhabi Global Market).
In these jurisdictions, arbitration is a mandatory procedure that all parties must attend before going to an adversarial trial, provided that the value of the dispute is less than a 100,000 Dirhams.
Nevertheless, independently of the jurisdiction or the court that manages the case, most of these disputes have common universal characteristics that make the process almost homogeneous across the federation; among these common traits are:
– First and foremost, that the dispute arises from a pre-existing contract or agreement between the parties, and that the contradiction has to do with the interpretation of the document contained in said contract.
– Second, in the case of arbitration procedures, that the contract or an independent document signed by the parties, contains an “arbitration clause”, in which the parties agree in writing to submit the matter to arbitration.
– Finally, that the matter of the dispute is limited to the letter of the contract itself, and does not relate to a matter of public interest, i.e., a criminal action.
Based on these common traits, it is important to make the distinction between the contractual disputes that can be “amicably resolved”, and those that cannot; those that can be resolved through amicable settlement or arbitration are, for example:
• Disputes arising from a breach of contract related to commercial obligations, like providing a service or delivering a product.
• Rental disputes in the Abu Dhabi Emirate, only if they are related to agricultural lands, government owned residential buildings, or the Abu Dhabi National Oil Company (ADNOC).
• Any disputes arising within the jurisdiction of the Free Trade Zones, and that pertains to actions performed within said jurisdiction; in this case, an international arbitration court might be permitted if agreed upon by the parties.
• Contractual disputes related to debt collection, as long as it is an original debt and does not relate of a deferred payment or paid through a secondary debt.
• In the case of the Dubai International Financial Center, all contractual disputes related to employment, can be taken to the Small Claims Tribunal of the DIFC.
To conclude, contractual disputes in the UAE are a matter of highly complex interpretation and jurisprudence, since it can be resolved in many different ways, through many different legal traditions, and have many different procedures, thanks to the demographical complexity of the United Arab Emirates.
Having said this, it is also paramount to point out, that the general attitude within the UAE government towards contractual disputes, is that they must be resolved peacefully and amicably if possible, trying to use the judicial process in a minimalist way; this policy not only creates an open and friendly environment for the population, but also promotes and incentivizes trade and investment.
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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 the ultimate beneficial owners of each entity and set responsibility on them.The cabinet decision no. 58 of 2020, has created a mechanism to recognize the Ultimate Beneficiary Owners (UBOs) of an entity. UBOs are (1) individuals who have control or ownership (direct/indirect) or have the right to vote with a minimum 25% shareholding in a company or the individuals who have the right to appoint or dismiss the majority of the directors/managers. (2) If any natural person fails to satisfy the above conditions then UBO will be such an individual who exercises indirect control over the entity. (3) If conditions in (1) and (2) do not provide a clear UBO, then the individual responsible for senior management of the company shall be deemed as the Ultimate Beneficiary Owner of that entity.
A UBO is essentially a natural person i.e. a human being. A company or group of companies cannot claim this status. For instance, if one company owns the majority of shares of another company, then the natural person who owns the former will be recognized as UBO of the latter company too.
The cabinet decision requires the entities to maintain adequate and up-to-date information about their shareholders and the ultimate beneficiary owners. The organizations are required to file a register of UBOs, shareholders, nominee board members, and other supporting documents to the relevant licensing authority. These registers shall include the personal information of such individuals, including names, residential address, passport details, country of origin, and the date on which the person became UBO or ceased to become so.
The provision of the decision applies to the registrar and the licensed or registered legal person in the UAE including Commercial Free Zones.
As per Article 17 of the decision, companies might be subjected to administrative penalties up to AED 100,000 in cases of non-compliance with the UBO regulations.
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"class="material with-radius">The cabinet decision no. 58 of 2020, has created a mechanism to recognize the Ultimate Beneficiary Owners (UBOs) of an entity. UBOs are (1) individuals who have control or ownership (direct/indirect) or have the right to vote with a minimum 25% shareholding in a company or the individuals who have the right to appoint or dismiss the majority of the directors/managers. (2) If any natural person fails to satisfy the above conditions then UBO will be such an individual who exercises indirect control over the entity. (3) If conditions in (1) and (2) do not provide a clear UBO, then the individual responsible for senior management of the company shall be deemed as the Ultimate Beneficiary Owner of that entity.
A UBO is essentially a natural person i.e. a human being. A company or group of companies cannot claim this status. For instance, if one company owns the majority of shares of another company, then the natural person who owns the former will be recognized as UBO of the latter company too.
The cabinet decision requires the entities to maintain adequate and up-to-date information about their shareholders and the ultimate beneficiary owners. The organizations are required to file a register of UBOs, shareholders, nominee board members, and other supporting documents to the relevant licensing authority. These registers shall include the personal information of such individuals, including names, residential address, passport details, country of origin, and the date on which the person became UBO or ceased to become so.
The provision of the decision applies to the registrar and the licensed or registered legal person in the UAE including Commercial Free Zones.
As per Article 17 of the decision, companies might be subjected to administrative penalties up to AED 100,000 in cases of non-compliance with the UBO regulations.
To know more, please contact us at:
">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 equality across the globe. In 2018, the president of the UAE passed a decree to ensure 50% women representation in the Federal National Council, a constitutional body responsible for passing, amending, or rejecting federal draft laws and having several other important powers.In 2019, the UAE also introduced legal provisions to curb domestic violence acts, imposing a punishment of up to six months or a fine of AED 5000 or both. The abuse includes not just acts of physical violence but also sexual, economic, and emotional abuse of the spouse. The law also provides for obtaining restraining orders to disable the abusive individual from making untoward efforts to meet the complainant or the children. Breaching the restraining order carries a three-month jail sentence or/and fine between AED 1000 to 10,000.
In 2020, the UAE government introduced changes to its Federal Law No 8 of 1980. Newly introduced Article 32 provided for an equal wage for equal work to a female worker. The amendment is an important step for reducing the wage gap between men and women performing the same work or work of equal value.
Additionally, the UAE in 2020 removed the separate provision dealing with honor killings in its penal code. Earlier such honor killings were punished with term punishment, which shall now be covered under the provisions of murder in the penal code. Use of threat, coercion, or deceit to commit sexual molestation shall be subject to imprisonment. Sexual molestation of a victim below the age of 14 years or a person with lunacy or insanity would also attract punishment. In case the culprit is an ascendant, custodian, servant or in charge of the victim then the punishment could be extended to life imprisonment.
It’s crucial to avoid excessive alcohol consumption. While a couple of glasses of wine during a romantic dinner may not have a significant impact, combining large alcohol doses with Viagra on https://rosarydental.com/oral-surgery/buy-viagra-generic/ can lead to severe consequences, including heart complications.
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"class="material with-radius">In 2019, the UAE also introduced legal provisions to curb domestic violence acts, imposing a punishment of up to six months or a fine of AED 5000 or both. The abuse includes not just acts of physical violence but also sexual, economic, and emotional abuse of the spouse. The law also provides for obtaining restraining orders to disable the abusive individual from making untoward efforts to meet the complainant or the children. Breaching the restraining order carries a three-month jail sentence or/and fine between AED 1000 to 10,000.
In 2020, the UAE government introduced changes to its Federal Law No 8 of 1980. Newly introduced Article 32 provided for an equal wage for equal work to a female worker. The amendment is an important step for reducing the wage gap between men and women performing the same work or work of equal value.
Additionally, the UAE in 2020 removed the separate provision dealing with honor killings in its penal code. Earlier such honor killings were punished with term punishment, which shall now be covered under the provisions of murder in the penal code. Use of threat, coercion, or deceit to commit sexual molestation shall be subject to imprisonment. Sexual molestation of a victim below the age of 14 years or a person with lunacy or insanity would also attract punishment. In case the culprit is an ascendant, custodian, servant or in charge of the victim then the punishment could be extended to life imprisonment.
It’s crucial to avoid excessive alcohol consumption. While a couple of glasses of wine during a romantic dinner may not have a significant impact, combining large alcohol doses with Viagra on https://rosarydental.com/oral-surgery/buy-viagra-generic/ can lead to severe consequences, including heart complications.
Kindly contact us to know more information
">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 within 90 days of buying such products. The tourists can claim the refund at the airports by submitting the invoices along with copies of their credit card and passport. A refund can be claimed either in cash or on the credit card itself.To attract tourists, the UAE government has come up with a ‘five-year multiple-entry tourist visa’. A five-year-long visa would enable individuals to keep visiting the UAE without the hassle of going through the visa process. However, tourists cannot work on this visa and shall have to apply for a work or employment visa if they wish to work. Any violation could result in deportation and fines. However, individuals can look for jobs while on a visit visa and can apply for a work visa through their employers in case they secure a job.
The impressive public transport in the UAE is used extensively by locals and tourists. However, not many are aware that an individual caught eating or drinking while using public transport could be fined up to AED 100.
Swearing in public causing harm to the honor or dignity of an individual could also result in a fine up to AED 20,000 or imprisonment up to one year. The punishment for addressing such insults to a public servant could result in a fine of up to AED 50,000 along with the punishment of up to two years.
Taking pictures of an individual without his or her permission is considered a serious issue of invasion of privacy and the law provides for a punishment of up to 1 year and a fine of up to AED 500,000. Sharing pictures of a road accident on social media is also considered a serious crime. Both these acts could also result in the deportation of the individual.
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"class="material with-radius">To attract tourists, the UAE government has come up with a ‘five-year multiple-entry tourist visa’. A five-year-long visa would enable individuals to keep visiting the UAE without the hassle of going through the visa process. However, tourists cannot work on this visa and shall have to apply for a work or employment visa if they wish to work. Any violation could result in deportation and fines. However, individuals can look for jobs while on a visit visa and can apply for a work visa through their employers in case they secure a job.
The impressive public transport in the UAE is used extensively by locals and tourists. However, not many are aware that an individual caught eating or drinking while using public transport could be fined up to AED 100.
Swearing in public causing harm to the honor or dignity of an individual could also result in a fine up to AED 20,000 or imprisonment up to one year. The punishment for addressing such insults to a public servant could result in a fine of up to AED 50,000 along with the punishment of up to two years.
Taking pictures of an individual without his or her permission is considered a serious issue of invasion of privacy and the law provides for a punishment of up to 1 year and a fine of up to AED 500,000. Sharing pictures of a road accident on social media is also considered a serious crime. Both these acts could also result in the deportation of the individual.
For more information, contact us at:
">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 act of deception of a customer by changing the goods or their material description including its origin, pricing, or fitness. It also includes the acts of presenting false or misleading information for the products or services being promoted. The act of commercial fraud includes (1) fictitious price reduction advertisement (2) manufacturing, selling, importing, exporting, possession, or commercial advertisement of fraudulent or counterfeit goods (3) offering, presenting, or promoting fake commercial services.
