A new initiative in Dubai will provide every newborn with a "learner’s passport" to track their educational journey and support parents in making informed decisions about their child's education. The Knowledge and Human Development Authority (KHDA) announced this as part of the 'Education Strategy 2033'. The system, in collaboration with the Dubai Health Authority, aims to guarantee every child's right to education.
Aisha Miran, KHDA's Director-General, emphasized that the learner’s passport will register children of school-going age and monitor their enrollment. The system will help identify children who have not yet joined school, ensuring immediate action is taken to prevent any from missing out on education.
“When a child is born, they are added to the system, giving us a clear understanding of available educational stages. Information about nurseries and early learning centers will also be provided,” Miran explained. She highlighted that the current enrolment rate of Emirati children in early childhood centers is below the global average, affecting their academic growth. "Scientific studies show that 90 percent of a child’s brain development happens between zero to five years, making this a critical stage that shapes their future academic success."
The learner’s passport will also provide parents with comprehensive information about the educational paths available, including both academic and vocational options, helping them make more informed choices for their children.
Key Focus of 'Education Strategy 2033'
The strategy outlines several important goals:
The strategy also addresses the challenge of rising school fees, which has impacted access to quality education for many families.
Collective Effort for Better Education
Miran stressed the need for collaboration, engaging parents as key partners in the educational process. Awareness programs will empower parents to support their children's learning journey.
Since KHDA’s restructuring in 2005, Dubai’s educational system has seen significant progress. The number of schools has grown from 136 in 2007 to over 220, now serving more than 32,500 students in private education. Miran noted that 81% of students in private schools now receive a good or higher standard of education, a sharp increase from just 30% in 2007.
The 'Education Strategy 2033' aims to elevate education quality and meet the needs of Dubai’s diverse community, further enhancing the city’s global standing in education.
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A legal battle spanning seven years has come to a close, with Dubai's Court of Cassation ruling against a $100 million (Dh367 million) copyright claim filed by a UAE-based publishing firm. The court's decision favoured an American video game company, which had been entangled in the dispute since 2018.
The conflict arose when the game publisher in the UAE filed a lawsuit, alleging ownership of specific modes in a popular video game and seeking $100 million in compensation after the American firm terminated their contract. The case progressed through multiple stages, with appeal judges in Dubai thoroughly reviewing the evidence.
On March 15, the court affirmed the American company's ownership of the game and its various modes. The publisher was ordered to pay Dh18.7 million to the gaming firm, underscoring the UAE’s dedication to protecting intellectual property rights.
The gaming firm's legal team praised the verdict, stating, "This judgement highlights the UAE's robust legal framework and its commitment to safeguarding intellectual property. It reassures the global creative community that the UAE remains a safe hub for innovation and creativity."
The ruling sends a strong message about the nation's commitment to upholding the rule of law and fostering a protective environment for intellectual property rights.
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In a decisive environmental move, the Environment Agency – Abu Dhabi (EAD) has temporarily suspended a major construction project on Yas Island. The project, whose name has not been disclosed, was halted due to repeated violations of environmental regulations, particularly concerning water pollution.
Environmental Violations
The decision follows a series of thorough inspections conducted by the EAD, which identified several breaches of environmental standards. Public concerns were also raised regarding the deteriorating water quality in the area. According to EAD’s statement on their X (formerly Twitter) account, the construction project had been contributing to increased water pollution, leading to higher turbidity and noticeable changes in water composition.
“This decision followed thorough inspections and public concerns over increased water pollution, including higher turbidity and significant changes in water quality,” the agency stated, emphasizing its commitment to protecting the environment.
Impact on Water Quality
Yas Island, a major entertainment and residential hub, is home to several key developments, making the issue of water pollution particularly concerning. Residents and environmental advocates expressed fears over the potential impact on surrounding ecosystems and the island's residential zones. The rise in water turbidity, a measure of how clear or cloudy the water is, indicated a significant disruption to the local marine environment. Such changes can affect the habitat of marine life and may have a long-term impact on the ecosystem.
The EAD has reiterated that the project will remain suspended until the developers implement all necessary corrective measures to bring the construction site into compliance with environmental standards. The agency has not specified a timeline for when the project might resume, but it stressed that the priority is the restoration of water quality and adherence to environmental safety protocols.
Public Concerns and Accountability
The halt has been met with mixed reactions from the public. While some have expressed relief over the EAD’s swift action, there are growing concerns about the long-term consequences of the project and how the developers will address the pollution issues moving forward.
Residents of the nearby areas have also raised concerns about the potential health and environmental risks posed by the pollution. Many are calling for stricter regulations and more frequent inspections to ensure that projects of this scale adhere to environmental guidelines from the outset.
Environmental Regulations in Abu Dhabi
This incident highlights the increasing importance of enforcing environmental regulations in Abu Dhabi, especially as the emirate continues to expand with large-scale developments. The EAD plays a critical role in ensuring that these projects meet the necessary environmental standards and that any violations are addressed promptly.
Yas Island is one of Abu Dhabi’s flagship destinations, featuring world-class attractions like Ferrari World, Yas Waterworld, and residential communities. The preservation of its environmental integrity is crucial for maintaining its appeal as both a tourist destination and a desirable living area.
Next Steps
The construction project will only resume once all corrective actions are implemented, ensuring that it complies with EAD’s environmental guidelines. The agency has warned that failure to meet these standards could result in further delays or even more severe penalties.
As Abu Dhabi continues to develop its urban landscape, the EAD’s commitment to sustainable practices and environmental protection remains a critical aspect of the emirate’s growth strategy. The agency’s actions underscore the balance between development and environmental responsibility, reminding developers of the importance of adhering to strict environmental protocols.
Conclusion
The temporary suspension of this construction project serves as a reminder that environmental standards are non-negotiable, even for large-scale developments. With growing public awareness and concern over environmental issues, the EAD's actions reflect Abu Dhabi's commitment to ensuring sustainable development without compromising the health of its ecosystems. As corrective measures are awaited, all eyes remain on how quickly and effectively the project can meet these requirements and resume in an environmentally responsible manner.
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The UAE has reinforced its stance on religious rulings, emphasizing that only the UAE Council for Fatwa is authorized to issue fatwas under Federal Law No. (3) of 2024. Violators face fines from Dh10,000 to Dh200,000, and potential closures for unlicensed religious guidance. Repeat offenses will result in doubled fines. Led by Abdullah bin Bayyah, the Council also oversees fatwa-related research, licensing, and practitioner training. The goal is to ensure standardized religious guidance across the UAE while tackling modern and emerging issues with legal opinions and fatwas.
Furthermore, this measure aims to prevent unauthorized individuals or institutions from issuing fatwas that may mislead the public, fostering a more centralized and accountable religious ruling process. The Council is also responsible for training fatwa practitioners to maintain the highest standard of religious and legal knowledge.
These new measures highlight the UAE’s commitment to promoting religious clarity, accountability, and the proper dissemination of Islamic rulings within the country.
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The European Court of Human Rights (ECHR) has delivered a unanimous ruling against Russia, finding the country responsible for systematic human rights violations in Crimea since 2014. The court's decision marks a significant international condemnation of Russia’s actions in Crimea, following its annexation of the region from Ukraine.
In its ruling, the ECHR outlined multiple violations, including unlawful arrests, restrictions on freedom of speech, and discrimination against ethnic minorities, particularly Crimean Tatars. The court found that Russia had systematically failed to uphold the basic human rights of Crimean residents, violating several articles of the European Convention on Human Rights.
This verdict follows years of international criticism regarding Russia’s control over Crimea and its impact on the region’s population. Human rights organizations and international observers have long documented abuses, including suppression of political dissent, unjust imprisonment, and the targeting of ethnic and religious groups who opposed Russia’s occupation.
The ECHR ruling is significant as it reinforces the broader international stance that Russia’s annexation of Crimea was unlawful and that the treatment of residents under its control violates international law. The court’s decision adds legal weight to the numerous reports and investigations that have highlighted the severe human rights situation in Crimea.
While the ruling is a symbolic victory for human rights advocates and Ukraine, enforcing the decision remains a challenge. Russia is not a member of the European Court of Human Rights, having exited the jurisdiction after widespread international sanctions were imposed following its 2022 invasion of Ukraine. As a result, while the court’s ruling is a powerful condemnation, its practical implications may be limited in compelling Russia to change its policies in Crimea.
Nonetheless, the ruling underscores the continued international pressure on Russia to account for its actions in Crimea and the broader conflict in Ukraine, maintaining the focus on the human rights violations occurring under its occupation.
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Former President Donald Trump plans to appeal a civil fraud judgment of nearly $500 million imposed by a New York court. The case, part of a broader investigation into Trump’s business practices, accuses him and his organization of inflating asset values to secure favourable loan terms and insurance benefits. New York Attorney General Letitia James led the case, asserting that Trump’s financial misrepresentations amounted to fraud.
The ruling could have significant financial and legal repercussions for Trump and his businesses, potentially impacting his extensive real estate empire and political future. His legal team is expected to argue that the judgment is based on overstated claims and lacks the necessary legal foundation to justify such a hefty penalty. Trump has consistently denied any wrongdoing, dismissing the lawsuit as politically motivated.
The appeal will be filed in the New York state appellate court, where Trump’s attorneys will aim to challenge both the findings of the lower court and the financial penalties that have been imposed. The appeals process will involve a detailed review of the trial court’s decision, focusing on legal errors and factual misinterpretations that Trump’s defense will highlight in their filings.
This case is one of many legal challenges Trump is currently facing, including federal investigations and state-level inquiries. Despite the mounting legal battles, Trump remains defiant, insisting that these cases are part of a broader effort to undermine his political career and business reputation.
Observers will be closely watching how the appellate court handles the case, as it may set a precedent for future civil fraud actions against high-profile business leaders. The outcome could also influence Trump’s ongoing political ambitions as he weighs his options for the upcoming election cycle.
The court is expected to hear arguments in the coming months, though the legal process could drag on, particularly if the case moves through further appeals or settlements. For now, Trump’s legal team is preparing for what is sure to be another closely watched legal showdown.
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Amazon Web Services (AWS) has been ordered to pay $30.5 million in damages following a verdict in a patent infringement case involving computer networking and broadcasting technology. The ruling came after a legal battle in which the patent owner argued that AWS had violated their intellectual property rights by using patented technology without proper authorization.
The case centered on AWS’s use of advanced computer networking and broadcasting methods, key to its cloud services infrastructure. The patent owner claimed that AWS's services utilized protected technology without a licensing agreement, thereby infringing on their rights.
After hearing the arguments, the court ruled in favor of the patent owner, concluding that AWS had indeed used the patented technology unlawfully. As a result, AWS has been ordered to pay the significant sum of $30.5 million in compensation for damages.
This verdict highlights the importance of intellectual property protection in the tech industry, especially as companies increasingly rely on innovative networking and broadcasting technologies to deliver cloud-based solutions. AWS, one of the leading providers of cloud computing services globally, may face more scrutiny regarding its use of third-party patents following this ruling.
AWS is expected to review the court’s decision and consider its legal options moving forward, which may include an appeal. In the meantime, this case serves as a reminder for tech companies to ensure that they respect intellectual property rights and secure proper licensing agreements to avoid costly legal battles.
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The UFC has reached a $375 million settlement with a group of former fighters in a class-action lawsuit, marking a major development in the ongoing legal battles surrounding the organization’s business practices. The agreement, reached on Thursday, comes after a previous settlement was rejected by a Nevada district judge, forcing the UFC to return to negotiations.
Background of the Lawsuit
The lawsuit, initially filed in 2014, alleges that the UFC (Ultimate Fighting Championship) engaged in anti-competitive practices that limited fighters’ earning potential. Fighters claimed that the UFC maintained a near-monopoly over the MMA (Mixed Martial Arts) industry, preventing them from pursuing more lucrative contracts with rival promotions. According to the fighters, this allowed the UFC to keep fighter compensation artificially low, even as the company’s revenues soared.
The plaintiffs, which include former UFC fighters, argue that the organization’s restrictive contracts and exclusive promotional rights violated U.S. antitrust laws. The UFC, while denying any wrongdoing, has consistently fought back, arguing that its contracts are legal and in line with industry standards.
The Settlement Details
The $375 million settlement is a substantial sum and a clear indication that the UFC is seeking to put this particular legal issue behind them. The settlement will provide compensation to the fighters who were part of the class-action suit, which includes athletes who competed in the UFC between December 2010 and June 2017.
The settlement was finalized after a previous agreement was thrown out by a Nevada district judge, who ruled that the initial deal did not adequately address the fighters' concerns. This ruling forced both sides back to the negotiating table, eventually leading to the higher settlement amount.
Although the UFC has not admitted any wrongdoing in connection with the settlement, the financial payout is one of the largest in the history of MMA and could have wide-reaching implications for how fighter contracts are structured in the future.
Ongoing Legal Challenges
Despite the settlement, the UFC’s legal troubles are far from over. Another class-action lawsuit, involving a different group of former fighters, remains unresolved. This case, which is still pending, centers around similar claims of anti-competitive practices and unfair fighter pay.
The outcome of this second lawsuit could potentially have further financial and operational implications for the UFC, especially if the fighters involved win their case or reach a separate settlement agreement.
Impact on Fighters and the MMA Industry
The settlement is likely to have a lasting impact on the way the UFC and other MMA promotions conduct business. Over the years, fighters and industry insiders have long criticized the pay structure within the UFC, with many arguing that fighters deserve a larger share of the promotion's substantial revenue streams.
UFC President Dana White has frequently dismissed such criticisms, maintaining that the UFC compensates its fighters fairly. However, the lawsuit and subsequent settlement underscore the growing discontent among athletes who feel underpaid for their efforts, particularly in light of the billions of dollars the UFC has generated from pay-per-view events, sponsorship deals, and media rights.
Some industry experts believe that the settlement could pave the way for more transparency in fighter pay, with the potential for future adjustments to the revenue-sharing model between fighters and promoters. The case has also highlighted the ongoing debate about whether MMA fighters should have a union or association to collectively bargain for better pay and working conditions, similar to athletes in other professional sports leagues.
The UFC’s Response
While the UFC has not publicly commented on the specifics of the $375 million settlement, the organization remains firm in its stance that it operates within the boundaries of the law. In past statements, UFC officials have pointed to the growth of the sport under their leadership and the increasing opportunities for fighters to compete at the highest level.
It is likely that the UFC will continue to face pressure from fighters and advocates calling for reforms to how athletes are compensated, but for now, the organization has taken a significant step toward resolving one of the major legal challenges it faces.
Conclusion
The $375 million settlement represents a major milestone in the long-standing legal battle between the UFC and its former fighters. While this settlement resolves one class-action lawsuit, another remains pending, meaning the UFC’s legal struggles are not entirely over. The broader impact of this settlement on fighter pay, contract practices, and the MMA industry as a whole could be profound, potentially leading to lasting changes in how fighters are compensated for their work inside the Octagon.
For now, fighters who were part of the class-action lawsuit can expect to receive compensation from the settlement, but the future remains uncertain as the UFC navigates the remaining legal challenges.
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Businesses in the UAE are currently navigating the relatively new corporate tax regime, with many still in the process of registering or preparing for their first filings. However, for companies that were incorporated in June 2023, the deadline to file their first corporate tax returns is approaching fast—September 30, 2024.
This marks an important milestone in the UAE's corporate tax landscape, as it represents the first round of returns to be filed by companies operating under the new regulations, which were announced last year. The majority of businesses in the UAE will not need to file their tax returns until later in 2025 for the financial year 2024. But for those incorporated in June 2023, the deadline comes sooner—just 12 months after their incorporation date.
Corporate Tax Landscape in the UAE
The introduction of corporate tax in the UAE is a significant shift from the country’s previous tax-free regime, aimed at enhancing its global standing and ensuring sustainable growth. The tax applies to most businesses operating within the UAE, with a rate of 9% on profits exceeding AED 375,000. Small businesses and startups are given some leeway, with various reliefs and exemptions available depending on their size, revenue, and industry.
Freelancers, for example, have been given an extended deadline to register for corporate tax, allowing more time to adjust to the new requirements. Similarly, small businesses are offered a three-year tax relief to help them ease into the tax system, as the UAE seeks to promote entrepreneurship while still ensuring compliance with the broader corporate tax regulations.
Preparing for the Deadline
Businesses incorporated in June 2023 should already have undergone the necessary steps for tax registration, which includes obtaining a Tax Registration Number (TRN) and maintaining proper financial records in accordance with the regulations. If not yet completed, companies are urged to finalize their registrations as quickly as possible, as the Federal Tax Authority (FTA) imposes penalties for late filings or non-compliance.
For those businesses approaching the September 30 deadline, it's essential to ensure that all relevant financial information is prepared and accurate. The returns will need to include details of the company’s revenue, deductible expenses, and taxable profits. It’s also vital to be aware of any specific tax exemptions or deductions that could apply based on the industry or business structure.
Companies should also be aware of their record-keeping obligations, as tax authorities may audit businesses to verify the accuracy of their filings. Maintaining clear and organized financial records, including receipts, invoices, and statements, is essential for long-term compliance under the new corporate tax laws.
Legal Implications for Non-Compliance
Failure to comply with the UAE’s corporate tax requirements can lead to serious consequences, including financial penalties and potential legal action. The FTA has set out specific penalties for businesses that fail to register for corporate tax or file their returns by the stipulated deadline. These penalties range from AED 500 to AED 50,000, depending on the severity and duration of the non-compliance. In extreme cases, repeat offenders may face additional sanctions, including business suspensions.
Moving Forward
As more businesses in the UAE become accustomed to the new corporate tax framework, the key focus remains on compliance and proper financial management. Companies that miss this September 30 deadline or those that neglect to register for corporate tax may find themselves facing hefty fines or legal complications. For those that have already completed their filings, it serves as a first step in adapting to the UAE’s evolving regulatory environment.
The corporate tax regime is designed to ensure long-term economic stability while fostering a fair and transparent business environment. Companies that invest time and effort into compliance will be better positioned to navigate future regulatory changes, ensuring sustainable growth in the UAE’s dynamic market.
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The UAE Cybersecurity Council has issued an urgent warning to UAE residents about the increasing threat posed by malicious advertisements infiltrating even the most trusted websites. These fake ads, often disguised as legitimate promotions, can trick users into downloading malware, resulting in serious risks such as data theft, fraud, and device compromise.
Growing Threat of Malicious Ads
The Cybersecurity Council highlighted that many websites, including widely trusted platforms, rely on third-party digital advertising companies to display ads. Unfortunately, these ads are not always adequately screened for safety, leaving users vulnerable to malicious content. Bad actors are exploiting this by embedding harmful software in seemingly innocent ads, such as promotions for products, giveaways, or software downloads.
According to the Council, the malicious ads may redirect users to unsafe websites or initiate automatic downloads of malware once clicked, potentially compromising personal and financial data stored on their devices.
The Impact of Malicious Ads
Malicious ads, also known as "malvertising," are becoming a significant problem worldwide as hackers find new ways to distribute malware through popular, well-established websites. The risk is particularly high because users often let their guard down when browsing trusted sites, assuming that all content, including ads, is safe.
Once malware is downloaded, it can lead to a range of cyber threats, from personal data breaches and identity theft to more severe consequences like financial fraud or ransomware attacks, where users are locked out of their devices until a ransom is paid.
The UAE Cybersecurity Council emphasized the importance of understanding these risks and being proactive in identifying and avoiding potential traps online. “It is crucial for users to be aware that even trusted websites can carry these fake ads,” the Council stated.
How to Protect Yourself
In light of these growing concerns, the Cybersecurity Council has provided the following recommendations to help UAE residents protect themselves from falling victim to these fake and dangerous ads:
Government's Commitment to Cybersecurity
The UAE Cybersecurity Council’s warning forms part of a broader initiative aimed at enhancing the digital safety of the country's residents. As the UAE continues to strengthen its position as a global hub for business and technology, it is equally committed to ensuring that its digital infrastructure remains secure.
The Council reaffirmed its dedication to protecting individuals, businesses, and institutions from cyber threats. In the past few months, the Council has been actively engaging in public awareness campaigns and collaborating with both local and international organizations to develop robust cybersecurity measures.
Vigilance is Key
The UAE government encourages users to stay vigilant and educated about evolving cyber threats, particularly as online activities increase. "We urge all internet users in the UAE to maintain caution when browsing, even on sites they believe to be safe. Cybercriminals are continuously finding new ways to exploit digital spaces, and malicious ads are just one of the many tools in their arsenal,” the Council stated.
By following these safety tips and staying informed, residents can significantly reduce the risk of falling victim to malvertising and other cyber threats.
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In alignment with Dubai's vision to create an inclusive environment for people of determination, the Government of Dubai’s Legal Affairs Department recently hosted a virtual workshop focused on the rights of individuals with disabilities. This event coincided with International Sign Language Day, emphasizing the importance of communication and accessibility.
Led by Legal Counsel Reda Mahmoud Elsayed, the workshop attracted over 370 participants from various government entities and the general public. It began with a comprehensive overview of the Convention on the Rights of Persons with Disabilities, a UN initiative that the UAE has embraced to bolster international advocacy for disability rights.
The workshop delved into the protections afforded to people of determination under local legislation, particularly highlighting Law No. (3) of 2022. This landmark law establishes a legal framework aimed at integrating people of determination into all facets of life, empowering them to live independently and participate actively in the development of policies, plans, and programs that impact their lives.
Participants learned about various initiatives by the Legal Affairs Department designed to enhance accessibility and support for individuals with disabilities. These initiatives include the redesign of department facilities to meet international accessibility standards and the formation of a dedicated team to oversee the implementation of relevant requirements.
Additionally, the workshop introduced a new guide developed by the Department, outlining key legal terms related to its services and functions. This resource aims to further empower individuals and ensure they are informed about their rights and available services.
Through such initiatives, Dubai continues to affirm its commitment to fostering a society where people of determination can thrive and contribute fully.
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Decennial liability is a significant aspect of construction law in the United Arab Emirates (UAE), designed to protect property owners from structural defects in buildings and other construction projects. This legal concept imposes a ten-year liability period on contractors and builders, ensuring that any defects or failures in construction are addressed within a specific timeframe. Understanding decennial liability is crucial for contractors, property owners, and investors in the UAE's booming construction industry.
The Legal Framework
Primarily Decennial liability in the UAE is primarily governed by Federal Law No. 5 On the Civil Transactions Law of the UAE (“Civil Code”), enshrined within; Article 880, which is considered as the definitive starting point of the decennial liability within UAE’s Civil Code.
With the first subsection focusing on affixing joint liability “for every defect endangering the solidity and security of the building” on the “engineer” and the “contractor, under his supervision” for “a period of ten years or a longer agreed period”. Indemnifying “the master of work for total or partial destruction of these buildings or fixed constructions”.
The second subsection effectively communicates the objective of this provision being the protection of the owner interests where even if the defect “is due to a defect in the ground itself, and even if the master authorized the erection of the defective buildings or fixed constructions” this “this obligation to indemnify shall remain in effect”.
With the third subsection establishing the time limit being 10-years beginning from the “delivery of the work”.
Key Provisions
Duration of Liability: As mentioned above, architects, contractors and engineers are liable for any defects affecting the structure of a building for ten years or a longer agreed period from the date of handover. While this applies to both residential and commercial properties per the limit set by Article 883 wherein, “Court action on the warranty may not be heard after three years from the occurrence of the destruction or the discovery of the defect.”
Scope of Liability: The liability covers significant structural issues that may compromise the safety and stability of a building. These can include faults in design, construction, or the materials used. Additionally, these faults in design, construction, etc., warranting decennial liability have been termed as trigger events by the UAE Courts, events resulting in ‘partial or total structural collapse’ and any ‘defects threatening the stability or safety of a structure’
Exclusions: It is important to note that decennial liability does not cover minor defects or issues that do not affect the overall safety and stability of the structure. Furthermore, if a defect arises from improper maintenance by the owner or third parties, the contractors, consultants and engineers involved may not be held liable. This exception also extends to external factors and natural disasters beyond the purview of the contractor or consultants, granted they can satisfy the burden of proof to qualify as such.
Implications for Stakeholders
For Contractors and Builders:
Contractors must ensure that they adhere to high standards of construction to avoid potential liabilities. Implementing quality control measures, using reliable materials, and following best practices can mitigate the risk of defects. Additionally, contractors should consider including clauses in their contracts that outline the scope of their responsibilities and limitations of liability.
For Property Owners
Property owners benefit from decennial liability as it provides a safety net against potential structural defects. It is advisable for property owners to conduct thorough inspections upon handover and document any defects. If defects are identified, owners should notify the contractor promptly to initiate repairs within the ten-year liability period.
For Investors
Investors in the UAE’s real estate market should be aware of decennial liability when evaluating properties. Understanding the implications of this liability can influence investment decisions, particularly regarding the reputation and reliability of the contractors involved in a project.
