中东法律资讯简报--盈科&莎彦（阿联酋）法律事务所发布

The weekly legal newsletter is concerned with and monitors all developments that occur in the legal arena, including the issuance of new laws and legislation, as well as their amendments, updates, etc., in the countries of the Middle East, especially (GCC countries, Egypt, and Iran).

So, stay up-to-date with our weekly legal newsletter presented by Yingke & Shayan Legal Consulting-Dubai-UAE.

UAE

In a significant development, the Ministry of Economy in the United Arab Emirates (UAE) has announced a fine of up to Dirhams 400,000 on companies found to be violating the updated Commercial Agency Law.(Federal Decree-Law No. 3/2022).

Additionally, their goods may be seized by UAE Customs, Hasan AlKilany, Senior Legal Counsel at the UAE Ministry of Economy, said on Monday 11 September 2023.

AlKilany also said this represents a significant change from the previous law, where complaints were taken to civil courts for resolution. Under the new law, a disciplinary cabinet resolution allows for penalties at two levels: A warning for the first offense, followed by fines of Dh100,000 and Dh200,000, along with Customs' seizure of goods. The fines could reach as high as Dh400,000 for repeat violations. 

He added that penalties apply to any wrongdoing such as an agent in one emirate bypassing the geographical limitation and jumping to another emirate to sell goods.

The new commercial agencies law came into effect on June 16, 2023, which applied to all sectors. The business of commercial agencies would be exclusive to UAE nationals as well as public joint-stock companies with at least 51 per cent owned by nationals.

The UAE has recently promulgated Federal Law No. 15 of 2023, which amended Articles 10, 23, 28, and 33 of the Federal No. 6 of 2018 (the “Amendments”). The changes aim to provide efficiency and flexibility to arbitration proceedings seated in the UAE. 

The Amendments entered into force on 16 September 2023 and align with the UAE’s objective to position itself as an international arbitration hub.  

The Notable Amendments In Detail:

Arbitrators’ qualifications (Article 10)

The Amendments modified Article 10, requiring the arbitrator not to have any relationship with any of the parties that could affect their integrity and independence. 

Further, Article 10 no longer prohibits the parties from appointing members of the Board of Trustees, Executive Management or Administrative Bodies of the arbitral institution administering the arbitration. 

In this regard, institutions must put in place particular governance policy and mechanisms to ensure that arbitrators remain impartial and independent throughout the proceedings. 

It is unknown, however, if the Amendments will increase the challenges of arbitrators associated with arbitral institutions in the future.  

Applicable Proceedings (Article 23)

The new Article 23 re-emphasized the parties’ autonomy in the proceedings. The new text excluded the reference to Article 10.2 (which prohibited arbitrators associated with arbitral institutions administering the arbitration from being appointed) and confirms that arbitrators must follow the procedure agreed upon by the parties with due regard to the arbitration rules of any arbitral institution. 

In the absence of such an agreement, however, the arbitral tribunal shall determine the procedure it deems appropriate in a manner that does not conflict with the standards of litigation and international agreements to which the UAE is a party. 

Remote Hearings and Use of Technology (Article 28)

The COVID-19 Pandemic has forced the arbitration community to adapt to a new reality, which accelerated the use of technology. In line with the new trend of conducting international arbitral proceedings, Article 28 now requires arbitral institutions to provide all the necessary technology to facilitate remote hearings. 

In this respect, parties and arbitral institutions must pay special attention to the integrity and security of proceedings when choosing the relevant platform and technical set-up. 

Hearings and Evidence (Article 33)

Finally, Article 33 vests arbitrators with powers to decide on a “document only” basis. Thus, arbitrators may now determine whether or not it is appropriate to hold oral evidentiary hearings. 

Such a change is welcome as it gives tribunals more flexibility to conduct the proceedings and ensure efficiency. Moreover, it will likely help to keep the overall arbitration costs down.

On 7 September 2023, the Dubai International Financial Centre (DIFC) enacted amendments to its Data Protection Regulations, which address the means for better, safer, and more ethical management of personal data processing and operations. Data Protection Law No. 5 of 2020 (“DIFC Data Protection Law“) which came into force starting on 1 September 2023. These amendments were preceded by a 30-day public consultation launched by the DIFC in April 2023.