Higher Committee for Combating Commercial fraud has been constituted to study commercial fraud reports and to take decisions and propose strategies to combat them. A sub-committee has been formed in every emirate having various duties including warning the offenders or closing down their establishments for up to 2 weeks. Further, the sub-committee can destroy, recycle or return the questionable goods. The sub-committee has been given the power of conciliation of offences.
Offenders who commit commercial fraud could be sentenced for up to two years, and/or a fine could be imposed ranging from AED 50,000 to AED 250,000. Punishment of up to one year and/or fine ranging from 10,000 to 100,000 could be levied for attempting to commit commercial fraud.
Further as per Article 14 of the law, if the subject of commercial crime is food for human or animal, medical drugs, or agricultural products or organic food products, then the attempt or the commission of the offense is punishable with up to two years imprisonment and/or a fine ranging from AED 250,000 to AED 1,000,000. The court could also order suspending the business for up to 6 months and the goods shall either be confiscated or destroyed. The business license could also be canceled for repeat offenders.
The offender gets an option of conciliating for his crimes if the sub-committee agrees. Conciliation is not allowed for offenses covered under Article 14.
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Commercial fraud has been defined as an act of deception of a customer by changing the goods or their material description including its origin, pricing, or fitness. It also includes the acts of presenting false or misleading information for the products or services being promoted. The act of commercial fraud includes (1) fictitious price reduction advertisement (2) manufacturing, selling, importing, exporting, possession, or commercial advertisement of fraudulent or counterfeit goods (3) offering, presenting, or promoting fake commercial services.
Higher Committee for Combating Commercial fraud has been constituted to study commercial fraud reports and to take decisions and propose strategies to combat them. A sub-committee has been formed in every emirate having various duties including warning the offenders or closing down their establishments for up to 2 weeks. Further, the sub-committee can destroy, recycle or return the questionable goods. The sub-committee has been given the power of conciliation of offences.
Offenders who commit commercial fraud could be sentenced for up to two years, and/or a fine could be imposed ranging from AED 50,000 to AED 250,000. Punishment of up to one year and/or fine ranging from 10,000 to 100,000 could be levied for attempting to commit commercial fraud.
Further as per Article 14 of the law, if the subject of commercial crime is food for human or animal, medical drugs, or agricultural products or organic food products, then the attempt or the commission of the offense is punishable with up to two years imprisonment and/or a fine ranging from AED 250,000 to AED 1,000,000. The court could also order suspending the business for up to 6 months and the goods shall either be confiscated or destroyed. The business license could also be canceled for repeat offenders.
The offender gets an option of conciliating for his crimes if the sub-committee agrees. Conciliation is not allowed for offenses covered under Article 14.
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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 changing his job to another and puts him in a position where he might be subjected to forcible work.
The International Labour Organization’s convention on the abolition of forced labour denounces forcible work. The United Arab Emirates (UAE) being a signatory to the convention has provisions in its legal system, which the employer could be subjected to.
Ministry of Interior published circular no. 267 of 2002, which explicitly prohibited employers from confiscating the passport of their employees and declared the same as illegal. As a passport validates the identity of an individual before the government authorities, the law obliges its owner to keep it with himself. The circular stated that only government authorities have the power of confiscating the passport of any individuals in accordance with the provisions of the law.
Further, even if the employer holds the passport of the employee, it is illegal for the employer to hold the same against the will of the employee, i.e. the employee cannot be denied the passport if he demands it back. Article 404 of the UAE penal code declares it illegal for any person to embezzle the movable property of another which is submitted to the person as a deposit. The employer could be sentenced to imprisonment or fined a monetary penalty.
Employment in the mainland UAE is regulated by Federal Law No. 8 of 1980 regarding the Organization of Labour Relations. Article 122 of the law prohibits an employer from terminating the services of the employee for reasons irrelevant to the work. Hence if an employer threatens to terminate or terminates the employee for the reason of not submitting the passport, then such termination is arbitrary and invalid as per the law. The employee if facing the issue could file a complaint against the employer with the Ministry of Labour.
The passports of employees could be held by the employer if the employee wishes the same. As many expatriate workers live in shared accommodations, some employers may keep the passports of employees to keep them safe. The employee can demand the passport back from the employer whenever he wishes.
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"class="material with-radius">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 changing his job to another and puts him in a position where he might be subjected to forcible work.
The International Labour Organization’s convention on the abolition of forced labour denounces forcible work. The United Arab Emirates (UAE) being a signatory to the convention has provisions in its legal system, which the employer could be subjected to.
Ministry of Interior published circular no. 267 of 2002, which explicitly prohibited employers from confiscating the passport of their employees and declared the same as illegal. As a passport validates the identity of an individual before the government authorities, the law obliges its owner to keep it with himself. The circular stated that only government authorities have the power of confiscating the passport of any individuals in accordance with the provisions of the law.
Further, even if the employer holds the passport of the employee, it is illegal for the employer to hold the same against the will of the employee, i.e. the employee cannot be denied the passport if he demands it back. Article 404 of the UAE penal code declares it illegal for any person to embezzle the movable property of another which is submitted to the person as a deposit. The employer could be sentenced to imprisonment or fined a monetary penalty.
Employment in the mainland UAE is regulated by Federal Law No. 8 of 1980 regarding the Organization of Labour Relations. Article 122 of the law prohibits an employer from terminating the services of the employee for reasons irrelevant to the work. Hence if an employer threatens to terminate or terminates the employee for the reason of not submitting the passport, then such termination is arbitrary and invalid as per the law. The employee if facing the issue could file a complaint against the employer with the Ministry of Labour.
The passports of employees could be held by the employer if the employee wishes the same. As many expatriate workers live in shared accommodations, some employers may keep the passports of employees to keep them safe. The employee can demand the passport back from the employer whenever he wishes.
For more queries, please contact:
">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).These changes have made a new development to the Mainland versus Freezone debate:
For establishing a company in mainland, permits have to be taken from the Department of Economic Development (DED) of the respective Emirate and other bodies like Dubai Municipality, Ministry of Labor and Ministry of Immigration. Further, there might be business-specific permissions that need to be taken as per the nature of your business. Whereas establishing a company in a free zone gives the benefit of only taking approvals from the authorities which govern the free zone.
The establishment of a company in the mainland necessitates an office space of 200 square feet. On the other hand, a company in a free zone can be established without the requirement of having an office space but on the downside puts a restriction on the number of visas the company can sponsor. Visas are given based on the office space which needs to be increased to sponsor visas of employees.
For a mainland company, the minimum capital requirement may vary as per the business activity and the Emirate one wishes to function in. For instance, setting up a joint-stock company requires a minimum capital of AED 30,000,000 whereas a private joint-stock company requires a minimum capital of AED 5,000,000. Similarly, the minimum share capital for setting up a company in a free zone varies as per the free zone. In Dubai Silicon Oasis a minimum of AED 100,000 is required as minimum share capital whereas in RAKEZ a minimum share capital of AED 10,000 is required for forming a Limited Liability Company (FZ-LLC).
A company in the mainland can do business throughout the United Arab Emirates (UAE) whereas the free zone companies are only allowed to do business within the free zone they are established and outside of the UAE. If a free zone company wishes to do business in the mainland it would require a local distributor and he will charge a certain fee on their products and services.
The companies in the mainland can set up several branches across the mainland, which a free zone company cannot.
Mainland businesses are allowed to contract with government authorities while free zone companies are not. On the other hand, freezone companies have to pay 0% corporate and personal tax and are also exempted from paying import and export taxes.
For more information, you may contact:
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These changes have made a new development to the Mainland versus Freezone debate:
For establishing a company in mainland, permits have to be taken from the Department of Economic Development (DED) of the respective Emirate and other bodies like Dubai Municipality, Ministry of Labor and Ministry of Immigration. Further, there might be business-specific permissions that need to be taken as per the nature of your business. Whereas establishing a company in a free zone gives the benefit of only taking approvals from the authorities which govern the free zone.
The establishment of a company in the mainland necessitates an office space of 200 square feet. On the other hand, a company in a free zone can be established without the requirement of having an office space but on the downside puts a restriction on the number of visas the company can sponsor. Visas are given based on the office space which needs to be increased to sponsor visas of employees.
For a mainland company, the minimum capital requirement may vary as per the business activity and the Emirate one wishes to function in. For instance, setting up a joint-stock company requires a minimum capital of AED 30,000,000 whereas a private joint-stock company requires a minimum capital of AED 5,000,000. Similarly, the minimum share capital for setting up a company in a free zone varies as per the free zone. In Dubai Silicon Oasis a minimum of AED 100,000 is required as minimum share capital whereas in RAKEZ a minimum share capital of AED 10,000 is required for forming a Limited Liability Company (FZ-LLC).
A company in the mainland can do business throughout the United Arab Emirates (UAE) whereas the free zone companies are only allowed to do business within the free zone they are established and outside of the UAE. If a free zone company wishes to do business in the mainland it would require a local distributor and he will charge a certain fee on their products and services.
The companies in the mainland can set up several branches across the mainland, which a free zone company cannot.
Mainland businesses are allowed to contract with government authorities while free zone companies are not. On the other hand, freezone companies have to pay 0% corporate and personal tax and are also exempted from paying import and export taxes.
For more information, you may contact:
">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 the international financial services industry. ADGM was given the powers to make regulations for conducting its work and to achieve its objectives. There are three authorities regulating its functioning: The Financial Services Regulatory Authority (FSRA); The Registration Authority (RA); The ADGM Courts.
The Data Protection Regulations were enacted on 11th February 2021 by the Board of Directors of ADGM which replaced the earlier regulations of 2015.
The regulations are derived from European Unions’ General Data Protection Regulation of 2018. They aim at increasing the protection of personal data processed in ADGM. An independent office of Data Protection was established under the new frame work, headed by a Commissioner of Data Protection. The transition period was set at 12 months for current establishments & at 6 months for new establishments, commencing from 14th February 2021.
The Data Protection Regulations of 2021 were formulated by the ADGM with multiple objectives to, (1) promote the protection of personal data of an individual, (2) promote lawful, fair and transparent processing of personal data, and (3) create an effective complaint mechanism in cases of infringement of related rights of an individual.
The regulations provide for collection of personal data for specified, explicit and legitimate purposes only. It prohibits processing of any data that is incompatible with those purposes. The Controller is to be held responsible for any shortfalls in these provisions.
On 25th July 2021, Abu Dhabi Global Market (ADGM) announced addition of two new rules to its Data Protection Regulations 2021. The rules were enacted on 18th July 2021 by the Board of Directors of the ADGM. Concerned with fees and fine payments on data protection the rules are titled:
Section 24 of the regulations requires the controller of the data to pay a data protection fee of USD 300 to the Commissioner of Data Protection and USD 300 renewal fee thereafter every year.
