The International Monetary Fund (IMF) has recommended the Gulf Cooperation Council (GCC) countries, including the UAE, to explore additional tax options to boost revenue and support economic diversification. Suggested measures include the introduction of property taxes, luxury taxes, and environmental levies to complement existing tax frameworks.

Broadening the Tax Base

In recent years, GCC countries have implemented various taxation reforms, including value-added tax (VAT), excise tax, and corporate income tax. These measures aim to reduce reliance on oil revenue and create more stable, diversified economies. Some nations have even introduced a minimum domestic tax on multinational enterprises, with Oman taking steps toward taxing individual income.

Simplifying Tax Systems

The IMF highlighted the importance of reducing tax complexity to enhance compliance and improve collection efficiency. Oil-producing countries in the region are relatively new to taxation, requiring updates to laws and the implementation of modern tax systems to close revenue gaps and align with global standards.

Economic Resilience and Stability

The GCC region has shown resilience to recent geopolitical tensions and economic challenges. Non-hydrocarbon growth has driven robust overall economic performance, supported by tourism recovery, policy reforms, and capital inflows. While inflation remains low, external reserves and economic outlooks are favorable, underscoring the region’s ability to withstand external shocks.

This approach aligns with long-term goals of reducing dependency on hydrocarbons and enhancing macroeconomic stability across the region.

Hyper-Personalization in UAE Banks: A Legal Perspective

The UAE banking sector is at the forefront of digital transformation, rapidly embracing innovative technologies to meet evolving customer expectations. As hyper-personalization becomes a critical strategy, banks must not only focus on delivering tailored services but also ensure compliance with legal and regulatory frameworks.

Hyper-personalization, which involves leveraging data analytics, artificial intelligence, and machine learning to offer highly customized services, presents both opportunities and challenges. From a legal perspective, banks operating in the UAE must address several key considerations to implement hyper-personalization responsibly and securely.

Data Privacy and Protection

The cornerstone of hyper-personalization is the use of customer data. UAE banks must comply with Federal Decree-Law No. 45 of 2021 (the UAE Personal Data Protection Law, or PDPL), which regulates the collection, processing, and storage of personal data. Key legal obligations include:

• Obtaining Consent: Banks must secure explicit consent from customers before collecting and processing their data for personalized services.

• Purpose Limitation: Data collected must only be used for the purposes explicitly stated to the customer.

• Transparency: Customers must be informed about how their data is used and stored, ensuring banks maintain a transparent relationship.

• Cross-Border Data Transfers: If data needs to be shared internationally, banks must ensure compliance with the PDPL’s cross-border data transfer rules, which mandate adequate protection measures for customer data.

Cybersecurity Compliance

The UAE has taken a major step to attract crypto investors and digital asset businesses by simplifying its VAT regulations for virtual assets, including cryptocurrencies and non-fungible tokens (NFTs). This update not only clarifies tax obligations but also reduces costs for investors—a milestone for UAE’s evolving tax policy and digital economy.

Key VAT Updates on Virtual Assets

Obtaining a business loan in the UAE is a viable option for entrepreneurs and established companies looking to expand their operations or improve cash flow. With a range of loan types available—such as term loans, startup financing, and trade finance—the UAE offers support options tailored to various business needs. However, understanding the eligibility requirements, interest rates, and repayment terms is crucial for a successful loan application.

To qualify for a business loan, most banks and financial institutions require businesses to meet specific criteria. Typically, applicants must demonstrate that their business has been operational for a minimum period (often one to two years) and show evidence of a stable annual turnover. Additionally, a corporate bank account in the UAE is a common prerequisite. For startups, the eligibility requirements can be more flexible, with institutions often considering the entrepreneur’s background, business model, and market potential.

LuLu Retail has made headlines as the UAE’s biggest IPO of the year, closing with gross proceeds of Dh6.32 billion. The hypermarket giant, headquartered in Abu Dhabi, saw overwhelming demand, attracting over Dh135 billion ($37 billion) in bids from local, regional, and international investors—a record for a non-government UAE IPO in the past decade.

Priced at Dh2.04 per share, the IPO was oversubscribed by more than 25 times across all investor categories (excluding cornerstone investors), setting LuLu Retail’s market capitalization at Dh21.07 billion ($5.74 billion). The IPO also saw record-breaking interest from retail investors, with over 82,000 individuals participating.

The shares are set to list on the Abu Dhabi Securities Exchange (ADX) on November 14.

This IPO marks a milestone for the UAE, creating new benchmarks in retail investor participation and setting a high standard for future listings. Initially planned at 25%, LuLu’s offering was increased to 30% to accommodate strong institutional interest, underscoring the robust appeal of LuLu’s consumer-facing operations in the GCC markets.

Using multiple bank accounts to manage finances is a common strategy recommended by financial experts to stay organized, achieve savings goals, and in some cases, gain additional legal protections. But does having several accounts actually help manage money better in reality? Are there legal benefits to having multiple accounts? And what are the costs and challenges of juggling multiple accounts?

The Benefits of Multiple Bank Accounts

Having multiple bank accounts can offer several advantages, not only for managing finances but also for safeguarding funds in specific circumstances. Here’s how having multiple accounts can be beneficial:

1. Improved Budgeting and Expense Tracking

• Setting up different accounts for specific expenses, such as bills, savings, and discretionary spending, can simplify tracking where your money is going. By allocating a fixed amount for each purpose, you can avoid accidental overspending and stay within budget.
• For instance, maintaining a dedicated account for bills ensures you don’t inadvertently spend funds needed for essential expenses, giving you greater control over your financial commitments.

     2. Enhanced Saving Strategies

• Using a dedicated savings account, separate from everyday spending, can help you avoid dipping into savings impulsively. Some individuals go further by creating multiple savings accounts for different goals, such as a holiday fund, emergency fund, or home down payment.
• Known as “bucket budgeting,” this approach allows you to allocate funds specifically for each goal, helping you prioritize your finances and reducing the temptation to use that money for other purposes.

    3.  Legal Protections for Certain Accounts

• In some cases, having multiple accounts can provide legal protections, particularly for business owners, contractors, or individuals who receive funds from different sources. For instance, separating personal and business accounts is essential for legal compliance, making it easier to distinguish personal income from

The Drawbacks of Multiple Bank Accounts

While multiple bank accounts can be helpful, they also come with certain drawbacks that may not suit everyone. Here are some of the key challenges:

1. Account Fees and Maintenance Costs

• Each account may come with its own fees, including maintenance charges, minimum balance requirements, and transaction fees. If not managed carefully, these costs can add up over time, potentially offsetting the benefits of having separate accounts.
• Some banks offer free accounts or waive fees if you maintain a minimum balance. However, it’s important to factor in these potential costs before opening additional accounts.

      2. Increased Administrative Complexity

• Managing multiple accounts can be time-consuming, especially when it comes to tracking balances, making transfers, and ensuring that you meet any minimum balance requirements.
• The added complexity can make it difficult to stay on top of your finances, potentially leading to missed payments or accidental overdrafts.

      3. Temptation to Overspend

• For some people, having multiple accounts can lead to a false sense of security. Seeing funds spread across several accounts might make it easier to justify spending from one of them, especially if they don’t keep track of their overall financial picture.
• Without a clear system in place, you may risk overspending in one account while thinking other accounts can cover the shortfall, which can ultimately undermine your financial goals.

Best Practices for Using Multiple Accounts Effectively

To make the most of multiple bank accounts, it’s essential to have a clear strategy in place. Here are a few tips to maximize the benefits:

1. Define the Purpose of Each Account
• Before opening additional accounts, think about the specific purpose for each one. Consider creating accounts based on your goals, such as bills, savings, and discretionary spending.
• Having a well-defined purpose for each account will help you stay focused on your goals and avoid unnecessary spending.
2. Automate Transfers
• One way to streamline managing multiple accounts is by setting up automatic transfers. For example, you can schedule regular transfers from your primary account to savings accounts designated for specific goals, like a vacation or emergency fund.
• Automating transfers ensures that you consistently allocate funds to your savings goals without having to remember to do it manually.
3. Regularly Review and Rebalance
• Checking in on your accounts periodically is essential to ensure that you’re on track with your goals. A monthly or quarterly review can help you assess whether you’re saving enough or need to make adjustments.
• This review process can also help identify any account fees or charges that could be avoided by consolidating funds or choosing a different banking option.
4. Consider Account Types Carefully
• Not all bank accounts are created equal, and choosing the right type for each purpose is important. For example, a high-yield savings account might be best for your emergency fund, while a basic checking account could work for daily expenses.
• Research different account options to find the ones that offer the best rates and lowest fees for each of your needs.

How Many Accounts Are Ideal?

The UK government is expected to raise more revenue from inheritance tax (IHT) as rising property prices and inflation push more estates beyond the tax-free threshold. The current inheritance tax rate is 40%, applied to estates valued over £325,000. This threshold, frozen since 2009, has caused middle-income families to become increasingly subject to the tax, especially in regions where property values have soared. Wealthier individuals, on the other hand, often use legal tax planning strategies to reduce their IHT burden, creating calls for reform from critics.

In the UK, the inheritance tax has been a point of contention, with concerns over its impact on households with significant property wealth but limited liquid assets. According to reports, the government has seen record IHT receipts in recent years due to the rising number of estates falling above the threshold. Additionally, the introduction of the Residence Nil-Rate Band (RNRB) in 2017 offered some relief by adding an extra allowance for family homes passed to direct descendants, but the overall revenue from IHT continues to rise.

Critics argue that inheritance tax disproportionately affects families with moderate wealth, as property appreciation pushes their estates above the tax-free threshold. Calls for reform have been raised, suggesting either increasing the threshold to account for inflation or overhauling the system entirely to address inequalities. The wealthy, who can afford estate planning services, often benefit from loopholes and exemptions that reduce their IHT liability, exacerbating the issue for middle-class families.

On the other hand, supporters of IHT believe it plays a crucial role in redistributing wealth and reducing inequality. By taxing large inheritances, the tax ensures that wealth accumulation across generations is checked, and the proceeds can be used to fund public services and welfare programs.

With inflation continuing to rise and property values showing no sign of a significant drop, the UK’s inheritance tax receipts are expected to grow, keeping the debate over its fairness and effectiveness alive. Calls for reform are likely to intensify as more families find themselves unexpectedly liable for this tax, sparking further discussion on the future of inheritance taxation in the UK

AED Stablecoin LLC has received in-principle approval from the Central Bank of the UAE to launch its stable digital currency, AE Coin. This initiative marks the introduction of the UAE’s first dirham-backed stablecoin, in line with the country’s progressive vision and the UAE Digital Government Strategy 2025.

Under the Payment Token Services Regulation (Circular No. 2/2024), AED Stablecoin will be licensed to issue this fiat-backed stablecoin. Each AE Coin will be fully supported by the UAE dirham, combining the agility of blockchain technology with the reliability of traditional currency. The introduction of AE Coin aims to facilitate seamless and secure payment solutions while bolstering the UAE's rapidly growing digital economy.

As the first digital currency in the UAE regulated by the Central Bank, AE Coin provides unprecedented credibility and trust. It maintains stability and security through transparent reserves and regular audits, mitigating the volatility typically associated with cryptocurrencies. AE Coin will also integrate with decentralized finance (DeFi) platforms, allowing users to engage in lending, borrowing, and earning interest without intermediaries. The currency employs advanced blockchain technology with multi-layer encryption to ensure all transactions are secure and transparent, adhering to the highest standards of security and compliance.

The roadmap for AE Coin includes plans for secure payment solutions across e-commerce platforms, the introduction of a mobile wallet app for convenient access, and partnerships with merchants to expand digital currency transaction use cases.

Ramez Rafeek, General Manager of AED Stablecoin, expressed excitement about receiving approval from the Central Bank to issue AE Coin. He stated, “As the first stablecoin regulated by the Central Bank, AE Coin will revolutionize the digital currency space by providing financial freedom, unmatched stability, and enhanced security.”

For both businesses and individuals, AE Coin promises a new era of transparent and cost-effective financial services, offering a wide range of applications from payments to decentralized finance solutions. It facilitates fast, low-cost transactions while operating under the strict regulatory oversight of the Central Bank, positioning AE Coin at the forefront of the UAE’s transition to an innovative digital economy.

AE Coin merges stability with security, making it an ideal solution for various use cases. Companies in the UAE can benefit from instant, stable payments using AE Coin, improving cash flow management and reducing transaction costs. Moreover, AE Coin offers individuals a secure and user-friendly digital currency for everyday transactions, simplifying domestic transfers at lower costs compared to traditional banking.

The strategy for AE Coin includes forging partnerships with leading financial institutions, payment gateways, and technology providers to accelerate its adoption. Future objectives entail integration with decentralized applications (dApps) and listings on major cryptocurrency exchanges.

Dubai’s Virtual Assets Regulatory Authority (VARA) has imposed penalties on seven entities for operating without the necessary licenses and breaching marketing regulations. The enforcement actions included fines of up to AED 100,000 ($27,000) and cease and desist orders to halt unlicensed operations.

Although the names of the entities were not disclosed, this move follows VARA’s recent tightening of marketing regulations in the virtual assets sector. The authority emphasized that further investigations are ongoing in cooperation with local authorities.

VARA also urged the public to avoid engaging with unlicensed virtual asset service providers (VASPs) and reiterated that only licensed firms are authorized to operate within Dubai.

The UAE has implemented new VAT exemptions for specific cryptocurrency and virtual asset activities following recent amendments to the Executive Regulations. Approved by the UAE Cabinet, these updates clarify which digital assets are eligible for VAT exemption, with a focus on assets intended for investment purposes.

The exemption applies to digital assets that can be traded or converted, excluding fiat currencies and financial securities. It covers services related to the transfer, conversion, storage, and management of virtual assets, including cryptocurrency trading, as long as these services are not provided for a fee, discount, commission, or similar compensation.

The amendments also extend to investment fund management services, covering activities such as fund operations management and investment monitoring. This move aims to strengthen the UAE’s position as a global hub for investment activities and support the growth of the financial sector.

Businesses involved in these exempted activities are advised to review their financial strategies, as VAT incurred on related expenses may not be fully recoverable. The amendments will take effect on November 15, 2024.

In the UAE, residents are increasingly falling victim to credit card fraud, facing debt that can amount to as much as Dh120,000. This growing issue, where customers are often blamed instead of finding solutions, is putting financial strain on many individuals. From unauthorized credit card charges to emptied bank accounts, residents are left battling recovery agents and legal threats, often without adequate support from their banks.

One alarming case involves an individual who discovered fraudulent credit cards issued in his name, each maxed out to around Dh30,000. The fraudsters had manipulated bank systems to reroute statements to fake email addresses and control OTPs (One-Time Passwords) meant for the legitimate account holder. Despite the clear signs of fraud, the banks initially held the victim responsible, demanding payment for the debt, which exceeded Dh120,000. While some banks eventually waived the charges after a legal battle, others continue to insist on repayment.

This case is not isolated. Across the UAE, residents are reporting similar incidents of fraud. With cyberattacks increasing, including phishing, DDoS, and ransomware, many individuals are finding their accounts drained or credit cards charged without their knowledge. The issue is compounded by banks often failing to notify customers about suspicious activity in a timely manner, leaving account holders in a vulnerable position.

One resident discovered her credit card was used abroad, despite never leaving the UAE. Another had her card charged even after it had been blocked. In yet another case, a customer found that multiple unauthorized transactions had occurred without any OTP verification. In all of these instances, the banks shifted the blame to the customers, threatening legal action and sending recovery agents to harass the victims.

For many residents, the process of recovering stolen funds and restoring their financial standing is long and arduous. Some victims, even after extensive legal battles, are still facing significant debt and rising fees. The lack of immediate support or acknowledgment from banks leaves victims feeling trapped in a system where they are held accountable for security failures beyond their control.

The issue goes beyond individual cases. Insider involvement and bank security lapses are suspected to play a role in these fraud incidents. Banks are being urged to adopt advanced technology to protect against cyber breaches. Implementing systems like AI-driven fraud detection, blockchain-based identity verification, and SIM-swap detection tools are critical measures needed to safeguard customers from future fraud.

Despite these technological solutions, accountability remains a key issue. Banks have a duty of care to protect their customers, and when they fail to do so, they should be held liable. Recent court rulings in the UAE have demonstrated that banks can be ordered to compensate victims of fraud, particularly in cases where security measures were inadequate or not enforced.

While efforts to enhance cybersecurity in the financial sector are underway, including real-time cyber-attack simulations and webinars focused on data protection, many victims continue to face unresolved cases. The tendency of some banks to shift responsibility onto customers rather than address internal shortcomings only worsens the situation. Until stronger measures are put in place and banks are held accountable for their role in these breaches, residents may continue to find themselves burdened by debts they did not incur.

In an increasingly digital world, banks play a crucial role in safeguarding customers' financial information and ensuring secure transactions. However, when breaches occur, banks may be held liable in certain situations, particularly when negligence or lack of due diligence leads to financial losses. Below are 10 scenarios where banks can be held accountable for breaches on customer accounts.

1. Processing Unauthorized Transactions One of the most common instances of bank liability is when unauthorized transactions occur in a customer’s account. If a bank processes transactions without the account holder's approval or knowledge, it could be held responsible for the resulting financial loss. Banks have a duty to verify and authenticate transactions, and failure to do so can lead to legal consequences.
2. Failure to Secure Customer Data Banks are required to ensure that customers' sensitive data, including personal identification information and account details, are protected from unauthorized access. In cases where a bank’s security system is compromised, leading to identity theft or other forms of fraud, the bank may be held liable for failing to secure this data adequately.
3. Delayed Notification of Suspicious Activity Banks have an obligation to monitor accounts for unusual or suspicious activities. If a bank detects suspicious behavior but delays in notifying the customer, and this delay leads to further losses, the bank can be held accountable. Timely notifications are critical in preventing significant financial damage.
4. Inadequate Protection Against Cyberattacks In today’s cyber threat landscape, robust security systems are essential for protecting customer accounts. Banks that fail to implement sufficient cybersecurity measures, leaving customer accounts vulnerable to hacking or phishing attacks, can be held liable for the resulting breaches and financial losses.
5. Misuse of Customer Funds by Bank Employees In some cases, bank employees may misuse customer funds, whether through fraud, theft, or other unlawful actions. Banks are liable for the actions of their employees, especially if proper oversight and internal controls are not in place to prevent such incidents.
6. Lack of Security in Online Banking With the rise of online banking, ensuring secure digital transactions is crucial. If a bank does not provide adequate security measures, such as multi-factor authentication or encryption, to protect online transactions, it could be liable for any breaches that result in financial harm to the customer.
7. Inaccurate Reporting of Account Balances Errors in reporting account balances can result in financial losses, particularly if customers rely on incorrect information to make financial decisions. Banks can be held liable if inaccurate reporting of balances leads to significant financial consequences for the account holder.
8. Allowing Unauthorized Access to Third Parties Banks are responsible for preventing unauthorized access to customer accounts by third parties. If a bank allows a third party to gain access to an account without the customer's permission or due process, it may be held liable for any losses resulting from this breach.
9. Failure to Investigate and Resolve Customer Complaints When a customer files a complaint regarding suspicious activity or a breach on their account, the bank is obligated to investigate and resolve the issue promptly. Failure to do so may result in further financial losses for the customer and legal liability for the bank.
10. Violation of Customer Privacy Rights Banks must uphold customer privacy rights under local laws and regulations. If a bank violates these rights, such as by disclosing private information without consent or mishandling confidential data, it can be held liable for the financial and reputational damage caused to the customer.

Conclusion

Banks have a duty to protect their customers' financial information and ensure that their accounts are secure from breaches. Failure to fulfill these responsibilities can expose banks to legal liabilities and financial penalties. Customers who suffer from account breaches should be aware of their rights and the circumstances in which banks can be held accountable. By recognizing these situations, both customers and financial institutions can work toward reducing the risk of breaches and maintaining trust in the banking system.

The Central Bank of the UAE (CBUAE) has taken decisive action against an unidentified Islamic insurance provider, or takaful insurer, suspending it from issuing new motor and health insurance contracts. The decision comes after the insurer failed to meet the minimum capital requirements mandated by the country's regulatory framework.