Mitigating circumstances
While no construction contract may directly waive, exclude or limit decennial liability under UAE law, as per public policy. Such liability may be mitigated by way of indemnities, namely insurance. With countries such as France and Egypt mandating the contractors to procure insurance as per their country codes. The only caveat here being that such insurance is rarely created for the sole purpose of addressing decennial liability and in jurisdiction where it is present it is heavily regulated by that country’s law.
Hence, as of now there does not seem to be a standard scheme to insure project against decennial liability, and even if there were it is hypothesized that such a product would not be commercially viable as it would only be relevant to the most complex projects.
Enforcement and Dispute Resolution
Disputes arising from decennial liability can be complex. In the UAE, these disputes may be addressed through:
Negotiation: Direct negotiations between the contractor and property owner can often lead to amicable resolutions.
Mediation: Engaging a mediator can help facilitate discussions and find mutually acceptable solutions.
Arbitration and Litigation: If disputes cannot be resolved through negotiation or mediation, parties may resort to arbitration or court proceedings. The UAE has a well-established legal framework for handling construction disputes, including specialized construction courts.
In terms of Compensation
As based on precedent, if presented with a claim against a contractor and a consultant the Court is likely to allocate liability on a pro rata basis as per their contributions to the defect while taking into consideration the severity of the fault or defect as well as each party’s individual connection to said fault.
Conclusion
Decennial liability serves as a crucial mechanism in the UAE’s construction landscape, providing essential protections for property owners while actively holding contractors responsible for their works one year from the date of the preliminary handover and passively for 10 years following the complete handover.
As the UAE continues to develop its infrastructure and real estate sector, understanding and navigating decennial liability will remain vital for all stakeholders involved. By prioritizing quality construction and clear communication, parties can effectively manage their responsibilities and protect their interests in this dynamic market.
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On July 15, 2024, the Dubai International Financial Centre (DIFC) introduced significant changes to its Prescribed Company (PC) regime through amendments to the Prescribed Companies Regulations 2024. These changes aim to streamline and broaden the framework for establishing a PC, offering more flexibility for individuals and entities seeking to hold real property in Dubai and across the GCC.
Key Features of the New Regime
Under the revised PC Regulations, any party intending to own or control one or more registrable assets within the GCC can now form a Prescribed Company. Registrable assets include properties or property interests that require formal registration with a GCC authority to establish legal ownership, secure rights, or claims, and provide public notice of such interests.
This new approach simplifies the process of forming a PC and opens the door to a broader range of asset holders who want a more streamlined structure for property ownership in the region.
Streamlined Formation and Grace Period
To support this transition, the DIFC has introduced a six-month grace period that begins once a Prescribed Company is established. During this time, shareholders are allowed to finalize the acquisition of real estate or other GCC registrable assets. The documentation confirming the acquisition must then be submitted to the DIFC.
This grace period ensures a smooth process, allowing the company to be formed first, followed by asset acquisition, with the administrative support of a licensed Corporate Service Provider (CSP) within the DIFC.
Advantages of the PC Structure
Although there are existing structures like foundations and trusts in the UAE that can hold real estate, the updated PC regime offers several distinct advantages. A key benefit is the opportunity to operate within the DIFC’s common law jurisdiction, known for its business-friendly environment, low fees, and simplified processes.
Additionally, PCs can use licensed CSPs to provide a registered office within the DIFC, further simplifying administrative procedures and reducing the regulatory burden for asset holders.
Conclusion
The revamped PC regime offers a highly efficient and flexible option for real estate ownership across the GCC. By providing a straightforward structure for holding assets, along with the benefits of the DIFC’s legal framework, it has the potential to attract more international investors and simplify the process of acquiring and managing property in Dubai.
As the real estate market in Dubai continues to evolve, this new regime offers a modern solution to meet the growing demand for streamlined ownership structures in the region.
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Introduction
The rapid adoption and development of cryptocurrencies in the UAE are taking the country into the global map of being one of the big players in the digital finance markets. However, with this fast growth, the region is also experiencing a considerable increase in the number of scams regarding cryptocurrencies, particularly Tether (USDT)—the largest stablecoin in the world.
These scams have exploited regulatory loopholes and have gone after both individuals and businesses—both with major financial implications for all those involved. This article is a case study that will serve to investigate the nature of USDT scams in the UAE, legal frameworks within which these activities are going on, and necessary steps that need to be taken in order to improve regulatory oversight.
USDT Scams in the UAE Explained
UAE USDT scams have taken various forms, from simple phishing and fake investment opportunities to complex over-the-counter trading scams. Frauds in these types of scams usually trick victims into transferring USDT to wallets controlled by the scammers: many times in the form of high-return investment opportunities or as part of fake business transactions.
One of the most common methods is through a phishing scam, whereby unsuspecting victims receive fraudulent emails or messages purporting to be from legitimate cryptocurrency exchanges or wallets. These kinds of messages are often chock-full of links to false websites that are programmed to siphon off login credentials and clean out accounts. Another is the fake wallet scam, where scammers design fake wallet applications that appear genuine but are booby-trapped to harvest private keys and siphon off USDT from users.
More elaborate frauds are those of the over-the-counter trading scams that involve an impersonation as a broker or the middleman in huge USDT transactions. Most of these scams have very elaborate schemes where a victim is given a sense of security, and then the money is stolen in the process of transactions.
Legal System of Cryptocurrency in the UAE
UAE being a country of great potential about blockchain and cryptocurrency technology has been seen taking some significant moves to regulate the crypto industry. However, with the rapid evolution of the crypto space, challenges have emerged for regulators in keeping pace with the emerging threats, such as the rise in USDT scams.
What Regulation for Stablecoins, and What Impact on USDT?
This is the most recent regulation by the UAE Central Bank, which comes into effect by June 2023, posing quite a shift in the legal landscape for stablecoins like USDT. Only dirham-backed stablecoins will be allowed to do payments for the purchase of goods and services in the UAE according to this new regulation. As USDT is a US dollar-backed stablecoin, it does not feature in such transactions within the UAE.
However, virtual asset transactions remain permissible only for such purposes as the use of USDT and other foreign payment tokens to purchase non-fungible tokens (NFTs). This regulatory approach will be oriented toward bringing more structure and coherence into the market, thereby increasing the security of FinTech interactions with VASPs and protecting consumers from threats that might arise from unregulated stablecoins.
To operate or deal with Tether (USDT) in Dubai, businesses must comply with regulations set by several key authorities.
Dubai Multi Commodities Centre (DMCC) offers licenses for trading and managing crypto assets, including USDT. The DMCC Crypto License ensures companies adhere to strict compliance and anti-money laundering standards.
Dubai Virtual Assets Regulatory Authority (VARA) specifically oversees virtual assets, including USDT, and issues licenses for activities such as trading and custody.
Central Bank of the UAE provides guidelines for licensed financial institutions dealing with virtual assets, ensuring broader financial system stability.
To legally deal with USDT in Dubai, businesses must engage with these authorities to obtain the appropriate licenses, depending on their specific activities.
Regulators were very categorical that all Crypto Asset Service Providers (CASPs) must register with relevant authorities and have obligations under KYC satisfied. This regulation is very important because it minimizes risks that can be associated with cryptocurrency being used in money laundering or fraud activities. While these measures are in place, USDT scams often seek to exploit the loopholes in the system, more so in most of the transactions being conducted outside regulated exchanges. The anonymity that comes with cryptocurrencies and the transactions being across borders make it quite hard for governments and agencies to trace, much less bring, the stolen assets back.
Dubai Financial Services Authority (DFSA) and Abu Dhabi Global Market (ADGM) Regulations
Also, the Dubai Financial Services Authority and the Abu Dhabi Global Market have moved to regulate the cryptocurrencies in their respective jurisdictions. For example, the DFSA has enacted a new framework for digital assets, including cryptocurrencies, to ensure protection for investors as well as market integrity.
In 2021, the DFSA issued the Consultation Paper 138 dealing with the regulation of security tokens, providing for regulation concerning cryptocurrencies like USDT. Such a framework mandates that firms providing activities in digital assets must be licensed by the DFSA and be subject to stringent regulatory requirements, including obligations for AML/CTF.
In the same vein, a very detailed regulatory framework for digital assets has been developed under the Abu Dhabi Global Market by the Financial Services Regulatory Authority (FSRA). It mandates every entity participating in crypto asset activities to be licensed and follow strict regulatory standards. This involves maintaining high cybersecurity and ensuring that all operations are run transparently and traceable.
Criminal Code and Cybercrime Legislation
The UAE legal framework also contains provisions under the UAE Penal Code and the Cybercrime Law against combating fraud, including those perpetrated through digital means like cryptocurrency. In particular, Article 399 of the UAE Penal Code provides strict punishment for fraud, either by incarcerating a criminal up to two years along with fines. Moreover, the New UAE Cybercrime Law of 2021 provides for severe penalties for those who scam cryptocurrencies: they may be imprisoned for up to five years and fined anything between Dh250,000 and Dh1 million.
Legal Recourse of USDT Scam Victims
Victims of USDT scams in the UAE have several legal channels open to them for the recovery of their funds, but with the nature of cryptocurrency transactions, it is hard.
Civil Litigation and Criminal Prosecution
The victims can sue in the civil court for compensation of their losses against the scam perpetrators. This, in most cases, involves proving that the defendant was involved in some fraudulent activity and that the victim actually suffered moneywise from it. Such, according to UAE law, can be presented in the civil courts where the affected persons can sue for damages.
Another avenue of remedy is criminal prosecution, especially for large-scale fraud and money laundering. The UAE has strict anti-fraud laws, and the punishments meted out to convicted persons are usually strict, including lengthy jail terms and hefty fines. Article 399 of the UAE Penal Code is one of the statutes that aid in the prosecution of fraudsters.
Challenges in Recovering Funds
Being decentralized and anonymous, recovery of lost funds in a USDT scam can be an arduous task. The very nature of transactions in cryptocurrencies is such that they cannot be changed or reversed, as usual in traditional finance. This means that once the monies are transacted into the scammer's wallet, it may be irrecoverable.
However, the UAE authorities have made an effort to address this problem by collaborating with international law enforcement agencies and blockchain analytics companies to track stolen assets in the hope that bringing the culprits to justice would serve as a deterrent. More so, victims are urged to report scams to the relevant authorities: the UAE Central Bank, the DFSA, or the ADGM, in order to investigate the scams.
Increasing Regulatory Strengthening Actions Against USDT-Scams
Effectively combating the scams of USDT and providing protection to investors from the UAE would mean enhancing the regulatory framework, improving the enforcement mechanism, and may include:
Conclusion
The UAE is home to growing USDT scams, allowing culprits to exploit mass adoption in cryptocurrencies and current regulatory loopholes. In spite of all the progress that the UAE has achieved in crypto industry regulation, there remains a lot to achieve for the protection of investors from fraud. With improved measures of regulation, better enforcement, and enhanced public awareness, the UAE can check these risks associated with USDT scams and ensure a safer environment for cryptocurrency transactions.
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Dubai's real estate market has been marked by rapid growth and substantial foreign investment. To address this, Dubai Law No. 13/2008 on the Interim Real Estate Register, as amended by Dubai Law No. 9/2009, Dubai Law No. 19/2017, and Dubai Law No. 19/2020 (the "Law"), establishes key safeguards to protect both developers and buyers, particularly in off-plan property transactions. The Law provides a comprehensive legal framework for the registration and regulation of off-plan sales, promoting transparency and accountability. This article examines the Law’s critical provisions, amendments, and their practical impact on Dubai's real estate sector.
Understanding the Interim Real Estate Register
Under Article 3 of the Law, all transactions related to off-plan real estate units must be registered in the Interim Real Estate Register before they can be legally recognized. This register, maintained by the Dubai Land Department (DLD), documents all off-plan sales and related legal actions, ensuring that both developers and buyers are protected until the property is completed and transferred to the Real Estate Register. The law clearly states that any sale or other legal actions concerning off-plan units are void if not recorded in the Interim Real Estate Register. This measure prevents fraudulent or unauthorized sales and ensures that the legal interests of all parties are safeguarded.
Key Developer Obligations
Before selling off-plan properties, developers must meet certain requirements outlined in Article 4 of the Law. These include receiving ownership of the land and obtaining necessary approvals from relevant authorities. Developers must also ensure that all off-plan real estate units are properly registered before any sales or legal actions, such as mortgages, can be conducted, as mandated by Article 6 of the Law. Additionally, if a developer wishes to engage a real estate broker to market the project, Article 9 of the Law requires that the developer first enter into a formal contract with the broker in compliance with Dubai Regulation No. 85/2006, which governs the registration of real estate brokers.
Re-Sale of Off-Plan Properties
Re-selling off-plan properties follows a structured process to ensure transparency and legality: Buyers and sellers must first apply for a No Objection Certificate (NOC) from the developer. The transaction is registered under the Oqood Management System, a platform developed by the DLD in conjunction with the Real Estate Regulatory Authority (RERA). The developer enters the buyer’s details into the system, and once the buyer pays the Oqood fees (4% of the property’s original price), a Certificate of Registration is issued. Upon completion of the property, and once the buyer has fulfilled all payment obligations, the property is transferred to the Real Estate Register in the buyer’s name. This process ensures that off-plan transactions are tracked from inception to completion, minimizing disputes and legal ambiguities.
Developer and Buyer Rights and Obligations
Developers and buyers both have clearly defined rights and obligations under Dubai Law No. 13/2008: Buyers are required to pay the purchase price, registration fees, and any costs associated with title deeds or NOC fees, unless otherwise agreed. Developers, while having no statutory obligations beyond registration, must comply with contractual commitments, especially regarding delivery timelines and accurate representations of the property. In case of disputes, Article 11 of the law provides a mechanism for developers to notify the DLD if a buyer defaults on their contractual obligations. Depending on the completion status of the project, developers can take various actions, such as requesting the DLD to auction the property or rescinding the sale and retaining a percentage of the unit's value.
Legal Remedies for Disputes
The law provides several remedies for both resale and off-plan transactions. With regard to resale properties: Under Article 272 of Federal Law No. 5/1985, either party may terminate the contract if the other fails to fulfill their obligations. If termination occurs, the parties must restore what they have received, or compensation is awarded under Article 274 if restitution is not possible. In the case of off-plan properties, the Dubai Law No. 19/2017 amends Article 11 of the Law to allow developers to rescind the contract and deregister the sale in case of non-payment by the buyer, without needing to approach the courts. However, buyers can challenge such deregistration.
Conclusion
Dubai Law No. 13/2008 and its amendments establish a comprehensive legal framework for managing off-plan property sales in Dubai. By ensuring that all transactions are properly recorded in the Interim Real Estate Register, the law protects both developers and buyers from fraudulent dealings and legal uncertainties. The amendments introduced in subsequent years have strengthened the protections for investors while providing developers with clear guidelines for enforcing contractual obligations. As Dubai’s real estate market continues to grow, the legal safeguards established by this law will play a crucial role in maintaining investor confidence and market stability.
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In a significant victory for law enforcement, Dubai Customs successfully intercepted a major marijuana smuggling operation, seizing 54 kilograms of the banned substance. The operation uncovered 13 attempts by smugglers, who used sophisticated methods to conceal the drugs in vacuum-sealed plastic bags hidden within food product boxes to avoid detection.
This operation is part of the UAE's ongoing fight against drug trafficking, underscoring the country’s firm stance on maintaining public safety and a drug-free society.
Advanced Smuggling Techniques Unravelled
According to authorities, the marijuana was cleverly compressed and vacuum-sealed to mask its odor and reduce its volume, allowing the smugglers to transport large quantities in compact spaces. The drugs were concealed within well-known brand food product boxes to blend in with legitimate cargo.
Despite the sophisticated methods employed, Dubai Customs officials were able to detect the smuggling attempts, thanks to advanced scanning technologies and meticulous inspection protocols.
The smugglers, reportedly from an Asian country, had been using these tactics for an extended period, attempting to exploit trade routes from Gulf nations. Dubai's customs agents, utilizing world-class detection techniques, have been able to stay ahead of increasingly sophisticated smuggling attempts, reaffirming their critical role in global anti-narcotics efforts.
Stringent Drug Laws in the UAE
The UAE’s drug laws are among the strictest in the world, reflecting the country’s zero-tolerance stance on narcotics. Federal Law No. 30 of 2021 on Combating Narcotics and Psychotropic Substances enforces harsh penalties for possession, trafficking, and use of illegal drugs.
Even possession of small amounts of banned substances like marijuana can result in a minimum of four years in prison, with fines starting at AED 20,000 (USD 5,400). Those convicted of drug trafficking face life imprisonment or, in cases of large-scale operations, the death penalty.
These severe punishments reflect the UAE’s commitment to curbing drug-related crime and protecting public health. The country’s laws also cover a wide range of activities, including possession of drug paraphernalia and trafficking with intent to supply. Non-citizens convicted of drug crimes are automatically deported following the completion of their sentences.
Recent Legal Amendments and Rehabilitation Focus
While the UAE maintains a tough stance on drugs, recent amendments to its narcotics laws have introduced more lenient penalties for first-time offenders. Under certain circumstances, first-time possession offenders may be sent to rehabilitation centers instead of facing imprisonment.
This shift towards rehabilitation highlights the country's evolving approach to addressing addiction issues, allowing individuals struggling with drug dependency to seek treatment and reintegrate into society.
The amendments also grant the attorney general the authority to divert offenders to rehabilitation programs without a formal court trial, provided they cooperate with law enforcement and have no prior criminal record.
However, repeat offenders and those involved in trafficking or large-scale smuggling operations continue to face harsh penalties, including significant fines and extended prison sentences.
Continued Enforcement and Global Cooperation
Dubai Customs' recent success in intercepting the 54-kilogram marijuana shipment is just one example of the UAE’s ongoing efforts to combat international drug trafficking. The country works closely with international law enforcement agencies, including Interpol, to share intelligence and coordinate operations that target global smuggling networks.
The UAE’s cooperation with international bodies has allowed it to remain at the forefront of anti-drug trafficking efforts. The National Central Bureau (NCB) of the UAE, a liaison between local authorities and Interpol, facilitates real-time information sharing and plays a key role in coordinating global operations targeting drug routes and traffickers.
Impact on Society and Public Safety
The successful seizure of 54 kilograms of marijuana highlights the importance of stringent border controls and law enforcement efforts in maintaining public safety. Drug trafficking poses significant risks to society, including the potential for increased drug abuse, organized crime, and public health crises. The UAE’s commitment to preventing the flow of illegal drugs into the country not only protects its citizens but also sends a strong message to international traffickers that the nation remains vigilant against illegal activities.
The severe penalties and zero-tolerance approach have been largely effective in curbing drug abuse within the UAE, making the country one of the safest in the world regarding narcotics control. However, some experts argue that a more balanced approach, which includes harm reduction strategies and expanded rehabilitation programs, could further enhance the nation’s efforts to combat drug addiction and reintegrate offenders into society.
Conclusion
Dubai Customs’ recent seizure of 54 kilograms of marijuana is a testament to the UAE's relentless efforts to combat drug trafficking. As the country continues to strengthen its anti-narcotics laws and enforcement capabilities, it remains a global leader in the fight against illegal drug trade. With a combination of strict legal penalties, cutting-edge technology, and international cooperation, the UAE is poised to maintain its position as a drug-free nation, safeguarding both its citizens and visitors from the dangers of narcotics.
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In today’s competitive and dynamic business landscape, intellectual property (IP) is one of the most valuable assets a company can hold. From patents and trademarks to copyrights and trade secrets, IP forms the bedrock of innovation and brand recognition.
However, many businesses, particularly small and mid-sized enterprises, often overlook or underestimate the importance of IP, resulting in legal disputes and a loss of competitive edge.
Here, we explore three common mistakes businesses make when managing their intellectual property assets and how they can be avoided.
Neglecting to Register Intellectual Property
One of the most critical errors businesses make is failing to formally register their intellectual property. IP being a highly territorial right especially in the GCC, requires registration in each jurisdiction where the business wishes to secure the right to use it. Formal registration with the relevant authorities grants businesses exclusive rights and legal protection against infringement.
Failing to register a trademark, patent, or copyright leaves companies vulnerable, as, in many jurisdictions, the first entity to register an IP asset is recognized as the legitimate owner, regardless of who created or initially used the work. There are certain exceptions, such as cases where "passing off" may be recognized, but these are not universally applicable.
In the UAE, for example, trademarks must be registered with the Ministry of Economy to prevent unauthorized use of a brand name or logo. If a business develops an innovative product or process, filing a patent application ensures it can enforce its rights if another party infringes on its invention. Companies can lose millions in revenue due to a lack of foresight in registering their IP, potentially facing costly litigation and rebranding efforts. To avoid such pitfalls, businesses must prioritize IP registration and seek legal counsel to ensure proper and timely filing.
Intellectual property is crucial for shaping and sustaining a business's brand identity, acting as a key factor in setting it apart in the market. For instance, trademarks safeguard the brand's name, logo, and tagline elements that customers closely link with the company's reputation, quality, and core values. Copyrights protect unique content, including marketing materials and product designs, which help maintain the brand's distinct creative style.
By securing IP rights, businesses can not only deter competitors from imitating their brand features but also boost customer confidence and loyalty. Proper IP management enables a company to create a unique market presence, enhance customer interaction, and build lasting brand value, which in turn leads to greater market share and profitability.
Inadequate Protection Measures for Intellectual Property
Another common mistake is failing to implement sufficient measures to protect intellectual property from theft or misuse. This is particularly important for trade secrets and confidential information, which require robust safeguards.
A significant concern is the inadequate use of Non-Disclosure Agreements (NDAs). NDAs serve to prevent third parties from disclosing sensitive information, but many businesses either fail to use them effectively or neglect to enforce them. Additionally, weak digital security measures can result in data breaches, exposing valuable IP assets to external threats.
To protect their IP, businesses must establish clear internal policies, secure NDAs with contractors and employees, and conduct regular audits. Unfortunately, many companies overlook the need for robust protection systems until it is too late. By developing a comprehensive IP management strategy and working closely with legal professionals, companies can avoid the damaging consequences of intellectual property theft.
Failure to Conduct IP Due Diligence
Many companies, especially during mergers and acquisitions, neglect to conduct thorough due diligence on intellectual property, a misstep that can have disastrous consequences. For instance, if a company acquires another firm without verifying the validity of its patents or trademarks, it may face unexpected infringement lawsuits, resulting in substantial penalties. In the UAE, businesses are expected to carry out thorough investigations into IP assets before completing acquisitions to ensure compliance with local enforcement requirements.
Due diligence involves verifying whether the IP being acquired is properly registered, free of ongoing disputes, and transferable. Without this investigation, businesses risk acquiring IP that may be embroiled in litigation or lack enforceable protection, leaving them open to infringement claims. Moreover, neglecting to review licensing agreements can result in violations of contractual terms, adding another layer of legal risk.
Engaging a specialized IP lawyer during the acquisition process is crucial to avoid these pitfalls. An IP audit should precede every transaction, thoroughly assessing any risks or legal encumbrances that may impact the future use or enforcement of the assets.
Conclusion
Intellectual property is often the cornerstone of a business’s innovation and profitability. Yet, many companies fail to protect and manage these assets effectively. Whether through neglecting to register IP, insufficient protective measures, or inadequate due diligence, the risks can be substantial. By taking proactive steps to register, protect, and audit their intellectual property, businesses can not only safeguard their innovations but also strengthen their market competitiveness and ensure long-term success.
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Dubai has become a leading global business hub, attracting entrepreneurs and businesses from around the world. Its strategic location, investor-friendly policies, and tax advantages make it an ideal destination for starting a business. However, navigating the legal framework is crucial to ensure compliance and avoid complications. Here's a step-by-step guide to help you through the process:
1. Choose the Right Business Structure
The first step in establishing a business in Dubai is deciding on the type of business structure. Common business structures include:
Selecting the right structure depends on your business objectives and operational needs.
2. Register Your Trade Name
Choosing a trade name is essential and must comply with the UAE’s naming conventions. The name should reflect your business activity and avoid restricted terms related to religion or political groups. After selecting a name, it must be approved by the Department of Economic Development (DED).
3. Obtain Initial Approval
Initial approval from the DED or relevant free zone authority allows you to proceed with setting up your business. This approval indicates that the UAE government has no objection to your business activities. The required documents typically include:
4. Draft a Memorandum of Association (MoA)
For a Mainland company, you need to draft an MoA that outlines the distribution of shares and responsibilities between partners or shareholders. This is not required for Free Zone or Offshore companies but might be needed for specific business licenses. The MoA must be notarized by a public notary.
5. Secure a Business License
Obtaining a business license is a key requirement and depends on your chosen business structure. Dubai offers different types of licenses based on business activities:
In the case of free zones, the process is more straightforward, while mainland businesses might require approvals from additional regulatory bodies depending on the nature of the business.
6. Rent Office Space
In Dubai, securing a physical office is mandatory for most businesses. For mainland companies, the office must comply with local zoning regulations. Free Zone businesses can opt for flexible solutions such as co-working spaces or business centers. A tenancy contract is required during the licensing process.