In particular, the DIFC outlined that the amendments provide clarity on:

- Personal data breach assessment and reporting obligations in Regulation 8, including situations where a temporary custodian finds personal data that has been inadvertently left behind or lost;

- Use and collection of personal data for marketing and communications, particularly regarding appropriate notices when employing systems that may impair data individuals' rights to restrict or remove their personal data, default cookies settings, and conditions for consent, set out in Regulation 9;

- Investigations and enforcement powers of the Commissioner of Data Protection when a controller or processor may employ unfair or deceptive practices, as defined in Regulation 6.2;

- Personal data processed through digital generative technology systems, under Regulation 10.

Notably, the DIFC highlighted that Regulation 10 is the first enacted regulation in the Middle East, Africa, and Southern Asia (MEASA) region on the processing of personal data via autonomous and semi-autonomous systems such as AI or generative machine learning technology. 

The DIFC also pointed out that guidance would be issued to accompany the amended Regulations in due course.

On 6 September 2023, Umm Al Quwain’s Ruler has introduced new property laws for the Emirate. The laws will regulate new rules on mortgages, property prices and investors’ rights, among other things. 

These laws aim to help in the development and implementation of plans to drive growth across the sector and keep pace with the emirate’s urban development drive, It is as follows:

- Law No. 2 of 2023 provides for the establishment of the Interim Real Estate Register of Umm Al Quwain and the regulation of property registration activities in the emirate.

- Law No. 3 of 2023 is concerned with regulating real estate development activities in the emirate, the pricing of all real estate projects, and providing real estate escrow accounts, in line with regulations that ensure protecting the rights of investors, real estate companies and property developers.

- Law No. 4 of 2023 concerning amendments to Law No. 3 of 2007 on real estate escrow accounts in Umm Al Quwain, sets out guidelines to help better regulate real estate sales transactions and ensure the compliance of all involved parties with the regulation issued by the Real Estate Foundation.

- Law No. 5 of 2023 provides for the regulation of mortgage registration activities through the Umm Al Quwain Municipality Department, as per the regulations issued by the Central Bank of the UAE, and the settlement of issues and violations related to unregistered mortgages.

- Law No. 6 of 2023 is concerned with protecting the rights of investor in cases of delays or hurdles in real estate development projects, as well as ensuring such projects are completed, when possible. It also provides for establishing a special committee to handle issues related to cancelled and incomplete real estate projects.

- Law No. 7 of 2023 concerning amendments to Law No. 2 of 2005 on the regulation of real estate brokerage activities in the emirate sets out legislation and guidelines to regulate all brokerage activities.

Fujairah’s Ruler has approved two new real estate laws in the Emirate. They have issued Fujairah Law No. 3/2023. This regulates joint property ownership in the Emirate.

They have also issued Fujairah Law No. 4/2023. This regulates real estate development guarantee accounts in the Emirate.

The two laws state that developers, management companies, associations and owners’ unions have to comply with the law within six months of their issued date. The relevant authority’s director may extend the deadline for compliance by another six months when required.

In addition, the two laws do not affect contracts signed between developers and owners before they come into force. Fundamental association systems approved and deposited by a relevant authority are also not affected unless they relate to the formation of owners’ associations.

Dubai’s International Financial Centre has proposed various legislative amendments, including amendments to its Employment Law. They have also proposed amendments to its Trust Law, Foundations Law and Operating Law.

The DIFC has launched a consultation on these proposed amendments and the consultation ends on 29 September 2023. The proposed changes are aimed at ensuring the DIFC legislation remains aligned with international best practices and Organisation for Economic Co-operation and Development (OECD) requirements.

Amendments to the Employment Law:

DIFC proposes to make amendments to Part 10 of the existing Employment Law to place an obligation on DIFC employers of eligible GCC nationals to make “top-up” payments into a Qualifying Scheme, in addition to the GPSSA contributions. Effectively, this will require DIFC employers to pay the positive difference into a Qualifying Scheme where there is a shortfall between what would have been payable into a scheme if the individual had not been a GCC national, and what is paid under the GPSSA. Monthly payments are subject to a de minimis threshold of AED1000. In addition, further amendments to the Employment Law deal with situations where a Qualifying Scheme is prohibited from accepting contributions from an Employer, or in respect of an Employee, as a result of sanctions prohibitions.