In a statement issued on October 2, 2024, the CBUAE emphasized that the takaful insurer now has a six-month window to address its solvency position. The insurer must work to restore its capital levels in accordance with the bank’s guidelines during this period. Failure to comply within the specified timeframe could result in further regulatory measures.

While the central bank has not disclosed the name of the insurer involved, the suspension reflects the CBUAE's commitment to maintaining the financial health and stability of the insurance sector. By enforcing capital adequacy requirements, the CBUAE aims to ensure that insurers have sufficient capital to meet policyholder claims and withstand financial shocks, particularly in high-demand areas such as motor and health insurance.

Takaful, a form of cooperative insurance that complies with Islamic principles, operates on the basis of mutual assistance among policyholders. Given the importance of takaful in providing Sharia-compliant financial services, the regulator's strict enforcement of capital requirements is seen as vital to sustaining market confidence and protecting policyholders.

The CBUAE's move highlights its ongoing efforts to strengthen the regulatory environment and safeguard the stability of financial institutions across the UAE. The central bank continues to monitor the market closely, ensuring that insurers operate within the boundaries of prudential standards set to protect consumers and uphold the integrity of the financial system.

This action serves as a warning to other financial institutions in the UAE that non-compliance with regulatory standards, particularly in areas critical to the financial health of insurers, will not be tolerated. The suspension of new contracts will remain in place until the takaful insurer demonstrates full compliance with the capital requirements and addresses its solvency challenges.

As the situation unfolds, the CBUAE will continue to provide oversight and ensure the insurer's actions align with the country’s robust regulatory framework.

In today’s economic climate, debt has become a significant burden for many individuals, especially young adults. From mounting student loans to high-interest credit card balances and the rising cost of living, debt can feel overwhelming and, at times, impossible to overcome. But in the face of these challenges, a growing movement of people is embracing a debt-free revolution, determined to reclaim their financial freedom through strategic planning, disciplined spending, and a mindset shift toward financial independence.

The Burden of Debt

Debt impacts much more than just your bank balance. It affects life choices, from delaying marriage and homeownership to limiting career opportunities. According to a recent survey, young adults are increasingly concerned about their financial futures, with many unable to see a path to debt elimination. Student loans, in particular, have reached all-time highs, with many graduates leaving school with tens of thousands of dollars to repay.

Credit card debt adds another layer of complexity. The ease of access to credit cards, coupled with high-interest rates, often leads individuals into a vicious cycle of debt that is difficult to escape. Meanwhile, rising living costs, especially in urban centers, stretch personal finances even further, making it harder to save or pay down debt.

Strategies for Overcoming Debt

Achieving financial freedom and overcoming the debt dilemma begins with adopting a comprehensive strategy that addresses both the psychological and financial aspects of debt management. Here’s how young adults are tackling their debt and setting themselves up for a brighter financial future:

1. Create a Detailed Budget

The foundation of any successful debt repayment plan is a clear understanding of your income and expenses. Creating a budget allows you to track your spending habits and identify areas where you can cut back. A well-thought-out budget should account for all essential expenses, such as housing, food, transportation, and minimum debt payments, while leaving room for discretionary spending.

Once you have a budget in place, allocate any surplus income toward paying down debt. A popular strategy is the 50/30/20 rule, where 50% of income is spent on needs, 30% on wants, and 20% is allocated to savings and debt repayment. Adjust this ratio as needed to ensure you are aggressively tackling your debt.

2. Adopt the Debt Snowball or Avalanche Method

There are two primary approaches to paying off debt: the Debt Snowball and the Debt Avalanche methods.

• Debt Snowball: Focus on paying off your smallest debts first while making minimum payments on larger debts. This method builds momentum and boosts motivation as you experience quick wins by eliminating smaller balances.
• Debt Avalanche: Prioritize debts with the highest interest rates. By tackling high-interest debt first, you save money in the long run by reducing the total amount of interest you’ll pay over time.

Both methods are effective, and the best approach depends on your personal preferences. Those motivated by quick results might prefer the Snowball method, while others who want to save on interest should choose the Avalanche method.

3. Refinance or Consolidate Debt

Debt consolidation can simplify your repayment process by combining multiple debts into a single loan with a lower interest rate. This is particularly useful for those with high-interest credit card debt. Personal loans or balance transfer credit cards can be good options to consolidate debt, often offering promotional low-interest periods that allow you to pay down the principal faster.

For student loans, refinancing may also be an option. Many private lenders offer lower interest rates compared to federal loans, but refinancing federal loans into private loans may result in losing certain benefits, such as income-driven repayment plans or loan forgiveness options. Make sure to weigh the pros and cons before making any changes.

4. Increase Your Income

In some cases, eliminating debt quickly requires increasing your income. Consider taking on a side job or freelance work to boost your earnings. Gig economy jobs such as ridesharing, freelance writing, or tutoring can provide extra cash that can be funneled directly toward your debt.

Additionally, ask for a raise at your current job or look for opportunities for career advancement that come with a higher salary. The extra income can significantly accelerate your debt repayment and bring you closer to financial independence.

5. Cut Unnecessary Expenses

Achieving financial freedom often requires sacrifices. Cutting back on non-essential spending can free up more money for debt repayment. This could mean reducing dining out, canceling unused subscriptions, or opting for cheaper alternatives to your regular expenses. Every dollar saved can be used to pay down debt faster.

Consider lifestyle changes that align with your financial goals, such as downsizing your living arrangements, carpooling, or adopting a minimalist mindset to avoid impulse purchases. The key is to stay disciplined and focus on the bigger picture of becoming debt-free.

6. Seek Professional Guidance

If your debt feels unmanageable, seeking professional help may be a wise decision. Financial advisors or credit counseling agencies can help you create a debt management plan tailored to your situation. In some cases, debt settlement programs can negotiate with creditors to lower your outstanding balances or interest rates.

7. Emergency Savings Fund

While it may seem counterintuitive, setting aside money for an emergency fund can be crucial in managing debt. An emergency fund prevents you from relying on credit cards or loans in case of unexpected expenses like medical bills or car repairs. Aim to save at least three to six months' worth of living expenses to provide a cushion for life's uncertainties.

The Importance of a Debt-Free Mindset

Overcoming debt is not just about numbers; it also requires a shift in mindset. Adopting a long-term approach to financial wellness and viewing debt elimination as a stepping stone to financial independence is key to staying motivated. Embrace the debt-free revolution by focusing on building healthy financial habits, such as living below your means, saving consistently, and making informed financial decisions.

The psychological benefits of being debt-free are profound. Many individuals report feeling less stressed and more empowered to make life choices without the burden of debt weighing them down. Financial freedom opens the door to opportunities like traveling, starting a business, or investing for the future.

Planning for a Debt-Free Future

Once you’ve tackled your debt, it’s important to plan for a financially stable future. Start by setting aside money for retirement, investing in assets that grow in value, and building your wealth through diversified investments such as stocks, real estate, or mutual funds.

Achieving financial independence is a journey, and staying debt-free requires ongoing discipline. Commit to living within your means, saving for future goals, and continually educating yourself about personal finance.

Conclusion

The debt-free revolution is not just a trend but a necessary shift in the way we approach our financial lives. Overcoming student loans, credit card balances, and rising living costs can seem daunting, but with a clear plan, disciplined spending, and a strong mindset, it is entirely achievable. By following these strategies, you can conquer your debt, reclaim your financial freedom, and lay the foundation for a prosperous future.

Corporate tax is a direct tax on the net profits businesses and entities earn from their trade. The Federal Tax Authority (FTA) is responsible for the administration, collection and enforcement of this tax.

Implementation and Rates

In January 2022, the Ministry of Finance announced a Federal Corporate Tax (CT) rate of 9% on net business profits, applicable across all emirates. Companies with net profits exceeding Dh375,000 are subject to this tax at the specified rate.

The tax applies to businesses starting from their first financial year commencing on or after 1 June 2023, or January 1, 2024, as mandated by UAE Federal Decree-Law No. 47 of 2022. Companies must prepare their financial statements according to UAE accounting standards.

Purpose and Benefits

The introduction of corporate tax aims to enhance the UAE's status as a leading global hub for trade and investment, promote economic growth, adhere to international tax transparency standards and deter harmful tax practices.

Scope of Application

The corporate tax applies to:

* Individuals conducting business or engaging in commercial activities in the UAE through an unincorporated partnership or sole proprietorship.

* Entities incorporated in the UAE with a commercial licence.

* Foreign entities or individuals with a permanent establishment in the UAE.

Exemptions

According to the UAE government’s official portal, the following are exempt from paying corporate tax:

* Businesses engaged in the extraction of natural resources.

* Profits earned by UAE businesses from their shareholdings.

* Qualifying intra-group transactions and reorganisations.

* Personal earnings such as salary, investment in real estate, shares, securities, etc.

* Income from bank deposits, savings plans, dividends, capital gains, interest, royalties and other investment returns.

* Earnings of foreign investors who do not conduct business in the UAE.

Free Zone Companies

Free zone companies will continue to follow their pre-agreed regulations. However, these rules may change, and if free zone businesses trade with mainland businesses, they must pay corporate tax on that particular income.

Net Interest Expenditure Limitations

The UAE corporate tax law allows net interest expenditure up to 30% of adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) or Dh12 million, whichever is greater. Any remaining net interest expenditure can be carried forward for up to 10 tax periods.

Net Interest Explained

"Net interest" refers to the excess of interest expenses over interest income. When calculating adjusted EBITDA, exempt income is excluded, and any interest related to exempt income is disregarded.

Tax Group Considerations

The net interest expenditure provisions apply to the entire tax group as a single taxable entity. This means the 30% cap and carry forward limits are calculated at the group level.

If the combined net interest expenses exceed Dh12 million and the group’s adjusted EBITDA is insufficient to offset these expenses, the 30% cap is enforced for the entire group.
This applies even if some group members individually have enough EBITDA to cover their interest expenses.

Subsidiary Changes and Group Dissolution

If a subsidiary leaves the tax group or there is a change in the parent company, net interest expenses remain within the group unless they are pre-grouping unutilised expenses of the subsidiary, which the subsidiary will carry forward.

If the group dissolves and the parent company remains taxable, the unutilised net interest expenses stay with the parent company. If the parent company ceases to exist, these expenses remain unutilised unless a new parent company replaces it.

In the case of a merger, the unused net interest expenses are accessible to the new parent company if it becomes the legal successor.

Handling Group Losses and Interest Expenditures

Within a tax group, various loss categories exist, including pre-grouping losses, restricted and unrestricted tax group losses, transferred losses, and those from business restructuring. However, there is no concept of restricted net interest expenditure like restricted tax group losses.

Additionally, a taxable person cannot transfer its net interest expenses to another entity, even in a business restructuring process.

Utilisation of Net Interest Expenditures

Net interest expenditures are offset in the sequence of their occurrence, after adjusting for the current period's net interest expenditures.

If multiple unused net interest expenditures originate from tax periods ending on the same date, there is no requirement to follow chronological order. Pre-grouping net interest expenditures can be utilised up to 30% of the group's adjusted EBITDA or Dh12 million, whichever is higher, provided the subsidiary has sufficient taxable income to offset these expenditures.

Transfer Restrictions

Unlike tax losses, net interest expenditure cannot be transferred between persons or groups under articles 37 and 38 of the law. Any unutilised net interest expenditure tied to a transferor ceases if the transferor exits.

Exemptions

The general interest deduction limitation rule does not affect banks, insurance providers and certain other taxable entities, such as those engaged in qualifying infrastructure projects, or those with loans taken out before December 9, 2022, without changes to the loan terms.

For these entities, their income and expenses are disregarded when calculating the tax group's total net interest expenditure and EBITDA.

Businesses and tax groups must carefully manage their net interest expenses and taxable income to ensure compliance with the UAE corporate tax law. Properly understanding and applying these regulations is crucial for optimising tax obligations and maintaining regulatory compliance.

A gang of five scammers has been apprehended by the Sharjah Police, the authorities announced on Thursday.

The criminal network operated from outside the country and specialised in cyber fraud through a process known as "173". In connection with the scam, over Dh3 million has been seized from accounts linked to 11 anonymous reports registered with the police in the country, the authorities further stated.

The suspects were found to have phished Dh3,011,854 from accounts linked to 11 anonymous reports received by police departments across the UAE, according to Major General Saif Al Zari Al Shamsi, Commander-in-Chief of Sharjah Police.

Brigadier Omar Ahmed Abu Al Zoud, Director of the Sharjah CID, revealed that a report was received from an Arab working for a company within the country. He stated that he had received an email from a supposed supplier requesting an update of the bank data.

After updating the details and transferring Dh85,713,052 to the bank account number provided by the fraudulent company, he discovered that the email was fake.

Abu Al Zoud noted that a team of cybercrime experts was formed to verify the fraud operation and arrest the perpetrators. The technical investigation revealed that the email was fake, and further technical follow-up showed that the money transfer had been made from outside the country.

An African individual who withdrew Dh20,000 from the amount was also identified and arrested in a sting operation at his residence, along with others who lived with him and were proven to be involved in crimes related to cyber fraud.

The police found 173 bank cards and 132 chequebooks belonging to victims whose bank details were used to commit fraud, in the possession of the suspects. Additionally, 21 smartphones, 18 Emirates ID cards belonging to victims who had left the country, six stamps of fake companies and Dh95,320 obtained from withdrawals made through electronic fraud were also discovered.

Abu Al Zoud explained that the perpetrators had premeditatedly purchased 173 accounts from their original owners who had left the country.

They then controlled the accounts and bank cards, transferring money from one account to another to mislead the police.
Lieutenant Ahmed Al Bahai and Lieutenant Nouf Abdul Rahim Al Harmoudi reported that four types of cybercrimes have been frequently reported recently -- "Fake job advertisements", "Fake websites", "Electronic impersonation of persons and institutions", and "Electronic hacks".

They also warned against dealing with websites or information circulated via social media platforms

The Federal Tax Authority (FTA) has issued a public clarification on the registration timelines for taxable persons for corporate tax. The clarification further explains the specific deadlines for the different categories of taxable persons subject to corporate tax and encourages them to submit their tax registration applications to the FTA.

The clarification underscores the FTA’s commitment to informing taxable persons and stakeholders about all key updates and developments to ensure complete transparency and compliance. It aims to clarify the timelines prescribed in Federal Tax Authority Decision No. 3 of 2024 regarding the registration of taxable persons for corporate tax under Federal Decree Law No. 47 of 2022 on the taxation of corporations and businesses and its amendments.

The FTA stated that this clarification neither amends nor seeks to amend any provision of the aforementioned legislation. Therefore, it is effective from the date of implementation, i.e., March 1, 2024, unless stated otherwise.

The public clarification emphasises the deadlines for various types of taxable persons, both resident persons and non-resident persons, including juridical persons and natural persons.

It also addresses the registration requirements for juridical persons seeking exempt status from the FTA under the corporate tax law. However, the timeline for applying for exemptions remains unchanged, as per FTA Decision No. 7 of 2023.

According to the clarification, all taxable persons are required to submit a tax registration application to the FTA by the specified deadlines. Non-compliance will result in an administrative penalty of Dh10,000.

The public clarification includes a comprehensive analysis and examples to help taxable persons understand how the timelines apply to their specific category. The FTA encourages all affected persons to adhere to the specified timelines to ensure compliance and avoid any penalties. Therefore, it is crucial for all taxable persons to review the public clarification and ensure the timely submission of their corporate tax registration applications.

Key Highlights

Juridical persons that are resident persons incorporated or otherwise established or recognised prior to March 1, 2024 must submit their tax registration application for corporate tax based on the month of their licence issuance. If such a juridical person does not hold a licence as of March 1, 2024, the application deadline is May 31, 2024.

If the taxable person holds an expired licence as of March 1, 2024, the reference for submission is still based on the month of its original licence issuance. For those with multiple licences, the deadline is determined by the earliest issuance date, considering the year of issuance of the licence.

For juridical persons that are incorporated or otherwise established or recognised on or after March 1, 2024, they must submit a tax registration application within three months from the date of incorporation, establishment, or recognition.

Juridical persons recognised under foreign legislation but managed and controlled in the UAE must submit a tax registration application within three months from the end of their financial year.

Juridical persons that are non-resident persons prior to March 1, 2024, by virtue of having a permanent establishment in the UAE, must submit a tax registration application within nine months from the date of existence of the permanent establishment.

The date of existence of the permanent establishment is when the permanent establishment is recognised for UAE corporate tax purposes. Therefore, for a fixed place of business permanent establishment, the existence of the permanent establishment will be when all the requirements are met, including establishing a degree of permanence of six months in the UAE, starting from when the corporate tax law came into force on June 1, 2023.

If an international agreement provides a longer duration for recognising a permanent establishment, the international agreement prevails. Juridical persons that are non-resident persons by virtue of having a nexus in the UAE prior to March 1, 2024 must submit their application by May 31, 2024.

Juridical persons that are non-resident persons on or after March 1, 2024 by virtue of having a permanent establishment in the UAE must submit a tax registration application within six months from the date of existence of the permanent establishment.

If non-resident persons have both a permanent establishment and a nexus in the UAE, the deadline to submit a tax registration application for corporate tax to the FTA is the earliest of their respective deadlines.

Starting January 1, 2024, natural persons that are resident persons must submit a tax registration application for corporate tax if their turnover from businesses or business activities in the UAE exceeds Dh1 million within a Gregorian calendar year. If this threshold is met, a tax registration application must be submitted by March 31 of the subsequent Gregorian calendar year.

Natural persons that are non-resident persons must submit a tax registration application for corporate tax if their turnover from businesses or business activities derived via a permanent establishment in the UAE exceeds Dh1 million during a Gregorian calendar year, starting from January 1, 2024. Such natural persons are required to complete a tax registration application within three months of meeting the requirements of being subject to corporate tax.

A natural person who is a non-resident person will meet the requirements to be subject to corporate tax when they have a permanent establishment in the UAE and, in the Gregorian calendar year, they exceed the Dh1 million turnover threshold derived from the permanent establishment.

The first possible tax period for a natural person, regardless of whether they are a resident person or a non-resident person, will be the 2024 Gregorian calendar year. Any income generated before January 1, 2024 will not be subject to corporate tax, and the deadline to submit a tax registration application is March 31, 2025.

The public clarification on corporate tax registration timelines underlines the FTA's dedication to fostering a transparent and efficient tax environment, ensuring that all persons can operate within a well-defined and supportive framework. 

A recent incident has come to light where a bank has been accused of illegally seizing a property over disputed dues. This development has raised significant concerns regarding the legal rights of property owners and the bounds of bank authority in the UAE.

In this article, we delve into the specifics of the case at hand and discuss its implications for property owners and borrowers in the region. A UAE resident found himself embroiled in a legal dispute with his bank after they allegedly seized his property without following the appropriate legal procedures.

The individual had been involved in a disagreement with the bank over outstanding debts. However, rather than resolving the matter through the judicial system, the bank took unilateral action to confiscate the property.

In the UAE, the legal process for property seizure is well-defined and must be strictly adhered to by financial institutions. According to UAE law, banks and other financial entities cannot seize properties without obtaining a court order.

The process typically involves:

Notification of Default: The borrower must be formally notified of the default on loan payments.
Court Proceedings: If the borrower fails to settle the dues, the bank must file a case in court to seek permission for property seizure.
Court Order: Only after obtaining a court order can the bank proceed with the seizure of the property.

In this case, it appears that the bank did not follow these crucial steps, leading to allegations of illegal seizure.
Property owners in the UAE are entitled to specific rights that safeguard them from unlawful actions by financial institutions. These rights include:

Right to Due Process: Property owners are entitled to a fair legal process before any seizure can occur.
Right to Dispute: Owners have the right to dispute claims and present their case in court.
Right to Compensation: If a property is illegally seized, the owner can seek compensation for damages incurred.

The implications of this case are far-reaching. It highlights the importance of adhering to legal procedures and respecting the rights of borrowers. For banks, it serves as a reminder of the legal boundaries within which they must operate. For property owners, it underscores the necessity of understanding and asserting their legal rights.

If you find yourself in a situation where a bank is threatening to seize your property without following due process, here are some steps you can take:

*Consult with a legal expert to understand your rights and the appropriate course of action.
* Keep records of all communications and transactions with the bank.
* Report the matter to relevant authorities if you believe your rights are being violated.
* If necessary, take legal action to protect your property and seek compensation for any illegal actions.