7. Register for VAT
If your business has an annual turnover exceeding AED 375,000, you must register for Value Added Tax (VAT) with the Federal Tax Authority (FTA). Compliance with tax laws is vital to avoid penalties and legal issues.
8. Obtain Additional Approvals
Certain industries, such as healthcare, education, and legal services, may require additional approvals from specific government bodies, such as the Ministry of Health or the Dubai Municipality.
9. Open a Corporate Bank Account
Once your company is registered, you can open a corporate bank account. UAE banks have strict compliance regulations, so you’ll need to provide extensive documentation, including:
10. Hire Employees and Visa Processing
If you plan to hire employees, you must sponsor them for employment visas. The process includes labor approval, medical testing, and issuance of Emirates ID.
Final Thoughts
Starting a business in Dubai can be highly rewarding, but ensuring full legal compliance is essential for smooth operations. Working with a legal consultant or a business setup agency can help you navigate the regulatory landscape, reduce delays, and ensure that your company is legally sound from the start.
With careful planning and adherence to Dubai’s legal framework, your business can thrive in this dynamic marketplace.
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Dubai’s free zones are a cornerstone of its thriving business landscape, offering unique benefits and a simplified legal framework. As a UAE lawyer, it's crucial to understand the strategic advantages and legal nuances that make these zones so attractive for investors and businesses.
Benefits of Free Zones in Dubai
Legal Framework of Free Zones
Each free zone operates under its own regulatory framework but follows overarching UAE federal laws, especially in areas such as criminal law and labor relations. Below are some key legal points to understand:
Consulting a lawyer before starting a business in a UAE free zone is essential for several reasons:
For businesses looking to establish a foothold in Dubai, free zones offer an unmatched combination of operational flexibility, financial incentives, and a supportive legal framework. However, understanding the specific regulations of the chosen free zone and ensuring compliance with both local and federal laws is crucial.
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In the UAE, the legal implications of cheque fraud and improper cheque handling have always been stringent, reflecting the nation’s commitment to safeguarding financial security. Recently, the penalties for incorrectly signing a cheque have garnered attention due to their severity.
Mis-steps That Could Lead to Jail Time
Incorrectly signing a cheque, which may involve forgery, signing on behalf of an unauthorized individual, or altering the signature, can result in severe legal repercussions. The UAE Penal Code and commercial laws stipulate that individuals found guilty of such offenses could face up to two years in prison. This reflects the country’s strict stance on maintaining trust within its financial systems.
Hefty Fines
In addition to potential jail time, offenders may also face fines exceeding Dh5,000. These fines are levied depending on the gravity of the offense, the amount of money involved, and the intent behind the incorrect signature. For businesses and individuals alike, this can be a significant financial burden.
Article 627 of the Federal Decree-Law No. 50 of 2022 Issuing the Commercial Transactions Law states –
1. The word cheque is written in the body of instrument in the language in which the instrument is written.
2. Unconditional order of payment of specific amount of money.
3. Name of the person obliged to make payment (drawee)
4. The person to whom payment, or to whose order the payment should be made.
5. Place of payment.
6. Date and place of execution of the cheque.
7. Signature of the cheque executor (drawer)
Additionally, under Article 675 of the UAE Commercial Transactions Law, an individual who intentionally signs a cheque incorrectly can face imprisonment of six months to two years and/or a fine of at least 10% of the cheque’s value, with a minimum of Dh5,000, and up to double the cheque’s value.
Protecting Financial Integrity
Given that cheques are a widely accepted form of payment in the UAE, authorities aim to protect the financial sector from fraudulent practices. The stringent penalties serve as a deterrent to those attempting to manipulate or mishandle cheque transactions.
How to Avoid Legal Trouble
To avoid falling foul of the law, it is crucial to:
The UAE’s strict approach to cheque-related fraud ensures that trust in financial transactions is preserved, making it essential for residents and businesses to adhere to these regulations carefully.
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In the UAE, the extraction and use of groundwater is regulated by law. In Fujairah, residents must obtain a permit before digging a well on their property. Failing to do so can result in significant fines ranging from Dh2,000 to Dh10,000, depending on the violation. In some cases, penalties can be even higher. For instance, in 2020, two individuals were fined Dh3 million for digging a well and selling groundwater without authorization.
The Fujairah Environment Authority oversees the well-drilling process, ensuring compliance with environmental standards. Residents can apply for the required permits online through the authority's website, and the process typically takes two working days.
Steps to Obtain a Drilling Permit
Required Documents
Who Can Apply?
This service is available to both individuals and legal entities, including commercial, industrial, and mining companies.
Processing Time and Fees
The application process for well-digging permits takes two working days. Fees are categorized as follows: digging a water well on a farm costs Dh200, while drilling a water well in facilities is Dh10,000.
Terms and Conditions
By following these guidelines and securing the proper permits, residents and businesses in Fujairah can avoid hefty fines and ensure their well-drilling activities comply with UAE
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In a striking legal dispute, the creators of the popular party game Cards Against Humanity have filed a $15 million lawsuit against Elon Musk's SpaceX. The case centers around claims that SpaceX has trespassed onto and polluted land owned by the company in South Texas, which Cards Against Humanity purchased in 2017. The land, acquired through a crowd-funding campaign with contributions from 150,000 individuals, was bought to prevent the construction of former President Trump's border wall.
According to the lawsuit, Cards Against Humanity accuses SpaceX of illegally using their land as a staging ground for construction materials and machinery, significantly altering the once-pristine environment. The company asserts that Musk's corporation made a lowball offer to buy the land, which they rejected, leading to the lawsuit. The company is seeking damages for the destruction of their property, with a portion of the lawsuit's proceeds potentially being distributed among their investors.
This case highlights growing concerns over SpaceX's environmental impact in the South Texas region, with local residents expressing frustration over the company's unchecked expansion
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Emiratis who have previously taken a loan to build or purchase a home can now apply for a top-up loan of up to Dh500,000, thanks to a new initiative launched by the Abu Dhabi government. This program is designed to help eligible citizens enhance their existing loans of Dh1.75 million, providing them with the financial support needed to secure housing that better suits their needs.
The Abu Dhabi Housing Authority (ADHA) has partnered with Abu Dhabi Commercial Bank (ADCB) to offer these additional loans. The Abu Dhabi government will cover 50% of the interest and gains on the top-up financing, making it more affordable for beneficiaries.
Eligibility Criteria:
Key Terms:
This initiative was formalized through an agreement signed by His Excellency Hamad Hareb Al Muhairi, Director General of the Abu Dhabi Housing Authority, and Ala’a Eraiqat, CEO of ADCB Group.
Hamad Hareb Al Muhairi emphasized that the collaboration with the private sector reflects ADHA’s dedication to offering a diverse range of housing solutions tailored to citizens' needs. Ala’a Eraiqat, CEO of ADCB, highlighted the crucial role of banking institutions in the housing sector, noting that this initiative aligns with the UAE’s leadership priorities for a sustainable future.
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Dubai's real estate market has been marked by rapid growth and substantial foreign investment. To address this, Dubai Law No. 13/2008 on the Interim Real Estate Register, as amended by Dubai Law No. 9/2009, Dubai Law No. 19/2017, and Dubai Law No. 19/2020 (the "Law"), establishes key safeguards to protect both developers and buyers, particularly in off-plan property transactions. The Law provides a comprehensive legal framework for the registration and regulation of off-plan sales, promoting transparency and accountability. This article examines the Law’s critical provisions, amendments, and their practical impact on Dubai's real estate sector.
Understanding the Interim Real Estate Register
Under Article 3 of the Law, all transactions related to off-plan real estate units must be registered in the Interim Real Estate Register before they can be legally recognized. This register, maintained by the Dubai Land Department (DLD), documents all off-plan sales and related legal actions, ensuring that both developers and buyers are protected until the property is completed and transferred to the Real Estate Register. The law clearly states that any sale or other legal actions concerning off-plan units are void if not recorded in the Interim Real Estate Register. This measure prevents fraudulent or unauthorized sales and ensures that the legal interests of all parties are safeguarded.
Key Developer Obligations
Before selling off-plan properties, developers must meet certain requirements outlined in Article 4 of the Law. These include receiving ownership of the land and obtaining necessary approvals from relevant authorities. Developers must also ensure that all off-plan real estate units are properly registered before any sales or legal actions, such as mortgages, can be conducted, as mandated by Article 6 of the Law. Additionally, if a developer wishes to engage a real estate broker to market the project, Article 9 of the Law requires that the developer first enter into a formal contract with the broker in compliance with Dubai Regulation No. 85/2006, which governs the registration of real estate brokers.
Re-Sale of Off-Plan Properties
Re-selling off-plan properties follows a structured process to ensure transparency and legality: Buyers and sellers must first apply for a No Objection Certificate (NOC) from the developer. The transaction is registered under the Oqood Management System, a platform developed by the DLD in conjunction with the Real Estate Regulatory Authority (RERA). The developer enters the buyer’s details into the system, and once the buyer pays the Oqood fees (4% of the property’s original price), a Certificate of Registration is issued. Upon completion of the property, and once the buyer has fulfilled all payment obligations, the property is transferred to the Real Estate Register in the buyer’s name. This process ensures that off-plan transactions are tracked from inception to completion, minimizing disputes and legal ambiguities.
Developer and Buyer Rights and Obligations
Developers and buyers both have clearly defined rights and obligations under Dubai Law No. 13/2008: Buyers are required to pay the purchase price, registration fees, and any costs associated with title deeds or NOC fees, unless otherwise agreed. Developers, while having no statutory obligations beyond registration, must comply with contractual commitments, especially regarding delivery timelines and accurate representations of the property. In case of disputes, Article 11 of the law provides a mechanism for developers to notify the DLD if a buyer defaults on their contractual obligations. Depending on the completion status of the project, developers can take various actions, such as requesting the DLD to auction the property or rescinding the sale and retaining a percentage of the unit's value.
Legal Remedies for Disputes
The law provides several remedies for both resale and off-plan transactions. With regard to resale properties: Under Article 272 of Federal Law No. 5/1985, either party may terminate the contract if the other fails to fulfill their obligations. If termination occurs, the parties must restore what they have received, or compensation is awarded under Article 274 if restitution is not possible. In the case of off-plan properties, the Dubai Law No. 19/2017 amends Article 11 of the Law to allow developers to rescind the contract and deregister the sale in case of non-payment by the buyer, without needing to approach the courts. However, buyers can challenge such deregistration.
Conclusion
Dubai Law No. 13/2008 and its amendments establish a comprehensive legal framework for managing off-plan property sales in Dubai. By ensuring that all transactions are properly recorded in the Interim Real Estate Register, the law protects both developers and buyers from fraudulent dealings and legal uncertainties. The amendments introduced in subsequent years have strengthened the protections for investors while providing developers with clear guidelines for enforcing contractual obligations. As Dubai’s real estate market continues to grow, the legal safeguards established by this law will play a crucial role in maintaining investor confidence and market stability.
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Johnson & Johnson's subsidiary, Red River Talc, filed for bankruptcy in a bid to secure an $8 billion settlement. This follows over 62,000 lawsuits alleging that J&J's talc products, including baby powder, were contaminated with asbestos, leading to ovarian and other cancers. While J&J denies these claims and asserts product safety, the company is deploying the "Texas two-step" bankruptcy strategy for a third time.
In this manoeuvre, J&J offloaded its talc liabilities to Red River Talc, which then declared bankruptcy under Chapter 11. This allows the company to propose a global settlement while avoiding a direct bankruptcy filing by J&J itself. With 83% of current claimants supporting the deal, J&J aims to resolve these lawsuits in one unified settlement. This marks J&J's third bankruptcy effort after previous attempts were dismissed by federal courts.
The settlement plan focuses on resolving claims tied to ovarian and other gynecological cancers, following earlier settlements regarding mesothelioma claims. Despite gaining significant support, J&J faces continued opposition from some plaintiffs and legal hurdles, including a U.S. Supreme Court ruling on Purdue Pharma's bankruptcy and proposed federal legislation that could limit the use of bankruptcy protection by financially healthy companies like J&J.
Global Bankruptcy Landscape: A Broader Scenario
Bankruptcy filings across the globe have seen significant fluctuations, particularly post-pandemic, with businesses and individuals facing economic pressures. Large corporations in sectors like retail, real estate, and healthcare have turned to bankruptcy to restructure their debts, notably under Chapter 11 in the U.S., which allows for a reorganization plan while continuing operations.
In Europe, the aftermath of COVID-19 saw a surge in bankruptcies, especially in small to medium enterprises (SMEs). Countries like Italy and Spain, which heavily rely on tourism and services, were particularly hit. New reforms in bankruptcy laws in these regions have focused on restructuring to preserve jobs rather than liquidation. In China, rising debt in real estate and technology sectors has led to several high-profile bankruptcies, triggering government intervention to stabilize these sectors.
The ongoing global economic uncertainties, driven by inflation, rising interest rates, and geopolitical tensions, continue to challenge both small businesses and large corporations alike. Johnson & Johnson's case is an example of how corporations leverage legal strategies in bankruptcy to address large-scale liabilities, but the broader trend shows bankruptcy as a crucial financial tool globally for navigating economic crises.
As we move forward, bankruptcy filings are expected to remain significant worldwide, driven by industry-specific downturns and broader economic pressures.
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Thinking about starting your own online business in the UAE? There’s never been a better time! With the rapid growth of eCommerce in the country, driven by 99 percent of the population being active internet users, it’s clear that the online market here is thriving. In fact, eCommerce in the UAE is projected to generate more than $6.7 billion (Dh24.6 billion) in revenue in 2024 alone, and this figure is expected to rise to $9.3 billion (Dh34.15 billion) by 2028, according to eCommerceDB, a leading data provider for online sales.
Whether you're planning to sell jewelry, crafts, or services, one of the first steps in launching an online business in the UAE is obtaining an eCommerce license. Here’s how you can get started:
Step 1: Choose Your Business Structure
Before applying for an eCommerce license, you’ll need to decide on the legal structure of your business. Common options include:
Step 2: Select the Right Jurisdiction
In the UAE, there are two main options for setting up a business: mainland and free zone. The choice of jurisdiction will depend on where you plan to operate your business.
Step 3: Apply for an eCommerce License
Once you've chosen the structure and jurisdiction, you can apply for your eCommerce license. Here’s how:
Step 4: Build Your Online Presence
With your eCommerce license in hand, you can now start building your online store or service platform. Here’s what you’ll need:
Step 5: Stay Compliant
Once your eCommerce business is up and running, it’s important to remain compliant with UAE laws. This includes keeping accurate financial records, renewing your business license annually, and ensuring your business activities align with the regulations set out by your license.
Why the UAE is Ideal for eCommerce
The UAE’s business-friendly environment and robust digital infrastructure make it an ideal place for online businesses. With 99 percent internet penetration, a tech-savvy population, and a growing market, there are countless opportunities to succeed. Plus, the UAE government actively supports digital entrepreneurs through initiatives like free zones and simplified business licensing processes.
Setting up an online business in the UAE is a promising venture in today’s booming eCommerce market. By following the necessary steps to obtain your eCommerce license and building a strong online presence, you can tap into one of the fastest-growing sectors in the region. Whether you’re selling products or offering services, the UAE offers a fertile ground for your online business to thrive.
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Losing a pet can be a heartbreaking and stressful experience for any pet owner. The fear and anxiety of not knowing where your pet is or if they will return safely can be overwhelming. In Dubai, microchipping and registering pets can significantly improve the chances of reuniting with them in case they get lost. Not only does a microchip help track your pet, but it also keeps their medical records up to date.
Here is everything you need to know about microchipping and registering your pet in Dubai:
What Is a Microchip?
A microchip is a small, electronic device inserted under your pet’s skin, typically near the scruff of the neck. The chip contains a unique identification number that can be read by a scanner. This identification number is linked to a database containing your contact information, such as your name and mobile number, as well as your pet’s medical records.
Why Microchip Your Pet?
Microchipping is essential because it increases the chances of locating your pet if they go missing. Should your pet be found, a quick scan of the chip at any veterinary clinic will reveal their identification number, enabling the clinic to contact you. Additionally, it ensures that your pet’s medical records are always accessible, making trips to the vet more efficient.
Steps to Microchip and Register Your Pet in Dubai:
Benefits of Microchipping
Microchipping and registering your pet in Dubai is a simple yet effective way to safeguard them in case they get lost. It gives pet owners peace of mind, knowing that if their pet goes missing, there’s a higher chance they’ll be safely returned. It’s a small investment that can make a big difference in your pet’s safety and well-being.
If you haven’t already, consider scheduling an appointment with your vet to get your pet microchipped and registered today.
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The Gulf Cooperation Council (GCC) is edging closer to a unified definition of Gulf national products, a key step in the journey toward establishing 'Gulf economic citizenship' and boosting the region’s industrial development. This was the central theme of the fifth extraordinary meeting of the Undersecretaries of Ministries of Industry from GCC countries, held in Doha.
Qatar’s Ministry of Commerce and Industry Undersecretary, Mohamed bin Hassan al-Malki, highlighted the significance of enhancing mechanisms for applying this unified definition. He emphasized that this progress is vital for achieving economic citizenship within the GCC, which would foster greater collaboration among the member states and help them realize shared goals.
"This initiative will bolster cooperation among GCC countries and contribute to the growth of various economic sectors, especially the industrial sector," al-Malki said, in the presence of Khalid bin Ali al-Sunaidi, Assistant Secretary-General for Economic and Development Affairs at the GCC Secretariat General.
A consensus on the criteria for defining Gulf national products, along with the implementation of related mechanisms, will open new avenues for collective economic growth. This effort aligns with the GCC countries' ongoing measures to reinforce the region's economic and industrial structures, aiming for deeper integration and sustainable development.
The meeting also covered a report on the progress of applying the Gulf National Product Standards, and key recommendations were adopted to meet common objectives. Previous proposals from GCC countries included determining localization percentages and identifying incentives that would ensure balanced competitiveness for Gulf national products while also supporting the private sector.
Article 3 of the 2001 Economic Agreement is particularly relevant to this initiative. The article mandates equal treatment for all GCC nationals across member states, ensuring that GCC nationals residing in any member country receive the same economic opportunities as local citizens. This provision, which applies to both individuals and businesses, reinforces the concept of economic citizenship across the region.
The move toward Gulf economic citizenship is a significant step in advancing the region's industrial sector and strengthening long-term cooperation among GCC member states.
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The rise of cryptocurrency marks a paradigm shift in the global financial landscape, offering unprecedented opportunities for innovation and growth. As digital currencies become increasingly mainstream, regions around the world are adapting to this new financial frontier. The Abu Dhabi Global Market (ADGM) stands at the forefront of this evolution in the MENA region, providing a robust and progressive regulatory environment for cryptocurrency enterprises. This article delves into the dynamic ecosystem of ADGM, exploring its comprehensive regulatory framework, licensing requirements and the myriad opportunities it offers for businesses and investors in the cryptocurrency sector.
Abu Dhabi, a major FinTech hub in the MENA region, boasts ADGM as a finance-focused free zone that actively champions technological innovations within the financial services sector. ADGM has played a pivotal role in fostering a sustainable FinTech ecosystem, highlighted by the establishment of the first FinTech Regulatory regime and the FinTech RegLab, the world's second most active FinTech sandbox after London.
Emphasizing systemic safety and consumer protection, the Financial Services Regulatory Authority (FSRA) of ADGM has issued comprehensive guidelines for crypto asset activities, which are aligned with FSRA’s 2017 ICO Regulations.
Under the oversight of the FSRA, ADGM has developed a robust regulatory framework to govern the issuance, trading and custody of cryptocurrencies, incorporating stringent measures to prevent fraud, market manipulation and other illicit activities. This regulatory framework ensures the integrity and security of financial transactions while promoting transparency, disclosure, and accountability among cryptocurrency issuers and trading platforms. These efforts enhance investor confidence and contribute significantly to the growth of the cryptocurrency industry.
Licensing Requirements and Process
To engage in regulated activities involving virtual assets within ADGM, entities must obtain a Financial Service Permit (FSP). This permit requires a thorough evaluation of the company's operations, security protocols and adherence to Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, ensuring the reliability and legitimacy of entities within the cryptocurrency ecosystem. Typically, a crypto-transaction monitoring software is employed to integrate on-chain and off-chain data, mitigating money laundering risks. The types of licenses available include:
Digital Asset Exchange Operator (DAEO) License: Required for entities operating cryptocurrency exchanges within ADGM. This license ensures compliance with regulatory standards concerning operational procedures, security measures and customer protection.
Digital Investment Manager (DIM) License: Issued to entities managing digital asset investments on behalf of clients.
Custodian License: Mandatory for entities providing custody services for digital assets, ensuring strict adherence to security protocols to safeguard clients' assets.
Steps to Obtain a License in ADGM:
Regulatory Business Plan (RBP): Prior to applying, a detailed RBP outlining the business model, target market, objectives and financial projections must be prepared for initial review by regulators.
Application Preparation: Prepare an application detailing the business structure, intended cryptocurrency activities and the technology to be utilized. This includes incorporating regulator feedback into the RBP and preparing KYC forms for individuals.
Formal Submission: Submit the formal application to FSRA for review. This initial review process typically takes 7-10 days, depending on the complexity of the application.
Detailed Review: Upon acceptance, a comprehensive review begins, lasting approximately 90-120 days. The FSRA maintains ongoing communication with the applicant, providing an initial review within two weeks and subsequent follow-ups. Meetings with key personnel such as the SEO, FO, technology head and CO/MLRO are conducted.
In-Principle Approval: Once the application is successful, in-principle approval is issued. The applicant must then meet specific conditions, such as setting up a legal structure, opening a bank account, depositing share capital, selecting auditors and obtaining professional indemnity insurance.
Final Submission and Approval: After satisfying the in-principle conditions, a final submission is made to the FSRA, which then issues the Financial Service Permissions, completing the licensing process.
Ongoing Compliance: Post-licensing, the entity must comply with local laws and regulatory standards, including ongoing reporting and compliance requirements.
All things considered, ADGM exemplifies a forward-thinking approach to cryptocurrency regulation, ensuring a secure, transparent and vibrant environment for digital financial activities. By fostering innovation through a meticulous regulatory framework and offering a variety of licenses tailored to different aspects of the cryptocurrency ecosystem, ADGM positions itself as a premier destination for crypto ventures. As the global financial landscape continues to evolve, ADGM’s commitment to safety, compliance and technological advancement makes it a compelling hub for investors and businesses seeking to leverage the immense potential of the cryptocurrency market. Whether you are a seasoned investor or an emerging enterprise, ADGM offers fertile ground for growth, innovation and success in the digital currency realm.
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Apple Inc. is facing significant pressure from the European Union (EU) to open its iPhone operating system (iOS) to rival technologies. Under the newly enacted Digital Markets Act (DMA), EU regulators are poised to issue a warning to Apple, compelling the tech giant to comply with regulations aimed at promoting competition and interoperability in the digital market. If Apple fails to adhere to these requirements, it may face substantial fines, potentially amounting to 10% of its global annual turnover.
Background
The Digital Markets Act, implemented to foster a fairer digital ecosystem, targets major tech companies classified as "gatekeepers." These gatekeepers are firms that hold a significant market position and are critical for accessing digital services. Apple, with its dominant position in the smartphone market, falls under this category. The DMA's intent is to dismantle barriers that hinder competition and innovation, ensuring that smaller developers can interact with larger platforms without undue restrictions.
Key Provisions of the Digital Markets Act
Legal Implications
From a legal standpoint, the warning from the EU represents a pivotal moment in the ongoing battle between regulatory authorities and tech giants over market control. The implications of non-compliance could be severe:
Potential Fines and Legal Consequences
If Apple does not conform to the DMA’s regulations, the EU may initiate a formal investigation, which could lead to fines of up to 10% of Apple’s global annual revenue. Given Apple’s revenues in 2023 were approximately $394 billion, this could translate to fines exceeding $39 billion.
Challenges to Compliance
Apple’s strict control over its ecosystem has been a cornerstone of its business strategy, enabling it to ensure security and performance standards. However, complying with the DMA may necessitate significant alterations to its operational model. This could involve re-engineering its software architecture and revising its terms of service, which could introduce complexity and risk.
Market Dynamics and Consumer Impact
The DMA aims to benefit consumers by fostering competition, potentially leading to enhanced services and lower prices. However, the immediate effect of increased interoperability might create short-term disruptions in the market as existing relationships and business models are challenged.
International Perspectives
Apple's situation in the EU is emblematic of a broader global trend where regulators are increasingly scrutinizing the practices of big tech companies. Similar legislative measures are being considered or implemented in other jurisdictions, including the United States, Canada, and the United Kingdom, aimed at curbing monopolistic practices and enhancing consumer rights.