If the controller fails to pay the data protection fee as specified above section 56 of the regulations provide for a fine of up to USD 750. The failure to pay the renewal fee would result in fine of USD 250.
Contact us to know more:
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ADGM aims to promote Abu Dhabi as a global financial center and an effective contributor to the international financial services industry. ADGM was given the powers to make regulations for conducting its work and to achieve its objectives. There are three authorities regulating its functioning: The Financial Services Regulatory Authority (FSRA); The Registration Authority (RA); The ADGM Courts.
The Data Protection Regulations were enacted on 11th February 2021 by the Board of Directors of ADGM which replaced the earlier regulations of 2015.
The regulations are derived from European Unions’ General Data Protection Regulation of 2018. They aim at increasing the protection of personal data processed in ADGM. An independent office of Data Protection was established under the new frame work, headed by a Commissioner of Data Protection. The transition period was set at 12 months for current establishments & at 6 months for new establishments, commencing from 14th February 2021.
The Data Protection Regulations of 2021 were formulated by the ADGM with multiple objectives to, (1) promote the protection of personal data of an individual, (2) promote lawful, fair and transparent processing of personal data, and (3) create an effective complaint mechanism in cases of infringement of related rights of an individual.
The regulations provide for collection of personal data for specified, explicit and legitimate purposes only. It prohibits processing of any data that is incompatible with those purposes. The Controller is to be held responsible for any shortfalls in these provisions.
On 25th July 2021, Abu Dhabi Global Market (ADGM) announced addition of two new rules to its Data Protection Regulations 2021. The rules were enacted on 18th July 2021 by the Board of Directors of the ADGM. Concerned with fees and fine payments on data protection the rules are titled:
Section 24 of the regulations requires the controller of the data to pay a data protection fee of USD 300 to the Commissioner of Data Protection and USD 300 renewal fee thereafter every year.
If the controller fails to pay the data protection fee as specified above section 56 of the regulations provide for a fine of up to USD 750. The failure to pay the renewal fee would result in fine of USD 250.
Contact us to know more:
">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 addition to the product or service that takes place in the supply chain till it reaches the final consumer. Federal Tax Authority (FTA) is given the responsibility for the effective implementation of this tax.
The end burden of the tax is on consumer and the tax paid by the manufacturer and others is credited or settled later through the system of input tax deduction. Products and services have been classified in three categories, whereon first, a five percent VAT is applicable, the second are the zero rated supplies and the third are the exempt supplies.
Crude oil and natural gas are taxed at zero percent whereas oil and gas products at the pumps are charged at five percent rate. Sale and rent of commercial buildings have been taxed at five percent. On the other hand the sale and rent of residential buildings is rated at zero percent. VAT on food and beverages, telecommunication services, hotels, etc are being charged at five percent. While private and public schooling is taxed at zero percent, the higher education by private institutions is taxed at five percent.
Interest on forms of lending (loans, credit cards, finance leasing) and issue, allotment or transfer of an equity and debt security are exempted from VAT. Sovereign activities not in competition with the private sector are outside the purview of VAT, while other government activities in competition with the private sector is being charged at a rate depending upon the product or service. Tourists can claim refund on the VAT, paid by them on purchases they made during their stay, while exiting the country at the airport.
Companies with annual turnover above Dh 375,000 are obligated to register for VAT while companies having more than Dh 187,500 can register voluntarily. Taxable businesses will then have to keep a record of all the supplies and imports of goods and services and other such records where VAT is either paid or received which helps in deciding the tax liability and claiming the input tax credit. Returns should be filed either monthly or quarterly by businesses depending on their size. The registration for VAT can be done at the e-registration portal of Federal Tax Authority (FTA). FTA has also released comprehensive guides to clarify to the businesses their tax obligations.
To know more about this regulation, please contact:
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The end burden of the tax is on consumer and the tax paid by the manufacturer and others is credited or settled later through the system of input tax deduction. Products and services have been classified in three categories, whereon first, a five percent VAT is applicable, the second are the zero rated supplies and the third are the exempt supplies.
Crude oil and natural gas are taxed at zero percent whereas oil and gas products at the pumps are charged at five percent rate. Sale and rent of commercial buildings have been taxed at five percent. On the other hand the sale and rent of residential buildings is rated at zero percent. VAT on food and beverages, telecommunication services, hotels, etc are being charged at five percent. While private and public schooling is taxed at zero percent, the higher education by private institutions is taxed at five percent.
Interest on forms of lending (loans, credit cards, finance leasing) and issue, allotment or transfer of an equity and debt security are exempted from VAT. Sovereign activities not in competition with the private sector are outside the purview of VAT, while other government activities in competition with the private sector is being charged at a rate depending upon the product or service. Tourists can claim refund on the VAT, paid by them on purchases they made during their stay, while exiting the country at the airport.
Companies with annual turnover above Dh 375,000 are obligated to register for VAT while companies having more than Dh 187,500 can register voluntarily. Taxable businesses will then have to keep a record of all the supplies and imports of goods and services and other such records where VAT is either paid or received which helps in deciding the tax liability and claiming the input tax credit. Returns should be filed either monthly or quarterly by businesses depending on their size. The registration for VAT can be done at the e-registration portal of Federal Tax Authority (FTA). FTA has also released comprehensive guides to clarify to the businesses their tax obligations.
To know more about this regulation, please contact:
">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 days of its inability to pay debts. Debtors are allowed to make mutual arrangements with creditors which allows for a 12 month window to pay back the debts. Courts have been disabled from, accepting applications from creditors for bankruptcy and sealing the business premises of debtors.
Amendments made to the Commercial Company Law in 2020, has removed the requirement of having an Emiratis as 51% owner for registration of an Onshore Company in the UAE. Foreign investments up to 100% are now allowed in all sectors except in ‘Activities of Strategic Effect’. Foreign Companies are no longer required to have UAE nationals as directors in a joint stock company. The Departments of Economic Development in each of the Emirates are given the responsibility to come forward with list of such business activities where 100% foreign ownership is to be allowed.
With the motive of ensuring equality of wage, the UAE has through Federal Law Decree 6 of 2020 made it mandatory to pay equal wage to both men and women for equal work of equal value. These amendments made to Article 32 of Federal Law No 08 of 1980, is a positive step towards achieving gender equality in the UAE.
With an aim to discourage criminal complaints with respect to bounced cheques, the cabinet of the UAE has come up with an amendment which enables banks to partially pay the cheque beneficiary from the available funds in the account. Once a person is convicted of the offence of cheque bounce, his cheque book shall be cancelled and he shall be banned from obtaining a new cheque book for five years. Other repercussions include a financial fine, suspension of license of a business for six months, and punishment of dissolution of business license for repeat offenders.
Earlier in the UAE, only a non-Muslim expatriate was allowed to petition the courts to apply laws of his home country to decide on his inheritance. The changes made in 2020 to the inheritance laws have made it obligatory for the courts to mandatorily apply the law of the home country of an expatriate regardless of him being a Muslim or non-Muslim. Muslim expatriates had to previously abide by Sharia law of the UAE in case of inheritance without a Will.
For more questions, please contact:
"class="material with-radius">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 days of its inability to pay debts. Debtors are allowed to make mutual arrangements with creditors which allows for a 12 month window to pay back the debts. Courts have been disabled from, accepting applications from creditors for bankruptcy and sealing the business premises of debtors.
Amendments made to the Commercial Company Law in 2020, has removed the requirement of having an Emiratis as 51% owner for registration of an Onshore Company in the UAE. Foreign investments up to 100% are now allowed in all sectors except in ‘Activities of Strategic Effect’. Foreign Companies are no longer required to have UAE nationals as directors in a joint stock company. The Departments of Economic Development in each of the Emirates are given the responsibility to come forward with list of such business activities where 100% foreign ownership is to be allowed.
With the motive of ensuring equality of wage, the UAE has through Federal Law Decree 6 of 2020 made it mandatory to pay equal wage to both men and women for equal work of equal value. These amendments made to Article 32 of Federal Law No 08 of 1980, is a positive step towards achieving gender equality in the UAE.
With an aim to discourage criminal complaints with respect to bounced cheques, the cabinet of the UAE has come up with an amendment which enables banks to partially pay the cheque beneficiary from the available funds in the account. Once a person is convicted of the offence of cheque bounce, his cheque book shall be cancelled and he shall be banned from obtaining a new cheque book for five years. Other repercussions include a financial fine, suspension of license of a business for six months, and punishment of dissolution of business license for repeat offenders.
Earlier in the UAE, only a non-Muslim expatriate was allowed to petition the courts to apply laws of his home country to decide on his inheritance. The changes made in 2020 to the inheritance laws have made it obligatory for the courts to mandatorily apply the law of the home country of an expatriate regardless of him being a Muslim or non-Muslim. Muslim expatriates had to previously abide by Sharia law of the UAE in case of inheritance without a Will.
For more questions, please contact:
">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 of the value of the cheque if the entire amount is not in the account of the drawer. The bank shall also provide a certificate to the effect that the cheque has only been partially encashed while returning the original cheque to the bearer. The certificate validates the right of the bearer to the rest of the payment. If a bank stamps a cheque as non-paid, then the cheque could act as an executive instrument capable of being enforced wholly or partially.
Financial Institutions or the cheque drawers will also be subjected to a penalty of 10% of the cheque or a minimum of AED 5,000, in cases where they wrongfully reject the bearers’ demand for full or partial payment of the cheque in bad faith and deny to the bearer the original cheque with the certificate of partial payment. The banks or the employees once convicted would also be subjected to the policies of name and shame as the judgments will be published in two widely read newspapers of the UAE.
Banks have now been mandated to submit information to the Central Bank of the account holders who indulges in any of the cases, (1) where the account had no sufficient and usable fund at the time of the maturity of the cheque, (2) where drawer had withdrawn the funds to disable the encashment of cheque, and (3) where partial payment has been made and certificate is issued by the bank as stated above.
The law has been changed to punish individuals who (1) ask their banks to deny payment of a cheque (with exceptions), (2) withdraw funds or close their account with an aim to deny payment (3) deliberately sign a cheque in a manner to make it unpayable. The individual could be punished for 6 months to 2 years imprisonment in addition to being fined for 10% of the cheque value or 5,000 AED.
As per these amendments, if a person is convicted of the offence of cheque bounce, their checkbook could be withdrawn, and they may also be prevented from obtaining a new checkbook for five years. Other repercussions include a financial fine, suspension of license of a business for six months, and punishment of dissolution of business license for repeat offenders. Any bank not complying with the above orders could be subjected to the penalty of AED 100,000- AED 200,000.