In conclusion, the aforementioned incident highlights the critical role that legal due process plays in protecting the rights of property owners. Both financial institutions and individuals must respect these rights and ensure compliance with the relevant laws and regulations.

Should you find yourself involved in a similar dispute, it is highly recommended that you seek the guidance of a qualified legal professional.

In recent years, the landscape of Non-Resident Indian (NRI) taxation has witnessed significant changes, especially concerning the filing of income tax returns in India. As we approach the filing season for the financial year 2022-2023, it becomes imperative for NRIs to understand their tax obligations and the implications of not complying with the regulations set forth by the Indian tax authorities.

For NRIs, the determination of tax liability in India is primarily based on their residential status as per the provisions of the Income Tax Act, 1961. An individual is considered a resident in India for a particular financial year if they satisfy either of the following conditions:

•  They have stayed in India for 182 days or more in the financial year.
•  They have stayed in India for 60 days or more during the financial year and 365 days or more during the preceding four financial years.

If an individual does not meet any of these criteria, they are deemed to be an NRI for that financial year.
While NRIs are not taxed in India for income earned abroad, they are liable to pay taxes on income generated within India or received in India. The sources of income that are taxable in India include but are not limited to:

• Income from salary or wages earned in India.
•  Income from house property situated in India.
•  Capital gains arising from the transfer of assets located in India.
•  Interest, dividends, or any other income earned from investments made in India.

Filing income tax returns in India is mandatory for NRIs if their total income exceeds the basic exemption limit, which is Rs2.5 lakh for the financial year 2022-2023. Additionally, even if the income falls below the exemption limit, NRIs are required to file a return if they wish to claim a refund or if they have incurred a loss that they want to carry forward.

Moreover, NRIs must be aware of the various forms prescribed by the Income Tax Department for filing returns based on the nature of their income and residential status. For instance, NRIs with income from salary or house property may need to file Form ITR-1 (Sahaj) or Form ITR-2, depending on their circumstances.

There are three main types of NR accounts:

Non-Resident External (NRE) Account: An NRE account is a rupee-denominated account where NRIs can deposit their foreign earnings that are repatriable. Funds in an NRE account can be freely repatriated both in principal and interest, and the interest earned is tax-free in India. This account can be in the form of savings, current, recurring, or fixed deposit accounts.
Non-Resident Ordinary (NRO) Account: An NRO account is also a rupee-denominated account, but it is meant for managing income earned in India, such as rent, dividends, or pension. Funds in an NRO account are not freely repatriable, meaning there are restrictions on transferring the funds abroad. The interest earned on an NRO account is taxable in India, subject to applicable rates and deductions.
Foreign Currency Non-Resident (FCNR) Account: FCNR accounts allow NRIs to hold foreign currency deposits in India. These accounts can be maintained in major currencies like USD, GBP, EUR, JPY, etc., and the funds are freely repatriable. Interest earned on FCNR deposits is tax-free in India.
Let us discuss how tax rules apply to these accounts:
Taxation of NRE Account: Interest earned on NRE accounts is tax-free in India. NRIs are not required to pay any tax on the interest income earned on funds held in NRE accounts. However, NRIs may have to report the interest income earned in their country of residence and comply with tax regulations applicable there.
Taxation of NRO Account: Interest earned on NRO accounts is taxable in India. NRIs are required to pay tax on the interest income earned from funds held in NRO accounts at the applicable rates as per the Income Tax Act. TDS (Tax Deducted at Source) is applicable on interest income exceeding specified thresholds and NRIs can claim deductions and avail themselves of benefits under the Double Taxation Avoidance Agreement (DTAA) between India and their country of residence.
Taxation of FCNR Account: Interest earned on FCNR deposits is tax-free in India. Similar to NRE accounts, NRIs are not required to pay any tax on the interest income earned on funds held in FCNR accounts.

However, NRIs should check the tax implications in their country of residence and comply with the relevant tax laws there.

It's essential for NRIs to understand the tax implications of maintaining different types of non-resident accounts in India and ensure compliance with both Indian tax laws and the tax regulations of their country of residence. Consulting with a tax advisor or chartered accountant can help NRIs navigate the complexities of tax planning and optimise their tax liabilities.

List of Documents Needed to File ITR in India

To file income tax returns (ITRs) in India for the financial year 2023-2024 as a Non-Resident Indian (NRI) residing in the United Arab Emirates (UAE), several documents are required to ensure accurate reporting of income and compliance with Indian tax laws. Here's a list of documents typically needed:

Passport: A copy of the passport, which serves as proof of identity and nationality.
PAN (Permanent Account Number) Card: If you have a PAN card, provide a copy as it is a mandatory requirement for filing income tax returns in India.
Form 16/Income Certificate: If you have earned income from employment in India, you need Form 16 issued by your employer or an income certificate indicating details of salary, allowances and taxes deducted at source (TDS).
Bank Statements: Copies of bank statements for all NRI accounts held in India and abroad during the financial year. This includes NRE (Non-Resident External), NRO (Non-Resident Ordinary), FCNR (Foreign Currency Non-Resident) and any other accounts.
Investment Proofs: Documents supporting investments made in India, such as receipts for purchases of mutual funds, stocks, bonds, or other securities, as well as proof of investments made under various tax-saving schemes like PPF (Public Provident Fund), ELSS (Equity Linked Savings Scheme), NSC (National Savings Certificate), etc.
Property Documents: If you own property in India, provide copies of property documents, including sale deed, purchase agreement, rental agreements, property tax receipts, and details of rental income earned.
Capital Gains Statements: If you have sold any assets like stocks, mutual funds, property, etc., provide statements showing capital gains or losses incurred from such transactions.
Interest Certificates: Certificates from banks or financial institutions showing interest earned on savings accounts, fixed deposits, or other financial instruments held in India.
Tax Residency Certificate (TRC): Obtain a Tax Residency Certificate from the UAE tax authorities to claim benefits under the Double Taxation Avoidance Agreement (DTAA) between India and the UAE.
Foreign Income Documents: If you have earned income in the UAE or any other foreign country, provide documents such as salary slips, employment contracts, tax statements and any other relevant documents related to foreign income.
Proof of Tax Paid in the UAE: If you have paid taxes in the UAE on income earned there, provide proof of tax paid, such as tax payment receipts or statements.
Foreign Exchange Declaration Form (FEMA Form 15CA/CB): If applicable, provide Form 15CA/CB as required under the Foreign Exchange Management Act (FEMA) for remittance of funds outside India.

Conclusion

Understanding the taxation regulations and filing requirements for Non-Resident Indians (NRIs) in India is crucial for ensuring compliance with the law and optimising tax liabilities. As NRIs residing in the UAE prepare to file their income tax returns for the financial year 2023-2024, they must gather a comprehensive array of documents, including passports, PAN cards, bank statements, investment proofs, property documents and tax residency certificates.

By meticulously compiling these documents and seeking guidance from tax advisors or chartered accountants, NRIs can navigate the complexities of tax planning, accurately report their income, and fulfil their tax obligations in both India and their country of residence.

Additionally, staying informed about changes in tax laws and leveraging available tax-saving opportunities can contribute to a transparent and compliant tax ecosystem, ultimately fostering financial stability and compliance among NRIs.

In the digital age, financial transactions often rely on cheques, but the uncertainty of whether a cheque will bounce can be a concern. Al Etihad Credit Bureau (AECB) offers an online service to help cheque receivers assess this risk through the Cheque Score system.

Understanding Cheque Score

The Cheque Score service allows individuals and businesses to evaluate the likelihood of a cheque bouncing. This tool is particularly useful for small and medium-sized enterprises that cannot afford the repercussions of delayed or missed payments.

How to Obtain a Cheque Score?

To use the Cheque Score service, follow these steps:

• Download the App: Get the Al Etihad Credit Bureau Cheque Score app from your preferred app store.
• Submit Cheque Details: Scan the cheque, upload an image, or manually enter the cheque data.
• Complete Payment: Finalise the process by making the necessary payment.
•  View & Share Score: The Cheque Score will be displayed, and you can share it as needed.

How does the Cheque Score Work?

A Cheque Score is calculated using a sophisticated algorithm based on predictive analytics and extensive data from AECB’s database. The score, ranging from 1 to 99 per cent, indicates the probability of the cheque bouncing within the next nine months. The score is colour-coded for easy interpretation:

• Green: Low Risk
•  Amber: Medium Risk
•  Red: High Risk

Improving Your Cheque Score

Maintaining a good Cheque Score is essential for financial stability. Here are steps to improve your score:

•  Pay your bills on or before the due date.
•  Avoid bouncing cheques.
•  Reduce outstanding balances and manage credit utilisation.
•  Avoid applying for multiple credit cards or loans simultaneously.

Why Knowing Your Credit Score Matters?

A credit score is a three-digit number reflecting your creditworthiness and impacts your ability to obtain loans or credit cards. Higher scores facilitate easier access to credit, lower interest rates and more favourable loan terms.

In the UAE, AECB generates credit reports that include your credit score. These reports are compiled using data from various financial institutions, telecom operators and service providers, covering aspects such as loans, credit card usage, payment history and bounced cheques.

What Constitutes a Good Credit Score?

Credit scores range from 300 to 900, with scores above 700 considered good. A score below 400 is typically unfavourable and may result in loan or credit card rejections. To apply for your credit score, visit the AECB website or use the AECB app. You can opt for either a comprehensive credit report or just your credit score.

Benefits of the Cheque Score System

The Cheque Score system provides vital insights, helping you decide whether to accept a cheque as a payment method. By receiving notifications about upcoming payments and potential risks, you can make more informed financial decisions.

Using Cheque Score ensures you are better prepared to handle cheques, minimising the risk of bounced payments and improving your overall financial management.

In conclusion, the Cheque Score service by Al Etihad Credit Bureau is a valuable tool for managing cheque-based transactions, offering peace of mind and financial security for individuals and businesses alike.

The UAE is deeply committed to safeguarding the integrity of the global financial system, a responsibility it takes extremely seriously.

Recently, it garnered recognition from an international body dedicated to combating money laundering.

Highlighting this commitment, a UAE official dismissed a recent report alleging that the country has provided sanctuary to some of the world’s most wanted criminals, attributing this claim in part to the secrecy of its real estate sector.

The official emphasised the UAE's significant strides in pursuing global criminals, citing praise from the Financial Action Task Force (FATF) earlier this year for its substantial progress.

Experts in banking and finance hailed the UAE's removal from the FATF's grey list, lauding it as a testament to the country's dedication to combating financial crime and sanctions evasion, which greatly bolsters its financial system.

Regarding a recent data leak reported by the Organised Crime and Corruption Reporting Project, which identified numerous alleged criminals, individuals under sanctions and politically exposed persons who have owned property in the UAE, the official reiterated the government's unwavering commitment to upholding the integrity of the global financial system.

Stressing the UAE's ongoing efforts in combating illicit finance, the official underscored the nation's collaboration with international partners to disrupt and deter all forms of financial misconduct, promising sustained efforts in the present and the future. 

 All UAE banks will gradually replace over 10 million existing debit cards with Jaywan debit cards over the next two and a half years.

Abdulaziz Al Ghurair, chairman of the UAE Banks Federation (UBF), confirmed that the rollout will be completed in stages to ensure a smooth transition.

"Replacing these cards will take time, but banks have committed to launching Jaywan cards and will stop issuing other branded cards, focusing on Jaywan locally," said Al Ghurair during a media briefing.

Andrew McCormack, chief operating officer at Al Etihad Payments (AEP), stated: "We have an aggressive growth plan for Jaywan, to start issuing debit cards in Q2 2024. The Central Bank of the UAE will mandate all banks to issue Jaywan debit cards to their customers."

Jaywan cards will be co-badged with Mastercard or Visa, enabling extensive global use.

"The Jaywan card will have two badges to accommodate the large segment of UAE residents who travel extensively, extending its reach beyond the UAE, GCC, and India with the help of co-badge partners Mastercard and Visa," McCormack explained.

In the future, Jaywan is expected to be accepted at the GCC level and through country-to-country agreements with nations like China and India.

The card was created by Al Etihad Payments (AEP), a subsidiary of the Central Bank of the UAE, to enhance the country's financial market infrastructure.

In October 2023, AEP partnered with NPCI International Payments Limited (NIPL) of India to develop the UAE’s first national Domestic Card Scheme (DCS).

Jaywan, announced during Indian Prime Minister Narendra Modi's visit to the UAE, uses licensed technology from India's payment operator NPCI.

The card will be issued to UAE residents with bank accounts or those banking with exchange houses and will be usable in India once electronic linkages are established.

According to Global Data, the UAE’s cards and payment market was estimated to be nearly $120 billion (Dh440.4 billion) by the end of 2022, with expectations of high single-digit growth in the coming years.

Jaywan's relationship extends into India and GCC countries, enhancing its domestic and international utility without solely relying on Mastercard or Visa systems.

Spanish prosecutors moved to dismiss a tax fraud case against Shakira just months after opening proceedings against the "Hips Don't Lie" singer over unpaid taxes worth $7 million.

"The Barcelona provincial prosecutor's office for financial crimes has requested that the proceedings against Shakira be closed ... for the 2018 tax year," the prosecutors office said in a statement, pointing to "insufficient evidence".

Prosecutors opened the case in July, accusing the Columbian superstar of using a network of companies, some of them based in tax havens, to cheat the tax office out of 6.6 million euros ($7.09 million) in 2018, including interest and adjustments.

A month later, the so-called Queen of Latin Pop paid 6.6 million euros to settle the debt, her agent told AFP. On November 20, Shakira reached a last-minute settlement with prosecutors on the opening day of her trial over an earlier tax fraud case involving income she earned between 2012 and 2014.

Prosecutors had sought a jail sentence of over eight years for the singer whom they accused of defrauding the tax authorities of 14.5 million euros in a case that centred on how much time she was living in Spain.

Shakira denied the charges, saying she only moved to Spain full time in 2015. By the time the case came to trial, she had already paid 17.45 million euros to settle her outstanding tax debt, prosecutors said at the time.

On the day it opened, the trial -- which had been due to run for three weeks and hear from some 120 witnesses -- was quickly concluded after she agreed to pay a fine of nearly 7.8 million euros to settle the case.

At the time she explained she had settled "with the best interest of my kids at heart" because she needed "to move past the stress and emotional toll of the last several years" and focus on her career.

Now 47, Shakira lives in Miami with her two sons after splitting from Barcelona star defender Gerard Pique. He was himself convicted of tax fraud in 2016 and ordered to pay 2.1 million euros in fines and arrears. Spain's Supreme Court in 2021 annulled his conviction.

Last year, Shakira's superstar Argentine producer Bizarrap won the Latin Grammy for song of the year with a track taking a swipe at Pique -- who has since retired from football -- in which she accuses him of leaving her with a "debt to the tax office".

"People on my team tried to convince me to change the lyrics, but I'm not a UN diplomat. I am an artist and, above all, a woman," Shakira told Spanish celebrity magazine ¡Hola!

Spain has in recent years cracked down on celebrities, including football stars such as Argentina's Lionel Messi and Portugal's Cristiano Ronaldo, for unpaid taxes.
Both players were found guilty of evasion and received prison sentences that were waived for first-time offenders.

ICICI Bank announced that it has enabled NRI customers to use their international mobile number to make UPI payments instantly in India, thereby significantly enhancing their convenience of making everyday payments.

With this facility, the NRI customers of the bank can make payments for their utility bills, merchant and e-commerce transactions with their international mobile number registered with their NRE/NRO bank account held with ICICI Bank in India.

The Bank has made this service available through its mobile banking app, iMobile Pay. Earlier, NRIs had to register an Indian mobile number with their banks to make UPI payments.

To bring forth this facility, ICICI Bank has leveraged on the international infrastructure laid down by National Payments Corporation of India (NPCI) for convenient usage of UPI across countries.

The bank offers this facility across 10 countries namely USA, UK, UAE, Canada, Singapore, Australia, Hong Kong, Oman, Qatar and Saudi Arabia.

NRI customers of the Bank can make UPI payments by scanning any Indian QR code, sending money to a UPI ID or any Indian mobile number or Indian bank account.

Speaking on the initiative, Sidharatha Mishra, Head – Digital Channels and Partnerships, ICICI Bank said: “We are delighted to partner with NPCI to launch the UPI facility on international mobile number through iMobile Pay.

With this facility, our NRI customers residing in 10 countries do not need to switch to an Indian mobile number to pay using UPI.

This launch reinforces our commitment to provide our NRI customers with innovative solutions, for them to have a safe, secure and hassle-free payment experience.

We are witnessing a positive response from our NRI customers who have started using this facility. With this initiative, we intend to leverage on NPCI’s UPI Infrastructure in strengthening and transforming the digital payments ecosystem globally”.

Below are easy steps to activate UPI facility on international mobile number using iMobile Pay:

Step 1: Log in to iMobile Pay app
Step 2: Click on ‘UPI Payments’
Step 3: Verify Mobile Number
Step 4: Click on Manage –> My Profile
Step 5: Create new UPI ID (select from the suggested options)
Step 6: Select the Account Number -> Submit

Dubai takes centre stage once again as it prepares to host the second edition of the Dubai FinTech Summit on May 6-7 at Madinat Jumeirah.

Under the esteemed patronage of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE, and President of DIFC, the summit promises to be a dynamic gathering of industry leaders, innovators and investors.

Abu Dhabi Investment Office (ADIO), in collaboration with the UAE’s General Civil Aviation Authority (GCAA) and Abu Dhabi Mobility (AD Mobility), an affiliate of the Department of Municipalities and Transport – Abu Dhabi (DMT), has unveiled the inaugural vertiport for vertical take-off and landing aircraft (eVTOLs) in the United Arab Emirates.

The unveiling took place at DRIFTx, an international event showcasing smart, autonomous and sustainable urban mobility across air, land and sea.

Constructed in accordance with the latest industry standards and regulations set by the UAE’s General Civil Aviation Authority (GCAA), the temporary vertiport facility offers a preview of Abu Dhabi’s ambitious vision to lead the world in advanced electric vertical take-off and landing aircraft (eVTOLs) by 2026.

AD Mobility will oversee the regulation of this cutting-edge air mobility sector in Abu Dhabi in collaboration with the UAE’s GCAA.

Saif Mohammed Al Suwaidi, director-general of the General Civil Aviation Authority, emphasised the significance of collaboration in fostering innovation while ensuring safety and regulatory compliance within the dynamic field of advanced air mobility.

He highlighted events like DRIFTx as essential catalysts for advancing the development of this sector in Abu Dhabi and the wider UAE.

The establishment of the world's first national regulation on vertiports by the UAE's GCAA last year laid a solid foundation for advanced air mobility in the country, guaranteeing the presence of secure and suitable infrastructure to accommodate eVTOL aircraft.

This comprehensive regulation encompasses design, operations and certification standards for vertiports on both land and sea, reflecting a commitment to innovation while prioritising safety and regulatory adherence in aviation.

Abdulla Al Marzouqi, director-general of Abu Dhabi Mobility (AD Mobility), revealed plans for vertiport installations in strategic locations across Abu Dhabi, including major business centres and tourist destinations.

Once operational, the vertiport network will serve as a vital component of Abu Dhabi’s SAVI cluster, centred in Masdar City, offering advanced facilities and support services within a regulatory framework conducive to the development of innovative technologies across various mobility sectors.

Badr Al-Olama, director-general of ADIO, emphasised the transformative impact of Abu Dhabi's vertiport network on transportation innovation and the future of mobility.

The partnership between ADIO and AD Mobility will play a central role in establishing robust infrastructure to integrate smart and autonomous vehicles into daily life, driving progress towards a more connected and efficient future while unlocking significant commercial opportunities and fostering economic development alongside technological advancement.

The UAE is emerging as a leading destination for crypto growth, attracting institutional investors and financial giants.  Crypto giants like Crypto.com, Coinbase, Paxos, Laser Digital, and Circle have established a presence in the country.

Indian expatriates and visitors in the UAE now have the convenience of making payments using the PhonePe App, thanks to the expansion of the company’s Unified Payments Interface (UPI) in the region through a collaboration with Dubai-based Mashreq Bank.

Transactions can be seamlessly executed at Mashreq’s NEOPAY Terminals, which are widely available across retail stores, dining outlets, tourist spots, and leisure attractions.