For instance, the U.S. Congress has been deliberating over antitrust legislation that mirrors some aspects of the DMA, focusing on breaking up monopolistic practices and enhancing competition in the tech sector. The outcome of these discussions could further influence Apple's operational strategies across multiple markets.
Conclusion
As the EU prepares to issue its warning under the Digital Markets Act, Apple faces a crucial juncture that could reshape its operational framework. The potential for hefty fines and the necessity for compliance pose significant challenges for the company. This situation reflects broader tensions between innovation and regulation in the tech industry, highlighting the need for a balanced approach that fosters competition while allowing for continued innovation. How Apple responds to these regulatory pressures will be closely watched, not just by the EU but by regulators worldwide, as the tech landscape continues to evolve.
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Tupperware, the iconic brand known for its plastic food storage containers, has officially filed for bankruptcy, marking a significant chapter in its storied 77-year history. The company cited a shift in consumer behavior, with a move away from direct sales—a model that has long been its backbone—as the primary reason for its financial difficulties.
Once a household name, Tupperware gained popularity in the mid-20th century through its renowned ‘Tupperware parties,’ a pioneering sales strategy that relied on home demonstrations by independent sellers. However, more than a quarter-century later, this direct-selling model, which still constitutes the majority of Tupperware’s sales, has been hit hard by changes in the way consumers shop. The rise of online shopping and shifting preferences toward convenience have weakened the appeal of in-person sales, placing significant pressure on the company’s business.
Photographs taken on September 18, 2024, in Dearborn, Michigan, show shelves lined with Tupperware boxes for sale, highlighting the enduring presence of the brand in retail spaces, even as its direct sales operations struggle.
The filing follows a period of financial instability for the company, with declining sales and mounting debts. Efforts to modernize the business by expanding into retail and online markets have not been sufficient to offset the losses from its traditional sales model.
Tupperware’s bankruptcy underscores the challenges faced by legacy brands in adapting to a rapidly evolving consumer landscape. Despite attempts to reinvent itself, the company has struggled to compete with the flexibility and reach of digital-first businesses.
Tupperware’s future remains uncertain as it navigates the bankruptcy process, but for many, the brand will continue to evoke memories of a bygone era, when its products—and the social gatherings they spurred—were a staple of American homes.
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The US Federal Trade Commission (FTC) has accused major social media platforms of engaging in "vast surveillance" to monetize users' personal data, following a comprehensive years-long investigation. The report, based on inquiries launched nearly four years ago, revealed that companies collected massive amounts of data, sometimes even through brokers, and often retained it indefinitely—affecting both users and non-users alike.
FTC Chair Lina Khan criticized the practices, stating that they endangered individuals' privacy and exposed them to risks like identity theft and stalking. "The report shows how social media and video streaming companies exploit vast amounts of personal data, generating billions of dollars annually," Khan said. She also noted that the inadequate protection of children and teenagers online was particularly alarming.
The investigation found that social media companies' business models, particularly those relying on targeted advertising, incentivized large-scale data collection, often putting profit ahead of privacy. Khan emphasized that these practices could threaten freedoms and lead to significant harm, including identity theft and stalking.
The Interactive Advertising Bureau (IAB), however, disputed the FTC's portrayal of the industry. IAB CEO David Cohen argued that consumers understand and accept targeted ads as a way to access free online services, criticizing the FTC’s characterization of the industry as one focused on "mass surveillance."
The FTC's findings were based on information gathered from companies including Meta, YouTube, Snap, Amazon's Twitch, TikTok's parent company ByteDance, and X (formerly Twitter). While some companies, like Google, defended their practices—stating they don’t sell personal information and implement strict privacy protections—the report found these safeguards "woefully inadequate." It also noted that some firms failed to delete data upon users' requests, raising further concerns about how well companies protect personal data.
The report highlighted the negative impact of these platforms on children’s mental health and called for better data collection practices. Additionally, it urged the US Congress to enact comprehensive federal privacy legislation to curb the surveillance of social media users.
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Sharjah has launched the world’s first AI-generated trade licence, allowing applicants to complete the process in just three minutes. This cutting-edge technology, developed in partnership with Microsoft, Invest in Sharjah, and Sharjah Publishing City, is designed to streamline business licensing for investors.
Mohammed Juma Al Musharrakh, CEO of the Sharjah FDI Office, announced the roll-out of the new system, highlighting its efficiency for those looking to establish businesses in Sharjah Publishing City. “This is a breakthrough in business setup technology. The AI system captures data from passports and offers ChatGPT-like assistance, guiding applicants through the entire process,” said Al Musharrakh.
The system not only provides guidance on legal structures and company setup but also directs users to a payment gateway once they agree to the terms. Applicants can apply for any permissible business activity within Sharjah Publishing City, with plans to expand the service to other free zones and eventually the mainland.
Al Musharrakh made the announcement at the Sharjah Investment Forum, emphasizing that this new technology will make Sharjah Publishing City a premier destination for business setup. Investors can now obtain trade licences without visiting any offices, through the Sharjah Investors Services Centre (Saeed) website.
Sharjah’s foreign direct investment (FDI) reached Dh2.7 billion in 2023, and Al Musharrakh expects at least 10% growth in 2024, focusing on sectors like technology, agritech, renewable energy, tourism, education, and healthcare. The region is targeting investment from China, India, BRIC countries, and nations that have signed Comprehensive Economic Partnership Agreements with the UAE.
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Saudi Arabia's Ministry of Communications and Information Technology, in partnership with the National Information Technology Development Program (NTDP), has launched the “Tamkeen” initiative to strengthen Saudi technical talent in micro, small, and medium enterprises (MSMEs). This initiative is a key part of the country’s efforts to accelerate the growth of the digital economy, aligning with the goals of Vision 2030.
The Tamkeen initiative is designed to encourage technology companies to hire Saudi talent and sustain their employment through a range of incentives, promoting the growth of local expertise within the sector. By focusing on the technical workforce, the initiative aims to enhance the digital capabilities of MSMEs, which are integral to driving economic transformation in the Kingdom.
Other Employment Initiatives by Saudi Arabia
In addition to the Tamkeen initiative, Saudi Arabia has implemented several measures to boost employment across various sectors:
Nitaqat Program: Aimed at increasing the employment of Saudi nationals in the private sector, the Nitaqat program requires companies to meet certain quotas for Saudi employees based on company size and sector.
Human Capability Development Program: This initiative focuses on enhancing the skills of the Saudi workforce to meet the demands of a rapidly changing labor market. The program includes educational reforms, vocational training, and partnerships with international organizations.
Saudization of Specific Sectors: The government has introduced policies to reserve specific job roles exclusively for Saudi nationals, particularly in sectors like retail, hospitality, and telecommunications, as part of its Saudization efforts.
Entrepreneurship Support: Saudi Arabia has also ramped up efforts to support entrepreneurs and start-ups through initiatives like the Small and Medium Enterprises General Authority (Monsha'at), providing funding, training, and advisory services to boost job creation and innovation.
These initiatives reflect Saudi Arabia's commitment to building a diversified, knowledge-based economy by empowering its workforce and creating sustainable employment opportunities in line with Vision 2030's long-term objectives.
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At the UAE Growth and Investment Forum, businesses were urged to prioritize compliance with both VAT and corporate tax to avoid significant financial penalties. With the recent introduction of corporate taxation in the UAE, understanding the tax landscape has become crucial for businesses, particularly small and medium enterprises (SMEs) and new ventures.
The forum emphasized the importance of distinguishing between VAT and corporate tax. These are two separate obligations, and non-compliance with either can lead to hefty fines. Some businesses mistakenly believe that registering for one tax exempts them from the other, which can result in costly mistakes.
To ensure compliance, businesses must first understand the fundamentals of the tax regime. Key aspects include identifying the tax periods, managing allowable expenses, and understanding the process of currency conversion in line with the UAE’s Central Bank rates. Financial statements must be reported in UAE Dirhams, and consistency in currency conversion methods is critical for maintaining compliance. Companies must also assess their tax residency status and determine whether they are operating as resident or non-resident entities, as this affects their tax obligations.
Free zones and mainland entities are subject to different regulations, and businesses must stay informed about the specific rules that apply to them. In addition, businesses must comply with transfer pricing rules and economic substance regulations, which are crucial for transactions with related parties.
Legal Perspective and Tips for Businesses:
Stay Updated on Tax Laws: UAE's tax laws are evolving, so businesses should regularly consult legal experts and reliable sources to stay informed about the latest changes in VAT and corporate tax regulations.
Implement Robust Accounting Systems: Accurate financial tracking is essential for maintaining compliance. Businesses should invest in reliable accounting software and systems to ensure proper documentation and timely tax filings.
Understand Your Entity Type: Whether operating in a free zone or mainland, businesses must clearly understand their entity type and the applicable tax regulations to avoid unnecessary penalties.
Seek Professional Guidance: Navigating the complexities of VAT and corporate tax can be challenging, especially for new businesses. Consulting with tax experts can help avoid costly errors and ensure adherence to the legal requirements.
Plan for Future Tax Periods: Identifying the first tax period and understanding the ongoing tax obligations is vital for long-term compliance.
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Dubai's real estate market has been marked by rapid growth and substantial foreign investment. To address this, Dubai Law No. 13/2008 on the Interim Real Estate Register, as amended by Dubai Law No. 9/2009, Dubai Law No. 19/2017, and Dubai Law No. 19/2020 (the "Law"), establishes key safeguards to protect both developers and buyers, particularly in off-plan property transactions. The Law provides a comprehensive legal framework for the registration and regulation of off-plan sales, promoting transparency and accountability. This article examines the Law’s critical provisions, amendments, and their practical impact on Dubai's real estate sector.
Understanding the Interim Real Estate Register
Under Article 3 of the Law, all transactions related to off-plan real estate units must be registered in the Interim Real Estate Register before they can be legally recognized. This register, maintained by the Dubai Land Department (DLD), documents all off-plan sales and related legal actions, ensuring that both developers and buyers are protected until the property is completed and transferred to the Real Estate Register. The law clearly states that any sale or other legal actions concerning off-plan units are void if not recorded in the Interim Real Estate Register. This measure prevents fraudulent or unauthorized sales and ensures that the legal interests of all parties are safeguarded.
Key Developer Obligations
Before selling off-plan properties, developers must meet certain requirements outlined in Article 4 of the Law. These include receiving ownership of the land and obtaining necessary approvals from relevant authorities. Developers must also ensure that all off-plan real estate units are properly registered before any sales or legal actions, such as mortgages, can be conducted, as mandated by Article 6 of the Law. Additionally, if a developer wishes to engage a real estate broker to market the project, Article 9 of the Law requires that the developer first enter into a formal contract with the broker in compliance with Dubai Regulation No. 85/2006, which governs the registration of real estate brokers.
Re-Sale of Off-Plan Properties
Re-selling off-plan properties follows a structured process to ensure transparency and legality: Buyers and sellers must first apply for a No Objection Certificate (NOC) from the developer. The transaction is registered under the Oqood Management System, a platform developed by the DLD in conjunction with the Real Estate Regulatory Authority (RERA). The developer enters the buyer’s details into the system, and once the buyer pays the Oqood fees (4% of the property’s original price), a Certificate of Registration is issued. Upon completion of the property, and once the buyer has fulfilled all payment obligations, the property is transferred to the Real Estate Register in the buyer’s name. This process ensures that off-plan transactions are tracked from inception to completion, minimizing disputes and legal ambiguities.
Developer and Buyer Rights and Obligations
Developers and buyers both have clearly defined rights and obligations under Dubai Law No. 13/2008: Buyers are required to pay the purchase price, registration fees, and any costs associated with title deeds or NOC fees, unless otherwise agreed. Developers, while having no statutory obligations beyond registration, must comply with contractual commitments, especially regarding delivery timelines and accurate representations of the property. In case of disputes, Article 11 of the law provides a mechanism for developers to notify the DLD if a buyer defaults on their contractual obligations. Depending on the completion status of the project, developers can take various actions, such as requesting the DLD to auction the property or rescinding the sale and retaining a percentage of the unit's value.
Legal Remedies for Disputes
The law provides several remedies for both resale and off-plan transactions. With regard to resale properties: Under Article 272 of Federal Law No. 5/1985, either party may terminate the contract if the other fails to fulfill their obligations. If termination occurs, the parties must restore what they have received, or compensation is awarded under Article 274 if restitution is not possible. In the case of off-plan properties, the Dubai Law No. 19/2017 amends Article 11 of the Law to allow developers to rescind the contract and deregister the sale in case of non-payment by the buyer, without needing to approach the courts. However, buyers can challenge such deregistration.
Conclusion
Dubai Law No. 13/2008 and its amendments establish a comprehensive legal framework for managing off-plan property sales in Dubai. By ensuring that all transactions are properly recorded in the Interim Real Estate Register, the law protects both developers and buyers from fraudulent dealings and legal uncertainties. The amendments introduced in subsequent years have strengthened the protections for investors while providing developers with clear guidelines for enforcing contractual obligations. As Dubai’s real estate market continues to grow, the legal safeguards established by this law will play a crucial role in maintaining investor confidence and market stability.
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The Ministry of Human Resources and Emiratisation (MoHRE) revealed that since mid-2022, 1,818 private companies in the UAE have been caught faking Emiratisation efforts, engaging in practices designed to circumvent the country’s mandatory Emiratisation targets. These violations involve the fraudulent employment of 2,784 UAE nationals in an attempt to artificially meet the government’s quota system.
The Ministry's announcement, made on Wednesday through its social media channels, underscored the UAE government’s strict stance on enforcing Emiratisation policies. The post stated: “Our inspection system has detected 1,818 private establishments that hired 2,784 UAE nationals in violation of Emiratisation policies. These companies attempted to evade Emiratisation obligations through fraudulent practices from mid-2022 until September 17, 2024.”
Emiratisation – A National Priority
Emiratisation is a key pillar of the UAE’s strategy to integrate more UAE nationals into the private sector workforce. It is aimed at reducing the country’s reliance on expatriates by ensuring UAE citizens have meaningful employment opportunities, especially in the private sector. In recent years, the UAE has ramped up its efforts by setting mandatory targets for companies to employ a specific percentage of Emirati workers, depending on the size and nature of the business.
However, many private companies have resorted to deceptive tactics, such as hiring UAE nationals on paper without providing them actual employment roles, in a bid to falsely comply with these regulations.
Strict Legal Action Against Violators
The MoHRE has made it clear that companies found to be violating Emiratisation policies will face stringent legal consequences. “Attempts to evade Emiratisation obligations will be dealt with firmly and in accordance with the law,” the Ministry stated. The government has emphasized that these fraudulent practices will not be tolerated, and violators will be subject to fines, penalties, and legal action.
Earlier this year, several private firms were fined heavily for similar violations. In one notable case, an Abu Dhabi-based company was fined Dh10 million for faking Emiratisation efforts. The company had falsely claimed it employed a significant number of UAE nationals but was found guilty of fraudulent practices during an inspection by the MoHRE.
Public Reporting and Awareness
To strengthen its enforcement efforts, the Ministry has called upon the public to play a role in reporting any violations. The public can report suspicious activities or practices that conflict with Emiratisation regulations through the Ministry’s call centre at 600590000 or via its smart app and website.
The MoHRE’s proactive inspection and monitoring system have been instrumental in uncovering the widespread fraud, ensuring that companies genuinely contribute to the Emiratisation drive rather than exploiting loopholes.
Commitment to Genuine Emiratisation
The UAE government remains committed to enhancing the participation of its nationals in the private sector and reducing unemployment among Emiratis. Various programs, such as the NAFIS initiative, have been launched to support Emiratis in acquiring the skills necessary for private-sector jobs and to ensure their long-term career growth.
While the violations reported represent a significant challenge, the MoHRE’s firm stance indicates that the UAE is determined to maintain the integrity of its Emiratisation goals. Companies are being urged to comply fully with the policies, and failure to do so will result in severe penalties and public scrutiny.
The Ministry continues to work closely with private-sector businesses, offering guidance and resources to help them meet their Emiratisation targets legitimately while fostering a more inclusive and diverse workforce in the UAE.
Looking Ahead
As the Emiratisation initiative progresses, businesses in the UAE are encouraged to engage more transparently and ethically with government policies. The recent revelations serve as a stark reminder that fraudulent practices will not go unnoticed, and the UAE government remains steadfast in ensuring that Emiratis are meaningfully integrated into the private-sector workforce.
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A major global operation led by law enforcement agencies has dismantled an encrypted messaging app called Ghost, which had been used by criminals worldwide to facilitate drug deals, money laundering, and contract killings. The sting operation, which involved authorities from nine countries, culminated in the arrest of a 32-year-old Australian suspected to be the app's mastermind. The app, marketed as "unhackable," was exploited by organised crime networks across Italy, the Middle East, and Asia.
The Global Crackdown
The app, known for its stringent encryption and anonymity features, was secretly hacked by law enforcement authorities, who monitored criminal activities for two years before making their move. During this period, they intercepted thousands of messages related to illegal operations, including threats of violence. Authorities in Australia, Europe, and North America conducted simultaneous raids, resulting in the arrest of numerous suspects, including the creator of the app, whose residence was raided with tactical precision. He was caught off-guard and unable to destroy crucial evidence.
Europol's executive director Catherine De Bolle emphasized that the operation highlights the futility of criminals attempting to evade justice by using encrypted platforms. The international sting also demonstrates the growing sophistication of law enforcement in tackling the rise of encrypted communication tools designed to facilitate crime.
The 'Ghost' App: An Encrypted Haven for Criminals
Launched in 2021, Ghost was unlike traditional messaging apps like WhatsApp or Telegram. It could only be accessed via highly modified smartphones, which were sold at premium prices. These devices, coupled with a subscription to the Ghost service, allowed users to communicate anonymously without providing any personal details or phone numbers. The app employed multiple encryption layers and offered features like remote "self-destruct" of messages and the ability to reset phones if compromised by authorities.
Users of Ghost were predominantly criminal organisations, according to Europol, who found no evidence of the app being used for legitimate purposes. It became a preferred tool for organised crime syndicates involved in drug trafficking, weapons smuggling, and money laundering.
Law Enforcement’s Legal Strategy and the Challenge of Encrypted Platforms
The international sting to dismantle Ghost raises critical legal questions about the regulation and use of encrypted messaging platforms. While encryption itself is not illegal and is widely used to protect privacy in legal communications, apps like Ghost pose unique challenges. Their purpose appears to have been designed specifically to support illegal activities by offering an ecosystem that shields users from law enforcement surveillance.
Encrypted messaging platforms exist in a legal grey area. On one hand, these services provide necessary privacy protections for individuals, journalists, and human rights advocates. On the other, they can be exploited by criminal networks for illegal activities, as seen in this case. The balance between safeguarding individual privacy and ensuring these platforms aren't used as "playgrounds for criminals," as Europol deputy executive director Jean-Philippe Lecouffe stated, is a legal dilemma that authorities worldwide continue to grapple with.
The challenge for law enforcement lies in obtaining lawful access to encrypted communications while respecting the legal rights of users. The infiltration of Ghost required cooperation between multiple countries and agencies, and this type of cross-border collaboration is becoming increasingly essential in the fight against organised crime using encrypted technology.
Legal Implications for App Developers and Service Providers
The takedown of Ghost also underscores the legal responsibility of app developers and service providers. Platforms that offer encryption must strike a balance between protecting user privacy and ensuring their services are not exploited for illegal purposes. Authorities around the world are pressuring private companies to cooperate with law enforcement efforts, ensuring that their platforms are not used to facilitate crime.
In jurisdictions like the European Union, there are discussions about regulations that require companies to provide law enforcement with access to encrypted data under certain circumstances. However, these proposals are met with resistance due to concerns over the potential erosion of privacy rights. The dismantling of Ghost and previous platforms like EncroChat and ANOM illustrates the ongoing tension between privacy and security, raising the possibility of future legal reforms in the space of encrypted communications.
As legal debates evolve, it is becoming clear that encrypted platforms, while crucial for personal privacy, also present significant risks when exploited by criminal networks. The Ghost case reinforces the need for a nuanced approach that upholds justice without compromising the legal right to privacy.
Law enforcement agencies are sending a strong message that no matter how secure criminals believe their platforms are, they can and will be penetrated in the name of justice. This operation also signals to other developers that their platforms could become the target of similar investigations if they fail to regulate their user base and ensure their technology is not being misused.
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A new law in Dubai will regulate how community members, employees, and organizations involved in managing public facilities can assist the government in enforcing rules and preventing violations. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, and Ruler of Dubai, has issued Law No. (19) of 2024, which establishes guidelines for granting law enforcement capacities to individuals and institutions in the emirate.
This legislation aims to ensure that individuals and organizations tasked with law enforcement carry out their duties effectively, while also fostering greater collaboration between the public and private sectors in managing public facilities.
Empowering Community Involvement
The law’s primary goal is to empower community members to assist government authorities in upholding the law and preventing any actions that contravene Dubai’s legislation. By involving citizens and residents, the law seeks to broaden the responsibility of safeguarding public order across the wider community.
The regulations will apply to:
Key Requirements for Law Enforcement Capacity
Under the new law, to be granted law enforcement authority, individuals must meet several criteria. They must be at least 30 years old, although exceptions may be granted by senior government officials when necessary. They must also possess the relevant knowledge, qualifications, and expertise in the areas they oversee, with a thorough understanding of the legislation they are tasked with enforcing.
Furthermore, individuals must complete relevant training programs and demonstrate proficiency in using modern technologies. The law mandates the use of Arabic in investigations and outlines clear guidelines for the duties and performance assessments of judicial officers.
Revocation and Replacement of Previous Law
Law No. (19) of 2024 also provides a framework for revoking law enforcement capacity when necessary. Such decisions are subject to a ruling issued by the chairman of the Supreme Legislative Committee in Dubai. The new decree replaces Law No. (8) of 2016, which previously governed the regulation of law enforcement capacity in the emirate.
Legal Perspective
From a legal perspective, the introduction of Law No. (19) of 2024 reflects Dubai’s ongoing efforts to enhance the rule of law and ensure the effective implementation of legislation. By expanding law enforcement capacities to include community members and private sector employees, the law fosters a proactive partnership between the public and private sectors.
The law imposes strict conditions for those granted law enforcement authority, emphasizing the importance of knowledge, training, and technological expertise. The inclusion of proficiency in modern technology is notable, as it aligns with Dubai’s vision of becoming a leading digital and smart city.
By setting a minimum age requirement of 30, with exceptions allowed at the discretion of senior officials, the law aims to ensure that those entrusted with such responsibilities possess the maturity and experience necessary to enforce laws effectively. However, the provision for exceptions grants flexibility, allowing for younger individuals with specialized skills to contribute where needed.
Finally, the requirement to use Arabic in investigations ensures linguistic uniformity and compliance with local legal standards, maintaining the integrity of legal procedures.
In conclusion, Law No. (19) of 2024 not only enhances Dubai’s legal framework but also underscores His Highness Sheikh Mohammed bin Rashid Al Maktoum’s commitment to inclusive governance by empowering community members to play an active role in maintaining public order and upholding the rule of law.
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In a significant move towards global tax reform, the Organisation for Economic Co-operation and Development (OECD) has made strides in implementing the Global Minimum Corporate Tax Rate (GMCTR), a groundbreaking initiative aimed at curbing tax avoidance by multinational corporations. This global tax reform, set to be implemented in 2024, has far-reaching implications for businesses and governments alike. The GMCTR, part of the OECD's Base Erosion and Profit Shifting (BEPS) initiative, imposes a minimum 15% tax rate on the profits of large multinational corporations, regardless of where they are headquartered or where their profits are generated.
Key Legal Developments:
Legal Implications for Multinational Corporations:
Looking Ahead:
The implementation of the Global Minimum Corporate Tax Rate is a significant legal update in the global taxation landscape, aiming to bring fairness and transparency to the taxation of multinational corporations. As countries continue to legislate and enforce these reforms, businesses must stay vigilant and proactive in adjusting to these changes to avoid potential penalties and legal challenges.
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In recent years, the Gulf Cooperation Council (GCC) countries have been steadily transforming their corporate tax landscapes. Traditionally known for their minimal or non-existent corporate tax regimes, countries like the UAE, Saudi Arabia, and Qatar have introduced reforms aimed at diversifying their economies and adhering to global tax standards. A significant component of this transformation is the growing network of tax treaties that these nations have entered into. Tax treaties play a crucial role in reshaping corporate taxation in the GCC by promoting cross-border trade, mitigating the risk of double taxation, and ensuring compliance with international standards on tax transparency and fairness.
Understanding Tax Treaties in the GCC Context
Tax treaties, also known as Double Taxation Agreements (DTAs), are bilateral agreements between two countries to avoid the taxation of income by both countries. These treaties are designed to facilitate international trade and investment by ensuring that businesses do not face the burden of double taxation on the same income.
In the context of the GCC, tax treaties are particularly important as these nations seek to attract foreign investment while modernizing their tax frameworks. With the introduction of corporate tax systems, such as the UAE's new corporate tax law effective from June 2023, tax treaties help ensure that businesses operating across borders can mitigate tax burdens and focus on growth rather than compliance complexities.