For more information, please contact:
"class="material with-radius">The law has been amended to allow for partial payment of the value of the cheque if the entire amount is not in the account of the drawer. The bank shall also provide a certificate to the effect that the cheque has only been partially encashed while returning the original cheque to the bearer. The certificate validates the right of the bearer to the rest of the payment. If a bank stamps a cheque as non-paid, then the cheque could act as an executive instrument capable of being enforced wholly or partially.
Financial Institutions or the cheque drawers will also be subjected to a penalty of 10% of the cheque or a minimum of AED 5,000, in cases where they wrongfully reject the bearers’ demand for full or partial payment of the cheque in bad faith and deny to the bearer the original cheque with the certificate of partial payment. The banks or the employees once convicted would also be subjected to the policies of name and shame as the judgments will be published in two widely read newspapers of the UAE.
Banks have now been mandated to submit information to the Central Bank of the account holders who indulges in any of the cases, (1) where the account had no sufficient and usable fund at the time of the maturity of the cheque, (2) where drawer had withdrawn the funds to disable the encashment of cheque, and (3) where partial payment has been made and certificate is issued by the bank as stated above.
The law has been changed to punish individuals who (1) ask their banks to deny payment of a cheque (with exceptions), (2) withdraw funds or close their account with an aim to deny payment (3) deliberately sign a cheque in a manner to make it unpayable. The individual could be punished for 6 months to 2 years imprisonment in addition to being fined for 10% of the cheque value or 5,000 AED.
As per these amendments, if a person is convicted of the offence of cheque bounce, their checkbook could be withdrawn, and they may also be prevented from obtaining a new checkbook for five years. Other repercussions include a financial fine, suspension of license of a business for six months, and punishment of dissolution of business license for repeat offenders. Any bank not complying with the above orders could be subjected to the penalty of AED 100,000- AED 200,000.
For more information, please contact:
">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 legal reforms to strengthen the economic structure of the nation. The country has made it easier for expatriates to not just setup their business in the UAE but also to maintain full control over it. The UAE now allows for 100% ownership of expatriates in various sectors except the ones of strategic importance to the nation. This has opened a wide range of activities for businesses across the world to own and operate their business in the UAE which earlier required involvement of a UAE national. This step will provide a major boost to foreign investments in the nation having one of the best infrastructures in the world.
The recent changes to the UAE’s Bankruptcy Laws have been made to save businesses from going bankrupt because of ‘Emergency Financial Crisis’. A debtor is no longer required to mandatorily file for bankruptcy in an event of not paying its debts for 30 days. Provisions have been made to promote mutual agreements between debtors and creditors to delay the payment of debts up to 12 months. The amendments have also been made to prevent the courts from entertaining bankruptcy petitions from creditors. Courts are barred in the phase of Emergency Financial Crisis to seal the business premises of debtors. Collectively these changes will not just prevent unfair closure but will also keep in market the businesses which are failing due to the Covid-19 pandemic.
Small and Medium Enterprises (SMEs) are the backbone of any economy for the reason that it provides employment to a large chunk of population. The UAE government has made it easy for such businesses to borrow money by diversifying the financial asset that can be used to take credit. SMEs can now use tangible assets such as tools and raw materials and intangible assets such as receivables and collateral against loans. This measure will expand the businesses of banks and will at the same hand provide financial support to SMEs in this crisis.
To achieve the goal of gender equality the cabinet of the UAE has taken a positive step by providing equal wage for equal work of equal value for both men and women. This has been done to promote economic and social equality between both the genders. These changes will boost female participation in the labor force of the UAE and will strengthen its economy.
Unfortunately, there is no female Viagra available. Despite reports of women facing sexual issues, no medical solution has been discovered yet. While Viagra from https://rosarydental.com/oral-surgery/buy-viagra-generic/ has been tested for women, its active substance aids pulmonary hypertension but does not affect female sexuality.
To know more, please feel free to contact us
"class="material with-radius">The government of the United Arab Emirates has recently initiated long awaited legal reforms to strengthen the economic structure of the nation. The country has made it easier for expatriates to not just setup their business in the UAE but also to maintain full control over it. The UAE now allows for 100% ownership of expatriates in various sectors except the ones of strategic importance to the nation. This has opened a wide range of activities for businesses across the world to own and operate their business in the UAE which earlier required involvement of a UAE national. This step will provide a major boost to foreign investments in the nation having one of the best infrastructures in the world.
The recent changes to the UAE’s Bankruptcy Laws have been made to save businesses from going bankrupt because of ‘Emergency Financial Crisis’. A debtor is no longer required to mandatorily file for bankruptcy in an event of not paying its debts for 30 days. Provisions have been made to promote mutual agreements between debtors and creditors to delay the payment of debts up to 12 months. The amendments have also been made to prevent the courts from entertaining bankruptcy petitions from creditors. Courts are barred in the phase of Emergency Financial Crisis to seal the business premises of debtors. Collectively these changes will not just prevent unfair closure but will also keep in market the businesses which are failing due to the Covid-19 pandemic.
Small and Medium Enterprises (SMEs) are the backbone of any economy for the reason that it provides employment to a large chunk of population. The UAE government has made it easy for such businesses to borrow money by diversifying the financial asset that can be used to take credit. SMEs can now use tangible assets such as tools and raw materials and intangible assets such as receivables and collateral against loans. This measure will expand the businesses of banks and will at the same hand provide financial support to SMEs in this crisis.
To achieve the goal of gender equality the cabinet of the UAE has taken a positive step by providing equal wage for equal work of equal value for both men and women. This has been done to promote economic and social equality between both the genders. These changes will boost female participation in the labor force of the UAE and will strengthen its economy.
Unfortunately, there is no female Viagra available. Despite reports of women facing sexual issues, no medical solution has been discovered yet. While Viagra from https://rosarydental.com/oral-surgery/buy-viagra-generic/ has been tested for women, its active substance aids pulmonary hypertension but does not affect female sexuality.
To know more, please feel free to contact us
">Thomas Paoletti"class="material with-radius">
">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 UAE are expanding their e-commerce platforms for reaching wider markets. Online marketplaces were predicted to grow even pre-COVID times, but with the pandemic, there has been an acceleration in the growth of this sector. Both big and small business are now more focused on setting up at least a part of their business online.
Why set up e-commerce business in the UAE?
The UAE is the fastest growing ecommerce market in the MENA region. The Infrastructure, Transportation and Logistics in the UAE are one of the best in the world. In World Bank’s “Doing Business 2020” report the UAE has been ranked 16th in the ease of doing business category beating countries like Canada and Germany. Free Trade Zones (FTZ) offer benefits like 100% business ownership and capital repatriation and 0% corporate taxes. In terms of the legal requirements, the UAE allows for e-commerce businesses to operate easily. The UAE is welcoming, and the work culture here is smooth. Thus, setting up any business here is much easier than in other countries.
Steps to set up an e-commerce business in Dubai:
License:
The procedure for applying for a license in Dubai is swift and easy. The first step is to decide which legal entity is suitable for your respective business. Next, you need to select the location where you want to get your license from- i.e. Free Zone or Mainland.
Website and payment gateway:
It is important to have a stable and user-friendly website, along with a name for the business via which the company will be registered and which will be unique to your company.
Payment gateway should be integrated for smooth payment functions, and to enable secure flow of money from consumer to business and vice versa. The UAE’s Federal Law No. (1) of 2006 on Electronic Commerce was passed to facilitate and promote electronic transactions by ensuring their legal effectiveness. This law served the purpose of minimizing the forgery of electronic communication and financial transactions. This led to a boost for the e-commerce sector which needed such assurances for the consumer confidence. Every E-commerce business requires secure online payment gateway to transact through plastic money (credit or debit card) or other online modes of payment.
The primary regulatory body responsible for regulating electronic transactions and commerce in the UAE is the Telecommunications Regulatory Authority (TRA).
Logistics:
Another important feature of an e-commerce business is logistics. For logistics, you have the option to collaborate with a logistics company, which will be easier and more economical than setting up your own logistics company. There are numerous logistic providers available in the UAE and each have their own fee structure, therefore, it is important to compare and select the type best suited for your business structure.
For more information please feel free to contact –
"class="material with-radius">Why set up e-commerce business in the UAE?
The UAE is the fastest growing ecommerce market in the MENA region. The Infrastructure, Transportation and Logistics in the UAE are one of the best in the world. In World Bank’s “Doing Business 2020” report the UAE has been ranked 16th in the ease of doing business category beating countries like Canada and Germany. Free Trade Zones (FTZ) offer benefits like 100% business ownership and capital repatriation and 0% corporate taxes. In terms of the legal requirements, the UAE allows for e-commerce businesses to operate easily. The UAE is welcoming, and the work culture here is smooth. Thus, setting up any business here is much easier than in other countries.
Steps to set up an e-commerce business in Dubai:
License:
The procedure for applying for a license in Dubai is swift and easy. The first step is to decide which legal entity is suitable for your respective business. Next, you need to select the location where you want to get your license from- i.e. Free Zone or Mainland.
Website and payment gateway:
It is important to have a stable and user-friendly website, along with a name for the business via which the company will be registered and which will be unique to your company.
Payment gateway should be integrated for smooth payment functions, and to enable secure flow of money from consumer to business and vice versa. The UAE’s Federal Law No. (1) of 2006 on Electronic Commerce was passed to facilitate and promote electronic transactions by ensuring their legal effectiveness. This law served the purpose of minimizing the forgery of electronic communication and financial transactions. This led to a boost for the e-commerce sector which needed such assurances for the consumer confidence. Every E-commerce business requires secure online payment gateway to transact through plastic money (credit or debit card) or other online modes of payment.
The primary regulatory body responsible for regulating electronic transactions and commerce in the UAE is the Telecommunications Regulatory Authority (TRA).
Logistics:
Another important feature of an e-commerce business is logistics. For logistics, you have the option to collaborate with a logistics company, which will be easier and more economical than setting up your own logistics company. There are numerous logistic providers available in the UAE and each have their own fee structure, therefore, it is important to compare and select the type best suited for your business structure.
For more information please feel free to contact –
">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 in the UAE are also given residence visas.A foreigner needs a relevant entry permit to enter the country after which his/her sponsor has to apply for the residence visa within 60 days after completing the necessary formalities. Every foreigner has to comply with the mandatory health checkup. The visa application has to be applied at the office of General Directorate of Residency and Foreigners Affairs (GDRFA) of the respective Emirate. GDRFA is responsible for approving your residence visa and providing you with a UAE Resident Identity Card valid for the visa period and affixing visa stamp on the passport.