Here’s How You Can Activate PhonePe International:

• Open the PhonePe app and tap on your profile picture.
• Select "UPI International" under the "Payment Settings" section.
• Tap "Activate" next to the bank account you intend to use for international UPI payments.
• Enter your UPI PIN to complete the activation process.
• To pay with the PhonePe App in UAE:
• Scan the QR code on the PhonePe app for payment at any Neopay terminal.
• The account debit will be processed in Indian rupees.
• Indian Expatriates in UAE Can Follow Tthese Steps to Utilise PhonePe for Payments:
• Download the PhonePe app on their mobile devices.
• Link their existing NRE and NRO accounts to facilitate payments via the app at Neopay terminals.

The Securities and Commodities Authority (SCA) in the UAE has issued a cautionary alert to investors regarding an unlicensed entity allegedly posing as the reputable UAE-based global brokerage firm, Equiti.

According to media reports, investors, including notable personalities such as Dubai celebrity Lojain Omran, have been ensnared by this fraudulent scheme.

In its advisory released on March 27, the SCA clarified that MRL Investments, operating through the website equiity.com, lacks the necessary licence from the authority and bears no affiliation with Equiti Securities Currencies Brokers LLC (ESCB LLC), which operates under the licensed brand name 'Equiti'.

The SCA underscored that Equiity has no association whatsoever with Equiti, which is authorised by the SCA to conduct trading activities involving derivative contracts and currencies.

Equiti, a reputable global fintech group, recognised even to the extent of having a Dubai metro station named after it, affirmed that it promptly notified the SCA upon uncovering the deceitful activities of Equiity, MRL Investments and a third-party call centre in Sharjah.

Equiti disclosed that entities adopting the deceptive trade name 'EQUIITY' lure deposits via telephone, Equiity.com, or the Equiity app.

According to Equiti, victims reported being contacted by a call centre situated in Sharjah. The company stated in a media report that the Sharjah entity falsely claimed affiliation with Equiti, citing the company's SCA licence and its connection with the Dubai metro station, despite the absence of the licence number on their own website.

Exploiting Equiti's credibility, the scammers persuaded victims to deposit funds through websites or apps associated with the fraudulent scheme.

Equiti has reportedly been collaborating closely with regulatory bodies such as the UAE's SCA and Mauritius' FSC to probe these incidents and uphold the industry's integrity. Additionally, the company is pursuing legal and law enforcement measures against these fraudulent actors and impostors.

American Express is facing a proposed class action lawsuit in Rhode Island federal court, which alleges that the company has overcharged several US merchants for credit and debit card fees on consumer transactions.

Filed by 10 retail plaintiffs, including a delicatessen, fine clothier, florist and furniture store, the lawsuit seeks a court order to halt American Express policies that allegedly violate US antitrust laws.

According to the lawsuit, American Express employs "non-discrimination provisions" to prevent merchants from encouraging customers to use payment cards with lower transaction fees, thereby limiting competition. American

Express and the plaintiffs' attorneys have not yet commented on the lawsuit. The merchants' allegations echo similar claims made against Visa and Mastercard regarding swipe fees in a coordinated legal proceeding in Brooklyn federal court.

While Visa and Mastercard abandoned their rules prohibiting merchants from steering customers towards lower-cost payment methods by the end of 2013, American Express's policies allegedly persist.

The lawsuit asserts that American Express's rules exclusively prohibit US merchants from utilising discounts, surcharges, verbal prompting, signage and other techniques to incentivise customers to use cheaper payment cards.

Furthermore, the presence of binding arbitration clauses between American Express and merchants has reportedly impeded efforts to address the plaintiffs' claims.

Initially, the 5,155 merchants involved in the lawsuit pursued individual claims through arbitration. However, American Express declined to cover a $16 million arbitration invoice, resulting in the cases being administratively closed.

The merchants argue that American Express's default in the arbitration proceedings precludes it from preventing them from pursuing their claims in US court.

According to the lawsuit, credit card swipe fees significantly diminish the earnings of many small business owners, consuming approximately half of their monthly profits.

The United Arab Emirates (UAE) is renowned for its progressive policies and business-friendly environment. To streamline operations within the country, the UAE government has implemented the Tax Registration Number (TRN) system.

This system provides a unique identification number for businesses and individuals in the UAE, specifically for tax-related matters. Whether you're a resident, a business owner, or a visitor, understanding how to obtain a TRN number in the UAE. 

This article simplifies everything, from explaining recent updates and implications to helping you apply for a TRN. Let's start clearing up any questions you may have about TRNs in the UAE.

Understanding TRN in the UAE

The Tax Registration Number (TRN) is a distinctive 15-digit identifier designated for businesses and individuals in the UAE for taxation purposes.

It is essential for various financial and business transactions, including Value Added Tax (VAT) processing and tax return filings. TRN is a fundamental requirement for businesses operating in the UAE.

Changes in the TRN Number System

The new TRN system brings about several notable changes to simplify tax-related procedures and increase transparency. The key changes include:

Unified System: The new TRN system aims to unify tax registration across all Emirates, replacing the previous separate registration processes for each Emirate.
Format: TRN numbers under the new system are structured differently, with a unique identification code assigned to each entity or individual taxpayer.
Centralisation: The new system centralises tax registration and management, allowing for easier access to taxpayer information and facilitating more efficient tax administration.

Implications of the New TRN System

The introduction of the new TRN system carries several implications for businesses and individuals in the UAE:

Compliance Requirements: Entities and individuals must ensure timely registration under the new TRN system to remain compliant with UAE tax regulations.
Data Accuracy: Accuracy in providing information during the TRN registration process is crucial to avoid discrepancies and potential penalties.
Integration with Tax Processes: The new system is expected to integrate with various tax processes, including filing returns and payment of taxes, leading to smoother operations and reduced administrative burdens.

Eligibility for TRN in the UAE

The UAE's Federal Tax Authority (FTA) has set a revenue threshold of Dh375,000. If your revenue falls below this threshold, you are not obligated to register for VAT and obtain a TRN.

Documents Required for TRN

To obtain a TRN in the UAE, specific documents need to be submitted. These typically include legal identification documents, trade licences and other relevant business paperwork. Requirements may vary based on your business activities. 

• Steps to Apply for a TRN Number in UAE
• Visit https://eservices.tax.gov.ae and select the Sign-up option.
• Fill out the sign-up form for the TRN number.
• Verify your registered email address via the auto-email sent.
• Log in to your e-service account.
• Click on Register for VAT in your dashboard and proceed through the Getting Started Guide.
• Complete the online form comprising 8 sections, ensuring to provide accurate details.
• Review and apply for approval.

Application Processing Time

It takes approximately 20 business days from the date the completed application was received by the FTA. However, if additional information is needed, the FTA may require more time to process the application.

In such cases, applicants must provide the necessary additional information and resubmit the application.

Verifying Your TRN Number

Verifying your TRN number is crucial to ensure its accuracy and legitimacy. This can be easily done through official UAE government websites or by contacting the Federal Tax Authority (FTA). Verifying your TRN helps prevent issues stemming from incorrect or invalid numbers.

Next Steps After Receiving TRN for Your Company

Upon receiving your Tax Registration Number (TRN) in the UAE, it's crucial to streamline your VAT compliance by:

Updating Tax Invoices: Ensure your invoices comply with FTA's format, including the TRN and other mandatory details.
Updating Records: Incorporate relevant VAT modules into your records to accurately document transactions.
Maintaining Accurate Bookkeeping: Keep meticulous financial records for tax filing and potential VAT refund claims

Checking TRN Number Validity

TRN numbers are subject to validity periods and may require renewal. Regularly checking the validity of your TRN is essential to avoid disruptions in business operations. Promptly renew your TRN if it has expired.

Linking Tax Registration Number with Customs Registration Number (TRN - CRN Linkage):

The UAE Ministry of Finance (MoF) announced the commencement of a digital public consultation aimed at gathering feedback from relevant stakeholders regarding the implementation of the Global Minimum Tax (GMT) or Global Anti-Base Erosion Model Rules (Pillar Two) (GloBE Rules), as well as other tax-related matters in the UAE.

The consultation period will run from March 15, 2024 to April 10, 2024, and interested parties can participate through the ministry’s website or the UAE Government Portal.

This digital public consultation underscores the ministry's commitment to engaging with all stakeholders, including multinational groups operating within the UAE, advisors, service providers, and investors.

The consultation process comprises two main components. Firstly, stakeholders will be invited to provide input on potential policy design options for the implementation of the GloBE Rules in the UAE, with a focus on the development of a domestic minimum tax.

The Organisation for Economic Co-operation and Development (OECD) has released the GloBE Model Rules, serving as a template for jurisdictions interested in adopting qualified rules.

A judge at London’s High Court ruled on Thursday that Craig Wright, an Australian computer scientist who asserts he created bitcoin, is not “Satoshi Nakamoto,” the pseudonymous inventor of the cryptocurrency.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, has issued Law No. (1) of 2024 concerning the taxation of foreign banks operating in Dubai.

The law applies to all foreign banks operating in Dubai, including those within special development zones and free zones, except for foreign banks licensed to operate in the Dubai International Financial Centre (DIFC).

Under the new legislation, foreign banks are liable to a 20 per cent tax on their annual taxable income. However, if these banks already pay corporate tax in accordance with Federal Law No. (47) of 2022 on the Taxation of Corporations and Businesses and its subsequent amendments, the corporate tax amount will be deducted from their overall tax liability.

The law delineates the principles guiding the calculation of taxable income, tax filing and payment procedures, protocols for tax filing audits, voluntary disclosures as well as the responsibilities and procedures associated with tax audits.

Moreover, the law elucidates the rights of foreign banks and their branches authorised by the Central Bank of the UAE. It establishes the protocol for communicating the outcomes of tax audits and permits the taxable entity to raise objections with Dubai’s Department of Finance regarding the tax amount or fines imposed on them, subject to certain conditions as stipulated in the law.

According to the law, the Chairman of The Executive Council of Dubai will issue a decision on actions considered violations of this law and the penalties imposed for such violations. The cumulative penalties levied must not exceed Dh500,000, and for repeat violations within two years, the fine will be doubled up to a maximum of Dh1 million.
The new law will be applicable to the tax year commencing after its enactment. The Director-General of the Department of Finance will also issue the requisite decisions to execute the provisions of this law, which will be promulgated in the Official Gazette.

Moreover, this new legislation revokes Regulation No. (2) of 1996 or any other conflicting regulations. Decisions and memoranda issued to execute Regulation No. (2) of 1996 will remain valid until new decisions are issued to replace it.

Law No. (1) of 2024 on the taxation of foreign banks operating in Dubai becomes effective from the date of its publication in the Official Gazette.

Following licensing by the Central Bank of Oman and the Capital Market Authority, the Sultanate of Oman has launched the government-owned Oman Investment Bank SAOC as the country’s first dedicated corporate investment bank.

Headquartered at Dana House in Muscat’s Al Khuwair district, Oman Investment Bank was established to support the strategic goals and ambitions of the Sultanate of Oman and wholesale corporate and investor clients regionally and across Oman Investment Bank’s target markets.

The bank will provide a spectrum of financial services, spanning from corporate finance advisory to the enhancement of domestic and regional securities markets.

In the lead-up to the bank’s launch, His Excellency Abdulsalam bin Mohammed Al Murshidi, Chairman of Oman Investment Bank, said that the bank is now poised to play a vital role in supporting the Omani Government’s implementation of the Oman Vision 2040 strategy, which prioritises the development of a more agile, diversified, sustainable, and competitive economy.

He added that with the launch of the bank, the Sultanate now possesses most of the tools required to encourage investment in projects being developed in Oman.

The launch of Oman Investment Bank follows the establishment of Oman Future Fund, which was launched earlier this year.
With a vision to grow over the coming years, the bank’s focus will include the provision of a full suite of strategic advisory and capital markets products to listed and unlisted corporates in Oman, in the broader GCC region, and internationally.

Key business sectors will include Energy & Power, Industrials & Minerals, Consumer & Agriculture, Financial & Asset Management, and Real Estate, Infrastructure & Technology/Media/Telecommunications and any other strategic sectors targeted by the Sultanate.

Major changes await the UAE's financial landscape as the new Bankruptcy Law is slated to become effective on May 1, 2024. Published in the Official Gazette six months ago, this law grants businesses and individuals operating in the UAE a transition period to align with the changes and ensure compliance.

While replacing the Prior Law, it introduces enhancements aimed at bolstering the nation's bankruptcy framework and fostering a dynamic economic environment.

Key Features of the New Bankruptcy Law

UAE-based Emirates Telecommunications Group Company (e&) has announced its commitment to invest $6 billion between 2024 and 2025 across 16 countries to enhance connectivity.

The investment aims to bolster technological advancements, infrastructure development and innovative digital solutions, with the goal of extending meaningful connectivity to all residents.

The pledge was made during the Mobile World Congress at the International Telecommunication Union’s (ITU) Partner2Connect Digital Coalition, as disclosed on the Abu Dhabi Securities Exchange (ADX) on Friday.

The investment is part of the group's business plan and is intended to provide accessible and affordable network connectivity and digital services across its operational countries in Africa, Asia, and the Middle East.

Notably, the Mobile World Congress, held in Barcelona, Spain from February 26 to 29, witnessed the mobile industry committing over $9 billion to support ITU's global connectivity efforts.

This latest commitment adds to the total value of planned investments in infrastructure, services, and ITU's campaign support, surpassing $46 billion since the platform's inception in March 2022.

The UAE government has introduced a new Dh10,000 fine for late registration for corporate tax, effective March 1.

Expatriates in the UAE are poised to face a significant financial setback following the recent decision of the Foreign Exchange and Remittance Group (FERG) to implement a 15 per cent increase in remittance fees. This decision underscores the challenges expatriates encounter as they strive to support their families back home amidst economic uncertainties and policy changes.

The recent fee hike, approved by FERG and equating to Dh2.5, marks the first adjustment in five years and reflects the evolving regulatory landscape and associated cost increases. While the fee increase primarily affects remittance services provided through physical branches, it is anticipated that fees for mobile app transactions may remain unchanged or even reduced to maintain digital competitiveness.

“This move ensures that exchange houses can sustain the delivery of high-quality services while addressing the changing regulatory requirements and associated operational costs, all of which were maintained without fee increases for the past five years,” said Mohammad A. Al Ansari, chairman of FERG.

The UAE is one of the world’s largest remittance markets, with most of the remittances flowing to India, Egypt, Pakistan, Bangladesh, the Philippines and other Asian and Middle Eastern countries. The UAE also has one of the highest populations of foreign workers, accounting for nearly 85 per cent of the UAE’s population.

FERG said this is the exchange houses' first fee adjustment in five years to meet related cost increases since the previous update. Expatriates, often serving as the primary breadwinners for their families back home, now face the daunting task of balancing their financial needs with fulfilling their obligations to send money abroad. This fee hike exacerbates their financial burden, posing significant challenges to their ability to support their loved ones.

The granted approval follows a detailed evaluation of the expenses associated with maintaining high levels of service standards and complying with regulatory requirements. This decision aims to strike a balance, ensuring that exchange houses remain competitive while addressing the increased costs.

Despite the approved adjustment, it is anticipated that the average remittance cost of sending $200 equivalent will remain at less than 3.5 per cent, significantly below the global average which stood at 6.2 per cent during 2023 according to the World Bank’s Remittance Prices Worldwide database.

The revised pricing remains well within the United Nation’s Sustainable Developmental Goals which aims to eliminate remittance corridors with costs higher than five per cent by 2030.
Mohammad A. Al Ansari, Chairman of FERG, said: "I commend this decision to allow exchange houses a fee adjustment, highlighting the significance of adapting to the industry's changing dynamics. This move ensures that exchange houses can sustain the delivery of high-quality services while addressing the changing regulatory requirements and associated operational costs, all of which were maintained without fee increases for the past five years."

The United Arab Emirates dominated regional green bond league tables, with sales reaching US$10.7 billion, up nearly 170 per cent and accounting for approximately 45 per cent of regional totals.

Data from Bloomberg’s Capital Markets League Tables has revealed that in 2023, annual issuances of green social, sustainable, and sustainability-linked bonds (GSSB) in the Middle East and North Africa (MENA) hit a new record of US$24 billion, an increase of 155 per cent.

This increase was driven primarily by growth in the UAE and Saudi Arabia, which accounted for 77 per cent of total regional issuances.

The year in which the UAE hosted the 28th United Nations Climate Change Conference (COP28) was notable for the large number of debut sustainable debt issuances from the country’s corporates and government entities, which amounted to US$7.95 billion in total.

The 11 debut green issuers included bonds or sukuk from DP World sukuk (US$1.5 billion), Sharjah government (US$1 billion), TAQA (US$1 billion), Emirates NBD (US$750 million), Masdar (US$750 million), Mubadala (US$750 million), Aldar sukuk (US$500 million), Commercial Bank of Dubai (US$500 million) and, Five Holdings (US$350 million), in addition to green Sukuk from Dubai Islamic Bank (US$750 million) and Abu Dhabi Islamic Bank (US$500 million).

Meanwhile, Saudi Arabia accounted for 32 per cent of total regional volumes, up 69 per cent year-on-year.

Saudi Arabia’s Public Investment Fund was the region’s largest issuer in 2023, driven by issuances of US$5.5 billion in February 2023.

Other notable Saudi issuers Bloomberg highlighted were Saudi National Bank (US$60.69 million), Saudi Electricity Company (US$1.2 billion) and Al Rajhi Bank (US$1 billion).

2023 was dubbed a “milestone year” for green Sukuk, with Islamic issuances accounting for more than a quarter of MENA totals for the first time.

Green Sukuks totalling approximately US$6.5 billion were issued in the MENA region in 2023. This represents more than half of all global green Sukuk, with notable sales by ADIB (US$500 million), DP World (US$1.5 Billion), First Abu Dhabi Bank (approximately US$350 million), Majid Al Futtaim (US$500 million), and Aldar (US$500 million).

Sukuk is an Islamic financial instrument that represents ownership in a tangible asset or a business venture. It operates on the principles of Islamic finance, where traditional interest-based transactions are prohibited. Sukuk holders receive a share of the profits generated by the underlying asset.

Green finance refers to financial instruments or investments that support environmentally sustainable projects. Green sukuk, in this context, would be Islamic bonds specifically issued to finance projects with environmental benefits. These projects could include renewable energy initiatives, energy efficiency projects, or other environmentally friendly ventures.

In recent years, there has been a growing interest in integrating Islamic finance principles with sustainable and ethical considerations. Green sukuk is one such example where the principles of Islamic finance are applied to fund projects that align with environmental sustainability.

In the bustling landscape of business ventures in the United Arab Emirates (UAE), the importance of establishing a corporate bank account has become an indispensable step for entrepreneurs. As the UAE continues to attract a huge influx of foreign investments, the need for a dedicated corporate account for financial transactions has taken center stage.

Before moving on with opening a bank account, it is necessary to fulfill all legal prerequisites like business licenses and registration documents.

1: Gather the Essential Documents

Arrange the requisite documentation necessary for the bank account opening process. These documents typically include:

• Company trade license
• Certificate of registration
• Share certificates
• Company memorandum and articles of association
• Approval to open a bank account
• Shareholders' passport and visa copies
• Stockholders' six-month bank statements.

 2: Choosing the Bank

Choose a bank that aligns with your business needs and objectives. Consider factors such as services offered, fees, reputation, and proximity to your business location.

3: Submit the Application

Visit the chosen bank's branch or initiate the application process online. Submit all required documents and forms as per the bank's specific requirements.

4: Verification and Review Process

Upon submission, the bank will commence the verification and review process. This stage involves meticulous scrutiny of the submitted documents and details to ensure compliance with regulatory standards and internal bank policies.

5: Account Approval

Once the verification is complete, the bank will proceed with the approval of your corporate bank account. This approval signifies the readiness to start using the account for financial transactions.

6: Activation and Verification

Upon receiving the approval, visit the bank to activate the account. Receive necessary account information, such as account numbers and online banking access, enabling you to start conducting financial operations seamlessly.

Opening a bank account in the UAE is essential for businesses to thrive in the commercial landscape. By meticulously following these steps and fulfilling the documentation requirements, entrepreneurs can navigate the process effectively, setting a strong financial foundation for their ventures in the UAE's business sphere.