Promoting Cross-Border Investment and Economic Growth
One of the primary functions of tax treaties in the GCC is to promote cross-border investment. By preventing double taxation, tax treaties reduce the overall tax burden on companies operating in multiple jurisdictions, thereby encouraging foreign companies to set up operations in GCC countries. The treaties offer greater tax certainty to businesses, enhancing the attractiveness of the region as a global business hub.
For example, the UAE has signed over 100 DTAs with various countries, including major trading partners such as the United States, India, and the UK. These agreements allow for reduced withholding taxes on dividends, interest, and royalties, making it more cost-effective for international corporations to invest in or do business with UAE entities.
Mitigating Double Taxation and Protecting Taxpayers
A critical challenge for multinational corporations is the risk of double taxation, where the same income is taxed in two different countries. Tax treaties play a vital role in protecting businesses from this burden. Under most tax treaties, businesses are taxed in the country where they earn their income, and the foreign tax paid can be credited against the tax payable in the home country.
For GCC countries, which are evolving from zero or low corporate tax jurisdictions to implementing more formal tax systems, these treaties ensure that investors from high-tax jurisdictions can still enjoy favorable tax treatment. The treaties prevent economic double taxation, thus reducing barriers to international trade and ensuring the region remains competitive.
Aligning with Global Standards of Tax Transparency
In addition to promoting investment, tax treaties serve as an essential tool for aligning GCC countries with global standards of tax transparency and fairness. The global tax environment has seen a shift toward enhanced cooperation between tax authorities to prevent tax evasion and avoidance, largely driven by initiatives from the Organisation for Economic Co-operation and Development (OECD), such as the Base Erosion and Profit Shifting (BEPS) project.
By signing tax treaties that include provisions for exchange of information, transfer pricing, and anti-avoidance measures, GCC countries demonstrate their commitment to global tax standards. For example, many GCC countries have adopted OECD-compliant clauses in their tax treaties, ensuring that businesses cannot exploit loopholes to avoid paying taxes in either jurisdiction.
Saudi Arabia, for instance, has taken significant steps in aligning its corporate tax laws with OECD standards, especially with the implementation of transfer pricing regulations and enhanced transparency requirements. The Kingdom’s network of tax treaties further strengthens its position in international markets by providing clear guidelines for taxation on cross-border transactions.
Enhancing Corporate Tax Systems and Revenue Collection
As GCC countries move toward tax reform and the introduction of corporate tax, the role of tax treaties becomes even more prominent in ensuring smooth transitions. By negotiating favorable tax treaties, GCC nations can mitigate potential disruptions to trade and investment caused by the new tax regimes.
Additionally, tax treaties allow GCC countries to enhance revenue collection by ensuring that companies operating in their jurisdictions pay a fair share of taxes on their local profits. While corporate tax rates in the GCC remain competitive compared to global averages, tax treaties help ensure that taxable profits generated in the region are not artificially shifted to low-tax jurisdictions abroad.
Challenges and the Path Ahead
Despite the numerous advantages of tax treaties in transforming corporate taxation, there are challenges that GCC countries need to address. For one, the rapid increase in tax treaties requires tax authorities to have the expertise and resources to manage the complexities of international tax law. Additionally, there is a need for greater harmonization across GCC countries to avoid the risk of treaty shopping, where companies take advantage of more favorable tax treaties within the region.
As the GCC continues to evolve its corporate tax policies, the strategic use of tax treaties will remain a cornerstone of its efforts to balance tax collection, investment promotion, and global tax cooperation. Going forward, the region is expected to further expand its tax treaty network, offering businesses even more clarity and certainty in an increasingly complex global tax landscape.
Conclusion
Tax treaties are playing an increasingly important role in transforming the corporate tax framework of the GCC. By fostering cross-border investment, preventing double taxation, and aligning with global standards, these treaties are instrumental in ensuring that the region remains a competitive and attractive destination for businesses. As the GCC continues to diversify its economies and introduce corporate tax reforms, tax treaties will serve as a critical tool in maintaining its position as a global business hub.
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Starting January 2025, private joint-stock companies in the UAE will be required to allocate at least one seat on their boards of directors for women. This new regulation, issued by the UAE’s Ministry of Economy, aims to enhance gender diversity in corporate governance. The mandate will come into effect after the current boards of directors complete their terms.
The decision is part of the UAE's broader initiative to expand the role and representation of women in leadership positions, aligning with the nation's ongoing efforts to promote gender equality across various sectors.
Promoting Gender Balance in Leadership
The new mandate for private joint-stock companies mirrors similar measures previously enacted for public joint-stock companies. In 2021, the UAE Securities and Commodities Authority (SCA) required companies listed on the Abu Dhabi and Dubai stock markets to have at least one woman on their boards. The Ministry of Economy’s latest decision extends this requirement to private companies, reinforcing the UAE’s commitment to empowering women in leadership roles.
The Ministerial Resolution No.137 of 2024, which outlines the regulation of governance and operations for private joint-stock companies, highlights the UAE’s vision for gender balance. This follows the precedent set by Sheikh Khalifa bin Zayed Al Nahyan, who in 2018 directed that 50% of the Federal National Council seats be reserved for women, reflecting the importance of women's representation at all levels of decision-making.
Empowering Women in Business
Abdullah bin Touq Al Marri, the UAE Minister of Economy, hailed the decision as a significant step toward improving the performance and governance of private companies. He emphasized the value women bring to corporate boards through their unique insights and experiences, which can drive innovation and strengthen institutional governance.
He also expressed gratitude to Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council, for her relentless efforts in advocating for women's greater involvement in the economy. Her initiatives aim to raise women's representation in leadership roles to 30% by 2025, aligning with the UAE's strategic objectives.
Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council, also noted the far-reaching impact of this decision. She emphasized that women are essential partners in the UAE’s development across sectors and that increasing their presence on boards of directors will help achieve a more balanced and inclusive economy.
A Continued Commitment to Gender Equality
The UAE has consistently demonstrated its commitment to gender equality. In 2020, the country passed a decree ensuring that women and men receive equal pay for equal work. With this latest decision, the government continues to prioritize gender diversity, particularly in leadership roles, as it works toward a more inclusive future.
By mandating women’s representation on corporate boards, the UAE is fostering a culture of inclusion and ensuring that women have greater opportunities to contribute to the nation’s economic growth and success.
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Emirates NBD has launched a ground-breaking initiative, allowing customers to trade in the UAE equity markets with zero transaction fees. This move is designed to encourage greater participation in domestic stocks and contribute to the overall economic growth of the UAE.
Through the bank's mobile banking app, ENBD X, customers can now access and trade over 150 regional equities without incurring any transaction costs. This initiative aligns with the UAE's 'We the UAE 2031' vision, which aims to enhance the nation's status as a global economic partner and influential hub for investment.
Marwan Hadi, Group Head of Retail Banking and Wealth Management at Emirates NBD, emphasized the bank's commitment to supporting the UAE's economy and promoting long-term growth. He noted, "Our new initiative not only provides investors access to local equity markets at no cost, but also offers an opportunity for customers to diversify their portfolios and contribute to the success of domestic companies, ultimately supporting the national economy."
Emirates NBD's digital wealth platform enables customers to trade on both global and local exchanges, offering access to more than 11,000 global equities in addition to the 150 regional options. The platform also allows for fractional bond trading, making financial markets more accessible to a wider range of investors.
Since its introduction, ENBD X has continued to evolve, offering a seamless experience for users to manage both everyday banking and complex financial trades. The app also includes a Secure Sign facility, enabling high-volume traders to complete transactions of any value, simplifying the process even for complex financial instruments.
This initiative further strengthens Emirates NBD's role in advancing the financial well-being of its customers while boosting the UAE’s standing as a key global investment destination.
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The Fazaa card provides exclusive discounts and benefits across various sectors, such as healthcare, entertainment, food, beauty, and more. This guide walks you through the eligibility requirements and steps to apply for the card.
Who Can Apply?
The Fazaa card is available to the following groups:
Application Process
For Hemam Members (People of Determination)
Hemam members can apply for a Fazaa card through the Zayed Higher Organisation’s website or app by registering with their ID number. A confirmation SMS will be sent with the membership number and password.
Alternatively, they can apply via the Ministry of Community Development’s official website by submitting the following documents:
Once the documents are submitted, the membership number and password will be sent via SMS, allowing you to activate your membership.
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Healthcare in the UAE can be expensive, especially for those seeking high-quality medical services. However, government healthcare facilities offer a cost-effective alternative for residents looking to save on their medical expenses. The Emirates Health Services (EHS), which manages a network of public hospitals and clinics across the UAE, provides affordable medical care with significantly reduced service charges. One key way to access these services is through the EHS health card.
In this article, we will cover what the EHS health card is, how to apply for it, and the benefits it offers.
What Is the EHS Health Card?
The EHS health card allows UAE residents to access affordable healthcare at public medical facilities, including hospitals and clinics managed by Emirates Health Services. With this card, residents can avoid the additional 20 percent service charge typically applied at private healthcare providers. EHS operates over 100 public healthcare facilities throughout the UAE, including 13 hospitals and 59 primary health centres. This extensive network ensures that residents can receive high-quality medical services in various regions of the country.
Benefits of the EHS Health Card
How to Apply for the EHS Health Card
Applying for an EHS health card is a straightforward process. You can submit your application at any public hospital or clinic managed by EHS, or even at a typing centre. Here's a step-by-step guide:
Costs and Fees
The cost of applying for an EHS health card is minimal compared to the savings you will receive on healthcare services. While exact fees can vary, they generally depend on your age, residency status, and the type of services you require. Residents are encouraged to visit the nearest EHS facility or typing centre to confirm the current charges before applying.
Who Should Apply for the EHS Health Card?
The EHS health card is particularly beneficial for residents who regularly seek medical care or wish to have an affordable healthcare option available. It’s also a great solution for expatriates who are not covered by private health insurance, or those who prefer the lower costs associated with public healthcare. Additionally, the card is ideal for families looking to reduce their overall healthcare expenses, especially for routine check-ups, treatments, and emergency services.
Conclusion
The EHS health card offers UAE residents an affordable way to access quality healthcare at government facilities. With a simple application process, reasonable fees, and significant cost savings on medical services, it is a practical option for individuals and families alike. By applying for an EHS health card, residents can ensure they have access to reliable medical care without the financial strain often associated with private healthcare providers.
For more information on the EHS health card and the application process, visit your nearest EHS hospital or clinic, or inquire at a local typing centre.
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In today's competitive job market, showcasing valid work experience is crucial to making your resume stand out. For professionals in Saudi Arabia, the Ministry of Human Resources and Social Development (MHRSD) offers a valuable resource to help validate work history through the Qiwa platform. This platform allows you to easily apply for a ‘service certificate’—an official document that verifies your employment experience and strengthens your job application. In this article, we’ll guide you through what the service certificate is, how it can boost your career prospects, and how to obtain it online for free.
What Is the Employment Experience Certificate?
The employment experience certificate—also referred to as a service certificate—is an official document issued by the Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia. This certificate verifies your work history and experience, providing an official record that can be presented to potential employers or government authorities. It serves as proof of your employment, which can significantly improve your resume and job prospects.
This document is particularly useful for the following purposes:
- Job Applications: Employers often request a formal work experience certificate to validate your employment history before hiring.
- Government Submissions: When applying for certain services or government approvals, such as residency or business licenses, you may be required to submit proof of work experience.
Why Is the Certificate Important?
Having a validated employment experience certificate from the MHRSD not only confirms your work history but also boosts your credibility in the job market. Employers are more likely to trust applicants with official documentation supporting their previous experience, which can give you an edge over other candidates. Additionally, the certificate serves as a record for government processes, making it easier to access services or comply with legal requirements in Saudi Arabia.
Key benefits of the certificate include:
- Validation of Employment: The certificate officially confirms your work experience with previous employers.
- Increased Job Prospects: Potential employers prefer candidates whose work history has been verified by a government entity.
- Support for Career Growth: The document can help build your career by providing an additional layer of authenticity to your resume.
- Ease of Access: The certificate can be obtained quickly and easily online, free of charge, via the Qiwa platform.
How to Apply for the Employment Experience Certificate
The Qiwa platform, managed by the Ministry of Human Resources and Social Development, makes it easy for employees to apply for a service certificate once their employment contract has ended. Here's how you can obtain your certificate:
1. Visit the Qiwa Platform:
To begin the process, go to the Qiwa platform (https://www.qiwa.sa). This online platform provides access to various labor-related services, including the issuance of service certificates.
2. Log In to Your Account:
You will need to log in to the platform using your credentials. If you don't already have an account, you can easily create one by signing up with your Saudi national ID or Iqama number.
3. Access the Service Certificate Section:
Once logged in, navigate to the section for employment services and look for the option to apply for a service certificate. This will direct you to the relevant form where you can begin the application process.
4. Fill Out the Application:
You will need to provide your personal details, employment history, and details about the employer for whom you worked. The system may automatically populate some of this information if your employment is already linked to the platform.
5. Submit the Application:
After completing the form, submit your application. The MHRSD will review the information and verify your employment history. Once the review is complete, your service certificate will be issued.
6. Download Your Certificate:
Once your certificate is ready, you will receive a notification on the Qiwa platform. You can then download the certificate in PDF format and use it as needed.
Who Can Apply?
The employment experience certificate is available to anyone who has worked in Saudi Arabia and whose employment contract has officially ended. Whether you are a Saudi national or an expatriate, you are eligible to apply for the certificate. The platform is designed to ensure that all workers, regardless of their nationality, can verify their work experience in the country.
When to Apply for the Certificate
The best time to apply for the service certificate is after your employment contract has ended. This ensures that your work history is fully documented and up-to-date. It is advisable to apply for the certificate as soon as you leave your position so that you have it ready when searching for new job opportunities.
Validating your work experience is essential for standing out in Saudi Arabia’s competitive job market. With the employment experience certificate issued by the Ministry of Human Resources and Social Development through the Qiwa platform, you can easily obtain official proof of your work history for free. This certificate not only strengthens your resume but also enhances your credibility with potential employers and government authorities. By following the simple steps outlined above, you can secure this valuable document and take a significant step towards leveling up your career.
For more information or to begin your application, visit the Qiwa platform today and take advantage of this free, convenient service to boost your job prospects in Saudi Arabia.
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In a significant legal victory for the Bank of Montreal (BMO), a U.S. appeals court overturned a $564 million jury verdict against the bank’s subsidiary on Thursday. The verdict had previously been issued due to the subsidiary's alleged involvement in a $3.65 billion Ponzi scheme orchestrated by convicted Minnesota businessman Tom Petters.
The case, which has been closely watched due to the high-profile nature of the Ponzi scheme, involved a jury decision in 2022 that held the Bank of Montreal liable for its role in enabling Petters to carry out one of the largest frauds in U.S. history. The appeals court's decision, however, has now invalidated that judgment, sparing the bank from what would have been a substantial financial blow.
Background of the Ponzi Scheme
Tom Petters, a former Minnesota businessman, was convicted in 2009 for running a massive Ponzi scheme, in which he defrauded investors out of approximately $3.65 billion. Petters promised investors returns from what he claimed were lucrative deals in the electronics business, specifically the sale of electronics to major retailers. However, the entire operation was fraudulent, with Petters using money from new investors to pay off earlier ones, a classic Ponzi scheme tactic.
In 2010, Petters was sentenced to 50 years in prison for his crimes. Since then, multiple lawsuits have been filed against various entities accused of facilitating or turning a blind eye to Petters' fraudulent activities.
The Role of Bank of Montreal’s Subsidiary
The $564 million jury verdict against the Bank of Montreal stemmed from its subsidiary’s involvement in handling financial transactions for Petters' scheme. Prosecutors argued that the subsidiary had either knowingly or negligently allowed Petters to conduct illicit financial activities, which enabled the Ponzi scheme to continue and expand.
The jury had initially found in favor of the plaintiffs, awarding them a substantial judgment against the bank. This decision was seen as a win for those seeking justice on behalf of the victims who lost billions in the fraudulent scheme.
Appeals Court Overturns Verdict
The U.S. Court of Appeals, in its ruling, voided the $564 million verdict, citing several reasons. Key among them was a lack of sufficient evidence proving that the bank's subsidiary knowingly participated in Petters' illegal activities. The court found that while the bank may have processed transactions connected to Petters, there was no direct proof that it had intent or knowledge of the fraudulent nature of the scheme.
The appeals court also pointed out errors in the trial process, including misinterpretations of legal standards and insufficient jury instructions, which contributed to their decision to overturn the verdict.
Bank of Montreal’s Reaction
Following the appeals court decision, Bank of Montreal expressed satisfaction with the outcome. In a statement, the bank said, "We have always maintained that BMO acted appropriately and in accordance with all legal and regulatory requirements. We are pleased that the court recognized this and overturned the previous verdict."
The ruling removes a significant financial liability from the bank’s books, which would have been a major hit to its operations and investor confidence.
Implications of the Ruling
The overturning of the $564 million judgment is a critical development for financial institutions involved in fraud-related lawsuits. The case underscores the complexity of holding banks liable for the actions of their clients, particularly in cases where the clients are engaged in criminal activities unbeknownst to the bank.
This ruling could set a precedent for future cases where financial institutions are accused of facilitating illegal activities. It reinforces the need for concrete evidence of intent or knowledge of wrongdoing to hold such institutions accountable for the actions of their clients.
What’s Next?
While the appeals court’s decision is a significant win for Bank of Montreal, it is unclear whether the plaintiffs will seek further legal action. They could potentially request a rehearing of the case or escalate the matter to the U.S. Supreme Court. For now, the ruling brings an end to a major legal battle stemming from one of the largest Ponzi schemes in U.S. history.
For the victims of Tom Petters’ fraudulent activities, this ruling may represent a setback in their quest for compensation. Many have been fighting for over a decade to recover their lost investments, and the overturned verdict could impact the amount they ultimately receive.
Despite this, the case highlights the importance of vigilance in financial dealings and the role of regulatory oversight in preventing such schemes from occurring in the first place.
Key Takeaways:
- A U.S. appeals court has overturned a $564 million verdict against Bank of Montreal over its subsidiary’s alleged involvement in Tom Petters' $3.65 billion Ponzi scheme.
- The court found insufficient evidence that the bank knowingly participated in or facilitated Petters' fraudulent activities.
- This ruling is a significant legal win for Bank of Montreal and may influence future cases involving financial institutions and fraud claims.
- The decision marks a setback for the victims of Petters’ Ponzi scheme, who have been seeking compensation for their losses.
This case serves as a reminder of the complexities of legal accountability in large-scale financial fraud and the challenges victims face in pursuing justice.
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As the world grapples with the consequences of climate change, the concept of "ecocide"—acts that destroy ecosystems—is gaining traction as a potential international crime, akin to genocide or war crimes. Countries like Vanuatu, Fiji, and Samoa, particularly vulnerable to environmental degradation, have formally requested the International Criminal Court (ICC) to recognize ecocide as an international crime. This move could pave the way for prosecuting company leaders or even nations that knowingly contribute to environmental destruction.
However, the largest polluters, including China, Russia, India, and the United States, are not ICC members, which may challenge the effectiveness of any rulings. Despite this, proponents believe that criminalizing ecocide would create powerful deterrents, influencing policymakers to adopt stricter environmental protections. Jojo Mehta, co-founder of Stop Ecocide International, highlights that criminal law establishes both moral and legal boundaries, making extreme environmental harm unacceptable.
What is Ecocide?
The term ecocide was coined in the 1970s by Arthur Galston, a Yale University biologist, who campaigned against the use of the herbicide Agent Orange during the Vietnam War due to its devastating environmental and health impacts. Today, ecocide is being defined as “unlawful or wanton acts committed with knowledge that there is a substantial likelihood of severe, widespread, or long-term damage to the environment.” Examples include oil spills, deforestation, and the emission of large quantities of greenhouse gases by fossil fuel companies.
Ecocide in the UAE and GCC Context
For countries in the UAE and the GCC, which have experienced rapid industrialization and development, this debate could have significant implications. These nations are major oil producers, with economic models historically reliant on fossil fuel exports. At the same time, the region has seen increasing vulnerability to climate change, such as rising temperatures, water scarcity, and extreme weather events.
The UAE, in particular, has made significant strides in environmental sustainability. The UAE Net Zero by 2050 Strategic Initiative demonstrates the country’s commitment to reducing its carbon footprint, emphasizing renewable energy, sustainable city planning, and innovative technologies. Expo 2020 Dubai showcased these efforts on a global stage, reinforcing the UAE’s focus on a green economy.
However, the prospect of ecocide becoming an international crime could introduce legal and financial risks for companies in the region. For instance, oil spills or environmental damage from industrial projects might expose businesses to prosecution if ecocide were criminalized globally. This would put additional pressure on companies to adopt more sustainable practices and comply with evolving international regulations.
Ecocide as a Legal Framework for the GCC
In the GCC, where countries like Saudi Arabia, Qatar, and the UAE are transitioning to more diversified economies, the legal recognition of ecocide might act as a catalyst for accelerating green initiatives. While these nations are not currently part of the ICC, introducing ecocide into international law could create new legal frameworks that might encourage or require regional collaboration on environmental protections.
From a legal perspective, the GCC countries would need to consider the impact on their industrial sectors, particularly oil and gas, construction, and tourism, which can have significant environmental footprints. Legal scholars argue that aligning national laws with international standards on environmental crimes may become essential for GCC nations as they seek to balance economic growth with sustainable development.
The Push for Accountability
For the low-lying island nations, the fight against ecocide is about survival. These nations, including Vanuatu and Fiji, are facing rising sea levels and increasingly destructive storms due to climate change. For them, criminalizing ecocide offers the potential for justice and deterring further environmental damage.
In the GCC, where climate change is also being felt, although in different forms, the push for accountability could resonate. Water scarcity, desertification, and the increasing frequency of extreme weather events are real concerns. Legal recognition of environmental harm could help address these issues while ensuring that industries contribute to sustainability rather than environmental degradation.
Conclusion
The proposal to classify ecocide as an international crime signals a global shift toward holding individuals and nations accountable for environmental harm. For the UAE and GCC countries, this could mean increased international pressure to align with environmental protections, further supporting their sustainability goals. While the road to making ecocide an international crime may be long, it underscores the growing importance of protecting the environment in the face of climate change—a challenge that transcends borders and demands global cooperation
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Financial planning and insurance, is important to understand the critical role life insurance plays in protecting your family’s financial future. In the UAE, securing life insurance is relatively straightforward, but it requires careful consideration of policies, legal requirements, and family needs. This guide outlines the steps to obtain life insurance and the key factors to consider from a legal perspective.
1. Understand the Importance of Life Insurance
Life insurance provides financial protection to your beneficiaries in the event of your death. It can cover expenses such as outstanding debts, funeral costs, children’s education, and living expenses. For expatriates and residents in the UAE, life insurance ensures that your family remains financially secure, especially since they may not have access to benefits such as pensions or social security payments in their home countries.
2. Determine the Type of Life Insurance Policy
There are two main types of life insurance in the UAE:
- Term Life Insurance: This provides coverage for a specific period (e.g., 10, 20, or 30 years). If the insured passes away during this time, the beneficiaries receive the pay-out. It is generally more affordable and straightforward.
- Whole Life Insurance: This policy provides coverage for the entire life of the insured and includes an investment component, which can accumulate cash value over time. Premiums are higher, but it offers more long-term benefits.
3. Calculate the Coverage Amount
Determining how much coverage you need is a crucial step. The coverage amount should account for:
- Outstanding debts (e.g., mortgage, loans)
- Future living expenses for dependents
- Education costs for children
- Funeral and medical expenses
- Any other financial obligations
A general rule of thumb is to choose a policy that covers at least 10 times your annual income. However, this varies depending on your family’s specific financial situation.
4. Choose a Reputable Insurance Provider
In the UAE, numerous international and local insurance companies offer life insurance policies.
When selecting an insurer, ensure they are licensed by the UAE Insurance Authority and regulated under the UAE Insurance Law (Federal Law No. 6 of 2007). Check the company’s financial stability, customer service ratings, and reviews.
5. Understand Legal Requirements for Expats and Residents
The UAE does not have mandatory life insurance requirements, but expatriates, in particular, should consider taking a policy due to the absence of social safety nets for their families. The process of obtaining life insurance may differ based on residency status:
- Expatriates: No restrictions on purchasing life insurance, but expatriates should ensure their policy is valid worldwide and covers them during international travel.
- UAE Nationals and Residents: Life insurance is fully accessible, but careful attention should be paid to policy terms regarding beneficiaries, pay-outs, and Sharia-compliant products (for Muslim families).
6. Designate Your Beneficiaries
Legally, you must designate beneficiaries who will receive the pay-out in case of your death. In the UAE, if you are a Muslim, Sharia Law applies to your estate. This means that the distribution of your assets, including life insurance pay-outs, will be guided by Islamic inheritance laws unless specific provisions are made.