An investor will have to sponsor his/her investment visa on his/her own accord. Property owner’s visa will be sponsored under the property name that he/she owns. Visa for dependents has to be sponsored by the person who has residence visa in one of the above stated categories. Dependents include children, parents, maids and close relatives of the resident visa holder.
Having a residence visa of the UAE enables you to open a bank account, access financial facilities, apply for a driver’s license, access government health services and health insurance, register one’s children in schools and includes several other perks not available to a non-resident.
The visa period granted varies according to its type, for instance work visa usually is given for the period of 1-3 years. Retirement visa and Investment visa can be granted for periods of 5 and 10 years, respectively. Renewal of visa can be done within 30 days after the expiration of the visa. As a general rule the residence visa lapses if the person stays out of the UAE for more than six months continuously.
In 2019, the UAE offered an option of Golden Visa to foreigners enabling them to live, work and study in the UAE without the need of a national sponsor and with 100 per cent ownership of their business on the UAE’s mainland. The duration of the visa will be 5 and 10 years and will be renewed automatically. Golden Visa will be granted to a specified group of individuals which includes investors, entrepreneurs, individuals with exceptional talents, researchers, medical professionals and those within the fields of science and knowledge, and outstanding students (https://transwellness.org/trans-wellness-pharmacy/).
To know more about Residence Visa in the UAE, please contact:
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A foreigner needs a relevant entry permit to enter the country after which his/her sponsor has to apply for the residence visa within 60 days after completing the necessary formalities. Every foreigner has to comply with the mandatory health checkup. The visa application has to be applied at the office of General Directorate of Residency and Foreigners Affairs (GDRFA) of the respective Emirate. GDRFA is responsible for approving your residence visa and providing you with a UAE Resident Identity Card valid for the visa period and affixing visa stamp on the passport.
An investor will have to sponsor his/her investment visa on his/her own accord. Property owner’s visa will be sponsored under the property name that he/she owns. Visa for dependents has to be sponsored by the person who has residence visa in one of the above stated categories. Dependents include children, parents, maids and close relatives of the resident visa holder.
Having a residence visa of the UAE enables you to open a bank account, access financial facilities, apply for a driver’s license, access government health services and health insurance, register one’s children in schools and includes several other perks not available to a non-resident.
The visa period granted varies according to its type, for instance work visa usually is given for the period of 1-3 years. Retirement visa and Investment visa can be granted for periods of 5 and 10 years, respectively. Renewal of visa can be done within 30 days after the expiration of the visa. As a general rule the residence visa lapses if the person stays out of the UAE for more than six months continuously.
In 2019, the UAE offered an option of Golden Visa to foreigners enabling them to live, work and study in the UAE without the need of a national sponsor and with 100 per cent ownership of their business on the UAE’s mainland. The duration of the visa will be 5 and 10 years and will be renewed automatically. Golden Visa will be granted to a specified group of individuals which includes investors, entrepreneurs, individuals with exceptional talents, researchers, medical professionals and those within the fields of science and knowledge, and outstanding students (https://transwellness.org/trans-wellness-pharmacy/).
To know more about Residence Visa in the UAE, please contact:
">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 but also took a toll on their ability to pay back their debts.
The inability to pay back debts leads to bankruptcy in usual circumstances however due to the emergence and spread of Covid-19 most of the businesses are not able to cope with the downfall for reasons which are entirely out of their hands. This has led several countries to formulate new regulations to prevent unfair and untimely closure of businesses through bankruptcy.
UAE is one such country which, in this time of financial crunch, has made amendments to its Bankruptcy Laws to provide relief to businesses suffering from an ”Emergency Financial Crisis” (EFC). EFC has been defined by the new amendments as ”a public event that affects trade or investment in the State such as the outbreak of an epidemic, a natural or environmental disaster, war or others.” The existence and duration of the period EFC is to be determined through a cabinet resolution of the Government of the UAE.
The amended provisions provide leeway for the debtors in various forms. For instance, debtors have been exempted temporarily from the obligatory filing of bankruptcy after 30days of its inability to pay debts. Further the courts have also been provided power to allow for additional 40 days of grace period to debtors to reach a settlement with creditors in case of ‘EFC’. However, the debtors are obligated (1) to promise to satisfy the debts within a 12 month period and also (2) to satisfy the majority of the creditors to its proposals, the failure of which will lead to bankruptcy proceedings through the normal course.
Other changes to the laws include disabling courts from accepting applications from creditors for bankruptcy proceedings during an EFC. The amendments also prevent courts in such cases from sealing the business premises of the debtors. One of the several other changes to the law include providing a relief to the directors and managers from being held personally liable to creditors during the period of EFC. Debtors may also, subject to certain conditions, apply to a court to procure new finances, hence providing them the flexibility necessary to survive in these uncertain times of pandemic.
For more information, please contact:
"class="material with-radius">The inability to pay back debts leads to bankruptcy in usual circumstances however due to the emergence and spread of Covid-19 most of the businesses are not able to cope with the downfall for reasons which are entirely out of their hands. This has led several countries to formulate new regulations to prevent unfair and untimely closure of businesses through bankruptcy.
UAE is one such country which, in this time of financial crunch, has made amendments to its Bankruptcy Laws to provide relief to businesses suffering from an ”Emergency Financial Crisis” (EFC). EFC has been defined by the new amendments as ”a public event that affects trade or investment in the State such as the outbreak of an epidemic, a natural or environmental disaster, war or others.” The existence and duration of the period EFC is to be determined through a cabinet resolution of the Government of the UAE.
The amended provisions provide leeway for the debtors in various forms. For instance, debtors have been exempted temporarily from the obligatory filing of bankruptcy after 30days of its inability to pay debts. Further the courts have also been provided power to allow for additional 40 days of grace period to debtors to reach a settlement with creditors in case of ‘EFC’. However, the debtors are obligated (1) to promise to satisfy the debts within a 12 month period and also (2) to satisfy the majority of the creditors to its proposals, the failure of which will lead to bankruptcy proceedings through the normal course.
Other changes to the laws include disabling courts from accepting applications from creditors for bankruptcy proceedings during an EFC. The amendments also prevent courts in such cases from sealing the business premises of the debtors. One of the several other changes to the law include providing a relief to the directors and managers from being held personally liable to creditors during the period of EFC. Debtors may also, subject to certain conditions, apply to a court to procure new finances, hence providing them the flexibility necessary to survive in these uncertain times of pandemic.
For more information, please contact:
">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 for developing international relations, no matter what sector you specialize in.
Not only do the Free Trade Zones (FTZ) promote the trade of physical goods, the booming technology and digital spheres had a good foothold. Seen at the Silicon Valley of the Middle East, the incentive for research and development across all forms of technology is growing. This support has led to a location that rivals technology hubs in Asia and the United States.
The cost of creating and doing business has dropped dramatically. Cutting over 98% of the fee for things from licensing to trademarks has breathed fresh air into small and emerging businesses. Banking has also become more supportive for SMEs, providing aids while the government has rolled out updates to the National SME Programme; the National SME Programme now has a targeted phased system of support. Businesses that have been directly impacted by Covid-19 can avail interest-free loans, free advisory services, and subsidized working spaces.
Keeping the Covid-19 virus in check has meant little economic or hospitality impact. Tourism has remained popular with quarantine-free zones and business has continued strong into 2021. From 1 October 2021 – 31 March 2022 the World Exposition event will host countries and regions for six months while promoting Sustainability, Mobility, and Opportunity across sectors and disciplines.
Amidst all the crisis surrounding the Covid-19, the UAE also introduced a new amendment allowing 100% foreign investment. The Federal Decree Law no. 26/2020 has amended the Commercial Company law by getting rid of the requirement of having an Emirati as 51% owner for registration of an Onshore Company in the UAE. The amendment now allows 100% foreign investments in the UAE except in “Activities of Strategic Effect”. Activities of Strategic Effect denotes a definitive negative list where 100% ownership will not be allowed yet. The changes to these foreign investment laws have come into effect from 1st June 2021.
The UAE government had in the past, through Federal Law no.19 of 2018, made similar efforts by issuing a positive list including 122 sectors where ownership pf more than 49% was allowed for foreigners. The amendments of 2020 are a giant leap forward and has opened several other sectors which were not earlier included in the 122 sector list. The Departments of Economic and Developmeny in each of the Emirates are given the responsibility to come forward with a list of such business activities. Dubai, Ajman, and Abu Dhabi have drawn up a list 1,105, 1000, and 1100 commercial activities respectivelym where 100% foreign investment will now be allowed.
Foreign investors can now own and control Onshore Companies without the need to employ nominees. These changes have now removed the requirement of having majority directors of a joint stock company to be a UAE National.
Additionally, the need to have a UAE national service agent for branches of foreign companies have also been removed. These measures will not just reduce the cumbersome arrangements and additional costs which investors had to make earlier, they will also create an atmosphere of legal certainty.
To know more, please feel free to contact:
"class="material with-radius">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 for developing international relations, no matter what sector you specialize in.
Not only do the Free Trade Zones (FTZ) promote the trade of physical goods, the booming technology and digital spheres had a good foothold. Seen at the Silicon Valley of the Middle East, the incentive for research and development across all forms of technology is growing. This support has led to a location that rivals technology hubs in Asia and the United States.
The cost of creating and doing business has dropped dramatically. Cutting over 98% of the fee for things from licensing to trademarks has breathed fresh air into small and emerging businesses. Banking has also become more supportive for SMEs, providing aids while the government has rolled out updates to the National SME Programme; the National SME Programme now has a targeted phased system of support. Businesses that have been directly impacted by Covid-19 can avail interest-free loans, free advisory services, and subsidized working spaces.
Keeping the Covid-19 virus in check has meant little economic or hospitality impact. Tourism has remained popular with quarantine-free zones and business has continued strong into 2021. From 1 October 2021 – 31 March 2022 the World Exposition event will host countries and regions for six months while promoting Sustainability, Mobility, and Opportunity across sectors and disciplines.
Amidst all the crisis surrounding the Covid-19, the UAE also introduced a new amendment allowing 100% foreign investment. The Federal Decree Law no. 26/2020 has amended the Commercial Company law by getting rid of the requirement of having an Emirati as 51% owner for registration of an Onshore Company in the UAE. The amendment now allows 100% foreign investments in the UAE except in “Activities of Strategic Effect”. Activities of Strategic Effect denotes a definitive negative list where 100% ownership will not be allowed yet. The changes to these foreign investment laws have come into effect from 1st June 2021.
The UAE government had in the past, through Federal Law no.19 of 2018, made similar efforts by issuing a positive list including 122 sectors where ownership pf more than 49% was allowed for foreigners. The amendments of 2020 are a giant leap forward and has opened several other sectors which were not earlier included in the 122 sector list. The Departments of Economic and Developmeny in each of the Emirates are given the responsibility to come forward with a list of such business activities. Dubai, Ajman, and Abu Dhabi have drawn up a list 1,105, 1000, and 1100 commercial activities respectivelym where 100% foreign investment will now be allowed.