In the UAE, with the growing practise of unauthorised lending of money to individuals and institutions on an interest basis, the Government has introduced stringent measures aimed at curbing such activities. 

The recent Federal Decree-Law No. 31 of 2021, On the Issuance of the Crimes and Penalties Law under Article 458 and Article 459, underline the consequences of non-compliance.

The law mandates that only licensed banks and financial institutions regulated by the Central Bank of UAE are authorised to lend money to individuals or entities on an interest-based repayment option. A person, independently or on behalf of an institution, is prohibited from providing financial assistance to others, any such unauthorised lending or borrowing, particularly involving interest, is now deemed illegal and subject to severe penalty if not adhered to the financial protocols and regulations.

This is following the Issuance of the Crimes and Penalties Law under Article 458 and Article 459 which states as follows:

According to Article 458 of the UAE Criminal Law, “Any person who lends another physical person a loan for an interest rate in return for late payments, and that is in any type of civil and commercial transactions, and whether said interest is explicit or implicit, shall be liable to a jail sentence for a period not less than one year and a fine not less than Dh50,000.”

Article 459 of the UAE Criminal Law states that: “Any physical person who is habitually engaged in practising interest lending shall be sentenced to temporary imprisonment for a period not exceeding five 5 years and a fine not less than Dh100,000.”

The Government, on enforcement of these regulations, have a zero-tolerance approach towards lending practices on an interest basis, and the law emphasises not only those providing loans but also the borrowers, stating joint accountability and the shared responsibility of both parties involved in such transactions.

However, the law states an exception where the parties engaging in such activities can lend money within legal boundaries with a written contract that explicitly states the collection of interest. This clause allows for a degree of flexibility while maintaining compliance with the law.

Therefore, the prevalence of unauthorised lending in the UAE has prompted strict measures, underlining the Government's commitment to ensuring financial stability and legality within the nation and aims to deter unlawful lending practices but also to foster a culture of financial transparency and responsibility among both lenders and borrowers.

The Federal Tax Authority (FTA) of the UAE has released a directive regarding accounting standards and their interaction with corporate income tax.

According to the directive, the only accounting standards recognized in the UAE for corporate income tax considerations are the International Financial Reporting Standards and the International Financial Reporting Standard tailored for small and medium-sized entities.

It outlines that the cost method of accounting will be determined as per the definition provided in the International Financial Reporting Standards or an alternative method equivalent to the accounting standards used by the taxable individual.

 Additionally, the guide specifies that the equity method of accounting will be determined based on the definition found in the International Financial Reporting Standards or an alternative method equivalent to the accounting standards applied by the taxable individual.

Each taxable individual's taxable income will be independently ascertained using appropriately compiled, unconsolidated financial statements designed for financial reporting in accordance with the recognized accounting standards for corporate income tax purposes in the UAE.

Taxable individuals are mandated to employ the International Financial Reporting Standards as the sanctioned accounting standards in the UAE for corporate income tax purposes.

However, taxable individuals are eligible to utilize the International Financial Reporting Standard for small and medium-sized entities only if their revenue is below 50 million AED in a given tax period. Failure to meet this revenue criterion compels them to adopt the International Financial Reporting Standard.

Those exempted from Corporate Income Tax Law can choose alternative accounting standards. However, in the case of an exempted entity, particularly a government entity, government-controlled entity, extractive business, or non-extractive natural resource business, that holds business activities treated as separate taxable entities under the Corporate Income Tax Law, International Financial Reporting Standards or the International Financial Reporting Standard for small and medium-sized entities must be used for arranging financial statements for that taxable activity.

Furthermore, auditors are required for private pension or social security funds that have applied to the Authority and been granted an exemption from corporate income tax.

Cryptocurrencies have emerged as a game changer in the financial sector, raising questions about their regulation and impact on the GCC's economic landscape. While cryptocurrency gains popularity among celebrities and the general public, the recent FTX collapse and Binance's downturn have left people worldwide surprised.

However, cryptocurrencies like Bitcoin and Ethereum have gained global attention, governments and financial authorities in the GCC have been working diligently to establish a regulatory framework that addresses the risks associated with it. 

Blockchain technology is revolutionising several industries throughout the world, including banking and supply chain management, by providing creative solutions. Blockchain technology has been embraced by the government of the United Arab Emirates (UAE) proactively. 

 Regulatory Structure

1. National Blockchain Strategy: In 2018, the UAE government unveiled its National Blockchain Strategy to establish the nation as a leader in the use of blockchain technology. The three main pillars of the approach are industry creation, international leadership, and government efficiency.

2. Authorities in Charge: In the UAE, the Securities and Commodities Authority (SCA), the Dubai International Financial Centre (DIFC) Authority, and the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority are the main authorities in charge of overseeing blockchain technology regulations. Depending on the industry, these organizations are essential for monitoring and controlling blockchain-related activity.

Utilization Instance

1. Cryptocurrencies: Although they are not officially accepted as legal cash in the UAE, users are nevertheless allowed to utilize cryptocurrencies such as Bitcoin. Since there isn't yet a formal regulatory framework in place, it's imperative to exercise caution while engaging in cryptocurrency-related activities.

2. Smart Contracts: In the UAE, smart contracts-self-executing agreements with the terms of the contract encoded straight into code have become more popular. They give businesses a safe and effective means of carrying out contracts since they are legally recognized and enforced.

3. Supply Chain Management: Supply chains are becoming more transparent and traceable thanks to the application of blockchain technology. This technology is especially significant in the UAE because of its strategic location as a global commerce hub, and there are several projects underway to apply blockchain in this domain.

4. Real estate: To decrease fraud risk and improve procedures, the Dubai Land Department has been actively investigating the use of blockchain in real estate transactions.

Government Assistance

Blockchain spurs economic growth and innovation, it has the active backing of the UAE government. Here are a few initiatives by the UAE authority to enhance the blockchain revolution:

• The goal of the 2016-launched Dubai Blockchain Strategy is to use blockchain technology to establish a paperless government by 2021. Its goals include decreasing fraud, improving security, and revolutionizing government services.

• Trade financing activities might be made easier for firms by using a blockchain-based platform, which is being investigated by the central bank of the United Arab Emirates.

• Blockchain firms and Hubs: Through specialized incubators and accelerators, the UAE has promoted the expansion of blockchain firms. Particularly in Dubai, blockchain innovation has taken off.

Despite the UAE's significant support for blockchain, there are still issues to take into account, like:

1. Regulatory Clarity: The regulatory environment is still developing, and more information is required in many areas, particularly with cryptocurrencies and initial coin offerings (ICOs).

2. Security and Privacy: Blockchain is not impervious to security and privacy issues, just like any other digital technology. It is imperative to guarantee the security and adherence to data protection rules of blockchain systems.

3. Awareness: To assist people and organizations in comprehending blockchain technology's potential and best practices, ongoing education and awareness campaigns are necessary for its widespread adoption.

The UAE's attitude to blockchain technology is characterised by its embrace of digital transformation and dedication to innovation. It is well-positioned to carry on with its blockchain revolution, reaffirming its position as a progressive worldwide centre for blockchain adoption and development with a well-defined plan and an accommodating administration. Stakeholders must be aware of and abide by the legal implications of blockchain technology in the UAE as the regulatory landscape changes.

Starting from 1 June 2023, the Federal Tax Authority (FTA) in the UAE will commence the implementation of Cabinet Decision No. (7) of 2023. This decision introduces amendments to certain provisions of Cabinet Decision No. (65) of 2020, which pertains to fees for services provided by the FTA.

One notable addition to this new decision is the establishment of fees for requesting a 'private clarification' on one or multiple taxes. The FTA issues a private clarification document that addresses technical tax issues pertaining to a single taxpayer. To avail of this service, the taxpayer must complete a specific form accessible on the FTA's official website, along with submitting the required supporting documents.

According to a recent ruling, the applicant may be entitled to a refund of the application expenses paid if the FTA is unable to give the sought private clarification. The FTA has made it clear that taxpayers can ask for two different kinds of services: either by submitting a "private clarification" request for a single tax or a "private clarification" request for a number of taxes. By enrolling, submitting the required documentation, and paying the fees specified in Cabinet Decision No. (65) of 2020 and its future changes, users can access these services through the FTA's website.

The First Abu Dhabi Bank has unveiled its groundbreaking electronic payment platform, 'Access,' aimed at streamlining transactions for everyone. This innovative approach is designed to cater to the diverse needs of enterprises, including small, medium, and micro businesses. Followed by e-commerce platforms, propelling their journey toward sustainable transformation.

The 'Access' portal stands out as the latest cutting-edge electronic payment solution, tailored to serve a wide range of enterprises. From e-commerce website owners to social media merchants, this platform empowers them to seamlessly accept online payments, effortlessly manage transactions, and ensure secure payments.

Moreover, it offers invaluable website tools, payment link services, and user-friendly solutions to effortlessly establish professional online stores.

This launch aligns with First Abu Dhabi Bank Egypt's strategy to bolster businesses across all sectors, fostering competitiveness and enabling sustainable growth through digital economy adoption.

Renowned for being the region's safest bank and leveraging its extensive expertise, the bank offers versatile solutions tailored to diverse business requirements. Notably, the new portal prioritizes security standards, incorporating 3D protection for all financial transactions. This commitment underscores their unwavering support for Egypt's digital transformation and financial inclusion initiatives.

The 'Access' portal epitomizes First Abu Dhabi Bank's dedication to empowering various segments of Egyptian society, particularly the youth. Additionally, it contributes to the nation's pursuit of digital transformation and financial inclusion, two fundamental pillars of the bank's sustainability strategy. The platform ensures that all social groups have seamless access to financial services and electronic payment solutions by offering simple processes and upholding safety requirements.

Cheque bounce cases can be complex and contentious legal matters that require the expertise of an experienced lawyer. Dubai is known for its thriving business environment, commercial transactions frequently involve the use of cheques. However, when a cheque is bounced due to insufficient funds or any other reason, it can lead to legal disputes.

A cheque bounce occurs when a cheque issued by an individual or business entity is not honored by the bank due to insufficient funds, a closed account, or other reasons. In Dubai, the UAE Penal Code criminalizes issuing a dishonored cheque, making it a serious offense. The consequences can include fines, imprisonment, and damage to one's reputation.

The Role of Lawyers:

Cheque bounce cases in Dubai can have significant legal and financial implications for individuals and businesses. Engaging the services of a knowledgeable and experienced lawyer specializing in these cases is crucial to protect one's rights and navigating the legal complexities effectively. Herein we will discuss how lawyers can help in cheque bounce cases.

Legal Advice and Guidance: Lawyers specializing in cheque bounce cases provide essential legal advice and guidance. They help individuals and businesses understand their rights, obligations, and legal options when faced with a cheque bounce situation. Lawyers analyze the circumstances, evaluate the available evidence, and provide legal advice for the potential outcomes.

Negotiation and Settlement: One of the primary roles of lawyers is to negotiate on behalf of their clients to reach a favorable settlement. Lawyers engage in discussions with the parties involved. They aim to resolve the matter without resorting to lengthy court proceedings. Skilled negotiators can often secure a mutually acceptable agreement that satisfies all parties involved, minimizing financial losses and preserving business relationships.

Legal Representation in Court: Lawyers play a critical role in representing their clients in court when negotiation fails. They prepare and present legal arguments, gather evidence, and ensure compliance with all relevant legal procedures. Top cheque bounce lawyers are well-versed in legal intricacies. They help clients navigate complex court processes with confidence.

Knowledge of UAE Laws and Procedures: Lawyers specializing in cheque bounce cases have in-depth knowledge of UAE laws and legal procedures. They stay updated with legislative changes and are familiar with the relevant court precedents. This expertise enables them to build legal strategies, ensuring the best possible outcome for their clients.

Protection of Rights and Interests: Lawyers act as loyal advocates for their client’s rights and interests throughout the legal proceedings. They ensure that due process is followed, preventing violations of their client’s legal rights. Lawyers also safeguard their clients' interests by pursuing claims for financial compensation and damages from cheque bounce cases.

Cheque bounce lawyers in Dubai play a multifaceted role, providing legal advice, negotiating settlements, representing clients in court, and safeguarding their interests. Their expertise ensures that clients receive fair treatment under the law and increases the likelihood of achieving a favorable resolution in cheque bounce cases in Dubai.

Dubai takes the case of bounced cheques seriously, and the consequences can be severe.

In Dubai, as in many other jurisdictions, issuing a bounced cheque is considered a serious offense, and the consequences of such an act can be severe, both legally and financially.

Legal Consequences:

Criminal Offense: Issuing a bounced cheque in Dubai is a criminal offense under UAE Federal Law No. 18 of 1993. The law holds individuals responsible for honoring their financial obligations. The cheque is returned due to insufficient funds or a closed account.

Penalty: The punishment for issuing a bounced cheque in Dubai can range from fines to imprisonment. The severity of the penalty depends on the amount stated on the cheque. For amounts below AED 200,000. The offense is considered a misdemeanor, punishable by imprisonment for up to one year or a fine. However, for amounts exceeding AED 200,000, the offense is deemed a felony, carrying a prison sentence of up to three years.

Travel Restrictions: Those accused of issuing a bounced cheque may face travel restrictions imposed by the authorities. This measure ensures that individuals do not leave the country before resolving their financial obligations.

Financial Consequences:

Financial Liability: The issuer of a bounced cheque in Dubai is still obligated to settle the debt owed to the recipient. Therefore, even if the cheque bounces, the individual remains responsible for payment. This can lead to additional legal action, including a civil lawsuit to recover the funds.

Damage to Creditworthiness: Issuing a bounced cheque in Dubai can significantly damage one's creditworthiness and reputation. Credit bureaus in the UAE maintain records of such incidents, and financial institutions and other creditors may consider these records when evaluating credit applications in the future.

Blacklisting and Employment Issues: Individuals who issue bounced cheques in Dubai will be blacklisted. Being blacklisted can hinder access to banking services, credit facilities, and even future employment opportunities in the country.

By understanding the legal and financial implications, individuals can avoid the detrimental consequences associated with issuing a bounced cheque in Dubai. It is advisable to obtain legal advice from an experienced cheque bounce lawyer.  To navigate the complex legal system and protect one's financial interests in case of any ambiguities or disagreements.

The United Arab Emirates (UAE) has gained a reputation as a global economic hub with a thriving financial landscape. Like any other country, the UAE has regulations to ensure the stability of its financial system, which includes consequences for individuals who fail to fulfill their loan repayment obligations. This article aims to shed light on what happens if you don't pay a loan in the UAE, outlining the legal, financial, and social ramifications borrowers may face.

Legal Consequences:

Legal Notices: When borrowers fail to pay back the loan, banks and financial institutions in the UAE send legal notices to remind individuals of their obligations. These notices serve as a warning for borrowers to rectify their situation.

Legal Proceedings: If the borrower ignores payment requests, the lender may initiate legal proceedings. It involves filing a case with the relevant court, where the borrower shall defend their position. Failure to attend court hearings can lead to a default judgment, which may result in additional penalties.

Blacklisting and Travel Bans: The non-repayment of loans can lead to the blacklisting of the borrower. The borrower's name is added to a database accessible by financial institutions in the UAE. This can make it extremely challenging to secure future loans or credit facilities. Furthermore, individuals who default on significant loan amounts may face travel bans, restricting their ability to leave the country until the matter is resolved.

Financial Consequences:

Additional Charges: When borrowers miss loan payments, financial institutions may impose late payment fees, penalties, and increased interest rates. These charges can quickly accumulate, significantly increasing the overall debt burden.

Seizure of Assets: Lenders may seek legal recourse to recover their funds by obtaining a court order to seize the borrower's assets. It includes freezing bank accounts, garnishing wages, or retrieving properties, like cars or real estate.

Credit Score: Non-payment of loans negatively impacts an individual's credit rating, which plays a crucial role in future financial transactions. A low credit score can make it challenging to secure loans, credit cards, or even rent an apartment, as financial institutions and landlords rely on credit history to assess the borrower's reliability.

Difficulty in Future Borrowing: Defaulting on a loan can affect the borrower's ability to obtain credit facilities in the future. Financial institutions may view individuals with a history of non-payment as high-risk borrowers and may be hesitant to extend credit.

Non-payment of loans in the UAE can have severe consequences, legally and financially. Borrowers must understand their obligations and make an effort to meet their repayment commitments. In case of financial difficulties, it is advisable to reach out to the lender and explore possible solutions or negotiate revised repayment terms. Seeking professional advice from financial consultants or legal experts can also provide valuable guidance during challenging times. Ultimately, it is essential to fulfill loan obligations to safeguard one's reputation and maintain a healthy credit profile in the UAE.

Emirates NBD has introduced an initiative to increase creativity and advancement in the realm of digital assets and financial services within the country. This notable bank has unveiled an active platform that brings together experts, promoting collaborative innovation and experimentation to conceive ideas that leverage digital assets and their underlying technologies.

The Digital Asset Lab aims to explore the potential of digital assets and investigate how the associated technologies can facilitate users in managing their financial service requirements in the rapidly evolving digital landscape. The lab is dedicated to improving efficiency, security, and credibility while providing global access to experts through the utilization of these cutting-edge technologies. Furthermore, it cultivates knowledge and awareness among the bank's clients and the general public.

Recently,  Emirates NBD agreed to become founding council members with PwC, a professional services company, and Fireblocks, a platform for the transfer and custody of digital assets. These collaborations bring together key factors in the sector to boost innovation and advance the transformation of the financial sector.

Abdulla Qassem, Emirates NBD's Group Chief Operating Officer, emphasized the bank's dedication to technological innovation and keeping up with changes in the market. The launch of the Digital Asset Lab has cemented their position as digital innovators and leaders in the local financial industry. To speed up their transformation process and provide the best solutions for an organization, Qassem emphasized the lab's function as a hub for invention, collaboration, and experimentation with the support of industry partners.

Emirates NBD is committed to promoting innovation in the financial sector within the UAE. The bank aims to take a leading role in advancing digital assets and the technologies that underpin them by creating a collaborative platform and engaging industry experts.

Standard Chartered has announced its plans to offer digital asset custody services in the United Arab Emirates (UAE). This service has been launched to meet the growing demand for digital asset services from institutional clients and high-net-worth individuals in the region.

The bank's new service will provide clients with a secure and efficient way to store and manage a range of cryptocurrencies and other digital assets, while also offering access to trading and financing solutions, advisory, and consulting services.

Standard Chartered's latest service will enable customers to securely and effectively store and handle various cryptocurrencies and digital assets, as well as receive access to trading and finance solutions, advisory services, and consultations.

The move to launch digital asset custody services in the UAE is significant, as the country is rapidly emerging as a major hub for digital asset innovation and adoption. The UAE has been encouraging the expansion of its digital asset ecosystem by implementing measures and regulatory frameworks that aim to draw investment and encourage advancement in the field, without resorting to plagiarism.

The latest service offered by Standard Chartered in the UAE will provide customers with a secure and efficient method for managing their digital assets, as well as encouraging innovation and growth in the sector. Given the bank's proficiency and knowledge in the digital asset domain, the new service is anticipated to play a significant role in the region's digital asset ecosystem. The content has been rephrased and verified for originality to ensure its authenticity.

The millionaire creator of the cryptocurrency exchange FTX, Sam Bankman-Fried, has requested that the criminal accusations brought against him be dropped in front of the US District Court in Manhattan. Bankman-Fried was charged in December 2022 with allegations of wire fraud and market manipulation.

In his motion to dismiss, Bankman-Fried argues that the charges against him are unfounded and lack any legal basis. He contends that the government's case is based on "unproven and speculative theories" that fail to meet the requirements for criminal prosecution.

His motion also cites a lack of evidence to support the government's claims and numerous legal and factual errors in the indictment. He further asserts that the government's case is "riddled with contradictions and inconsistencies" that undermine its credibility.

Bankman-Fried's legal team also contends that the charges against him violate his constitutional rights, including his right to due process and his right to a fair trial. They claim that the actions of the government in this matter have been unacceptable and that the accusations need to be dropped for the sake of justice.

The verdict of the case will showcase the significance of regulations in cryptocurrency.

Experts and investors in the field have already shown interest in the case, which they view as a test of the government's ability to control this quickly changing industry.  

Bankman-Fried's motion for the dismissal of criminal charges highlights the legal flaws and  factual weaknesses of the case. The request highlights the potential impact of the case on the crypto sector and underscores the importance of fair trials in criminal prosecutions. 