- Non-Muslim expatriates: You can freely name your beneficiaries and specify the distribution of your insurance proceeds. However, it is advisable to register a will with the Dubai International Financial Centre (DIFC) Wills and Probate Registry to ensure the payout distribution follows your wishes.
7. Complete a Medical Examination
Most life insurance policies in the UAE require the policyholder to undergo a medical examination. This helps insurers assess the risk and determine premium rates. The healthier you are, the lower your premiums will likely be. Some policies may offer coverage without a medical exam, but they often come with higher premiums.
8. Review and Compare Premiums
Once you’ve narrowed down your options, compare the premiums and benefits of different policies. Factors that affect premiums include:
- Age and health condition
- Smoking status
- Coverage amount and type of policy (term or whole life)
- Occupational hazards (certain jobs may increase premiums)
It is advisable to seek quotes from multiple providers and, if necessary, consult with a financial advisor to ensure you get the best value for your policy.
9. Legal Documentation and Policy Issuance
Once you’ve selected a provider and completed all requirements, you will need to fill out a formal application. The insurance company will review your application, medical records, and financial information. After approval, you’ll receive a legal contract, known as a policy document, which outlines the terms, conditions, premiums, and pay-out structure.
Ensure that all legal documentation is thoroughly reviewed, including the disclosure of pre-existing conditions. Failure to disclose crucial information could lead to denial of claims later on.
10. Ensure Regular Premium Payments
After the policy is issued, make sure to pay your premiums regularly to keep the policy active. If payments are missed, the policy could lapse, and your beneficiaries might not receive the payout. Some providers offer flexible premium payment options, such as monthly, quarterly, or annual payments.
Conclusion
Taking out life insurance in the UAE is a crucial step in safeguarding your family’s financial future. From understanding the types of policies to considering legal implications under Sharia Law or expatriate regulations, it is essential to approach the process with careful planning. Consulting with a legal or financial expert can help you navigate the complexities and make informed decisions, ensuring your loved ones are protected no matter what.
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The Saudi Council of Ministers has introduced a new Measurement and Calibration System aimed at regulating and overseeing measurement activities across the Kingdom. The system is designed to ensure compliance with technical guidelines and enhance the accuracy of measurement practices in various industries, supporting the Kingdom's efforts to strengthen its regulatory framework.
Under the newly approved system, violations of the established provisions or failure to adhere to technical guidelines will result in severe penalties. Offenders could face fines of up to SAR 10 million in addition to other punitive actions, such as the closure of facilities, suspension, or even revocation of operating licenses. These measures reflect Saudi Arabia’s commitment to maintaining high standards of compliance and accuracy in its economic activities, particularly those related to trade, manufacturing, and public safety.
The Measurement and Calibration System is part of the Kingdom’s broader initiative to modernize its legal and regulatory infrastructure, ensuring that industries align with international best practices. Accurate measurement is critical in a wide range of sectors, from manufacturing to commerce, where precision is essential for maintaining product quality, safety, and fairness in trade.
Non-compliance with the system’s provisions not only disrupts economic activities but could also pose significant risks to public health and safety. By implementing stringent penalties, the Saudi government aims to foster greater accountability among businesses and ensure that they invest in the necessary tools and training to meet regulatory requirements.
The approval of this system is seen as a significant step forward in Saudi Arabia's ongoing reforms, which seek to enhance economic efficiency, attract foreign investments, and build a reputation for robust governance. The government will be responsible for overseeing the implementation of the system, working closely with industries to ensure compliance and providing necessary support where needed.
This latest move aligns with Saudi Vision 2030, the Kingdom's ambitious development plan that seeks to diversify the economy and reduce its reliance on oil by enhancing regulations, improving standards, and attracting global business partnerships.
Businesses operating in Saudi Arabia are encouraged to familiarize themselves with the new guidelines to avoid penalties and ensure they meet the regulatory standards laid out by the government. Failure to do so could result in hefty fines and other legal consequences, as the government takes a firm stance on upholding the accuracy and integrity of measurements across industries.
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The Central Bank of the UAE (CBUAE) has imposed a Dh5 million fine on an unnamed bank for breaching anti-money laundering (AML) regulations and for financing illegal organizations. The penalty was issued in accordance with Articles 89 and 137 of Federal Decree Law No. (14) of 2018, which governs the Central Bank’s role and the regulation of financial institutions, as well as Article 14 of Federal Decree Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations.
The bank, which has not been publicly identified, was also ordered to report the CBUAE’s actions to its board of directors at its overseas headquarters. This directive reinforces the CBUAE’s commitment to ensuring that banking institutions operating in the UAE comply with the nation’s regulatory framework.
From a legal perspective, the imposition of this penalty highlights the rigorous standards set by UAE authorities to combat money laundering and terrorist financing. The Federal Decree Law No. (20) of 2018 sets out stringent guidelines for financial institutions, emphasizing their obligation to implement robust due diligence procedures, monitor suspicious activities, and report them to the relevant authorities. Failure to adhere to these regulations can lead to severe sanctions, as seen in this case.
The UAE’s legal framework surrounding AML is designed to uphold the integrity of the financial system and maintain the country’s international reputation as a transparent and secure financial hub. Financial institutions must follow strict compliance measures, including Know Your Customer (KYC) protocols, continuous monitoring of transactions, and thorough reporting mechanisms. Any failure to meet these obligations not only attracts financial penalties but can also result in reputational damage and further legal consequences for the institutions involved.
The CBUAE’s supervisory and regulatory mandates are intended to ensure that all banks, along with their owners and employees, fully comply with these legal standards to safeguard the transparency and integrity of the UAE’s banking sector.
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For the first time, UAE motorists can now access third-party insurance coverage for vehicle damage caused by floods and storms. Launched by Al Fujairah National Insurance Co. (AFNIC), the new product, FloodGuard, provides protection for both personal and company-owned vehicles used for leisure or personal purposes—particularly for those over seven years old that may not qualify for comprehensive insurance. However, it does not cover commercial vehicles.
FloodGuard offers two coverage options: policyholders can choose between limits of Dh25,000 or Dh50,000 for a 12-month term, with premiums starting at Dh350 and Dh550, respectively. This standalone insurance can be purchased by any motorist in the UAE, regardless of their primary insurer, provided they have an existing third-party liability (TPL) policy.
It is important to note that this product does not replace traditional comprehensive or TPL motor insurance, and its coverage activates 15 days after the start date. While the policy protects against damage from natural events like storms and floods, it excludes damages from incidents such as getting stuck in sand dunes, beaches, wadis, or man-made water bodies. Additionally, FloodGuard covers only cars, excluding two-wheelers.
The introduction of this policy follows severe rainfall in mid-April 2024, which damaged thousands of vehicles across the UAE, resulting in millions of dirhams in losses. While vehicles with comprehensive insurance were able to claim, those with third-party insurance were left without coverage.
“Innovation is crucial in the competitive UAE market,” said Antoine Maalouli, CEO of AFNIC. “This year’s extreme weather events, worsened by climate change, left many without adequate protection. With motorists increasingly seeking coverage for natural disasters, FloodGuard fills a vital gap in the market, providing peace of mind for vehicle owners.”
Maalouli also expressed pride in AFNIC’s leadership in introducing this unique insurance solution to the UAE, offering much-needed relief for private car owners in the wake of the recent storms.
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The UAE has officially launched its ground-breaking "Invest in the Emirates" campaign, extending an invitation to the world’s leading innovators, entrepreneurs, and talents to explore the immense business opportunities available within its thriving economic landscape.
This global initiative will roll out in major cities such as Cannes, Munich, Paris, London, Zurich, Geneva, and New York, with Idris Elba spearheading the effort. Elba will encourage global business leaders to bring their visions to life in the UAE, where innovation not only flourishes but has the potential to reach international markets. The campaign offers a comprehensive platform to support investors and entrepreneurs.
"Invest in the Emirates" focuses on the UAE’s booming innovation ecosystem, offering a wide range of benefits including access to funding, supportive regulatory frameworks, and robust government backing. With its tax-free environment, extensive trade and logistics networks, and a strong focus on business enablement, the UAE has established itself as a hub for ventures aiming for global expansion.
The initiative underscores the UAE’s ongoing commitment to fostering a business-friendly environment where innovation and entrepreneurship can thrive, solidifying its position as a top destination for international investors.
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The UAE Federal Authority for Government Human Resources (FAHR) has unveiled a unified model for employment contracts within the federal government sector, a move aimed at streamlining and standardizing employment terms for both Emiratis and expatriates. This legal reform signifies a major advancement in the UAE’s employment framework, reflecting its commitment to fostering an inclusive, efficient, and well-regulated public sector.
Key Features of the Unified Model
The newly introduced employment contract model applies to all employees within the federal government, covering various employment types and work patterns. It is designed to address several critical aspects of employment, including:
- Work Patterns: The model clarifies the different work patterns allowed under federal government employment, giving room for diverse roles and responsibilities while maintaining operational efficiency.
- Flexible Timings: The reform includes provisions for flexible working hours, recognizing the growing need for adaptable work schedules in a modern work environment.
- Contract Durations: One of the model's most significant aspects is the specification of contract durations, providing clarity and transparency for both employers and employees. Whether an individual is employed on a permanent, temporary, or project basis, the duration of the employment will be clearly stipulated.
Application to Emiratis and Expats
The unified model is applicable to both Emiratis and expatriates employed in the federal government. This inclusivity is in line with the UAE's broader policies to integrate Emiratis into the public sector while ensuring that expatriates have clear and structured employment terms.
Enhancing Legal Clarity and Reducing Disputes
From a legal standpoint, this initiative represents a significant step towards reducing ambiguity and employment disputes in the public sector. By standardizing terms and conditions, the model enhances legal certainty for all stakeholders. Employees now have a clear understanding of their rights and obligations, and employers can ensure compliance with unified guidelines.
The introduction of this contract model comes at a time when governments worldwide are reassessing employment frameworks to adapt to new work environments shaped by technological advancements, global mobility, and shifts in labour markets. The UAE has consistently been at the forefront of such reforms, with this unified model being a testament to its proactive approach to labour governance.
A Boost to Emiratisation Efforts
The unified model also aligns with the UAE's ongoing Emiratisation efforts, which aim to increase the number of Emiratis employed in the public and private sectors. By creating a transparent, structured, and attractive employment framework, the federal government aims to encourage more Emiratis to join the workforce, knowing that their employment terms are safeguarded under this unified system.
Conclusion
The UAE’s move to introduce a unified employment contract model is a landmark reform that reflects the country’s legal sophistication and its ability to adapt to the evolving needs of the workforce. It provides much-needed clarity on work patterns, flexible timings, and contract durations, ensuring fairness and legal consistency for both Emirati and expatriate employees in the federal sector.
This initiative further solidifies the UAE's reputation as a leader in progressive labor policies, offering a model that other nations may look to as a benchmark for employment reform.
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In a significant step towards advancing innovation, Dubai has launched a new ‘Dubai Research and Development Programme,’ aimed at transforming the emirate into a global hub for cutting-edge research and technology. With a focus on sustainable growth and fostering a knowledge-driven economy, the initiative is set to fund groundbreaking projects across various sectors, aligning with Dubai’s ambitious vision for the future.
Dubai is rapidly positioning itself as a global AI hub, with significant investments in artificial intelligence research and applications across sectors like healthcare, finance, and smart cities. By 2030, AI is expected to contribute over $96 billion to the UAE's economy, and Dubai's strategic initiatives will be instrumental in driving this growth, fostering innovation, and attracting top AI talent globally.
A New Era for Innovation in Dubai
The ‘Dubai Research and Development Programme’ is poised to play a pivotal role in promoting scientific research and innovation across industries, reinforcing the city's commitment to becoming a leader in technology and sustainability. The programme, which boasts substantial financial backing, will provide grants and resources to support pioneering research that addresses real-world challenges. By driving forward innovation, Dubai hopes to position itself as a hub for global talent and cutting-edge technologies.
Key Areas of Focus
Dubai’s R&D Programme will focus on several critical areas where research and innovation can have the most significant impact. These areas include:
Partnerships with Leading Institutions
The Dubai Research and Development Programme aims to foster collaboration between academia, the private sector, and government agencies. Leading universities, research institutions, and tech companies are expected to partner with the programme to accelerate the development of new technologies and scientific breakthroughs. The programme also plans to attract international talent by offering incentives for top researchers and experts to contribute to Dubai’s growing innovation ecosystem.
Long-Term Impact on Dubai’s Economy
By funding these forward-looking research projects, the Dubai Research and Development Programme is expected to significantly enhance the emirate’s knowledge-based economy. This will drive job creation in high-tech industries, spur economic growth, and further diversify Dubai’s economy away from oil dependency.
The initiative underscores Dubai’s commitment to becoming a global leader in science, technology, and sustainability, paving the way for a future defined by innovation and resilience.
As these projects begin to take shape, the global scientific community will watch closely, with Dubai poised to become a beacon of research excellence and technological advancement.
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UAE Cyber Security Council Warns Users of the Risks Associated with Fraud, Privacy Violations, and Reputation Damage
Abu Dhabi, September 14, 2024 – Ali Al Hammadi, Reporter
The UAE Cyber Security Council has issued a strong warning to residents regarding the sharing of deep fake content, emphasizing the potential legal and personal risks it entails. With advancements in artificial intelligence (AI), deep fake technology has become increasingly sophisticated, allowing the creation of deceptive images, videos, and audio that can be difficult to distinguish from authentic content. This growing trend has raised serious concerns over the potential misuse of such technology, including fraud, privacy violations, damage to reputations, and the spread of misinformation.
What Are Deep Fakes?
Deep fakes are digitally manipulated media files that use AI to alter images, videos, or audio recordings to make them appear as though they feature a real person or scene when they do not. These alterations are often so convincing that even experts can struggle to distinguish between real and fake content. Deep fakes can range from light-hearted entertainment to more sinister purposes, including impersonation, defamation, and malicious intent.
The UAE Cyber Security Council highlighted how deep fake technology can be abused for fraudulent purposes, especially when used to manipulate individuals or organizations into believing false information, thus causing harm or financial loss.
Legal Implications of Sharing Deep Fakes
Under UAE Cybercrime Law No. 5 of 2012 (amended by Federal Law No. 12 of 2016), sharing or creating false information that causes harm or is intended to deceive others is a criminal offense. The law explicitly prohibits the use of electronic platforms to share content that invades personal privacy, defames individuals, or spreads false information. Individuals found guilty of sharing deep fake content that leads to such consequences can face severe penalties, including fines and imprisonment.
Risks of Sharing Deep Fakes
The UAE Cyber Security Council’s alert draws attention to several key risks associated with deep fake content:
1. Fraud: Deep fakes can be used to impersonate individuals or authorities, leading to financial scams or misleading others into making fraudulent transactions. AI-generated videos of company executives, for example, can be used to trick employees or customers into divulging sensitive information or transferring funds to fraudulent accounts.
2. Privacy Violations: Using someone’s image or voice without their consent constitutes a violation of privacy, a crime under UAE law. Deep fakes can be used to exploit personal data, manipulate intimate photos, or create harmful content that could damage an individual’s reputation and well-being.
3. Reputation Damage: Deep fakes can defame public figures, professionals, and private individuals by fabricating content that shows them saying or doing things they did not. This not only harms the person’s reputation but can also lead to legal disputes, loss of trust, and significant professional or personal consequences.
4. Misinformation and Public Confusion: The spread of false information through deep fakes can create confusion and mistrust, particularly when they target public figures, news outlets, or governmental bodies. This could potentially harm public order or disrupt the smooth functioning of government or business operations.
Prevention and Protection
The Cyber Security Council urged users to exercise caution before sharing any content, especially if it appears suspicious or altered. They emphasized the importance of verifying the authenticity of media content before sharing it online or forwarding it to others. Ignorance is not a valid legal defence in cases where the sharing of deep fakes leads to significant harm, making users responsible for the content they circulate on social platforms.
The Council also warned content creators about the criminal penalties for generating deep fakes with the intention of misleading or defaming others. They reminded citizens and residents that UAE Federal Law No. 45 of 2021 on data protection imposes stringent rules on the misuse of personal data, including facial images or voice recordings used in AI technologies.
Legal Recourse and Reporting Mechanisms
Victims of deep fakes in the UAE have several legal options to seek redress. They can report incidents to the Telecommunications and Digital Government Regulatory Authority (TDRA) or local law enforcement authorities. Depending on the severity of the violation, offenders could face fines ranging from Dh250,000 to Dh2 million, and imprisonment if found guilty of creating or sharing content that violates another person’s privacy or reputation.
In light of the serious implications surrounding deep fake content, the UAE Cyber Security Council has also encouraged residents to utilize its official social media channels to report any suspected deep fake incidents.
Conclusion
As the use of AI in digital content continues to evolve, the legal landscape surrounding privacy, misinformation, and cybercrime is adapting accordingly. The UAE Cyber Security Council’s alert serves as a crucial reminder of the potential dangers posed by deep fakes and the importance of responsible content sharing. Residents and citizens are urged to remain vigilant and mindful of the content they share online, ensuring they do not unknowingly contribute to fraud, privacy breaches, or damage to someone’s reputation.
With the UAE’s commitment to maintaining a safe and secure digital environment, those involved in creating, sharing, or disseminating harmful deep fake content will be held accountable under the country's strict cybercrime laws.
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The United Arab Emirates (UAE) has established a dynamic and progressive legal system designed to support the country's rapid economic growth and its diverse population. Whether you are a resident, visitor, or business owner, understanding the essential laws of the UAE can simplify your life and ensure that you remain compliant with the legal standards. Here is an overview of the key laws in the UAE that are vital for navigating everyday life and business.
1. Labor Law: Rights and Protections for Employees
The UAE’s Labour Law is primarily governed by Federal Law No. 33 of 2021 regarding the Regulation of Labor Relations. This law outlines the rights and duties of employees and employers in the private sector, ensuring fair treatment and labor protections for all workers.
Key provisions:
- Employment Contracts: Every employee must have a written employment contract that clearly defines the terms of employment, including job title, salary, working hours, and benefits.
- Work Hours: The maximum working hours are 48 hours per week or eight hours per day, with exceptions for specific industries.
- End-of-Service Benefits: Upon termination of employment, employees are entitled to end-of-service gratuity, calculated based on the employee’s salary and years of service.
- Equal Treatment: The law prohibits any form of discrimination based on race, gender, or nationality, ensuring equal pay for equal work.
- Health Insurance: Employers are required to provide health insurance to their employees, covering essential medical services and emergency care.
2. Immigration and Residency Law: Visa and Work Permit Regulations
The UAE's Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP) governs immigration laws, ensuring smooth entry and residency for expatriates.
Key provisions:
- Work Visas: Employers are responsible for applying for work visas and residence permits on behalf of foreign workers. This process includes a medical examination, Emirates ID application, and residence visa stamping.
- Golden Visa Program: The Golden Visa offers long-term residency options for investors, entrepreneurs, and highly skilled professionals, enabling them to live in the UAE for up to 10 years.
- Five-Year Green Visa: Skilled workers and freelancers can apply for the Green Visa, which allows them to live and work in the UAE without employer sponsorship for five years.
- Visa Overstays and Amnesty: The UAE periodically announces amnesty programs for individuals who have overstayed their visas, allowing them to either regularize their status or leave the country without penalties.
3. Personal Status Law: Family Matters and Inheritance
The UAE’s Personal Status Law is based on Islamic Sharia principles and governs matters related to marriage, divorce, child custody, and inheritance.
Key provisions:
- Marriage: Both Muslim and non-Muslim residents can marry in the UAE, but they must follow specific legal procedures and register their marriage with the appropriate authorities.
- Divorce: The law provides detailed guidelines on how divorce can be initiated and the financial obligations that follow, including alimony and child support.
- Inheritance: For Muslims, inheritance is governed by Sharia law, which specifies how assets are to be distributed among heirs. Non-Muslims can elect to have their home country’s laws applied to their estate through a registered will.
4. Commercial Law: Business Operations and Contracts
The UAE is an international business hub, and its legal framework is designed to facilitate efficient business operations while protecting investors and entrepreneurs.
Key provisions:
- Commercial Companies Law: Under Federal Decree-Law No. 32 of 2021, companies must comply with local ownership rules, with certain exceptions in free zones, where foreign investors can own 100% of their businesses.
- Consumer Protection Law: The Consumer Protection Law ensures that consumers are protected from fraudulent practices, including misleading advertising, price manipulation, and defective products.
- Bankruptcy Law: UAE’s Federal Bankruptcy Law No. 9 of 2016 provides businesses with a legal framework to restructure debts or declare bankruptcy in case of insolvency, helping them recover or exit the market responsibly.
5. Anti-Discrimination and Anti-Hate Law
The UAE’s Federal Decree Law No. 2 of 2015 aims to promote tolerance and peaceful coexistence among its diverse population by criminalizing discrimination on the basis of religion, race, gender, or ethnicity.
Key provisions:
- Hate Speech: The law prohibits the spread of hate speech, whether verbal, written, or online.
- Religious Freedom: Individuals and groups are free to practice their religion, as long as it does not incite violence or hate.
- Harassment and Defamation: Defamation and harassment, including on social media, are criminal offenses and can lead to fines or imprisonment.
6. Cybercrime Law: Protecting Digital Activities
The UAE’s Cybercrime Law, governed by Federal Decree-Law No. 34 of 2021, aims to protect individuals and businesses from cyber threats, including hacking, fraud, and the misuse of personal data.
Key provisions:
- Online Fraud and Hacking: Engaging in cyber fraud, identity theft, or unauthorized access to computer networks is a serious crime, punishable by imprisonment and hefty fines.
- Deep Fake Technology: Recently, the UAE’s Cyber Security Council has warned against the creation and distribution of deep fake content, which can mislead viewers and result in significant legal repercussions, including defamation, fraud, and privacy violations.
- Data Protection: The law protects individuals' privacy, with stringent measures for how personal data is collected, stored, and processed by companies.
7. Traffic Law: Road Safety and Violations
The UAE’s Traffic Law, governed by Federal Law No. 21 of 1995, has been instrumental in reducing traffic accidents and improving road safety.
Key provisions:
- Speed Limits and Fines: The law imposes strict speed limits, with penalties for violations including fines, black points on the driver’s license, and vehicle confiscation for severe offenses.
- Driving Under the Influence: Driving under the influence of alcohol or drugs is a criminal offense in the UAE, with penalties ranging from fines to imprisonment and the suspension of driving privileges.
- Seat Belts and Child Safety: The law mandates the use of seat belts for all passengers and requires children under the age of 10 to be seated in child safety seats.
Conclusion
The UAE's legal framework is designed not only to maintain law and order but also to support the smooth functioning of everyday life, business operations, and personal matters. Familiarizing yourself with these key laws will help you avoid legal issues and ensure a seamless experience while living or doing business in the UAE. From labor rights to immigration procedures, personal status regulations to cybercrime prevention, the UAE’s legal system is structured to make life easier for its residents and visitors.
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The International Charity Organisation (ICO) announces 'Correction of the Status of Violators' initiative to support illegal residents, with 600 applications to be processed in the first phase.
In a move to support individuals seeking legal residency in the UAE, the Ajman-based International Charity Organisation (ICO) has launched a significant initiative titled the ‘Correction of the Status of Violators’. The initiative, valued at Dh3 million, aims to assist those benefiting from the ongoing amnesty program for illegal residents by facilitating the completion of residency visa procedures. The amnesty offers individuals an opportunity to regularize their legal status in the UAE without facing penalties for past residency violations.
Key Aspects of the Initiative
The ICO's 'Correction of the Status of Violators' initiative is designed to provide financial support to amnesty seekers, covering the costs involved in obtaining legal residency visas. This move highlights the UAE's ongoing efforts to address issues faced by residents who have overstayed or violated the terms of their visas, allowing them to integrate back into society lawfully.
In the first phase of the initiative, the ICO will accept 600 applications from individuals who meet the program’s criteria. The applications will be processed under the guidelines set forth by the UAE's amnesty campaign, which focuses on exempting individuals from accrued fines and penalties associated with residency violations.
The Two-Month Amnesty Program
The two-month amnesty was launched by the Federal Authority for Identity and Citizenship, Customs and Ports Security (ICP) on September 1, 2024. During this period, applicants have two options: they can either amend their status to remain in the UAE legally by obtaining a valid visa, or they can choose to exit the country without incurring fines or penalties for overstaying. This temporary window offers significant relief for those who have violated residency laws, encouraging them to come forward without the fear of legal or financial repercussions.
Legal Framework of the Amnesty Program
The UAE’s amnesty program has been a vital component of its immigration policy, aiming to regulate the status of individuals who are in violation of residency laws. By offering exemptions from fines and penalties, the program encourages illegal residents to rectify their legal status. This reflects the UAE’s commitment to supporting expatriates and ensuring their rights within a lawful framework.