Foreign investors can now own and control Onshore Companies without the need to employ nominees. These changes have now removed the requirement of having majority directors of a joint stock company to be a UAE National.
Additionally, the need to have a UAE national service agent for branches of foreign companies have also been removed. These measures will not just reduce the cumbersome arrangements and additional costs which investors had to make earlier, they will also create an atmosphere of legal certainty.
To know more, please feel free to contact:
">We are inviting you to read our Latest Publication on IR Global The Middle East & North Africa: A dynamic region for inward & outward investment from Thomas Paoletti.
Session Topics:
i. Starting a business in/out of MENA: How easy is it for entrepreneurs and businesses in/out of MENA to start a business in your jurisdiction? How can you help smooth the process for your clients and overcome common pitfalls?
ii. What are the key recent developments your clients should be aware of when investing in/out of the MENA region to your jurisdiction? What grants and incentives are available to overseas investors?
iii. What are the latest trends shaping business growth and creating opportunities in MENA for clients in your jurisdiction? What markets offer the most stability and growth and where would you advise your clients to invest?
Click HERE to read the full publication.
We are inviting you to read our Latest Publication on IR Global The Middle East & North Africa: A dynamic region for inward & outward investment from Thomas Paoletti.
Session Topics:
i. Starting a business in/out of MENA: How easy is it for entrepreneurs and businesses in/out of MENA to start a business in your jurisdiction? How can you help smooth the process for your clients and overcome common pitfalls?
ii. What are the key recent developments your clients should be aware of when investing in/out of the MENA region to your jurisdiction? What grants and incentives are available to overseas investors?
iii. What are the latest trends shaping business growth and creating opportunities in MENA for clients in your jurisdiction? What markets offer the most stability and growth and where would you advise your clients to invest?
Click HERE to read the full publication.
“Despite these uncertain times, expanding overseas can be a key driver for future growth for an ambitious business. International expansion can breathe new life into a company, drive huge value and set it on a path of continued success.”
“IR Global members across the world address questions that help businesses to survive and thrive as they establish themselves in different jurisdictions. From tax to corporate governance, our members take you to a journey that can help you understand how to expand your business internationally – with little or no pain.”
CHECK OUT how THOMAS PAOLETTI answered these questions:
**Get some exciting TIPS for successful expansion in United Arab Emirates
Click the link below to read the full publication
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“Despite these uncertain times, expanding overseas can be a key driver for future growth for an ambitious business. International expansion can breathe new life into a company, drive huge value and set it on a path of continued success.”
“IR Global members across the world address questions that help businesses to survive and thrive as they establish themselves in different jurisdictions. From tax to corporate governance, our members take you to a journey that can help you understand how to expand your business internationally – with little or no pain.”
CHECK OUT how THOMAS PAOLETTI answered these questions:
**Get some exciting TIPS for successful expansion in United Arab Emirates
Click the link below to read the full publication
">SESSION ONE
SESSION TWO
Does the COVID-19 crisis and possible
breach of international contracts fundamentally
alter assumptions surrounding risk
allocation, supply chains and access to markets?
SESSION THREE
Where a contract does not contain a force majeure clause,
how simple is it for parties to consider the doctrine of frustration?
In which jurisdiction would this apply?
Please click the button to read our contribution
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SESSION TWO
Does the COVID-19 crisis and possible
breach of international contracts fundamentally
alter assumptions surrounding risk
allocation, supply chains and access to markets?
SESSION THREE
Where a contract does not contain a force majeure clause,
how simple is it for parties to consider the doctrine of frustration?
In which jurisdiction would this apply?
Please click the button to read our contribution
">
With recent data protection legislation across different jurisdictions, companies are now being held to account regarding their use of personal data. Will this result in a more litigious culture for companies and what does this mean for boards?
The UAE is an international hub interconnected with the rest of the world and capable of attracting great investments thanks to the different and various foreign direct investment policy and incentives that have been launched in the past few years. The UAE has not yet adopted a data protection law, but has taken the European GDPR as a case study to draft its own data protection law, which we all hope it will adopt soon. Dubai International Financial Center and Abu Dhabi Global Market have both adopted a data protection framework consistent with the EU and international standards.
To read our contribution Download"class="material with-radius">With recent data protection legislation across different jurisdictions, companies are now being held to account regarding their use of personal data. Will this result in a more litigious culture for companies and what does this mean for boards?
The UAE is an international hub interconnected with the rest of the world and capable of attracting great investments thanks to the different and various foreign direct investment policy and incentives that have been launched in the past few years. The UAE has not yet adopted a data protection law, but has taken the European GDPR as a case study to draft its own data protection law, which we all hope it will adopt soon. Dubai International Financial Center and Abu Dhabi Global Market have both adopted a data protection framework consistent with the EU and international standards.
To read our contribution Download">This is a video that describes the steps you need to know in order to use your personal portal where you can view all the information related to your relation with Paoletti Law Group.
On your portal you can view :
– Recent happenings
– Due payments
– Invoices
– Documents
– Project details and status of progress
– Updating KYC
– Expenses
– Activities
– Receipts
You will also be able to print and download your invoices, receipts and you can upload and view all your documents, and be in direct contact with the Firm through Chatter.
Please take a moment to watch the video.
If you have any comments, please feel free to share with us.
"class="material with-radius">This is a video that describes the steps you need to know in order to use your personal portal where you can view all the information related to your relation with Paoletti Law Group.
On your portal you can view :
– Recent happenings
– Due payments
– Invoices
– Documents
– Project details and status of progress
– Updating KYC
– Expenses
– Activities
– Receipts
You will also be able to print and download your invoices, receipts and you can upload and view all your documents, and be in direct contact with the Firm through Chatter.
Please take a moment to watch the video.
If you have any comments, please feel free to share with us.
">IR Global presents in the publication “International Deal Making”.Key considerations when assessing a target company for acquisition, including the due diligence process and key sales contract clauses.
Paoletti Law Group is a global legal and business services firm advising clients across the Middle East, EU countries and the rest of the world.
They provide value adding and cost-effective solutions for national and multinational businesses in a wide range of sectors including corporate domestic and cross border transactions, finance, new technologies, construction, and oil & gas. Headquartered in UAE, the firm maintains offices in Rome and Shanghai, and grants its clients access to a worldwide network with operational desks in key jurisdictions around the world.
Tips for completing a successful
cross-border acquisition
Find the right partner in the jurisdiction you want to operate in. Previous demonstrated experience with M&A is essential. Transactional lawyers, as such, are not necessarily the right advisor for a complex M&A case.
Have a post-closing plan in place. This is more for the client to prepare, but it is desirable that we as lawyers teach the client that the due diligence process and even the transaction itself are only the starting point. These are delicate negotiations that could take weeks or even months to complete after the deal is closed.
Don’t lose sight of the resources and costs involved. Due diligence can easily become an endless process in complex projects. Costs should be carefully estimated and agreed before work starts.
"class="material with-radius">Key considerations when assessing a target company for acquisition, including the due diligence process and key sales contract clauses.
Paoletti Law Group is a global legal and business services firm advising clients across the Middle East, EU countries and the rest of the world.
They provide value adding and cost-effective solutions for national and multinational businesses in a wide range of sectors including corporate domestic and cross border transactions, finance, new technologies, construction, and oil & gas. Headquartered in UAE, the firm maintains offices in Rome and Shanghai, and grants its clients access to a worldwide network with operational desks in key jurisdictions around the world.
Tips for completing a successful
cross-border acquisition
Find the right partner in the jurisdiction you want to operate in. Previous demonstrated experience with M&A is essential. Transactional lawyers, as such, are not necessarily the right advisor for a complex M&A case.
Have a post-closing plan in place. This is more for the client to prepare, but it is desirable that we as lawyers teach the client that the due diligence process and even the transaction itself are only the starting point. These are delicate negotiations that could take weeks or even months to complete after the deal is closed.
Don’t lose sight of the resources and costs involved. Due diligence can easily become an endless process in complex projects. Costs should be carefully estimated and agreed before work starts.
">Read More "class="material with-radius">Companies registered or that will be registered in the future in the DIFC are required to comply with the new regime. Get in touch using our contacts below: we are ready to assist you with any further questions or need you may have in connection with the new DIFC company Laws. LIMITED LIABILITY COMPANY ABOLISHED Under the new regime, only companies limited by shares, public or private, are authorized to operate in the DIFC.
LTD OR PLC The name of a private company limited by shares must now end with the ‘Limited’ or ‘Ltd.’ The name of a public company limited by shares must end in “Public Limited Company” or “PLC”.
DIRECTORS’ DUTIES STRENGTHENED. The former is any subject that determines the purposes and means of the processing of personal data, the latter is any subject that processes personal data on behalf of a data controller.
Download LegalUpdate-003-difc
"class="material with-radius">Companies registered or that will be registered in the future in the DIFC are required to comply with the new regime. Get in touch using our contacts below: we are ready to assist you with any further questions or need you may have in connection with the new DIFC company Laws. LIMITED LIABILITY COMPANY ABOLISHED Under the new regime, only companies limited by shares, public or private, are authorized to operate in the DIFC.
LTD OR PLC The name of a private company limited by shares must now end with the ‘Limited’ or ‘Ltd.’ The name of a public company limited by shares must end in “Public Limited Company” or “PLC”.
DIRECTORS’ DUTIES STRENGTHENED. The former is any subject that determines the purposes and means of the processing of personal data, the latter is any subject that processes personal data on behalf of a data controller.
Download LegalUpdate-003-difc
">In these cases, choosing not to launch a joint venture with a local partner from the very beginning of the initiative wasted time and, above all, money (including incorporation of the company, office, administrative costs, salary of the General Manager, etc.).Now, let’s look at the other option: organizing with a local partner, through a joint venture.
In my experience, the local partner often turns out to be the most appropriate solution, but the next question is: what local partner is best to choose?
Approaching a reliable Emirati is critical to the success or failure of the whole venture, especially if the investor is not already introduced in the market.
What can happen?
For instance, my Emirati partner might sponsor not only my company, but also other companies.
When this happens, it often means that this person has a problem – for example, the non-renewal of a license – on one of them. This problem automatically affects the licenses of all the other companies associated with this person.
The most serious consequence for the foreign entrepreneur is that the Resident Visa for the employees or the renewal of the license is halted.
Let’s get back to our basic questions.
The second question is: is it best to choose an active partner or a silent partner?
The basic difference is that the first is an active sponsor who gives real help to enter the market, while the second merely receives a yearly remuneration (remember: the 49-51% formula is mandatory to work in Mainland).