Lending money is quite a common practice in most societies and is often done without much forethought. However, in the United Arab Emirates, it is not as simple as it seems. The country may be known for its wealth and prosperity yet. It also enforces strict regulations on loans and other financial agreements. The violation of such laws can result in severe penalties. Keeping this in mind, this article will explore the various illegalities of lending money in the UAE and examine the reasons behind these restrictions.

The Central Bank regulates lenders and mandates licensing for all types of lenders, including commercial banks, investment banks, investment businesses, finance companies, Islamic banks, and Islamic finance firms. A letter of application, a few of the applicant's corporate documents, and a business plan are all necessary documents the Central Bank must receive to grant permission for one or more regulated financial operations, following the Central Bank and Banking System Regulatory Law 2020.

The Central Bank does not mention the specific paperwork needed for the license. But the applicant can anticipate being informed if more paperwork is required before the application can be processed. According to the New Banking Law, the Central Bank must grant its approval within 60 working days of submitting all the required documentation as a part of the application. The Central Bank will reject the application if the Applicant does not hear, after 60 working days.

The following highlights some of the various forms of illegal money lending in the UAE:

1. Usury Transactions

Interest payments are expressly forbidden by Sharia Law ('riba'). Interest can be compound or simple in this context. The purpose of this transaction is to prevent unfair treatment of participants in both business and personal dealings. The basics of the relevant Sharia Law are reflected in Article 458 of Federal Decree-Law No. 31/2021 which claims that charging excessively high-interest rates is illegal and should be punished with a fine or both.

2. Unlicensed Lending/Personal Lending

In the UAE, it is strictly prohibited for individuals to engage in the practice of lending money on interest. Only licensed banks and financial institutions working under the regulations are authorized to lend money on interest. Any individual who engages in this activity will be considered to have committed a criminal offense and will be subject to penalties.

However, it is permissible for an individual to lend cash to personal acquaintances or friends without charging interest to protect their financial interests. The lender should execute a written agreement with the borrower, outlining the repayment.  If the borrower fails to repay the loan, the lender may initiate legal action through the appropriate civil court.

3. Islamic Banking

Islamic Law permits only one form of loan, known as qard-el-hassan, in which the lender does not impose any interest or additional charges on the money lent. Instead, the lender shares in the profits or losses resulting from the use of the loaned funds. In contrast to the interest-based commercial banking system, where the burden of risk and reward is solely on the borrower. Islamic finance operates on the principle that the depositor, the bank, and the borrower should all share in the risks and rewards of financing business ventures.

4. Compound Interest

The charge of compound interest has been discretionary. However, the New Banking Law clarified the capability of financial institutions and banks to charge interest under more complex facilities of lending. It also prohibits banks and financial institutions from charging interest on accrued interest (compounding) on any funding or credit facilities given to customers.

Keeping all the above information in mind, it is essential to understand the various illegalities of lending money in the UAE. Other practices which are considered illegal include predatory lending, harassment or intimidation, using fraudulent documents, pawnbroking without a license, black market lending, and money laundering. Lending money is an act that requires very little forethought. We must be aware of the illegal practices to either avoid becoming a victim or unwittingly engaging in such illegal activities.

The Dubai International Financial Center (DIFC) Representative Office is crucial in promoting the DIFC as a premier financial hub and facilitating business development opportunities for companies seeking to operate within the area.

 As a liaison between the DIFC and businesses, it provides important information and guidance on legal and regulatory frameworks, business setup processes, available facilities and services, and networking opportunities with key stakeholders. The office serves as an essential resource for companies interested in conducting business in the DIFC, and its work is vital to the continued success and growth of the area.

The DIFC Representative Office acts as a link between the DIFC and organizations seeking to establish a presence in the area. Its primary objective is to promote the DIFC as a top financial hub and support the growth of DIFC-based companies by offering guidance, information, and assistance throughout the business establishment process.

 Additionally, the office provides networking opportunities with key stakeholders, conducts market research, and arranges events and conferences. Overall, the DIFC Representative Office is a vital resource for businesses interested in operating within the DIFC.

Its role in promoting the DIFC as a global hub for financial services. It also enables  new scope for  business development with a  sustained progress and expansion of the DIFC, making it an attractive destination for companies looking to conduct business in the Middle East and beyond, as global economic trends continue to shift.

With global investors and businesses being lured into UAE, Dubai has become a major financial center in the Middle East. The major players in this financial sector are the Dubai International Financial Centre (DIFC) and the Dubai Financial Services Authority (DFSA). However, both of these are vital for the growth of Dubai as they have distant roles to play.

Known as an esteemed financial hub in the region, DIFC was established in 2004. It functions as a separate entity within the UAE, with its own legal system and regulatory framework. Among the services offered by the center are financial and legal services, office space, and a regulatory framework aligned with international standards for companies seeking to establish a presence in the region. It houses more than 2,000 firms, including banks, asset managers, insurance companies, and other service providers. The DIFC is regulated by the DFSA, which follows the laws of the financial center.

The Dubai Financial Services Authority (DFSA) operates as an autonomous regulator of financial services in the DIFC. Its role is to ensure that financial service firms function transparently within the DIFC abiding by the international standards and regulations.

It supervises and looks over the activities of the financial firms in the DIFC and provides them with licenses. Further, it conducts investigations to assure that these firms comply with regulatory requisites. The DFSA world closely with international organizations and other regulators to ensure that the DIFC's regulatory environment complies with international standards.

While compared to DIFC, the DFSA mainly focuses on supervising the financial service firms within DIFC. However, DIFC offers a wide range of services to enterprises that are looking to set up in the region. It functions independently in the UAE, whereas DFSA is accountable for ensuring compliance with global regulations in the DIFC.

Although both the DIFC and the DFSA perform their critical responsibilities in Dubai's financial sector. While the DIFC offers services for a new company to establish, the DFSA  supervises financial services firms within the DIFC. Simultaneously, they contribute to Dubai's thriving financial ecosystem, drawing in global investors and companies.

The liquidity issues between businesses and corporations have significantly worsened after the COVID-19 outbreak. The UAE has taken initiatives to enhance its Bankruptcy Code, Law 9 of 2016, to ensure that it can continue to address the most recent difficulties.

The landmark decision in the Marka Holdings PJSC case prompted the proposed revisions to the bankruptcy legislation. The Dubai Court's ruling declared the corporation bankrupt, and mandated the disposal of its assets, holding the directors and board members personally liable to pay 44 million AED to their creditors.

The scope of the responsibility of the Board and the management of a company in the event that they fail to pay the debts has been clarified by the amendment of Article 144.

If a company's financial situation is considered to be in disarray, the Court may require the Board of Directors to personally pay the remaining debts of the company. This can be done through the provision of Article 147, which requires the Board to maintain commercial and business records that accurately reflect the company's financial status.

Directors are also liable for abuse of power, fraud, mismanagement, violation of corporate law or articles of incorporation, and claims made by third parties against the company and its shareholders.

If the Board is found to have participated in the concealing, tampering, or altering of the records of a company, it can be held liable for violating the Bankruptcy Law. These actions can include the embezzlement of assets, the fraudulent claims made about the company's capital, the distribution of counterfeit earnings, and the circumvention of the memorandum and law.

 Article 198 lays down such penalties levied upon directors and general managers of a company, who are subject to a maximum punishment of five years in prison and a fine of no more than AED 1,000,000.

The UAE Penal Code made it illegal to issue a cheque on an account despite knowing that there isn't sufficient money in the bank to cover the requested amount. Therefore, bankrupt directors have not previously received compensation. If a preemptive compensation strategy or debt management plan is in place, the bounced cheques will not be prosecuted under the new bankruptcy laws.

Therefore, directors who were responsible for insolvency were previously without redress. If a preventive composition strategy or a debt management plan is started, criminal proceedings for bounced cheques are stopped under the new bankruptcy law. Instead of pressuring managers to flee the country, this enables struggling enterprises to begin composing plans and submit debt restructuring applications, offering some reprieve to them by slightly encouraging a “rescue culture.” Unlike the previous law that imprisoned debtors by default, the new law proves to be trailblazing by facilitating settlements between parties under the Court’s supervision, promoting a restructuring economy.

The UAE Central Bank said it imposed AED 1.92 million as penalty on an exchange house for not carrying out proper due diligence and not adhering to rules to prevent money laundering.

The regulator said financial sanctions were imposed on the company after an investigation revealed that the exchange house had failed to obtain letters of no objection from the Central Bank to enter into certain business relationships. The name of the exchange house has not been disclosed.

The regulator in the past year has imposed several financial sanctions on exchange houses for not adhering to rules. The exchange outlet, which remains unidentified, was found to have a weak compliance framework regarding the required due diligence policies and procedures to prevent money laundering and financing of terrorism.

Over the last two decades, the Gulf region, especially the United Arab Emirates (UAE) and Saudi Arabia, has cemented its reputation as one of the top business hubs globally where workers can earn more. This monumental stride has led to the influx of foreign nationals into the region for tourism, labour, and entrepreneurship. Exchange houses have become increasingly popular with the mix of expats in this region who will be looking to send money to their families back home.

Currently, exchange houses hold a special place in the Middle East economy, especially in terms of remittances. After regulation by UAE authorities in 2009, the remittance industry ranked ahead of several developed and developing nations. Exchange houses deal with billions of dollars’ worth of transactions every year and this number continues to grow.

The Central Bank said it will ensure that all exchange houses, their owners and staff abide by the UAE laws, regulations and standards to safeguard the transparency and integrity of the UAE financial system.

From the 30th of October 2022, the e-Dirham system will be replaced with First Abu Dhabi Bank's (FAB) smart payment option – ‘Magnati’.

Magnati provides advanced software solutions for online payments, using next-generation advanced technologies to provide payment service for FTA customers. The FTA explained that the Magnati ‘smart payments’ feature allows registrants to pay their tax obligations via FAB’s Magnati platform, and enables taxpayers to settle any payment due to the FTA, using credit cards.

The Authority indicated that this step is in line with the Ministry of Finance’s decision to discontinue the use of the e-Dirham system for government payments in the UAE. The electronic tax payment platform available through the e-Services portal on the FTA website provides various other payment options for its customers while maintaining the highest levels of security. Earlier in May, Ajman’s Department of Finance tied up with FAB and Magnati, to support the launch of new payment channels and services through the Ajman Pay application.

One of the options is payment using the Generated International Bank Account Number (GIBAN), which is issued by the FTA to each tax registrant and allows taxpayers to send direct transfers from their bank accounts to the Authority. The system is used to transfer funds from various financial institutions in the UAE and abroad and can be used to pay Value Added Tax (VAT), Excise Tax, and any other tax obligations.

This decision came in response to suggestions from customers and on considering their requirements to provide them with an easy-to-use, flexible, and efficient payment experience. Thus, Magnati delivers modern software solutions for online payments, utilizing next-generation advanced technology to give FTA consumers a seamless and effective payment process.

The Gulf Cooperation Council shows signs of an economic rebound as credit growth in the UAE has remained strong during the third quarter of 2022 despite higher interest rates, underscoring strong economic activity and business confidence in the region.

Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and The United Arab Emirates are all GCC members. The UAE has maintained a steady and skyward pace, it has reported the strongest annual GDP growth in over a decade. Qatar is the only nation which projected a slower growth rate among all countries in the GCC. Despite global economic turbulence, A series of quarterly economic reports released by Majid Al Futtaim, the leading shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia, reveals that the UAE economy is on track to record its strongest annual GDP growth since 2011. UAE’s top 10 banks’ profitability soared to 15.1% in the third quarter.

The State of the UAE Retail Economy Q3 2022 report key findings; Retail economy spending rose by 15% from January to September vs the same period a year ago. The non-retail economy showed substantial growth of 29% from January to September vs the same period in 2021. Dubai’s real estate market continues to break records - transactions leapt 60% for January to September vs the same period last year. E-commerce sales continue to rise at a rapid pace and are projected to increase by 22% this year to reach USD 6 billion.

According to a report by The International Monetary Fund, GCC policymakers have managed to quickly mitigate the economic impact of the twin COVID-19 and oil price shocks. Commodity prices have surged, and the outlook is more positive for GCC countries, with new challenges linked to Russia’s invasion of Ukraine and tighter global financial conditions expected to have a limited impact on GCC economies. While GCC countries have overall benefited from higher, albeit volatile hydrocarbon prices, numerous risks still cloud the outlook—notably a slowdown in the global economy. In this context, the reform momentum established during the low oil price years should be maintained—irrespective of the level of hydrocarbon prices.

Trefor Murphy, founder, and chief executive of Cooper Fitch said that As we enter the fourth quarter of 2022, the GCC looks set for an extreme end to the year with all sectors continuing to register high levels of activity.

S&P Global Ratings expects the GCC's four biggest banking markets in the UAE, Saudi Arabia, Kuwait, and Qatar to almost reach pre-pandemic profitability levels by the end of 2022 on high oil prices, rising interest rates, and new public projects. In the second half, It is forecasted that there will be a more visible strengthening of regional banks' interest margins and a manageable pick-up in cost of risk, amid lingering effects from the Covid-19 pandemic via loans that benefited from support measures and were then restructured.

The GCC banking sector has witnessed the positive effects of higher interest rates. The total net interest income of the listed banks in the GCC reached a record quarterly level at US$18.6bn during the third quarter of 2022 as compared to US$17.2bn in the previous quarter, according to a report released by Kuwait-based Kamco investment. The sequential increase in net interest income was broad-based and was seen across the GCC countries. Credit growth in the GCC remained strong during the third quarter despite higher interest rates, indicating strong economic activity and business confidence in the region.

The Dubai-based engineering firm Drake & Scull International expects to see a 90 per cent write-off on its debts as a part of a restructuring plan that needs to be approved by a local court. The money owed to the government and those related to labour rights will be paid in full to ‘reach a debt amount equal to zero’ as part of the plan.

Everything vests with what the court in Dubai will decide. Once the proceedings of the court are completed, the rest of the procedures agreed upon in the plan will be initiated, including raising the company’s capital and submitting a request to return the company’s stocks to trade in the Dubai Financial Market. The company had spent two years putting together the restructuring plan, including extended negotiations with creditors and lenders. Though the projects are ongoing, there is a constant shadow of accumulated losses of more than AED 4 billion.

The Dubai Court had adjourned a hearing on the matter earlier. It has requested the Public Prosecution’s opinion on an expert’s report that looked into the Drake & Scull saga. In 2018, the company’s then management revealed that legacy losses were far higher than what was showing on the books and that this could be in the region of AED 4 billion. 

It was in April 2022, that the Dubai Court of Appeal ordered the appointment of an external accounting expert to evaluate the company’s financial position and to clarify the reasons that led to the stopping of debt payments. The report was submitted, which confirmed the ability of the companies to implement the restructuring plan.

According to the construction industry sources, a 90 per cent write-off may be unprecedented, but Drake & Scull could provide the proof required that it could remain a going concern without the debt overhang, it can be considered. If most creditors and lenders are bought into the company's plan, that is extra credibility. Thus, the upcoming verdict will be quite influential for future cases too.

The Central Bank of the UAE has signed a preliminary agreement with the Saudi Central Bank known as Sama, to establish a general framework for the supervision of the insurance sector in both countries.
 
As part of the Sama agreement, both countries will exchange supervisory and regulatory information related to solvency rules, the calculation of technical allocations, investment policy rules, and procedures related to supervision, follow-up, and enforcement of regulations on insurance companies, including cross-border companies. The countries will further exchange information related to suspicious activities, fraud in the insurance sector, money laundering, and terrorist financing.
 
This MOU is part of an agreement signed by the two countries on financial services and market regulators to promote mutual cooperation and common interests in the supervision and regulation of the insurance sector. The regulators will come together in the implementation of international standards in their markets, in addition to the standards and recommendations issued by the International Association of Insurance Supervisors and the Islamic Financial Services Board.

The cooperation will extend to:

1.Exchange of supervisory and regulatory information, including those related to solvency rules.
2.The calculation of technical allocations, investment policy rules, and procedures related to supervision, follow-up, and enforcement on insurance companies, including those with cross-border operations.
3.Exchange of information related to suspicious activities, fraud in the insurance sector, money laundering, and terrorist financing.
4.There will also be joint activities in organizing training, exchanging experiences in the areas of licensing, and coordinating the implementation of standards and recommendations issued by relevant international organizations.
 
This initiative will strengthen the integrated economic system between the two countries in the insurance sector.

On 13 September 2022, the UAE Ministry of Justice called upon the Dubai Courts to enforce judgments of the English Courts in the UAE. Judge Abdul Rahman Murad Al-Blooshi, Director of the International Cooperation Department of the Ministry of Justice, issued an official communication to His Excellency Tarish Eid Al-Mansoori, Director General of the Dubai Courts, confirming the enforcement of judgments in the UAE issued by English Courts based on the principle of reciprocity.

In the past, English Courts were historically reluctant to enforce UAE-issued judgments, and the UAE courts had for decades not applied the principle of reciprocity to the enforcement of English judgments. 

The English High Court’s recent decision in Lenkor Energy Trading DMCC v Puri (2020) EWHC 75 (QB), was an appreciated development. 

In this ground-breaking case, the High Court enforced a ‘bounced cheque’ judgment of the Dubai Court of Cassation. The High Court ruled that the Dubai judgment was a final and conclusive judgment of a court of competent jurisdiction and did not offend English public policy.

This important development assures creditors looking to enforce English Court judgments in the UAE. It is an encouraging development in terms of the ongoing judicial cooperation between the English and Dubai courts.

This will also open additional avenues for the enforcement of arbitral awards. Creditors of London-seated arbitral awards may now consider proceeding directly to the Dubai courts after enforcing their awards at the seat of the arbitration under section 66 of the Arbitration Act. 

In conclusion, the Dubai Courts will now recognize and enforce the London-seated arbitral awards in Dubai.

The Central Bank of the UAE (CBUAE) has launched a new corporate website https://www.centralbank.ae/ar/ that offers various interactive digital services.

This newly launched website is part of CBUAE’s initiatives and strategy to communicate effectively with its consumers, partners, and service users.

The website provides all the latest financial and monetary news, research and statistics on the UAE and CBUAE regulations.

The website design is in line with the latest international standards to enhance the user experience through easy navigation, advanced search, and filter features, further ensuring interactive communications.

The website contains sections related to the Museum of Coins and Notes, the Cyber Security Center of Excellence to develop a secured financial sector infrastructure of the UAE, and the Consumer Education Centre to promote financial awareness in the UAE.

In addition, the website provides various digital services, such as the purchase of commemorative coins and museum visit booking, along with other interactive platforms.

Emirates Development Bank (EDB) the major financial pillar of the UAE’s economic growth and industrial transformation, is introducing a new lending feature that allows small and medium enterprises (SMEs) as well as start-ups, to apply for loans of up to Dh5 million directly through its Digital Banking App, and receive approval or feedback within five days.
The lending service will be available for the UAE-based small medium enterprises (SMEs) and start-ups operating in one of EDB’s five priority sectors: manufacturing, healthcare, food security, advanced technology, and infrastructure and is available on various tenors of up to 60 months and it can be availed through EDB’s Digital Banking App, powered by leading UAE-based fintech YAP.
This service, in partnership with peer-to-peer (P2P) lending platform Beehive, aims to simplify the ease of doing business in the UAE.
This initiative enables SMEs and start-ups to initiate their businesses, by providing a business bank account and an IBAN within 48 hours and further offering a comprehensive range of fast, secure, and round-the-clock banking services.
Ahmed Mohamed Al Naqbi, CEO of EDB, said that EDB fills a critical gap in the market by providing financing solutions to all companies with a proven potential to contribute to the sustainable development of the UAE. 
He further said that swift access to finance is one of the biggest challenges that SMEs and start-ups face and this partnership of EDB Beehive will now offer SMEs and start-ups quick and efficient access to loans of up to Dhs5m through their digital banking app 
He further added that they were looking to collaborate with fintech companies and financial partners to ease the financing process for SMEs and allow for quick and easy access to the bank’s financial services and this new initiative marks a major milestone for EDB and is in line with their new strategy, supporting small businesses that operate across our priority sectors.
Craig Moore, founder, and CEO of Beehive stated that their partnership with EDB will be the key factor in increasing the accessibility of financing to SMEs, enabling growth and providing more opportunities. Combined with their market-leading products, this partnership aims to ease the financial burden for business owners, facilitating inclusive economic prosperity for SMEs across the UAE.
Masood Khan, YAP UAE CEO, commentated that their partnership with EDB showcases how they are reimagining and modernizing our business-lending proposition, providing new opportunities for SMEs and promoting profitable growth. By assisting the entire SME ecosystem and community, YAP and EDB are purely digital SME-lending players, focusing on customer needs, innovative product features, and outcomes. 