Amendments to the Trust Law and Foundations Law:

A series of proposed changes to the Trust Law and Foundations Law relate to the DIFC Courts rights of jurisdiction over the administration of DIFC Trusts, to the exclusion of foreign courts. These changes align these laws with international best practice. In addition, proposed changes to the Foundations Law expand the role of Registered Agents, allowing them to enter into an arrangement with the RoC to provide certain compliance functionality on behalf of a Foundation (as already permitted for corporate service providers under the Prescribed Company and Family Office regimes).

Amendments to the Operating Law and Operating Regulations:

Proposed changes to the Operating Law relate to OECD requirements regarding record retention following the winding up of an entity and an update to the definition of “Privileged Communication”. Amendments are also proposed to the Operating Regulations to provide the ROC with specific powers to deal with Bars and Restaurants that operate at late hours and that may disturb other DIFC tenants through noise or other anti-social behaviour.

The proposed amendments reflect DIFC’s commitment to maintaining a transparent and robust legal and regulatory framework aligned with global best practice.

Saudi Arabia

On 3 September 2023 Saudi Arabia’s Human Resources and Social Development Ministry has announced a raft of amendments to labour law penalties in the Kingdom. The fines will be imposed based on the category of the establishment. Categories are now determined by the total number of employees.

- Hiring outside of Saudization quotas: Penalties for not adhering to Saudization quotas or employing non-Saudis in reserved roles have been revised: Category A at 8,000 riyals; Category B at 4,000 riyals and Category C at 2,000

- Safety standards: Fines linked to non-compliance in protection, safety, and occupational health have been revised. Specifically, Category A establishments will face fines reduced from 10,000 to 5,000 riyals; Category B from 5,000 to 2,500 and Category C from 2,500 to 1,500.

- Work environment protocols: Penalties associated with not establishing appropriate safety guidelines have been restructured. Category A fines moved from 5,000 to 1,000 riyals; Category B from 2,000 to 500 and Category C from 1,000 to 300.

- Weather-related employment: Fines for employing workers under extreme weather conditions without necessary safety measures have been set at a flat 1,000 riyals across all categories.

- Medical benefits: Establishments failing to provide medical insurance to employees and their families will face reduced fines: 1,000 riyals in Category A; 500 in Category B and 300 in Category C.

- Child labour and maternity: There’s a significant penalty reduction for employing minors — down to 2,000 riyals for Category A. Employers hiring women within six weeks post-childbirth will be fined 1,000 riyals.

- Role limitations for Saudi nationals: A 1,000-riyal penalty has been set for Category A establishments employing Saudis in roles reserved exclusively for them. Penalties are 5,000 and 2,500 riyals for Categories B and C, respectively.

- Data integrity: Misrepresenting data to the ministry will result in a 3,000-riyal fine — a substantial reduction from 20,000 riyals.

- Employment discrimination: Fines for discriminatory hiring practices have been curtailed: Category A at 3,000 riyals; Category B at 2,000 and Category Cat 1,000.

- Salary disbursement: A standardized penalty of 300 riyals will be levied on establishments not paying salaries in the official currency within the stipulated timeframe.

Saudi Arabia’s Authority for Data and Artificial Intelligence (SDAIA) has published the Implementing Regulations to the for the Saudi Personal Data Protection Law (issued by Saudi Arabia Cabinet Decision No. 98/1443) (“PDPL”). Saudi Arabia Administrative Decision No. 1516/1445 came into force on 14 September 2023.

The aim of the PDPL is to ensure the privacy of personal data, regulate data sharing, and prevent the abuse of personal data. Notably, the PDPL covers key principles such as purpose limitation and data minimization, controller obligations, including registration and maintenance of data processing records, data subject rights, and penalties for breach of provisions.

The PDPL will bring Saudi Arabia into closer alignment with both its Middle East counterparts as well as international standards. In the meantime, the National Data Management Office has developed the National Data Governance Interim Regulations which encompass the Personal Data Protection Interim Regulations ('the Data Protection Interim Regulations') and the Data Sharing Interim Regulations ('the Data Sharing Interim Regulations'). The Data Protection Interim Regulations cover key principles such as accountability, transparency, data disclosure, and data subject rights, while the Data Sharing Interim Regulations address data security, legal basis, and ethical data use.