Under the Federal Residency Law, individuals who overstay their visa are typically subject to daily fines. However, during the amnesty period, these penalties are waived, offering violators a clear and accessible path to legal residency. The launch of the Dh3 million fund serves to support these individuals, covering necessary expenses such as application fees, documentation, and other procedural costs.
ICO’s Role in Supporting National Campaigns
Dr. Khalid Al Khaja, Secretary-General of the ICO, emphasized the organization's commitment to supporting national humanitarian campaigns, including the ongoing amnesty initiative. He explained that the 'Correction of the Status of Violators' aligns with the ICO’s broader mission to assist vulnerable communities and provide them with the resources they need to achieve stability.
The focus of this initiative is not only on regularizing residency status but also on promoting long-term social and economic stability for amnesty seekers and their families. By facilitating the legal residency process, the initiative helps individuals secure lawful employment, access social services, and fully integrate into the UAE’s community.
Legal Benefits and Broader Implications
From a legal perspective, the initiative provides critical relief to individuals facing financial difficulties related to their residency status. It enables them to resolve legal uncertainties surrounding their residency and avoid future complications. Regularizing residency status also opens up opportunities for lawful employment, healthcare access, and other government services, ensuring stability for individuals and their families.
The initiative demonstrates the UAE’s proactive approach in addressing immigration challenges while balancing national security with humanitarian considerations. The government’s consistent efforts to provide amnesty, coupled with financial support from organizations like the ICO, reflect a comprehensive strategy to manage immigration in a fair and just manner.
Conclusion
The ICO’s 'Correction of the Status of Violators' initiative, backed by Dh3 million in funding, offers much-needed assistance to individuals participating in the UAE’s amnesty program. By covering the costs associated with securing legal residency visas, the initiative helps individuals resolve their immigration issues and contributes to their long-term well-being. This initiative plays a crucial role in ensuring the success of the UAE’s national amnesty campaign, while also highlighting the importance of legal frameworks in fostering stability for all residents.
The two-month amnesty program, launched by the Federal Authority for Identity and Citizenship, Customs and Ports Security, provides a vital opportunity for illegal residents to rectify their status, whether through obtaining valid visas or exiting the UAE without penalties. This initiative not only represents a significant legal development but also sets a precedent for how government and charitable organizations can work together to offer a stable, lawful future for all residents.
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In the UAE, creditors, including banks, have the legal right to file lawsuits against companies facing financial difficulties to recover outstanding debts. In a limited liability company (LLC), partners’ liability is generally limited to their capital contribution. However, a bank may sue the company and its partners if personal guarantees were provided by the partners, which can lead to personal assets being at risk.
When an LLC is sued, the ruling and subsequent execution would typically target the company’s assets rather than the personal assets of the partners. However, if any partner has signed personal guarantees or taken loans on behalf of the company, they could be held personally liable, and their own assets could be subject to legal action. It is essential to review the terms of the agreements with creditors to understand the extent of personal liability.
If a partner decides to leave the company, it does not automatically exempt them from legal claims that arose during their tenure as a partner. The partner remains liable for debts and obligations incurred while they were a part of the company, even if they exit before legal proceedings conclude. Thus, departing a company in financial distress does not necessarily protect a partner from being involved in ongoing or future lawsuits related to prior obligations.
This legal framework underscores the importance of thoroughly reviewing partnership agreements and any personal guarantees given to creditors. For those facing legal action from creditors, it is strongly recommended to consult with a legal expert to assess the extent of liability and explore possible defenses or negotiations with the creditors.
In summary, partners of an LLC in the UAE are generally protected from personal liability unless personal guarantees are involved. However, leaving the company does not spare a partner from obligations incurred while they were involved. For any legal complexities, seeking professional legal advice is crucial to protect personal and business interests.
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Dubai will observe a public holiday on Sunday, September 15, to honour the Prophet Muhammad's birthday. Government offices, departments, and institutions will be closed, with regular operations resuming on Monday, September 16. However, this does not apply to public-facing services, facilities management, or institutions with rotating shifts, which will continue to operate according to their operational needs.
The Prophet's birthday is traditionally observed on 12 Rabi' Al-Awwal 1444 in Islamic nations, including the Gulf region.
Following this holiday, residents in the UAE can look forward to a four-day break in December, with National Day falling on December
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His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai, has issued a landmark law establishing the Mada Media Company, a private joint-stock entity tasked with managing, operating, and developing advertising sites throughout Dubai. The new company will also spearhead investment in advanced advertising technologies and research while ensuring full regulatory compliance.
Under the new law, the Roads and Transport Authority (RTA) and Dubai Municipality are empowered to delegate their advertising-related responsibilities, including permit issuance and management of advertising assets, to Mada Media. The law mandates the transfer of all advertising-related rights, obligations, and assets from these government entities to the company in accordance with a concession agreement. Government agencies will support this transition by facilitating the legal transfer and registration of assets to Mada Media or its subsidiaries.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, also issued a decision forming the company's Board of Directors. Mattar Mohammed Al Tayer has been appointed as Chairman, with Hussein Mohammed Al Banna serving as Vice Chairman. The law further grants the Board legal powers to manage the company's affairs and outlines the framework for utilizing human and financial resources.
Additionally, Mada Media’s shares may be publicly offered, with ownership ratios determined by the Chairman of The Executive Council of Dubai, allowing the public to invest in the company.
This forward-thinking initiative by His Highness aims to modernize Dubai’s advertising sector, creating a centralized, efficient system for managing advertising functions and ensuring the city remains a global leader in media and communication.
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The UK has taken a pioneering step by signing the world’s first legally binding international treaty on artificial intelligence (AI), ensuring the alignment of AI systems with human rights, democracy, and the rule of law. This historic agreement, known as the Council of Europe Framework Convention on AI, was introduced at a conference of European justice ministers in Vilnius on September 6, 2024.
The treaty has been signed by several nations, including the UK, Iceland, Norway, Andorra, the Republic of Moldova, and Georgia, alongside non-European countries such as Israel, the United States, and members of the European Union. The agreement seeks to regulate the ethical use of AI while safeguarding essential values like democracy and human rights.
The UK’s lord chancellor and justice secretary, Shabana Mahmood, emphasized that the treaty represents a significant step in ensuring that AI technologies enhance, rather than erode, fundamental values. She noted, "This convention is a major step to ensuring that these new technologies can be harnessed without eroding our oldest values, like human rights and the rule of law."
The Framework Convention’s importance was echoed by Marija Pejčinović Burić, secretary general of the Council of Europe. She remarked on the necessity of the treaty to ensure AI systems comply with global standards: "The Framework Convention is designed to ensure that AI upholds our standards rather than undermining them."
This groundbreaking treaty aims to set a global standard for ethical AI usage. Once five signatories, including at least three Council of Europe member states, ratify it, the treaty will officially enter into force. Countries worldwide are encouraged to join and commit to its provisions, ensuring that AI technologies are developed and used responsibly.
The treaty is expected to foster global cooperation in AI governance, and with ongoing technological advancements, it marks a crucial effort to safeguard human rights in the digital age. As nations continue to adopt AI technologies across various sectors, this agreement lays a strong foundation for ensuring ethical practices while mitigating risks associated with AI misuse.
This landmark treaty is likely the first of many steps toward creating a global AI regulatory framework that will shape the future of AI development worldwide.
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The Abu Dhabi Department of Economic Development (ADDED) has issued a warning to all licensed businesses in the emirate, emphasizing the importance of complying with regulations when engaging with social media influencers for advertising and promotional activities.
In a recent circular, ADDED acknowledged the efforts of local businesses to foster a healthy economic environment but stressed the need for stricter adherence to established guidelines. The department outlined the following key requirements:
- Social media influencers must obtain a license from ADDED to legally provide advertising services through online platforms.
- Businesses must secure a permit from ADDED before engaging in any advertising, promotional, or marketing activities.
- Companies are responsible for ensuring that influencers they collaborate with hold valid licenses issued by ADDED.
Failure to meet these requirements will result in penalties as outlined in ADDED’s table of violations. Non-compliant businesses risk fines ranging from AED 3,000 to AED 10,000 and could even face closure for failing to follow the department’s directives.
Introduction
Motor insurance is a critical aspect of vehicle ownership in the United Arab Emirates (UAE). It not only provides financial protection in the event of an accident but also ensures compliance with legal requirements. This article explores the various types of motor insurance available in the UAE, their benefits, legal requirements, and key considerations for policyholders.
Types of Motor Insurance
Comprehensive Insurance
Third-Party Liability Insurance
Third-Party Fire and Theft Insurance
Comprehensive motor insurance is the most extensive coverage option. It includes protection against damage to the insured vehicle, third-party liability, theft, fire, and natural disasters amongst others. Additionally, it covers damage to the vehicle caused by accidents, vandalism, and other unforeseen events. Comprehensive policies often include added benefits such as roadside assistance and rental car coverage.
Third-party liability insurance is the minimum legal requirement for vehicle owners in the UAE. It covers damages caused to other vehicles, property, or individuals in the event of an accident where the insured is at fault. This type of insurance is crucial for compliance with UAE traffic laws and provides essential protection against legal and financial liabilities.
This type of insurance combines third-party liability coverage with protection against fire and theft of the insured vehicle. While it does not cover damages from accidents, it offers financial protection in the event of a fire or theft. This is a more affordable option compared to comprehensive insurance but provides less coverage.
Legal Requirements
Under the UAE law, all vehicle owners are required to have at least third-party liability insurance. This ensures that all road users are financially protected in case of accidents involving other parties. Comprehensive insurance, while not mandatory, is highly recommended due to its extensive coverage and added benefits.
Benefits of Motor Insurance
Financial Protection
Legal Compliance
Peace of Mind
Motor insurance provides financial protection against the costs associated with vehicle damage, repairs, and third-party claims. Comprehensive insurance, in particular, offers broad coverage, reducing the financial burden on the policyholder in various scenarios.
Adhering to the legal requirement of having at least third-party liability insurance ensures compliance with the UAE traffic laws. Failure to maintain proper insurance can result in fines, penalties, and legal consequences.
Having adequate motor insurance offers peace of mind, knowing that you are protected against unforeseen events and financial liabilities. It also provides support in managing the stress and complications that arise from accidents or damages.
Key Considerations for Policyholders
Coverage Limits and Exclusions
Premium Costs
Claims Process
Policyholders should carefully review the coverage limits and exclusions of their insurance policy. Understanding what is covered and what is not will help in making informed decisions and avoiding surprises during claims.
The cost of motor insurance premiums can vary based on factors such as the type of coverage, the vehicle's make and model, and the policyholder's driving history. Comparing quotes from different insurers or seeking opinion from an insurance brokers can help in finding the best value for coverage.
Familiarizing oneself with the claims process is essential for efficient handling of any incidents. Ensuring that all necessary documentation is available and understanding the procedures will facilitate a smoother claims experience.
Conclusion
Motor insurance is a vital component of vehicle ownership in the UAE, offering both legal compliance and financial protection. Whether opting for comprehensive coverage or third-party liability insurance, policyholders should carefully assess their needs and select a policy that best suits their requirements. By staying informed about the types of coverage, legal obligations, and key considerations, vehicle owners can ensure a secure and compliant driving experience in the UAE.
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His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai, has issued Executive Council Resolution No. 50 of 2024, which establishes a unified and accurate population registry for Dubai. This central digital database will play a vital role in supporting the emirate's developmental strategies and aligning with its ambitious digital transformation goals.
Comprehensive Data for Strategic Planning
The newly established registry will serve as the official and sole source of real-time data on Dubai’s residents, contributing to the development of government plans, policies, and programs. It will also provide critical insights for population forecasting, helping to shape economic and social policies that reflect the evolving needs of Dubai’s diverse population.
His Highness emphasized the importance of this initiative in ensuring that the government can offer improved services, foster innovation, and maintain an environment conducive to sustainable growth.
Enhanced Security and Privacy Measures
The registry will be managed by the Dubai Data and Statistics Establishment, which is tasked with coordinating with various government entities to gather and update data in compliance with approved quality standards. Ensuring the security and privacy of residents' personal data is a top priority, and the Dubai Electronic Security Centre will oversee the protection of information on the platform, guaranteeing that it adheres to the highest security standards.
His Highness reaffirmed Dubai’s commitment to safeguarding residents’ privacy, as stipulated in Law No. 26 of 2015, which governs data publishing and exchange in the emirate.
Involvement of Key Stakeholders
All data providers, including those in the private and government sectors, must comply with the Dubai Data Guide and submit accurate and regularly updated data. His Highness also highlighted that this initiative would ensure inclusivity by making data accessible to individuals of determination, supporting Dubai's vision of a smart, secure, and inclusive future.
The resolution is part of His Highness Sheikh Hamdan’s ongoing efforts to further Dubai’s digital transformation while fostering a transparent and data-driven governance model. It will take effect immediately and be published in the Official Gazette.
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With the rise of social media, the digital landscape has evolved into more than just a platform for social interaction — it has become a breeding ground for scammers, particularly in the cryptocurrency and stock trading spaces. Recently, UAE residents have been urged to exercise caution when considering online investment opportunities, following numerous cases of fraudulent activity.
One such incident involved an Indian businessman who was tricked into losing $20,000 (Dh73,461) in a well-coordinated cryptocurrency scam. Authorities are warning investors to thoroughly verify the legitimacy of entities they engage with before making any financial commitments.
Types of Cryptocurrency Scams:
1. Fraudsters create social media groups promoting fake cryptocurrency and stock trading opportunities.
2. These groups are advertised via email and social media, often promising unrealistic profits.
3. To build credibility, scammers use endorsements from social media influencers.
4. Early investors may see initial profits, encouraging them to invest even more.
5. After larger sums are transferred to personal accounts, victims receive no further communication, ultimately realizing they’ve fallen prey to fraud.
Why Are These Scams Prevalent?
1. The allure of quick financial gains entices many into making rash decisions.
2. Unrealistic profit claims create a false sense of security.
3. Many people fail to conduct proper research or due diligence before investing.
Impact on Victims:
1. Loss of significant amounts of money, leading to financial hardship.
2. Difficulty in tracking down and prosecuting fraudsters.
3. Victims may unknowingly become part of fraudulent schemes and face legal consequences.
4. Investors could be held accountable for the origins of transferred funds.
Protecting Yourself from Scams:
UAE authorities have issued several guidelines to help individuals safeguard against fraudulent investment groups:
1. Be sceptical of promises of high, guaranteed profits. Stick to reputable and regulated investment platforms.
2. Never share personal or financial details with unverified individuals or platforms.
3. Conduct thorough research on any company or group before making an investment. Verify that they hold appropriate licenses and look for red flags like poor reviews or untraceable operations.
4. Invest only in opportunities that are transparent about risks and returns. Avoid groups promising high rewards with minimal risk.
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The Saudi government is developing a comprehensive incentive package aimed at encouraging small and medium-sized enterprises (SMEs) to provide licensed and healthy housing for their workers. This initiative seeks to improve living conditions for laborers employed by SMEs while ensuring that businesses adhere to government regulations on group accommodations.
The plan, which is still under development, is being spearheaded by multiple government bodies, including the Ministry of Commerce, the Ministry of Municipal and Rural Affairs, and the Ministry of Housing. Together, these ministries are exploring mechanisms that would provide SMEs with financial and regulatory incentives to house their workforce in safe, licensed group residences.
Focus on Health and Safety
As part of this initiative, SMEs will be encouraged to offer workers housing that meets specific health and safety standards. The government’s goal is to ensure that group accommodations, which house large numbers of workers, provide a clean, safe, and healthy environment. The drive comes in response to growing concerns about the quality of worker accommodations in various industries, particularly those that rely heavily on manual labour.
Although specific details about the incentive package have not been disclosed, the Saudi news portal Akhbar24 reported that the plan is part of a larger government effort to regulate and improve labor conditions across the country. By incentivizing licensed worker housing, the government hopes to promote better living standards and reduce unregulated or unsafe accommodations that have been linked to various health and safety issues in the past.
Government Push for SME Growth
SMEs play a pivotal role in Saudi Arabia’s economy, contributing significantly to job creation and economic diversification, which are key pillars of the Kingdom's Vision 2030 initiative. By offering incentives for licensed housing, the Saudi government aims to further support the growth of SMEs while ensuring they comply with labour regulations.
This move aligns with Saudi Arabia's broader efforts to enhance the quality of life for all residents, especially low-income workers who often live in group accommodations. The initiative also seeks to streamline the process for SMEs, making it easier and more affordable to provide proper housing for their employees.
Impact on Businesses and Workers
The proposed incentives are expected to benefit both SMEs and their workers. For businesses, the program could reduce the cost burden of providing adequate housing while ensuring they meet regulatory requirements. For workers, it means access to better living conditions, which can contribute to overall well-being and productivity.
As the details of the incentive mechanism are still under review, SMEs are advised to stay informed about developments from the relevant ministries. Once implemented, the program is expected to have a lasting impact on the labor landscape in Saudi Arabia, particularly in sectors that rely heavily on group labor accommodations.
The Saudi government’s initiative is part of a wider strategy to ensure that the country’s economic growth is accompanied by improvements in living standards for all workers. By prioritizing safe and licensed housing, the government is taking significant steps toward safeguarding workers’ rights and improving the overall quality of life within the Kingdom.
Conclusion
The Saudi government’s forthcoming package of incentives for SMEs to house workers in licensed group accommodations represents a crucial step in improving labor conditions while supporting the country’s economic goals. As Saudi Arabia continues to diversify its economy, ensuring that SMEs can thrive while adhering to health and safety standards is essential for sustained growth and worker welfare.
Further details on the incentive structure and its implementation are expected in the coming months, as the ministries involved finalize the framework.
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In a high-level meeting aimed at deepening bilateral ties and addressing key regional issues, President His Highness Sheikh Mohamed bin Zayed Al Nahyan and President Nikos Christodoulides of Cyprus held talks on Tuesday, focusing on strategic cooperation between their countries. The discussions, which took place in Abu Dhabi, centered on enhancing relations in the economic and developmental sectors while also addressing broader regional concerns, including humanitarian aid efforts for Gaza.
Strengthening Bilateral Relations
President His Highness Sheikh Mohamed warmly welcomed President Christodoulides, expressing his optimism about the visit's potential to advance the already robust relationship between the UAE and Cyprus. He emphasized that the two nations share a vision of mutual cooperation, particularly in sectors such as trade, investment, and sustainable development. Both leaders acknowledged the importance of continuing to explore new avenues for economic collaboration that would serve their respective national interests.
Focus on Economic and Developmental Cooperation
During the talks, the two presidents highlighted the critical role that economic cooperation plays in the UAE-Cyprus relationship. They discussed opportunities to enhance trade, increase investment flows, and collaborate in key developmental areas, including technology, energy, and infrastructure.
The leaders noted the potential for Cyprus to act as a gateway for UAE businesses seeking access to European markets, while the UAE, as a regional economic powerhouse, offers Cypriot businesses the opportunity to expand into the Middle East and North Africa.
Maritime Aid Corridor for Gaza
Another key topic of discussion was the humanitarian situation in Gaza. Both presidents expressed their concern about the ongoing crisis and explored the idea of establishing a maritime aid corridor to facilitate the delivery of essential supplies to the region. This initiative, aimed at providing critical support to the people of Gaza, would be a significant step toward alleviating the humanitarian challenges in the area.
President His Highness Sheikh Mohamed reiterated the UAE’s commitment to supporting peace and stability in the region, while President Christodoulides emphasized Cyprus’s strategic location and willingness to contribute to regional humanitarian efforts.
Broader Regional and International Cooperation
Beyond bilateral cooperation, the leaders also discussed broader regional developments, sharing views on geopolitical issues affecting the Middle East, Europe, and the Eastern Mediterranean. They agreed to continue coordinating on international platforms and working together to address challenges such as climate change, security, and sustainable development.
Conclusion
The meeting in Abu Dhabi marked a new chapter in UAE-Cyprus relations, with both President Sheikh Mohamed bin Zayed Al Nahyan and President Nikos Christodoulides underscoring their commitment to deepening cooperation across multiple levels. As the two nations look ahead, their focus on strengthening economic ties and addressing key regional challenges promises to bring about mutual benefits and foster greater stability and prosperity in the region.
This strategic dialogue between the UAE and Cyprus reflects the strong, evolving relationship between the two nations and their shared commitment to advancing regional peace and development.
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Dubai: His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, presided over the swearing-in ceremony of five new judicial inspectors.
The ceremony took place at Union House in Dubai, with Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum.
The newly appointed inspectors will be part of the Judicial Inspection Authority, a body responsible for ensuring the efficiency and integrity of Dubai’s judiciary. During the event, Sheikh Mohammed emphasized the critical role of judicial inspectors in safeguarding the rule of law and maintaining fairness across the legal system. He also expressed his confidence in their ability to enhance Dubai’s judicial processes.
The new inspectors sworn in included Ahmed Youssef Abdulatif, Mohamed Mohamed Othman, Mostafa Mohamed Mahmoud, Amro AbdulHakam Ibrahim, and Mohamed Ahmed Abdul Wanees. Key officials, such as Chancellor Essam Issa Al Humaidan, the Attorney General of Dubai, and Judge Mohammed Mubarak Al Sabousi, Director of the Judicial Inspection Authority, were present at the event.
This move reinforces Dubai’s commitment to upholding justice, transparency, and the rule of law, ensuring that the judiciary continues to play a crucial role in protecting society and maintaining public trust.
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Businesses aiming to expand in the UAE frequently turn to local commercial agents for their expertise in business operations and networks within the country. In line with efforts to foster international business, the UAE government has introduced a new Federal Commercial Agency Code, which brings extensive reforms compared to the previous law governing commercial agencies.
Who Can Act as a Commercial Agent Under the New Law?
Under Article 2(1) of the new Commercial Agency Code, only UAE nationals or entities fully owned by UAE nationals are permitted to act as commercial agents. These include:
- A natural UAE national
- A public legal entity
- A private legal entity owned by public legal entities
- A private legal entity fully owned by UAE nationals
The Council of Ministers may also allow international companies not owned by UAE nationals to act as commercial agents for their own products, but only if they meet specific conditions:
1. The company does not have an existing commercial agent in the UAE.
2. The company is new to the commercial agency market in the UAE.
3. The company adheres to the limits and conditions set by the Council of Ministers.
Additionally, public joint-stock companies established in the UAE with at least 51% of their capital held by UAE nationals are also eligible to engage in commercial agency activities, as outlined in Article 2(3) and (4) of the Code.
Has the Contract Term for Commercial Agencies Changed?
Yes, the new law brings updates to contract terms. Article 6 states that if the agency agreement requires the agent to establish facilities such as display buildings, storage spaces, or repair centers, the minimum contract term must be five years. Otherwise, the term will depend on the agreement between the parties.
Changes to Termination of Commercial Agency Contracts
The new law significantly expands the grounds for terminating an agency contract. According to Article 9, contracts can now be terminated under several conditions, including:
- Expiration of the agreed term, unless renewed.
- Termination by either the principal or agent as per the contract’s terms.
- Mutual agreement to terminate before the contract ends.
- A final court decision.
- Other provisions mentioned in the law.
This marks a shift from the old law, which only allowed termination in cases of "material breach."
Can Agents Claim Compensation After Contract Termination?
Article 11 addresses compensation claims when an agency contract is terminated. If the contract ends and is not renewed, the agent may seek compensation from the principal for any losses incurred. The agent must demonstrate that their efforts led to the principal's success, and the termination deprived them of potential profits.
This provision is subject to any prior agreements between the parties regarding termination and compensation.
Application of the New Law to Existing Commercial Agencies
For agency contracts that were in effect before the new law came into force, the provisions for termination under Article 9(a) and (b) will not apply for the first two years after the law’s implementation. However, this grace period extends to 10 years for agents who have maintained their status for over a decade or whose investments exceed AED 100 million.
Dispute Resolution and Arbitration
The newly formed Commercial Agencies Committee, as established under Article 23, is the primary body responsible for resolving disputes between the principal and the agent. However, parties are not precluded from seeking arbitration if previously agreed upon. Furthermore, any decision made by the Committee can be referred to arbitration under Article 26 of the new law.
Conclusion
The new Federal Commercial Agency Code introduces significant updates regarding the roles, responsibilities, and protections of both principals and agents. It allows for more flexible termination terms, offers clearer avenues for compensation, and provides multiple options for dispute resolution. These reforms aim to strike a balance between promoting international business growth and protecting the interests of local agents.
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The International Court of Justice (ICJ) and the International Criminal Court (ICC) are two important international legal bodies, both based in The Hague, that play distinct yet complementary roles in the global legal system. Though they share a common goal of upholding international law, their mandates, jurisdictions, and operational focus differ significantly.
The International Court of Justice (ICJ)
- Established: 1945, under the United Nations Charter.
- Role: It serves as the principal judicial organ of the United Nations, resolving disputes between states.
- Composition:15 judges elected by the UN General Assembly and the Security Council.