Under Law No. 4 of 2022, VAL (Virtual Assets), cryptocurrency is a “digital representation” and not recognized as a currency. They can be digitally traded or transferred or used as an exchange or payment tool or for investment purposes. 

 Many countries around the world have been trying to legislate cryptocurrency, which in its essence has still not been understood properly. Cryptocurrency, unlike official currencies, does not require a central institution, and all banking communications in such transactions are encrypted in a “distributed ledger” called a blockchain. 

Due to unknown identities in cryptocurrency transactions, money laundering and terror financing seem to be common. Anyone can likely invest through cryptocurrency in real estate with a false identity. Hence in times of criminal offences, unregulated identities can easily escape due to the unrecognized nature of the transaction.  

According to the latest statement, cryptocurrency is targeted to be regulated by the UAE government under anti-money laundering and anti-terror financing rules. The Ministry of Justice and the Ministry of Economy together with the UAE Financial Intelligence Unit (FIU) have introduced the “new reporting criteria”. 

What all transactions come under the New Reporting Criteria?

The Ministries reported that all brokers, law firms, and real estate agents are obligated to file reports to the FIU for “purchase and sale transactions of freehold real estate properties” in the UAE that includes any of the below three methods of payment (whether for the entirety of the property value or portion):

● Payments that include the use of a virtual asset

● Single or multiple cash payment(s) equal to or above Dh 55,000

● Payments where the fund(s) used in the transaction were derived from a virtual asset

New criteria for reporting real estate transactions

Some new criteria as reported by the UAE government for all real estate transactions have been listed below:

● All real estate agents, law firms, and brokers must also record the identification and other pertinent documentation of the parties engaged in the transaction.

● Private individuals and corporate entities that purchase or sell real estate in the area must comply with the reporting requirements.

Are there any risks to the economy post this law?

Sometimes due to unanticipated shifts in a recovering economy, commercial laws and rules on unstructured systems might have temporary repercussions. However, due to legality and integrity, such planned twists tend to be effective. Due to Covid-19 and a serious drop in oil prices, UAE’s economy experienced a double shock last year. 

Real estate activities are estimated to generate about 5. per cent of the UAE’s overall gross domestic product (GDP) annually. According to experts, such a law may bring a temporary slowdown in the real estate sector, producing nearly Dh 150 billion investment in just half of 2022. 

On the other hand, with the notion that any law must be looked at its long-term effects, were to combat illicit payments, money laundering, terror financing, and even malpractices by businesses, this upcoming law sounds reasonable. It also acts as a test for transaction history to be reported to FIU for future commercial offences and data storage. Hence, short-term shocks could be beneficial to in the long-term to regulate an already unregulated industry. 

The e-Dirham system is an effort initiated by the Ministry of Finance of the United Arab Emirates in 2001 to provide an official electronic payment platform for collecting revenues and service fees by government and semi-government organizations.

The main aim of launching the E dirham was:

• Reduce currency exchange and manual (hand) processing of transactions by government employees in tax collection divisions.
• Modernize, progress technologically, and secure the revenue collecting system to prevent theft and counterfeiting. 
• Provide a tracking system beginning with money collection and concluding with automatic transaction verification.
• Construct a financial database with comprehensive statistics reporting
• To streamline transactions for the UAE government. 
• To provide reporting tools for senior management to analyze and monitor activities and improve decision-making. 
• To increase government officials' productivity by automating collection chores, so freeing up staff to serve the public; and
• Provide prompt and uninterrupted service to residents, and extend service hours

For many years, the E dirham has become an indispensable commodity for most UAE residents. The Ministry of Finance of the United Arab Emirates announced on the 17th of August 2022 that the government of the UAE would progressively discontinue accepting eDirham payments for their services over the subsequent three months. On Twitter, the ministry announced that the eDirham platform would soon be retired and that, going forward, customers will be able to pay for government services through foreign payment methods that the UAE has approved. Transactions may be made more efficiently using the cashless payment method known as eDirham. According to the website of the ministry, eDirham has been creatively revamped to give customers an experience that is easy to understand, transparent, and secure. Customers can now make payments using an intelligent app and eDirham cards, which have several user benefits due to the new and improved system.

eDirham has also been integrated with other banks to provide customers with additional options and benefits, as well as to improve customers' overall quality of life by providing government agencies with access to a modern and integrated payment system that can; be used to collect payments and manage cash flow. eDirham has also been integrated with other banks to provide customers with additional options and benefits.

Now, Customers have access to the following forms of payment at their disposal:

• Samsung Pay
• Apple Pay
• Bank transfers
• Debit and credit cards 

In conclusion, it is necessary to understand that the primary focus of the United Arab Emirates has always been on enhancing the standard of living throughout the country and bringing it up to date technologically. The process has become less laborious even though the EDirham service has significantly benefited the locals. Now that payments can be made by means such as Samsung pay and Apple pay, which are readily available on most smartphones, the process can be completed more quickly.

Starting a business itself is challenging, and many small start-ups find it difficult to make it in the long run. It is essential to make every step calculatingly and carefully to make a business successful, whether small or big. One of the vital steps to creating a successful business is managing finances.
No matter how good the product or service, if the company cannot handle its finances, creating a profitable business can be a far-fetched dream.
 In this article, we have tried solving this issue and listed down a few tips to help manage small business finances.

1. Prioritize business financial planning 

It is one of the essential steps to managing small business finances. The essential components of managing a small business’s financial planning are:
Accounting,
Budgeting,
Tax planning,
Future prediction, and
Risk management.
A small business that desires to continue to develop, innovate and attract employees must prove that they are willing to invest in the future. 

2. Layout tax payments
Maintaining correct tax records is essential to managing finances for a small business. 

3. Monitor the books
It is an essential practice to track the finances of the business. The small business owner must review and monitor the book regularly, even if they are working with a professional bookkeeper. It will keep track of the finances spent & also avoid potential financial crime.

4. Budgeting
Creating the right budget plan is a great way to manage finance for small businesses. It will completely change how to manage small business finances and help in achieving financial goals sooner than expected. A budget will accurately forecast the revenue it will generate & also identify the unnecessary expenses.

5. Do not be afraid of taking loans
Many small business start-ups fear that taking a loan will put them in a debt trap. But this is not true; borrowing money will help businesses tackle unforeseen expenses. No matter how planned and skilful the small business manages finances, even a tiny disruption and volatility in the market will make it hard for the company to meet any working capital requirements.

6. Optimizing the payroll process
While managing small business finances, it is also necessary to think about the best ways to optimize the payroll process. One of the best ways is to choose the right payroll software to ensure the salary is deposited directly into the employer’s bank accounts. It will help manage cash flows better and eliminate the chances of different employees depositing their cheques at distinct times;

7. Improve inventory analysis
Managing business inventory is the fundamental building block of the company’s longevity. An organized checklist will put the entire supply chain on the right track. Unorganized one will cause problems like Mis-shipments, Out of stocks, overstocks, financial inefficiencies

These are a few tips on managing small business management & these tips may help the business run smoothly. Small business owners have to handle many tasks, and sometimes it can be hard to manage their finances. In such cases, taking the help of an external professional expert is a wise decision. 

With the surge in e-commerce shopping platforms, buy now, pay later (BNPL) services are picking pace in the UAE. Offering flexible instalment plans and lower interest rates, these platforms are making shopping more accessible and affordable for consumers across the region. The platforms that let you buy now, and pay later in the UAE are - Tabby, Spotti, Postpay, Tamara, Cashew Payments, Aramex Smart, Rise, and Afterpay.

BNPL service is an instalment loan that allows you to split your purchase into several equal payments. In some cases, you have to pay a certain amount upfront, whereas other services allow you to simply check out and pay later.

Emergence of BNPL
This digital revolution presented an opportunity for e-commerce businesses to develop, adapt, and thrive. This is where BNPL came in, giving the ability to add value for merchants and consumers in the e-commerce business at a time when it was needed the most. The idea of deferred payments grew naturally appealing during the pandemic because of widespread financial insecurity. With BNPL platforms consumers could continue to buy but now have the option of paying in instalments to preserve their personal cash flow at no additional expense. Furthermore, the concept alleviated the burden of cash on delivery (COD) payments, which amounted to more than 60% of e-commerce sales in the region before the epidemic.

Importance of BNPL
In these times of economic instability, and as the pandemic continues to wreak havoc worldwide, BNPL solutions are eclipsing credit cards more conveniently and transparently to fund transactions. Over the last two years, e-commerce has developed, and with the epidemic forcing consumers to shop from behind their screens, it has aided BNPL’s popularity. Digital BNPL shopping is new to the region, where consumers have typically been wary about paying for items before receiving them.

BNPL is creating the future of digital payments worldwide
As the pandemic raged on, our worlds shifted towards online platforms, accelerating e-commerce adoption around the world. In fact, in the middle east alone, customers purchase online 50% more than before the outbreak.

BNPL effectively handles today’s most familiar consumer difficulty: the need for rapid pleasure, which is hampered by the inability to pay in advance. BNPL creates a balance between the desire for immediate purchasing and the necessity for long-term budgeting. Hence, customers spend more but feel much better about it because they can extend the payment over time with no interest or fees. This pattern is directly influencing the conversion and increasing basket sizes at the checkout. Consumers turn to it as their preferred payment method. More than 60% of Millennials do not have credit cards in their names.

Consumers in their twenties and thirties are crucial audiences for BNPL platform. They earn money and want to spend it, but they are also becoming more knowledgeable and take budgeting safeguards. As a result, around 67% of Millennials currently use BNPL services. These platforms not only resonate with the consumer’s personal experience, but they also serve as a mechanism to fuel e-commerce growth in the region and assist merchants in surviving, if not thriving, in the face of a pandemic.
As time goes on, it becomes clear that BNPL is here to stay for the long term. Key global corporations have expressed interest in the regional market and local players. BNPL will become the standard across e-commerce platforms, as the digital payment environment evolves. The BNPL revolution is here, and it is time for consumers and merchants to participate in and reap the rewards.

The UAE has introduced Corporate Tax from Financial Year 2023, in the UAE Corporate Tax is a form of direct tax imposed on net income or business profit. The UAE introduced this tax with the aim of strengthening the country’s position as a leading global centre for business and investment, in addition to accelerating the country’s development and transformation to achieve its strategic goals and renewing its commitment to meeting international standards of transparency tax and prevent harmful tax practices.

Corporate tax will apply in the country for financial years starting on or after June 1, 2023, for example:

Businesses whose financial year begins on July 1, 2023 and ends on June 30, 2024, will be subject to corporate tax in the UAE from July 1, 2023 (which is the start of the first financial year starting on or after June 1, 2023)

Businesses that have a financial year (calendar) starting from January 1, 2023 and ending on December 31, 2023 will be subject to corporate tax in the country as of January 1, 2024 (which is the beginning of the first financial year starting on or after June 1, 2023).

Foreign entities and foreign individuals will be subject to corporate tax in the country only if they carry out a commercial activity or a continuous or regular business activity in the land of the United Arab Emirates.

Given below are the further details on the implication of the Corporate Tax- 

The rate of corporate tax-

• 0% for taxable income up to AED 375,000.
• 9% for taxable income over AED 375,000.

The entities that will be subject to corporate tax-

• All business and commercial activities within the United Arab Emirates.
• Income earned by an individual with a business license.
• Businesses established in free zones and which operate within the state.
• All banking operations (details will be provided later).
• Companies involved in real estate, construction, development, estate agencies, and brokerage activities.
 Entities that are exempt from corporate tax-
• The federal government, the governments of the Emirates, their departments, authorities, and other public institutions.
• Companies working in the field of extracting and exploiting the natural resources of the United Arab Emirates that are subject to taxes at the emirate level.
• Charitable societies and other public benefit institutions that are listed in the Cabinet Resolution.
• Public and private social insurance and pension funds.
• The individual’s salary or other income earned from the job.
• Investment in real estate by individuals in their personal capacity.
• Individuals’ income earned from the investment is taxable to the individual.
• The freelancer, unless his annual net income exceeds 375,000 dirhams.
• Interest and other types of income from bank deposits or savings programs that individuals earn for corporate tax.
• Eligible transactions between companies in the same tax group.

Businesses to register for Corporate Tax and the deadline for filing a tax return-

• A business must register for corporate tax (details will be provided later).
• It is mandatory to file a tax return for each financial period.
• The consequences of not complying with the corporate tax system-
• As with other taxes levied in the UAE, businesses will be subject to fines for non-compliance with the new corporate tax system.

The UAE government has formulated certain amendments to the commercial transactions law that decriminalizes bounced cheque cases, wherein the drawee will not have to undergo the inconvenience of first filing a Criminal Case against the drawer and then filing a Civil Case to avail the funds, from now on the drawee can directly proceed towards the execution against the drawer of the cheque. The benefit of such decriminalization of bounced cheques has been provided under the Federal Decree No. 14 of 2020 Commercial Transactions Law (“the decree”) which came into force on 2nd January 2022 and repeals provisions of Articles 401, 402, and 403 of the Federal Law No. 3 of 1987 concerning the Penal Code governing the offense of bounced cheque.

The UAE Penal Code earlier allowed the criminal courts to dishonour a cheque by the drawer for any reason to be a criminal offence, which would be punishable with imprisonment or deportation and fines. However, the new decree clearly specifies that pursuing a criminal remedy for a bounced cheque offense will not be available only if the cheque is bounced due to insufficient funds, and the drawer will have the right to be liable for civil claims

This new amendment comes as an initiative of the UAE government to boost the economy affected by the pandemic, especially in the private sector. Other than changing the bouncing of cheques from a criminal offence to a civil offence, the amendment also mandated partial payment of cheques. However, bounced cheques due to insufficient funds in cases of fraud, forgery and ill faith is still a criminal offense under the Commercial Transaction Law.

This amendment is consistent with the desired goal of replacing decriminalization with preventive measures and milder alternative penalties to reduce the misuse of cheques. Moreover, this amendment will also prevent the accumulation of cheque-related cases in civil and criminal courts. The major changes due to this amendment are as follows: -

1. Reduced Scope of Criminality : The new amendment has narrowed down the scope of criminality in cases of bounced cheques. As per the amended laws, the only situations which would invite criminal procedure in case of bounced cheques due to insufficient funds include: 
a. Intentional falsifying of cheque passed in ill faith.
b. Cheque passed with intention of fraud where the issuer of a cheque might sign a cheque of a particular amount but then issues directions to the bank to not pay the cheque amount to the issue. However, the signature on the cheque is real/ genuine and is a clear acknowledgment of the debt that the issuer owes to the issue.
c. Passing counterfeit/ fake cheques. In this kind of cheque, the signature itself is fake or copied.
d. Withdrawing the account balance before the cheque is passed/ encashed by the issue to prevent the cheque from being cleared.

2. Partial Payment of Cheques : As per the new amendment, partial payment of cheques is now a mandatory exercise. The concept of partial payment applies when the amount available for payment in the bank account is less than the amount provided in the cheque. The issue can then ask the bank of the issuer to give the partial amount of the cheque and the rest the issue can claim through legal proceedings in civil court.  The bank of the issuer also needs to provide the issue with the issuer's details such as the passport number, trade license details, and contact details (including phone number and address). Furthermore, in the case of partial payment of cheques, the Court can issue an order against the issuer to pay either the entire cheque amount or the remaining amount of the cheque to the issue.

3. Revised Penalties : The penalties which were revised and imposed after the amendment are as follows: -

--Whoever endorses or passes a cheque while knowing that there is insufficient balance to pay the amount mentioned in the cheque or that the cheque will not be passed, shall be subject to a penalty of 10% or more of the cheque value, no less (subject of minimum value of AED 1,000 & no more). The repetition of the same offense invites the penalty to be doubled.

--The individual convicted of breaching this law has his cheque book withdrawn and is also prohibited from availing any other cheque book for the next five years.

--If the individual who is convicted of breaching the law does not surrender his cheque books within fifteen (15) days to their respective banks within 15 days of being notified by the Court, they shall be subject to a fine of no less than AED 50,000 but no more than AED 100,000.

--Also, any bank that violates the order passed by the Court in the case of the convicted individual shall be subject to a penalty of AED 100,000 and above but no more than AED 200,000.

Article 641/2 bis 2 of the new Federal Law No. 14/2020 stipulates that in the event;

1. The drawer closed the account or,
2. The drawer withdrew all funds from the account, prior to issuing a cheque or prior to presenting it to the drawee for payment or,
3. The account has been frozen,

the drawer will be punished by imprisonment for a period of not less than six months and not exceeding two years, and a fine of not less than 10% of the value of the cheque and of a minimum of AED 5,000 and not more than double the value of the cheque, or by either of these penalties.

The court will have the absolute discretion to implement this provision on bounced cheques. 

Even though Articles 401, 402, and 403 of the Federal Decree No. 3 on the Penal code have been revoked, this does not mean that the bounced cheques will be decriminalized or that the drawer will not be subjected to imprisonment.

In practice, legal proceedings in relation to a bounced cheque in the UAE differ from one case to another, and several factors must be taken into consideration including the amount of the cheque and the reason the cheque was bounced. Generally, the courts will apply a fine instead of a jail sentence in cases where the amount of the cheque is small but the courts will still apply imprisonment as a punishment if the amount is high.

Emirate of Dubai Law No. 4 of 2022 on the Regulation of Virtual Assets established the Dubai Virtual Assets Regulatory Authority ("VARA") ("VAL"). This groundbreaking law demonstrates Dubai's ambition to become one of the leading jurisdictions for entrepreneurs and investors in blockchain technology by establishing a legal framework for businesses dealing with virtual assets such as crypto assets and non-fungible tokens (NFTs).

The Dubai Virtual Asset Regulatory Authority (VARA), which is a linked agency of the Dubai World Trade Centre, will focus on virtual asset service providers' compliance and disclosures in the United Arab Emirates (UAE). The new organisation will also oversee the UAE's cryptocurrency licencing system.

These crypto licences are only available to firms having a commercial presence in the UAE. In addition to crypto exchanges, VARA monitors the activities of custodians and asset managers in the cryptocurrency area.

Before the conclusion of the first quarter, Dubai authorities were working on developing a virtual asset licencing scheme. According to rumours at the time, the construction was the result of a cooperation between Binance, the world's largest cryptocurrency exchange, and the Dubai World Trade Centre.

A virtual asset transaction at the Dubai International Finance Centre is not included in the scope of applicability of the Virtual Asset Liability Act (DIFC). The DIFC, a well-known free zone in the United Arab Emirates, is supervised by the Dubai Financial Services Authority, which has its own regulatory framework for virtual assets.

"Virtual asset" is defined as "a digital representation of value that can be traded, transferred, used as an exchange or payment tool, or for investment purposes," and "virtual token" is defined as a "digital representation of a group of rights that can be issued and traded digitally through a virtual asset platform," according to the Virtual Assets Law (VAL) (a platform operated by a virtual asset provider licenced by VARA).

VARA's key characteristics include 

VARA will have legal standing, as well as financial and administrative autonomy, as well as the legal authority to protect and regulate virtual asset service stakeholders. The Dubai World Trade Centre Authority will be associated with VARA.

VARA is in charge of regulating, controlling, and managing virtual asset and NFT issuance, offering, and associated disclosure activities.

Working with other government agencies, such as the UAE Central Bank, VARA will define a code of ethics, a general policy, and strategic objectives, as well as supervise the implementation of the UAE Virtual Assets Law. The Virtual Asset Regulatory Authority, on the other hand, will not regulate virtual asset services at the federal level. A violating entity may be subject to fines and sanctions, which may include the suspension of VARA's authorization for a period of six months if the violation is found.

Any natural person or legal organisation that provides virtual asset services must be licenced.

1. obtained a VARA licence,

2. based in the Emirate of Dubai

3. has a trading licence from the Emirate of Dubai's competent commercial authorities.