Even in this case one must be careful and not to fall in easy traps, like those of people promising overnight success upon payment of tens of thousands of Euro.
I remember, in fact, a client coming to my office in an attempt to recover a huge investment made to a local company that promised to unlock the Dubai market for her upon establishment of a company.
Result: after a year she obtained a license for an offshore company established in Jebel Ali (a free zone located 35 km south-west of Dubai). But this license was completely useless to her since it couldn’t be used to commercialize within the country.
And to add insult to injury: this license cost little more than 2,000 Euro for the first year, while the remuneration to the Emirati company amounted to 100,000 Euro!
And, finally, the third basic question: what guarantees does the entrepreneur have that the partner will truly get the foreign company into the market and achieve the expected results?
This is a question that has a twofold answer.
First, the guarantee can be given by the professional who assists the entrepreneur along the process of internationalization.
Generally this person has a network of reliable contacts who have already worked successfully with the professional in the past.
Together with this professional, the entrepreneur can conduct a thorough market analysis and choose the most suitable type of local partner or company type or whether to set up in free zone.
My recommendation is always to invest more at the start, not only in terms of money, but also of time.
Second, well, the guarantee of achieving the expected results is given by a mix of factors, some predictable and maneuverable, others unpredictable (the known entrepreneurial risk).
Among the predictable factors are: the assistance of a reliable professional; the implementation of a project and a strategy which are well studied, structured and complete under all points of view (legal, fiscal etc.); and, last but not least, determination, commitment and perseverance by the entrepreneur. A venture like this is complex, but can offer great satisfaction to the committed entrepreneur.
Do you have further questions about business in Dubai? Get in touch and I will reply directly or in another post.
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In these cases, choosing not to launch a joint venture with a local partner from the very beginning of the initiative wasted time and, above all, money (including incorporation of the company, office, administrative costs, salary of the General Manager, etc.).
Now, let’s look at the other option: organizing with a local partner, through a joint venture.
In my experience, the local partner often turns out to be the most appropriate solution, but the next question is: what local partner is best to choose?
Approaching a reliable Emirati is critical to the success or failure of the whole venture, especially if the investor is not already introduced in the market.
What can happen?
For instance, my Emirati partner might sponsor not only my company, but also other companies.
When this happens, it often means that this person has a problem – for example, the non-renewal of a license – on one of them. This problem automatically affects the licenses of all the other companies associated with this person.
The most serious consequence for the foreign entrepreneur is that the Resident Visa for the employees or the renewal of the license is halted.
Let’s get back to our basic questions.
The second question is: is it best to choose an active partner or a silent partner?
The basic difference is that the first is an active sponsor who gives real help to enter the market, while the second merely receives a yearly remuneration (remember: the 49-51% formula is mandatory to work in Mainland).
Even in this case one must be careful and not to fall in easy traps, like those of people promising overnight success upon payment of tens of thousands of Euro.
I remember, in fact, a client coming to my office in an attempt to recover a huge investment made to a local company that promised to unlock the Dubai market for her upon establishment of a company.
Result: after a year she obtained a license for an offshore company established in Jebel Ali (a free zone located 35 km south-west of Dubai). But this license was completely useless to her since it couldn’t be used to commercialize within the country.
And to add insult to injury: this license cost little more than 2,000 Euro for the first year, while the remuneration to the Emirati company amounted to 100,000 Euro!
And, finally, the third basic question: what guarantees does the entrepreneur have that the partner will truly get the foreign company into the market and achieve the expected results?
This is a question that has a twofold answer.
First, the guarantee can be given by the professional who assists the entrepreneur along the process of internationalization.
Generally this person has a network of reliable contacts who have already worked successfully with the professional in the past.
Together with this professional, the entrepreneur can conduct a thorough market analysis and choose the most suitable type of local partner or company type or whether to set up in free zone.
My recommendation is always to invest more at the start, not only in terms of money, but also of time.
Second, well, the guarantee of achieving the expected results is given by a mix of factors, some predictable and maneuverable, others unpredictable (the known entrepreneurial risk).
Among the predictable factors are: the assistance of a reliable professional; the implementation of a project and a strategy which are well studied, structured and complete under all points of view (legal, fiscal etc.); and, last but not least, determination, commitment and perseverance by the entrepreneur. A venture like this is complex, but can offer great satisfaction to the committed entrepreneur.
Do you have further questions about business in Dubai? Get in touch and I will reply directly or in another post.
"> So, why turn to a lawyer?When an Italian entrepreneur reaches out to me, he/she often explains his/her idea and from that idea I build an investment, which has an impact from both a legal and a fiscal point of view.
It’s on the legal side the entrepreneur is in more need of support, as on the fiscal side he/she is likely to have received some advice from the accountant in Italy.
Most of the time the information is incomplete but, once the investment is set up, I also firm up fiscal issues, connecting the entrepreneur with the best local accountant for the job using my extensive network.
The first advice for business internalization should be legal advice, though, because the Italian entrepreneur is required to enter into a number of contracts with the local partner, which will have to be drawn up or reviewed by a lawyer capable of representing and safeguarding the entrepreneur.
The experience of a lawyer can be significant even in the very early stages of the operation.
I’ve often received an entrepreneur presenting a business idea, which was most of the time a non-structured, do-it-yourself idea.
By the end of the entrepreneur’s first meeting with me and my team, that idea was transformed into something else, as the realization hit that the initial planning was wrong, that it was not embedded into an overall framework or it didn’t take into account the possible effects an entrepreneurial initiative in the Emirates can have on the other Gulf markets.
A good professional whose mission is to accompany and assist the entrepreneur along his/her start up journey in the Emirates plays a specific role, which unfolds step by step as follows:
If you are looking for a competent professional to start your business in Dubai, get in touch.
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So, why turn to a lawyer?
When an Italian entrepreneur reaches out to me, he/she often explains his/her idea and from that idea I build an investment, which has an impact from both a legal and a fiscal point of view.
It’s on the legal side the entrepreneur is in more need of support, as on the fiscal side he/she is likely to have received some advice from the accountant in Italy.
Most of the time the information is incomplete but, once the investment is set up, I also firm up fiscal issues, connecting the entrepreneur with the best local accountant for the job using my extensive network.
The first advice for business internalization should be legal advice, though, because the Italian entrepreneur is required to enter into a number of contracts with the local partner, which will have to be drawn up or reviewed by a lawyer capable of representing and safeguarding the entrepreneur.
The experience of a lawyer can be significant even in the very early stages of the operation.
I’ve often received an entrepreneur presenting a business idea, which was most of the time a non-structured, do-it-yourself idea.
By the end of the entrepreneur’s first meeting with me and my team, that idea was transformed into something else, as the realization hit that the initial planning was wrong, that it was not embedded into an overall framework or it didn’t take into account the possible effects an entrepreneurial initiative in the Emirates can have on the other Gulf markets.
A good professional whose mission is to accompany and assist the entrepreneur along his/her start up journey in the Emirates plays a specific role, which unfolds step by step as follows:
If you are looking for a competent professional to start your business in Dubai, get in touch.
">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.Years later and in a completely different country, things have not changed that much and the lawyer is still perceived as someone to turn to only when an issue comes up and legal action is unavoidable.
He was not only obliged to defend himself paying legal fees for an amount equal to 1/3 of the profit obtained in a commercial transaction, but it also turned out that he was responsible for the problem; he had prepared do-it-yourself contracts by copy-and-pasting parts of other contracts. By doing so, he ended up adding a specific clause without realizing its impact.
In fact, that clause proved decisive to the overseas judge, who determined he had the jurisdiction to resolve the dispute.
Evidently it’s as simple as using a search engine in the Internet, typing the key word “arbitration clause”, finding the result and thinking “yes, this one seems well written and in good English, let’s copy the text and paste it in the contract”. Only to discover afterwards that clause is not valid in the country where the counterpart is resident.
What do you have to do at this point?
You’re obliged to go to your lawyer to seek advice. And you can’t help but wonder if it wouldn’t have been wiser and cheaper to spend money upfront, with a contract in hand drawn up by a professional, rather than turn to him only when the problem has come up.
Recently an acquaintance of mine in Dubai, who was sued in Italy, asked for my advice. He was sued for breach of a preliminary sales contract of real estate in a well-known destination in Northern Italy.
What happened?
In short, he undertook to sell his real estate but later he changed his mind, thinking that “this is what we do in Dubai” (which is absolutely not true) and he didn’t understand why the counterparty couldn’t accept the idea of simply searching for a different property.
Now, he will find himself caught up in a dispute that will last years. He will also have to pay the legal fees.
What I want to stress is that lawyers don’t have to be called in only when you get involved in a dispute, but are necessary ahead of time, in order to avoid more serious troubles later.
If you need legal qualified assistance for your business, get in touch.
"class="material with-radius">Years later and in a completely different country, things have not changed that much and the lawyer is still perceived as someone to turn to only when an issue comes up and legal action is unavoidable.
He was not only obliged to defend himself paying legal fees for an amount equal to 1/3 of the profit obtained in a commercial transaction, but it also turned out that he was responsible for the problem; he had prepared do-it-yourself contracts by copy-and-pasting parts of other contracts. By doing so, he ended up adding a specific clause without realizing its impact.
In fact, that clause proved decisive to the overseas judge, who determined he had the jurisdiction to resolve the dispute.
Evidently it’s as simple as using a search engine in the Internet, typing the key word “arbitration clause”, finding the result and thinking “yes, this one seems well written and in good English, let’s copy the text and paste it in the contract”. Only to discover afterwards that clause is not valid in the country where the counterpart is resident.
What do you have to do at this point?
You’re obliged to go to your lawyer to seek advice. And you can’t help but wonder if it wouldn’t have been wiser and cheaper to spend money upfront, with a contract in hand drawn up by a professional, rather than turn to him only when the problem has come up.
Recently an acquaintance of mine in Dubai, who was sued in Italy, asked for my advice. He was sued for breach of a preliminary sales contract of real estate in a well-known destination in Northern Italy.
What happened?
In short, he undertook to sell his real estate but later he changed his mind, thinking that “this is what we do in Dubai” (which is absolutely not true) and he didn’t understand why the counterparty couldn’t accept the idea of simply searching for a different property.
Now, he will find himself caught up in a dispute that will last years. He will also have to pay the legal fees.
What I want to stress is that lawyers don’t have to be called in only when you get involved in a dispute, but are necessary ahead of time, in order to avoid more serious troubles later.
If you need legal qualified assistance for your business, get in touch.
">Let’s start with the real estate sector.There is no shortage of people who are interested in investing in real estate in the Emirates, and particularly in Dubai.
Developers are very aware of this, and in response they are building ever more incredible and luxurious projects at a rapid pace.