On September 7, 2023, the PDPL Implementing Regulations and the Regulations on personal data transfers were published in the Official Gazette of Saudi Arabia, after a public consultation launched by SDAIA in July 2023. Both sets of regulations entered into force with the PDPL on September 14, 2023.

Saudi Minister of Human Resources and Social Development Ahmed Al-Rajhi issued a decree requiring companies with more than 50 employees to disclose their training data annually on the Qiwa portal.

The new rule is intended to improve training in private sector companies, “enhancing workforce capabilities and promoting development and growth opportunities,” according to the ministry.

It also aims to “enhance performance and productivity, and support the national program to incentivize private sector training for job market readiness.”

By the end of each year, eligible companies must disclose training data — including hours and trainee counts, training plans, activity reports, trainee numbers, and budget allocation for the next year.

The data will help the ministry assess training indicators in the job market and collaborate with the private sector to improve training programs for employees.

The ministry has published a procedural guide on its website, detailing the process, training requirements, and penalties for non-compliance.

Qatar

On 14 September 2023 Minister of Justice HE Masoud bin Mohammed Al Amri has announced that Qatar working to harness artificial intelligence (AI) systems and benefit from them in its judicial and legal systems.

In his keynote at the Law and Artificial Intelligence Conference held at Lusail University, the minister said that one of Qatar's first steps in that field was the Cabinet decision No 10 of 2021, on establishing the AI Committee in the Ministry of Transport and Communication.

The Minister is seeking recommendations to help draft an Artificial Intelligence Law.

Kuwait

Kuwait’s Interior Minister has issued a Ministerial Decision amending the Expatriates’ Residency Law.

Under the amendment, expatriates have to pay off all of the debts they owe to state departments before they are allowed to renew or transfer their residency visas.

The outstanding debts can be paid via the websites of the relevant state department or via the Sahel application. For residency to be issued, renewed, or transferred to another sponsor, an applicant must also pay the Health Ministry’s health insurance fee.

The Decision has been published in the Official Gazette and came into force on its published date (10 September 2023).

Oman

On 10 September 2023 Oman’s Commerce, Industry and Investment Promotion (MoCIIP) Ministry has announced it has issued Oman Ministerial Decision No. 499/2023 to regulate the practice of e- commerce activity in the Sultanate.

E-stores will also have to protect consumer data. Vendors must maintain the confidentiality of consumer data and disclose measures taken to protect the data. They must immediately contact relevant authorities where there is a breach and provide a clear framework for receiving and handling consumer complaints as well as an exchange and return policy on par with current laws and contact information.

A licence to practice e-commerce must be obtained by submitting an electronic application via the Invest Easy portal.

It has been issued as part of a national e-commerce plan and is aimed at creating a legal and regulatory environment for the development and promotion of e-commerce. As part of the plan, an e-commerce complex will be established and the necessary infrastructure to support the sector will be developed.

It is also aimed at documenting local e-stores and facilitating access to e-stores organizing operations related to buying and selling via the Internet and reducing e-commerce-related fraud. In addition, it is aimed at keeping up with e-commerce regulation and e-stores monitoring development.

To ensure adherence to these regulations, MoCIIP wields the authority to enforce corrective measures. These can range from imposing fines of up to RO500 or suspending the licence of online stores until compliance is restored. In severe or repeated cases of violations over a three-year period, MoCIIP can revoke licenses and block online stores.

Decision No 499/2023 will be operational 90 days post its official announcement in the Gazette on September 10,2023.

Egypt 

On 18 December 2022 the Egyptian Parliament has approved a draft law to amend provisions of the Unified Tax Procedures Law relating to the implementation of the provisions of the international tax agreements to which Egypt is a party.

The draft law allows foreign countries to verify the commercial transactions of its nationals to confront tax evasion, giving Egypt the right to reciprocate with 172 countries that have joined those international tax agreements.

The draft law comes in implementation of the provisions of the international tax agreements to which Egypt has joined, as it allows foreign countries that have joined the international tax agreements in force against Egypt to verify the commercial transactions of their nationals to confront tax evasion, and thus gives Egypt the right to reciprocate treatment with the 172 countries that have joined those international tax agreements. 

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