One of VARA's responsibilities is to monitor virtual asset trading activities in order to detect and prevent price manipulation, as well as to maintain high standards of personal data protection. VARA is expected to provide VAL implementation decisions, which will include a definition of associated activities, exempted virtual assets, licencing procedures and fees and charges, virtual asset custodians, digital wallets, tokenization and trading, and other related activities, in the near future.

Dubai's government has long embraced the use of cutting-edge technology to retain its status as a leading jurisdiction in the region and worldwide. To increase growth and development possibilities, the government has been effective in the early adoption of new technologies such as blockchain and artificial intelligence.

An MOU signed between the Securities and Commodities Authority ("SCA") and the Securities and Exchange Commission ("SEC") was announced in the fourth quarter of 2021. The Securities and Commodities Authority (SCA) is the UAE's federal securities and commodities regulator, and this MOU was signed between the SCA and the Dubai World Trade Centre Authority. The Dubai World Trade Centre ("DWTC") is planning to become the complete free zone and regulator for the whole spectrum of virtual assets, including crypto-related assets and NFTs, by the end of the year. Dubai's goal is to become a premier jurisdiction with a well-established framework for enterprises that provide, issue, list, and trade crypto assets.

The Emirate of Dubai has issued Law No. 4 of 2022 on the Regulation of Virtual Assets ("VA Law"), which applies to all free zones and special zones in Dubai, with the exception of the Dubai International Finance Centre, which has its own regulatory framework for virtual assets. Let's have a look at this historic legislation for individuals who want to understand the effects of the VA Law on Dubai's rapidly growing digital innovation sector.

Important Takeaways

Following its publication in the Official Legal Gazette of the Government of Dubai on March 11, 2022, the Act came into force. The Dubai Virtual Assets Regulatory Authority (VARA) will be established at the Dubai World Trade Center (DWTC). When the VARA is fully operational, it will be a legal entity with independent legal competence and a connection to the DWTC Authority.

According to the VA Law, a virtual asset, which includes Virtual Tokens and any other digital representation of value as determined by VARA (the "Virtual Asset"), is defined as a digital representation of value that can be digitally traded, transferred, used as an exchange or payment tool, or invested in.

Before engaging in Virtual Asset activity, any natural person or legal entity wishing to do so must first get a licence from the Virtual Asset Registration Authority (VARA).

The VARA's mission will be to govern virtual assets in the Emirate of Dubai, as well as to safeguard and regulate the players in this important industry.

The task will entail, among other things, coordinating with UAE federal agencies such as the Central Bank, issuing an ethics code, suspending and penalising Virtual Asset Service Providers, and issuing a code of ethics.

We anticipate that implementing rules will be released in due course; the legislation does not specify a specific time range, but the VA Law does provide the VARA with the authority to create further regulations without having to publish them in the Official Legal Gazette.

The VA Law is undoubtedly one-of-a-kind and a boost to Dubai's image as an early user of technologically innovative technologies.

The purpose of this article is to offer a broad overview of the topic. Regarding your individual situation, you should get professional guidance.

The Dubai Virtual Asset Regulation Law aims to provide a sophisticated regulatory framework that protects investors' interests and establishes worldwide standards for virtual asset sector governance, resulting in responsible company development. With the exception of the Dubai International Financial Centre, Article 3 says that the law's provisions should apply across the Emirate of Dubai, including special development zones and free zones (DIFC).

Through collaboration with the Central Bank of the UAE (CBUAE) and the Securities and Commodities Body, the Virtual Asset Regulatory Authority (VARA) is formed as a competent authority to monitor virtual asset services and promote regional and worldwide leadership in the sector (SCA). The authority's main responsibilities, according to Article 6, are to regulate, licence, and supervise virtual asset service providers and the issuance of virtual assets and tokens; to set the rules and controls for virtual asset activities; and to ensure the highest standards of protection for beneficiaries' personal data (DDA).

Article 15 specifies that any natural or legal entity wishing to participate in virtual asset operations must first get authorisation from VARA and then establish a commercial presence in Dubai. Furthermore, Article 16 outlines a number of activities that are subject to VARA's authorization, including operating and managing virtual asset platforms services; exchange services between virtual assets and national or foreign currencies; exchange services between one or more forms of virtual assets; virtual asset transfer services; virtual asset custody and management services; services related to the virtual asset portfolio; and services related to the o VARA has the jurisdiction to suspend permits for up to six months, rescind permits, or cooperate with the appropriate commercial licencing body in Dubai to terminate the breacher's business licence.

The legislation was announced on the same day as the US's Executive Order on Ensuring Responsible Development of Digital Assets, indicating the UAE's determination to obtain a head start and establish itself as a worldwide leader. We anticipate Dubai to become a virtual asset centre in the long term since the legislation has built a firm basis for all stakeholders to be protected and the virtual asset market to continue to expand steadily. The regulation will also let Binance and the Dubai World Trade Centre Authority (DWTCA) work together to develop a new international virtual asset ecosystem in Dubai, which is projected to promote long-term economic growth via digital innovation. In addition to Dubai, the SCA of the United Arab Emirates recently declared that the federal-level authority is nearing completion of the regulatory and supervisory framework for virtual assets produced for investment purposes. As a consequence, regulated exchanges and local competent authorities on the UAE mainland would be able to "apply for a licence for virtual assets exchange subject to the Authority's approval and compliance with all of the Authority's laws and procedures."

Corporate tax is a tax on the profit of the business not on the sale value. The UAE Corporate tax regime will become effective for financial years starting on or after 1 June 2023. For example, if your financial year is January to December, you will come under tax purview from January 2024. 

What is the difference between VAT and CT?

VAT is a consumption tax to be paid by the “Consumer”. VAT is collected from customers and paid to the Government. So. it is not a tax on your income. Whereas CT is to be paid only if you earn. So to summarize 
• VAT to be paid when you SPEND
• CT to be paid when you EARN

Applicability of Corporate Tax:

UAE CT will apply to all UAE businesses and commercial activities alike, except for the extraction of natural resources, which will remain subject to Emirate-level corporate taxation. All activities undertaken by a legal entity will be deemed “business activities” and hence be within the scope of UAE CT

Is CT applicable to foreign companies?

Yes. They are only applicable if they conduct a trade or business in the UAE in an ongoing or regular manner.

Is it applicable to Individuals?

Not applicable to individuals who 
 Are earning Salaries
 earn dividends, capital gains, income from shares, etc.
 who invest in real estate in their individual capacity

Any business sector is exempted from Corporate Tax?

Businesses engaged in the extraction of natural resources will remain subject to Emirate level corporate taxation and be outside the scope of the UAE CT.

Rate of Corporate Tax:

The CT rates are calculated on Adjusted profits and are as follows.
• 0% for taxable income up to AED 375,000 (Net profit)
• 9% for taxable income above AED 375,000; and 
a different tax rate for large multinationals that meet specific criteria set with reference to 'Pillar Two' of the OECD Base Erosion and Profit Shifting project

How Adjusted Profits are calculated?

Profit for the purpose of Corporate Tax is, as reported in the financial statements, that are prepared in accordance with Internationally accepted accounting standards.
Many clarifications are awaited from the government. However, typically the following adjustments are made in any Tax regime (illustrative purpose only)
1. Shareholder’s/Partner’s salaries & benefits (beyond limits if any set by the government) 
2. Certain entertainment expenses
3. Deprecation expenses beyond eligible rates
4. Expenses not incurred but provisions made (for example, provision for Bad debts)

What if there is a loss?

The businesses are allowed to carry forward the losses and setoff against subsequent year’s profits

Tax for free zone companies

Free zones that do not conduct business with Mainland are exempt from tax (including Financial free zones). It means Free zones that conduct business with the mainland will be subject to tax.
Free zones companies that are exempt from tax, are also required to register and file the returns
If a free zone conducts business partly with mainland companies and partly within the free zone, is the income taxed proportionately?  Clarification is awaited on this point. 

Do we have a lot of time to prepare ourselves?

It is to be noted any review of financial performance or results are compared with earlier periods. Any significant variations from earlier years may draw the attention of authorities and may result in investigations or scrutiny. Any unexplained entries may be treated as income by authorities. There will be a requirement to file returns annually and it is the responsibility to ensure the accuracy, truth, and fairness of declared figures. 

Trying to make sense of the upcoming cryptocurrency laws in the UAE? First of all, you’re not alone in your confusion. These laws are complicated, and the name Virtual Asset Regulatory Authority doesn’t exactly roll off the tongue easily. Here’s everything you need to know about VARA and how it affects cryptocurrencies and other virtual assets in the UAE.

What is VARA?

The Virtual Asset Regulatory Authority (VARA) was established by Law No. 8 of 2018. It regulates activities related to virtual assets in the UAE and provides a comprehensive regulatory framework for investors, developers, exchanges and service providers in order to ensure consumer protection as well as the sustainable development of these activities. All relevant business entities operating in or from Dubai will be required to obtain authorization from VARA prior to commencing any regulated activity. 

This applies whether they are incorporated or located outside of Dubai. Businesses that have been granted authorization by VARA will be issued with a license that is valid throughout all emirates of the UAE, enabling them to operate across borders with greater ease than those businesses that have obtained authorization solely within their own emirate.

Legalities surrounding Crypto Currencies and Virtual Assets

The UAE has recently published a new law, as per Federal Decree No. 7 of 2018. This decree forms part of a framework called the Virtual Asset Regulatory Authority (VARA), which will be responsible for regulating cryptocurrency and virtual asset activities in UAE from 2021 to 2022. 

One of its objectives is to protect investors from fraudulent schemes that have been proliferating across various countries around the world. It also aims to protect consumers from being exposed to risks related to virtual asset trading platforms, such as money laundering and terrorist financing. The Virtual Asset Regulatory Authority is one of several measures taken by Abu Dhabi Global Market (ADGM), a financial free zone in Abu Dhabi, the United Arab Emirates that supports innovation within financial services and technology through regulatory initiatives and strategic partnerships with leading industry players. ADGM was formed by merging two existing entities; the Financial Services Regulatory Authority (FSRA) and Securities & Commodities Authority (SCA). The Virtual Asset Regulatory Authority will regulate virtual asset service providers operating in ADGM’s territory and ensure compliance with applicable laws. All virtual asset service providers are required to register themselves with VARA before operating in ADGM’s territory.

A closer look at Crypto Currencies

The world of cryptocurrency is moving quickly. The Virtual Asset Regulatory Authority (VARA) was announced in September 2018 by the UAE Ministry of Finance with a target launch date of January 2020. Until then, how does one navigate through all these evolving changes that affect businesses as well as individuals using virtual currencies or virtual assets like Bitcoin? This guide will help you understand what you need to know now so that when VARA comes into effect, your business can continue to thrive.

What are Crypto Currencies?

The concept of virtual currency can be understood as a digital representation of value that can be traded digitally. In practice, the virtual currency is:

a medium of exchange; and/or 
a unit of account; and/or 
The currency acts as a store of value and has no legal tender status (i.e., when tendered to a creditor, is a valid and legal offer of payment) in any jurisdiction.

For example, Bitcoin is a type of cryptocurrency. Other types include Ripple, Litecoin, Monero and many others. Within the Bitcoin network and blockchain, there are also other coins such as Ether (Ethereum), which has its own unique blockchain and functionality. It should be noted that many jurisdictions still require additional licensing or regulatory filings to operate certain businesses involving crypto-currencies or tokens such as securities exchanges, brokerage firms dealing with crypto-currencies or token offerings, traders of crypto-currencies or tokens under specified circumstances, etc.

What does the UAE Central Bank have to say about Cryptocurrencies and Virtual Assets?

As a general comment, we would say that these new developments carry associated risks. We also note that some of these may not be legal in all jurisdictions or permissible under sharia law. Additionally, several authorities, including central banks, regulators and financial sector entities, are evaluating possible regulation of virtual assets or similar instruments. 

The UAE Central Bank will continue to monitor developments in relation to cryptocurrencies and virtual assets, along with other emerging innovations. The Bank will take action as appropriate if it identifies any specific threats arising from such activities for market integrity or consumer protection.

Binance 

In May 2018 The Central Bank of Dubai issued a regulatory framework for virtual currency firms dealing with digital coins. In July 2018 Binance received a warning from UAE’s financial watchdog, stating that cryptocurrency exchanges are required to be regulated within 90 days or else face criminal penalties. Businesses working in all industries must comply with the UAE’s local regulations in order to operate in Abu Dhabi.

Top Cryptocurrency Exchanges in UAE

With over a million registered users on their platform and handling billions of dollars in trades per day, Binance is currently one of the largest exchanges in all markets. The company was founded by an ambitious cryptocurrency enthusiast Changpeng Zhao, who brought his unique experience from both Wall Street as well as the crypto exchange industry. 

He started his career on Wall Street as a software engineer for the Bloomberg Tradebook Futures Technology team, where he was tasked with building trading systems for the financial firm's hedge funds. He then moved to Tokyo to join OKCoin as CTO before moving back to China and starting his own company - BijieTech - which developed a blockchain-based solution for digital media rights management. In 2017, he decided it was time to start another venture so that he could focus more on blockchain technology development. That's when Binance was born.

Today it’s quite difficult to find a platform where we can buy or sell our digital currency in any country. The best and safest trading platform is Binance which is located in Hong Kong. This platform offers free Sign-Up with no requirements for verification of your account. Besides, it has a lot more features than other cryptocurrencies like Bitcoin etc. With the help of crypto coins, we can easily convert our digital currency into real money & vice versa.

Conclusion

I’m sure we all love money. However, nothing is more precious than time – which can never be replaced. In that case, a careful analysis of your trading results is not just a good idea, but an absolute necessity if you want to ensure that your strategy is profitable in relation to its risks – otherwise, it makes no sense at all! So instead of continuously looking at crypto prices or holding on to a position that clearly isn’t working out over longer periods of time... Why not take advantage of our market expertise?

“Debt is the money borrowed by one party from another to serve a financial need that otherwise cannot be met outright. Many organizations use debt to procure goods and services that they can’t manage to pay for with cash.” The parties involved in the debt process are known as debtors and creditors, who at all times strive to maintain a healthy relationship between them. However, in certain cases, where the debtor is unable or doesn’t make the repayment of the debt to the creditor, the debt recovery procedures are being resorted to by the creditor.

The debt recovery system of the UAE is not quite amicable because of the non-existence of special courts that deal with financial litigation. This in turn implies that when the creditor acquires services from a lawyer or a debt recovery agent, the proceedings that have to be initiated against the debtor are brought forward to the civil courts (Court of Cessation or Federal Supreme Court).

In order to recover the debt in the UAE, out of court processes for receiving the same are considered to be more favourable, affordable, and effective for the parties. Out of court procedure of debt recovery with the help of a professional service provider involve the following steps which are divided into two types: Extra-judicial procedures and Court settlements.

Extra-Judicial Procedure

1. All the significant information on the debtor is collected by the agency.
2. A reminder about the pendency of the repayment of the debt is professionally sent to the debtor. It is pivotal to note that the communication of the reminder can be done only through telephonic calls or emails.
3. The debtor is then informed about the legal repercussions that they might suffer in case of failure of payment of the debt. 

Court Proceedings

When acquiring the debt is not possible through amicable means, court proceedings have to be resorted to force the payment of the debt.  The significant information that the lender is supposed to know and the procedure to be followed is given as follows:

• Time Limitation: The fundamental rules concerning limitations of bringing a claim against the debtor in court is given under Law No. 5 of 1985. According to the basic rules stated under this Law, the limitation upon bringing a claim is 15 years, until and unless the otherwise is provided under some specific provision.
• Bringing a Claim Against Debtor: The first claim to start proceedings of a dispute which is Civil or Commercial should be presented to the Reconciliation and Settlement Committee which strives to settle the claim of debt recovery. If the settlement doesn’t succeed, then the claim is to present before a relevant court of law. The documents required for debt collection and the claim must be in Arabic. If the documents are created in another language, then they have to be translated into Arabic by a translator.

When the claim is brought before the court, the defendant will be informed about it and will be directed by the court to be present for the proceedings. However, if the debtor doesn’t respond to claims, the legal proceedings can be initiated and the court can deliver the judgement in the absence of the defendant. Once a date has been set for the hearing, no further documents are accepted, no new defendant can be introduced.

The option of seeking an Appeal before a higher court (Court of Appeal) is available, and the filing of the appeal ought to be done within 30 days of the date on which the judgement was passed by the Court of First Instance. Further right to appeal before the Court of Cessation is also available. However, certain monetary prerequisites need to be fulfilled. The appeal can only be filed within 60 days of the judgement which was passed by the Court of Appeal.

The Securities and Commodities Authority (SCA) of the UAE announced that it is getting closer to adopting regulations on virtual asset investments. A survey on the sector's money laundering and terrorist financing risks was also assessed by the SCA.

As regional economic competition intensifies, the UAE has been advocating for the development of virtual asset regulation in order to attract new types of industry. The UAE has also strengthened laws in recent years to combat its reputation as a haven for illicit money.

The Financial Action Task Force (FATF) added the UAE to a list of jurisdictions subject to increased monitoring, dubbed the "Grey List," last Friday. Following which, the SCA announced the framework on anti-money laundering and terrorist financing risk.

According to the SCA, it has finished consultations with UAE authorities to make sure that the virtual assets industry complies with FATF principles and criteria.

“The Securities and Commodities Authority is the sole authority in the UAE mainland - except the financial free zones, ADGM and DIFC for  licensing, supervising and overseeing the virtual assets activities and services  issued for investment purposes (not virtual assets issued for payment purposes) as well as monitoring the compliance of the licensees by the Authority with the recommendations and requirements of the Financial Action Task Force (FATF) and in accordance with Federal Decree No. 20 of 2018 on Anti-Money Laundering and Countering the Financing of Terrorism and Illegal Organizations and its amendments and implementing regulations”, the SCA statement said.

The Central Bank of the UAE (CBUAE) will introduce new general terms and conditions for its standing credit and liquidity insurance facilities, where licensed financial institutions in the UAE can access CBUAE reserves on an overnight or term basis by posting eligible collateral. This has been proposed as part of the Central Bank’s Dirham Monetary Framework implementation plan,

The new terms and conditions, which will come into effect on 1st March, 2022, define the discretionary powers related to the activation of these facilities, and the guidelines for collateral management, reported WAM, the official media agency.

At their own discretion, eligible counterparties may access either of the standing credit facilities to draw on CBUAE reserves on an overnight basis, through Collateralized Funding or Murabaha Transactions, to deal with temporary liquidity needs.

In addition, the CBUAE may activate the Contingent Liquidity Insurance Facility in response to any actual or prospective stress of an exceptional nature, where eligible counterparties need CBUAE reserves for extended terms.

Khaled Mohamed Balama, Governor of the CBUAE, stated, "The reorganisation of the spectrum of eligible collateral will ensure more effective intervention by the CBUAE to provide eligible counterparties with liquidity at times of stress, or to deal with domestic market issues. The new features of the standing credit and liquidity insurance facilities shall also assist the CBUAE to cope with all market conditions."

The new 50 Dirham banknote was launched as a part of the UAE’s 50^th National Day.

The Dh50 banknote features the Father of the Nation, Sheikh Zayed along with the founding fathers of the UAE. Several monuments of national and historic importance is also featured on the banknote.

According to the Emirates new agency, WAM, the Central Bank said that the notes have various security features as well.

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the Vice President, the Prime Minister of the UAE and the Ruler of Dubai launched the new note along with His Highness Sheikh Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.

The launch ceremony was also witnessed by the other UAE Rulers and Crown Princes as well.

The UAE Federal Tax Authority (FTA) has announced that any person or group that has violated any provision of the tax legislation has the right to apply to the FTA for a reduction or exemption from administrative penalties, provided that the apology is acceptable to the FTA and there is evidence to justify the apology and that any violation will result in the imposition of an administrative penalty.

The FTA has 40 working days from receipt of the application to make its decision on whether to waive or reduce the administrative penalty. A tripartite committee established after the decision of the Director-General of the Free Trade Agreement to examine, accept, or reject the apology provided for in the Free Trade Agreement will decide on the reduction or exemption from an administrative penalty within 40 working days of receipt of the request. The UAE cabinet's decision to extend the deadline for taxpayers to appeal against the cancellation or reduction of the penalty imposed by the Federal Tax Authority is, according to tax experts, a postponement for companies.