Just as an example: I received a request to examine a sales contract for the purchase of a property in a luxurious floating resort.
Hidden in this lengthy contract of 60 pages were more than a few “tricks”. It was drafted in this manner with the very objective of confusing the buyer.
For starters, what first caught my eye was that my client was not buying a real estate, but a cabin on a ship.
This “resort” was in reality a floating ship. Through a wily use of words, ambiguity reigns.
And not only that.
The developer promised a 100% ROI (return on investment); in truth, somewhere in the middle of the 60 pages, the contract indicated the real percentages: 4% the first year, 5% the second year, up to a maximum of 12%.
The most incredible clause was related to payment.
My client was supposed to pay 20% of the price within 30 days of the signing of the contract, but the developer would send her the contract proposal only afterwards, within 60 days!
Obviously, during this time, my client was supposed to pay the subsequent installments.
Moreover, my client was given the opportunity to pay the whole sum in advance with a 10% discount without, however, having the slightest idea about the location of the real estate – of the cabin, actually! – she would buy: if inside or outside, if a fore or an aft cabin, if up or down.
In other words, a totally blind purchase, for not exactly an inconsequential amount of money.
But there’s more: if my client hadn’t accepted and agreed to sign the contract, she would have lost the down payment (of 20%) as a penalty!
Real estate investments in the Emirates are mostly, in fact, six-figure investments.
I will give you another example.
I was asked to examine another sales contract to buy a property in a building to be constructed in front of the Burj Khalifa [LM2] in Dubai for an amount of EUR 1 million.
In the usual 60-page contract, there’s a clause declaring that the developer is even entitled to transfer the funds received by the investor to any other project the developer is involved in.
In practice, I believe I’m buying real estate in Dubai and instead I end up being owner of something I haven’t chosen in a part of the world I haven’t chosen.
Luckily, I checked this client’s contract in advance and so I could contest the clause and get it removed.
Instead, unfortunately, it‘s often the case that investors seized with the excitement that this country conveys and with the promises of easy money sign contracts without even realizing what they are getting into.
In the next post I will focus on some corporate examples.
If you need advice about this subject, get in touch.
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Let’s start with the real estate sector.
There is no shortage of people who are interested in investing in real estate in the Emirates, and particularly in Dubai.
Developers are very aware of this, and in response they are building ever more incredible and luxurious projects at a rapid pace.
Just as an example: I received a request to examine a sales contract for the purchase of a property in a luxurious floating resort.
Hidden in this lengthy contract of 60 pages were more than a few “tricks”. It was drafted in this manner with the very objective of confusing the buyer.
For starters, what first caught my eye was that my client was not buying a real estate, but a cabin on a ship.
This “resort” was in reality a floating ship. Through a wily use of words, ambiguity reigns.
And not only that.
The developer promised a 100% ROI (return on investment); in truth, somewhere in the middle of the 60 pages, the contract indicated the real percentages: 4% the first year, 5% the second year, up to a maximum of 12%.
The most incredible clause was related to payment.
My client was supposed to pay 20% of the price within 30 days of the signing of the contract, but the developer would send her the contract proposal only afterwards, within 60 days!
Obviously, during this time, my client was supposed to pay the subsequent installments.
Moreover, my client was given the opportunity to pay the whole sum in advance with a 10% discount without, however, having the slightest idea about the location of the real estate – of the cabin, actually! – she would buy: if inside or outside, if a fore or an aft cabin, if up or down.
In other words, a totally blind purchase, for not exactly an inconsequential amount of money.
But there’s more: if my client hadn’t accepted and agreed to sign the contract, she would have lost the down payment (of 20%) as a penalty!
Real estate investments in the Emirates are mostly, in fact, six-figure investments.
I will give you another example.
I was asked to examine another sales contract to buy a property in a building to be constructed in front of the Burj Khalifa [LM2] in Dubai for an amount of EUR 1 million.
In the usual 60-page contract, there’s a clause declaring that the developer is even entitled to transfer the funds received by the investor to any other project the developer is involved in.
In practice, I believe I’m buying real estate in Dubai and instead I end up being owner of something I haven’t chosen in a part of the world I haven’t chosen.
Luckily, I checked this client’s contract in advance and so I could contest the clause and get it removed.
Instead, unfortunately, it‘s often the case that investors seized with the excitement that this country conveys and with the promises of easy money sign contracts without even realizing what they are getting into.
In the next post I will focus on some corporate examples.
If you need advice about this subject, get in touch.
">And when a client comes to me because he/she did one of these three (or four) things, he/she is generally in real trouble, as the problems have compromised business functioning and efficiency, with obvious negative consequences on profits and competitiveness.For example, if I don’t regulate the relationship with a vendor to whom I have outsourced the production of a good or the execution of a service, in case of delays, interruptions, inefficiencies or failure to deliver the good or service, I will have to incur extraordinary costs, such as:
Given that a company produces dozens, hundreds or thousands of commercial relationships, if the entrepreneur doesn’t bother to regulate all of them through ad hoc contracts drafted by a qualified professional, problems and unexpected circumstances can arise quickly and the entrepreneur can end up lost in a maze of conflicts.
I’m referring to everything related to business: from tenancy contracts, to leasing agreements, to contracts with suppliers, with clients, to contractor and subcontractor.
A qualified professional is capable of drafting a tailor made contract, solid in its essential parts, such as:
These are just some of the points that are extremely important to regulate in a contract.
Many other elements – of differing nature and complexity – need to be taken into consideration and tackled on-a-case-by-case basis with a view to finalizing a tailored contract with appropriate measures avoiding conflicts between the parties as much as possible.
Does the contract have an economic value?
It certainly does, but unfortunately its perception in a business setting is weak and, alas, the lawyer is often seen only as an extra cost.
People prefer to invest in the resolution of commercial problems, rather than in their prevention.
And yet, we only need to apply a simple saying, which, if it’s true for everyday life, is even more so in business: “prevention is better than cure”.
If you want a more detailed explanation of the subject, go read the next post.
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And when a client comes to me because he/she did one of these three (or four) things, he/she is generally in real trouble, as the problems have compromised business functioning and efficiency, with obvious negative consequences on profits and competitiveness.
For example, if I don’t regulate the relationship with a vendor to whom I have outsourced the production of a good or the execution of a service, in case of delays, interruptions, inefficiencies or failure to deliver the good or service, I will have to incur extraordinary costs, such as:
Given that a company produces dozens, hundreds or thousands of commercial relationships, if the entrepreneur doesn’t bother to regulate all of them through ad hoc contracts drafted by a qualified professional, problems and unexpected circumstances can arise quickly and the entrepreneur can end up lost in a maze of conflicts.
I’m referring to everything related to business: from tenancy contracts, to leasing agreements, to contracts with suppliers, with clients, to contractor and subcontractor.
A qualified professional is capable of drafting a tailor made contract, solid in its essential parts, such as:
These are just some of the points that are extremely important to regulate in a contract.
Many other elements – of differing nature and complexity – need to be taken into consideration and tackled on-a-case-by-case basis with a view to finalizing a tailored contract with appropriate measures avoiding conflicts between the parties as much as possible.
Does the contract have an economic value?
It certainly does, but unfortunately its perception in a business setting is weak and, alas, the lawyer is often seen only as an extra cost.
People prefer to invest in the resolution of commercial problems, rather than in their prevention.
And yet, we only need to apply a simple saying, which, if it’s true for everyday life, is even more so in business: “prevention is better than cure”.
If you want a more detailed explanation of the subject, go read the next post.
">Breitling is a well-known brand of luxury watches founded in Switzerland in 1884 as a company producing chronometers and watchmaker tools. Today it specializes in tech watches (it is an official provider for the Air Force) and in wrist chronographs.It has boutiques and retailers worldwide (there are 4 boutiques in Dubai alone) and it targets a high-end market. It is therefore well regarded among the Persian Gulf countries, which have one of the highest per capita incomes in the world (Qatar, Kuwait, United Arab Emirates, Saudi Arabia etc.).
An Emirati company, already a client of mine, sensed an opportunity in Bahrain, where the brand was suffering from lack of visibility and decline in market share and could be due for a relaunch.
This company turned to my legal office to invest in this relaunching operation that involved two players:
The unincorporated type of joint venture wouldn’t make sense in this case, since the objective of the initiative was to market a product over the long term.
What we did was to build a joint venture agreement where the business model was set out as the establishment and capitalization of a new company formed by the Bahraini partner and by our client with the objective of distributing and marketing the Breitling brand in Bahrain.
This agreement was made up of:
It was a well-structured operation, which, just a few months later, turned out to be a success.
The Emirati partner already had a lot of know-how in the luxury watch sector and was already familiar with the specific marketing for this product.
For its part, the Bahraini partner knew the country’s market very well, had useful business connections, and believed strongly in the venture.
This is really the ideal situation for the professional who brings together the parties.
My job was to identify the most suitable partner in Bahrain, define the most appropriate corporate form, determine the contractual relations protecting my client as much as possible and, in general, provide the company with the most solid framework to achieve the expected sales performance
If your objective is to do business in Dubai and you want to understand all the opportunities, get in touch.
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Breitling is a well-known brand of luxury watches founded in Switzerland in 1884 as a company producing chronometers and watchmaker tools. Today it specializes in tech watches (it is an official provider for the Air Force) and in wrist chronographs.
It has boutiques and retailers worldwide (there are 4 boutiques in Dubai alone) and it targets a high-end market. It is therefore well regarded among the Persian Gulf countries, which have one of the highest per capita incomes in the world (Qatar, Kuwait, United Arab Emirates, Saudi Arabia etc.).
An Emirati company, already a client of mine, sensed an opportunity in Bahrain, where the brand was suffering from lack of visibility and decline in market share and could be due for a relaunch.
This company turned to my legal office to invest in this relaunching operation that involved two players:
The unincorporated type of joint venture wouldn’t make sense in this case, since the objective of the initiative was to market a product over the long term.
What we did was to build a joint venture agreement where the business model was set out as the establishment and capitalization of a new company formed by the Bahraini partner and by our client with the objective of distributing and marketing the Breitling brand in Bahrain.
This agreement was made up of:
It was a well-structured operation, which, just a few months later, turned out to be a success.
The Emirati partner already had a lot of know-how in the luxury watch sector and was already familiar with the specific marketing for this product.
For its part, the Bahraini partner knew the country’s market very well, had useful business connections, and believed strongly in the venture.
This is really the ideal situation for the professional who brings together the parties.
My job was to identify the most suitable partner in Bahrain, define the most appropriate corporate form, determine the contractual relations protecting my client as much as possible and, in general, provide the company with the most solid framework to achieve the expected sales performance
If your objective is to do business in Dubai and you want to understand all the opportunities, get in touch.
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