- Focus: State responsibility, handling cases between sovereign states to determine if international law has been breached.
- Jurisdiction: Broad jurisdiction over international law matters, such as territorial disputes, diplomatic issues, and violations of treaties.
- Consent: States must consent to the court’s jurisdiction in a particular case.
- Decisions: Binding, but the court lacks a mechanism to enforce its rulings.
- Advisory Opinions: Provides non-binding legal advice to UN bodies and other international organizations.
The International Criminal Court (ICC)
- Established: 2001, under the Rome Statute.
- Role: An independent court that prosecutes individuals for grave international crimes.
- Focus: Crimes such as genocide, war crimes, crimes against humanity, and aggression, holding individuals accountable.
- Jurisdiction: Limited to cases involving nationals of member states or crimes committed on their territory, unless the UN Security Council refers a case.
- Enforcement: Relies on member states to arrest suspects, as the ICC has no police force.
- Prosecution: Conducts criminal trials and has the power to impose penalties, including imprisonment, fines, and reparations for victims.
Key Distinctions
- ICJ: Resolves legal disputes between states and addresses issues of state responsibility.
- ICC: Prosecutes individuals for the most serious international crimes.
- Jurisdiction: The ICJ has a wider jurisdiction on matters of international law, while the ICC focuses specifically on grave international crimes.
- Enforcement: ICJ rulings are binding but lack direct enforcement, whereas the ICC relies on state cooperation to carry out arrests and enforce its rulings.
Contemporary Context
- ICJ: Currently involved in hearing cases such as the accusations of genocide against Israel concerning the conflict in Gaza.
- ICC: The prosecutor has requested arrest warrants for key figures allegedly involved in the same conflict, targeting individual criminal responsibility.
Conclusion
The ICJ and ICC both play vital roles in the international legal system but operate with distinct functions: the ICJ focuses on resolving disputes between states, while the ICC seeks justice for individuals responsible for serious international crimes. Together, they contribute to the pursuit of global justice by addressing both state and individual accountability.
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In today's world, technology has seamlessly integrated into daily life, improving the quality of living and offering indispensable tools such as smartphones and computers. However, the widespread use of these tools, particularly in capturing photos and sharing information, can sometimes result in legal risks if misused. In the UAE, Federal Decree-Law No. 34 of 2021 on Countering Rumours and Cybercrimes provides clear guidelines on these risks, focusing heavily on privacy violations.
Photography, although often seen as a benign and permissible activity, is strictly regulated when it infringes on an individual's privacy or personal life. Article 44 of this law sets forth stringent penalties for those who misuse technology to invade privacy. These include prison sentences of no less than six months and fines ranging from AED 150,000 to AED 500,000. Specific prohibited actions include:
1. Recording or sharing private conversations or communications without consent: This includes eavesdropping, intercepting, or disclosing private discussions or audio-visual material.
2. Taking unauthorized photographs: Whether in public or private spaces, capturing, distributing, or retaining images of individuals without their permission is unlawful.
3. Publishing any electronic content aimed at harming another's reputation: Even if the content is factual, if the intent is to damage a person’s reputation, it can lead to legal consequences.
4. Photographing victims of accidents or disasters without authorization: Sharing such sensitive content without permission is a violation of privacy.
5. Tracking or disclosing someone's location: Revealing or retaining location data without consent also falls under prohibited activities.
Furthermore, the law also punishes those who alter or manipulate recordings, images, or videos to harm or defame others. In such cases, the penalties are harsher, with imprisonment for at least one year and fines between AED 250,000 and AED 500,000.
For a crime to be established under this law, it must be proven that the perpetrator intended to harm someone’s reputation or invade their privacy using an information network or technology. However, if the individual is acting in good faith, such as reporting a crime or documenting unlawful behaviour, the criminal intent may be negated.
Conclusion
In the UAE, the legal framework around privacy violations through technology is stringent and comprehensive. Federal Decree-Law No. 34 of 2021 clearly outlines penalties for misuse of technology, including photography and sharing of personal data. With privacy increasingly under the spotlight, it is essential to navigate these laws carefully to avoid legal repercussions.
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As Dubai’s short-term rental market flourishes, many property owners are turning to platforms like Airbnb to generate extra income. To legally operate a short-term rental in Dubai, hosts must follow the licensing regulations set by the Dubai Department of Economy and Tourism (DET). This guide breaks down the step-by-step process to help you navigate the application process in 2024.
Steps to Secure an Airbnb License in Dubai
1. Research and Understand Requirements
Before starting your application, take time to review the DET’s regulations, which can vary depending on the type of property and how you plan to use it. Make sure you're fully aware of the compliance standards.
2. Collect Necessary Documents
Gather the following essential documents:
- Proof of property ownership or a lease agreement
- Your personal identification (Emirates ID, passport, etc.)
- Compliance certificates (building safety, fire, etc.)
3. Submit Your Application
You can apply for a short-term rental permit either:
- Online via the DET portal
- In-person at the DET office
4. Pay the Application Fees
The fees for short-term rental licenses depend on the size and type of property:
- Annual permit fees range from AED 370 for studios to AED 1,200 for properties with four or more bedrooms
- An annual subscription fee of AED 320 is charged for creating a DET account
5. Schedule Property Inspections
Arrange for mandatory health and safety inspections to ensure your property meets Dubai’s short-term rental requirements.
6. Receive Your Permit
Once your application is approved and inspections are completed, you will receive your short-term rental permit. This process generally takes about 2-3 days.
7. Register for the Tourism Dirham Fee
Hosts are required to register to collect the Tourism Dirham fee, a charge that applies to all short-term rental bookings.
Insurance Requirements
Securing proper insurance is critical to protect your property and guests:
- Short-term rental insurance: Covers property damage, theft, and guest-related incidents specific to short-term stays.
- Liability insurance: Offers protection against claims for injuries or damages that may occur during a guest's stay.
While Airbnb offers its own Host Protection Insurance, it may not cover all claims, so it's advisable to get additional coverage.
Key Considerations for Hosts
- Third-Party Management: If you hire a property management company, a signed management agreement must be provided.
- HOA Regulations: Properties within a Homeowners' Association must follow specific HOA guidelines.
- Zoning and Area Restrictions: Certain areas have zoning rules that may restrict short-term rentals, so verify the regulations for your property’s location.
- Occupancy Limits: Set a clear maximum occupancy based on the size of the property and available facilities.
Understanding Dubai's Regulatory Environment
Since Airbnb’s introduction to Dubai, short-term rental regulations have become more stringent. Hosts must:
- Register with the DET
- Adhere to health and safety standards
- Collect and remit the Tourism Dirham fee
- Stay compliant with local laws to avoid penalties for non-compliance
Obtaining an Airbnb license in Dubai requires careful attention to regulations, fees, and insurance. By following the outlined steps and staying up-to-date with the latest changes, you can ensure your short-term rental operates smoothly and legally. Don't forget to renew your permit annually to maintain compliance and continue maximizing your rental income in Dubai’s ever-growing real estate market.
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Debt recovery in the UAE involves navigating a structured legal process, designed to balance the rights of both creditors and debtors while ensuring compliance with the country’s regulatory framework. With the UAE's growing economy and diverse business landscape, the need for effective debt collection mechanisms has become critical for maintaining financial stability. Understanding the debt recovery process in the UAE is essential for both creditors seeking to recover outstanding amounts and debtors looking to protect their rights.
Legal Framework Governing Debt Recovery in the UAE
The UAE’s debt recovery process is governed by several key laws, primarily falling under Federal Law No. 18 of 1993 (Commercial Transactions Law) and the Civil Procedures Law. These laws ensure that debt collection practices are transparent, fair, and compliant with international standards.
The Commercial Transactions Law outlines the rights and obligations of parties in commercial contracts, including debtors and creditors. It specifies the legal procedures creditors must follow to recover outstanding debts, which include serving formal notice, engaging in negotiations, and, if necessary, initiating court proceedings. The Civil Procedures Law, on the other hand, regulates how court cases are conducted, from filing a claim to enforcement.
Current Challenges in Debt Recovery
Both creditors and debtors face significant challenges in the debt recovery process in the UAE. For creditors, one of the biggest hurdles is dealing with uncooperative debtors who may delay payments, dispute the amount owed, or simply be difficult to locate. Legal proceedings can be lengthy and complicated, especially when a debtor tries to evade legal action by transferring assets or hiding financial information.
On the other hand, debtors are protected by UAE laws against unfair practices, such as harassment or excessive pressure from debt collectors. Creditors are required to comply with Central Bank regulations on debt collection, which prohibit unethical behaviour, including constant phone calls or unauthorized visits.
A major issue for debt recovery in the UAE is the cross-border nature of many financial transactions. Given the international character of Dubai and Abu Dhabi, where many expatriates reside, cases often involve foreign debtors, complicating the enforcement of judgments. While the UAE has treaties with several countries for mutual enforcement of court rulings, it can still be difficult to recover debts from individuals or companies based abroad.
The Role of Legal Professionals in Debt Recovery
The involvement of legal professionals and specialized agencies is crucial in debt recovery cases. Lawyers well-versed in the UAE legal system can assist creditors in filing cases, enforcing court rulings, and negotiating settlements. They play a key role in drafting debt agreements that include provisions for legal recourse in case of non-payment, which can be a preventive measure against future disputes.
In cases where legal action becomes inevitable, debt recovery lawyers can help navigate the complexities of the UAE court system, from initiating proceedings to obtaining enforcement orders. The UAE courts also allow creditors to file for provisional attachment orders, freezing a debtor’s assets before a judgment is passed, to prevent them from moving assets out of reach.
Strategies for Effective Debt Recovery
Given the complexities of debt recovery, it is advisable for creditors to adopt a proactive approach, which can include:
1. Negotiation and Settlement: Engaging with debtors through structured negotiations to reach a mutually agreeable settlement. This can help avoid lengthy court procedures and preserve business relationships.
2. Legal Recourse: Filing a case in the UAE courts when negotiations fail. Creditors can seek summary judgments, especially in cases where the debt is not contested, to speed up the process.
3. Third-Party Debt Collectors: Engaging licensed debt collection agencies in the UAE, which operate under strict regulations, to manage the collection process on behalf of creditors.
Legal Opinion and Current Scenario
The debt recovery landscape in the UAE has become more structured and efficient in recent years, particularly with the introduction of new bankruptcy laws and improved mechanisms for enforcement. The Bankruptcy Law (Federal Law No. 9 of 2016) has provided companies with a legal framework to restructure debts and avoid liquidation, thus offering more clarity to creditors on how to proceed with debt recovery from distressed companies.
Additionally, the Dubai International Financial Centre (DIFC) courts have become a preferred venue for international debt recovery cases, as they offer faster resolution and are familiar with handling cross-border disputes. With the UAE’s focus on becoming a business-friendly destination, debt recovery laws will likely continue evolving to provide better protection for creditors while ensuring that debtors are treated fairly.
However, challenges remain, particularly regarding enforcement. While the UAE’s legal system allows for the seizure of assets and freezing of bank accounts, the actual execution of judgments can be delayed due to procedural backlogs or non-cooperation from debtors. The use of alternative dispute resolution (ADR) methods, such as mediation, is increasingly being encouraged to resolve disputes more efficiently.
In conclusion, debt recovery in the UAE is a process that requires careful legal navigation, especially in today’s complex economic environment. With the right legal guidance and a clear understanding of local regulations, creditors can recover debts effectively while ensuring compliance with UAE laws. However, it is essential to stay updated on changes in the legal landscape to ensure a smooth debt recovery process.
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The Dubai Public Prosecution has unveiled details of a fraudulent scheme in which a woman was emotionally manipulated and financially exploited by a man posing as her future potential husband.
Using false names to protect the identities of the parties involved.
The woman, identified as Noor, met the scammer, Osama, through matrimonial websites. Their communication, which spanned six years, led Noor to believe that Osama was serious about marrying her. Throughout this time, she supported him financially, unaware that she was being deceived.
Noor reported the case to authorities after realizing that her financial contributions, which totalled Dh400,000, were part of an elaborate scam. Following an investigation, the suspect was arrested, brought to court, and sentenced to five years in prison along with a fine.
How the Deception Unfolded
The fraudulent relationship began when Noor connected with Osama, who claimed to work in the marine industry, via a marriage platform. Their exchanges took place primarily through phone calls and WhatsApp, with Osama consistently making excuses for his inability to meet in person due to his demanding job.
Over the course of six years, Noor helped Osama financially, believing his fabricated stories about family emergencies, accidents, medical bills, and inheritance disputes. He continually promised to repay her and move forward with their marriage, deepening the emotional manipulation.
Dh400,000 Stolen in Elaborate Scam
Osama's deception escalated when he used a different phone number to impersonate a high-ranking official, pressuring Noor into paying large sums of money under the pretence of helping Osama resolve his issues. Feeling threatened, Noor ultimately transferred a total of Dh400,000 over several payments.
Eventually, realizing the full extent of the scam, Noor contacted the authorities. Investigations revealed the truth, and Osama was arrested and charged.
Five Years in Prison for Fraudster
Following a thorough investigation, Osama was brought to trial. The court found him guilty, sentencing him to five years in prison, imposing a fine, and ordering his deportation after serving his sentence.
The Dubai Public Prosecution warned citizens to be cautious, emphasizing that legitimate government bodies only communicate through official channels such as direct meetings, recognized phone numbers, and verified websites or applications.
(The writer is the Legal Associate specializing in Criminal and family law at The Law Reporters)
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When considering loan options that offer ease and flexibility in monthly payments, particularly in the early stages, a balloon loan may appear to be an attractive choice. These loans are designed to provide lower monthly payments in exchange for a larger one-time payment—known as a "balloon payment"—at the end of the loan term. While this arrangement may sound convenient for short-term cash flow management, UAE experts, including myself as a legal expert, caution borrowers to weigh the potential risks carefully.
What Is a Balloon Loan?
A balloon loan functions similarly to a traditional loan but with a key difference: instead of spreading payments evenly over the life of the loan, borrowers enjoy lower monthly installments, with a significant final payment deferred to the end. This type of loan is often used for car purchases or mortgages where the borrower expects to have better financial liquidity in the future.
For instance, in the case of auto loans, the balloon payment can be a substantial portion of the car's value. While the initial low payments may seem appealing, especially for individuals managing other financial obligations, the impending lump sum payment can cause financial stress if not properly planned for.
Short-Term Flexibility, Long-Term Risks
The primary advantage of balloon loans lies in their short-term flexibility. Borrowers who expect to have limited funds during the loan’s early months but anticipate increased income later may find this structure appealing. However, there are several legal and financial risks that should not be overlooked.
1. Uncertainty Over Future Finances: While balloon loans may ease the burden of monthly payments, they assume that the borrower will have the means to make the large final payment. Should there be unforeseen circumstances, such as job loss, economic downturns, or changes in personal finances, borrowers may find themselves in a difficult position. This could lead to defaulting on the loan, which carries severe consequences like repossession or legal action.
2. Higher Interest Rates: Balloon loans often come with higher interest rates compared to traditional loans. Since the principal repayment is postponed, interest continues to accumulate, leading to a higher overall cost. Borrowers might not realize how much more they are paying in the long run until it is too late.
3. Impact on Long-Term Savings: One of the most significant drawbacks of balloon loans is their potential to negatively impact long-term savings. While the initial low payments may provide short-term financial relief, the deferred payment could deplete savings when it comes due. If borrowers dip into savings or investments to meet the balloon payment, they could jeopardize their long-term financial security.
Legal Perspective on Balloon Loans
It's crucial to understand the implications of the balloon payment, including the due date and the amount. Borrowers should also be aware of any penalties for late or missed payments, which could add to the financial strain.
Additionally considering alternative financing options that may offer more balanced payment structures without the risk of a large, deferred payment is advisable. These alternatives can include traditional loans with fixed monthly payments or even leasing options, where ownership is not a concern, but the monthly financial burden is more predictable.
Protecting Your Financial Future
While balloon loans offer a temporary sense of relief through reduced initial payments, they pose significant risks to your long-term financial stability. It’s easy to focus on the immediate benefits, but the key question remains: will you be financially equipped to make the balloon payment when it becomes due?
Before opting for a balloon loan, consider conducting a thorough assessment of your future income, potential financial changes, and overall financial health. Speaking with a financial or legal advisor can help you weigh your options and ensure you’re making the best decision for your circumstances.
In conclusion, balloon loans can serve as a useful tool for those with specific short-term financial needs. However, the cost of this flexibility can be steep if the risks are not managed effectively. For most borrowers, the certainty and predictability of traditional loan structures will likely offer better long-term security.
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Google’s highly profitable ad tech business is under scrutiny as the U.S. government begins a trial, accusing the tech giant’s parent company, Alphabet, of monopolizing the digital advertising market. The trial, starting on Monday, marks the second major antitrust case against Google in the U.S., following a similar ruling last month regarding its dominance in online search.
The Department of Justice (DoJ) argues that Google has illegally stifled competition and innovation in the digital ad space, leveraging its power to maintain control over the industry. Last year, Alphabet generated over $200 billion from placing and selling online ads, a major driver of the company’s revenue. Google contends that its success is due to the effectiveness of its services, not anti-competitive practices, and points to growing competition from companies like Apple, Amazon, and TikTok as evidence of a healthy marketplace.
However, prosecutors claim Google's dominance has allowed it to suppress rival technologies. At the 2023 press conference announcing the lawsuit, U.S. Attorney General Merrick Garland stated that Google’s actions have stunted the development of competitive ad tech solutions.
Both sides will present their arguments before U.S. District Judge Leonie Brinkema, with the outcome expected to have significant implications for the digital advertising industry. This trial follows a landmark decision in another case, where a judge ruled Google's dominance in online search as illegal.
While Google defends its position, stating that advertisers use its technologies because they are effective, experts believe the DoJ will seek remedies rather than breaking up the company. Dan Ives of Wedbush Securities anticipates "business model tweaks" rather than a complete dismantling of Google.
The challenge for the DoJ lies in explaining the complexities of ad tech to prove their case. Unlike search engines, which are easily understood by the public, the intricacies of advertising technology may complicate the government's efforts to present a clear argument of monopolization.
Outside the U.S., regulators in the UK have also raised concerns about Google’s ad tech business. The UK’s Competition and Markets Authority recently found that Google may be using anti-competitive practices to dominate the online advertising market, potentially harming thousands of UK advertisers and publishers. Google, however, has called the findings “flawed.”
As the case unfolds, the stakes are high for both the future of digital advertising and Google’s standing in the global tech industry.
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If you’ve encountered issues such as receiving a defective product or being charged full price despite an advertised discount, you can file a consumer complaint with the Department of Economy and Tourism (DET) in Dubai. Under Federal Decree No. 5 of 2023, consumers are protected against such practices and can seek compensation for damages caused by faulty goods or services. Suppliers are required to offer repairs, replacements, or refunds for defective products and must display accurate prices while avoiding misleading advertising.
Violations of the consumer protection law can result in fines up to Dh2 million and up to two years in prison, according to the updated law effective from October 2023.
Here’s how you can file a complaint:
Steps to Submit a Complaint:
1. Visit the Consumer Rights Website: Navigate to the official portal.
2. Access the Complaint Section: Click the menu icon (three stacked lines) on the left side of the page and select 'consumer complaints (C2B)' under 'Submit Complaint.'
3. Read the Guidelines: Review the provided information to understand who can file complaints, against which companies complaints are accepted, and what documents are needed.
4. Enter Personal Details: Provide your name, mobile number, email, and nationality.
5. Submit Complaint Information: Enter details about the company, commercial sector, type of complaint, and the issue at hand. Attach any supporting documents such as receipts or product images.
6. Agree to Terms and Submit: After reading the terms and conditions, submit the complaint.
7. Receive a Reference Number: A complaint reference number will be provided on the website and sent to your email and phone. You can use this number to track the status of your complaint.
By following these steps, consumers can ensure their rights are protected and hold suppliers accountable for any misconduct.
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A 22-year-old grocery delivery rider has been awarded Dh5 million in compensation after a car accident left him paralyzed. The landmark ruling will provide critical financial support for his ongoing treatment, aimed at regaining some of his abilities. The compensation was handed over to the rider’s parents during a recent conference in Dubai after a year of legal formalities.
The rider, who worked at a grocery store in Al Ain, was on his way to deliver an order in March 2022 when a vehicle, driven by a youth, crashed into him and fled the scene. Authorities used CCTV footage to identify the driver, who was later fined Dh5,000 for negligence. Additionally, Dh73,000 was awarded to the family to cover legal expenses. The compensation, paid by the insurance company, was secured after extensive efforts to ensure a fair settlement.
One of the key considerations in determining the amount was the rider’s age and the fact that he was the sole breadwinner for his family. The severity of his injuries, resulting in complete paralysis, meant he would require lifelong care. His father had to quit his job to look after him full-time, a fact that significantly influenced the final compensation amount.
Initially, the Insurance Authority Court awarded Dh2.8 million, but recognizing the rider's long-term needs, his legal team successfully appealed for a higher amount. The Appellate Court increased the compensation to Dh5 million, which was upheld by the Supreme Court.
From a legal perspective, the ruling highlights the importance of insurance coverage in cases involving serious accidents. The court considered the rider a dependent, requiring full-time care, which played a role in the decision to increase the payout. Without this compensation, the family would have faced severe financial hardship, potentially resorting to fundraising efforts to support his care.
The rider's family remains hopeful about his recovery. His condition has shown slight improvements since beginning physiotherapy, and they are exploring the possibility of further treatments abroad. His mother is optimistic that future medical advancements may allow her son to regain some basic abilities, giving the family hope for a better quality of life.
This case sets an important precedent for future compensation claims, especially for individuals with severe injuries resulting from road accidents. It underscores the role of the legal system in ensuring that victims receive adequate support to maintain their dignity and continue treatment.
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In a new initiative aimed at supporting parents during the crucial postpartum period, Abu Dhabi has announced a free home visitation service for new mothers. Certified maternity nurses will provide psychological and emotional assistance to help families adjust to the challenges of early parenthood. This service can be accessed via the Medeem Digital Platform, offering a range of resources for couples preparing for marriage or parenthood.
The launch of this program comes shortly after Abu Dhabi extended maternity leave to 90 days for Emirati women employed in the private sector, enhancing support for working mothers.
The home visit service is part of the broader Emirati Family Growth Programme, introduced by the Department of Community Development.
This initiative, launched in July, includes six key measures aimed at fostering family stability and growth among UAE nationals:
1. Interest-free loans of up to Dh150,000 to help cover wedding and early marital expenses, with the possibility of loan forgiveness if the couple has two children within five years.
2. Temporary housing for newlyweds, offering rental assistance of up to Dh75,000.
3. Housing loan discounts of up to Dh40,000 per child for families with four or more children.
4. Extended repayment periods for housing loans, without increasing the total loan amount, for families with their fourth, fifth, or sixth child.
This comprehensive program emphasizes the UAE’s commitment to fostering familial and societal cohesion by offering practical and financial support to Emirati families.
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The Dubai International Financial Centre (DIFC) introduced changes to its Prescribed Company (PC) framework through the revised Prescribed Companies Regulations 2024. These updates simplify and broaden the eligibility for establishing a PC, making it easier for businesses and individuals to hold or manage real estate and other GCC-registered assets.
The updated regulations allow any entity seeking to hold or control assets that require registration with a GCC authority—such as property or property interests—to form a PC. This ensures legal ownership, protection of rights, and public notice of the asset.
To support this transition, the DIFC has provided a six-month grace period for setting up a PC before acquiring real estate. This period begins at the PC's formation and ends once the shareholders submit proof of asset acquisition to the DIFC. The process is designed for simplicity, allowing PCs to be established quickly with a DIFC-registered address provided by a licensed Corporate Service Provider (CSP).
While foundations and trusts have traditionally been used to hold real estate in the UAE, the new PC regime offers a more flexible and efficient option for managing property assets across the GCC. PCs benefit from DIFC’s common law structure, low fees, streamlined registration, and the ability to use a licensed CSP as their registered office within the DIFC.
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The Kingdom of Bahrain has announced the introduction of a Domestic Minimum 15% Top-Up Tax (DMTT) for financial periods starting on or after January 1, 2025. This marks Bahrain as potentially the first Gulf Cooperation Council (GCC) country to implement Pillar Two of the Organization for Economic Cooperation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) project.
Bahrain's move to introduce the DMTT aligns with its commitment to adhere to international standards on tax transparency and prevent harmful tax practices. The legal basis for the DMTT is outlined in Decree Law No. 11 of 2024, with more detailed regulations expected to follow soon. These regulations will provide guidance on the application of the law, with the OECD Pillar Two model rules serving as a reference point.
Key Aspects of the DMTT Law:
Impact on MNEs:
The introduction of the DMTT will have a significant impact on large MNEs operating in Bahrain. These companies must familiarize themselves with the new tax rules to ensure compliance and assess the effects on their global tax strategies. Proper planning and adjustments will be essential to mitigate potential risks associated with the DMTT implementation.
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