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	(99471,5406,'content','June - July 2016\r\n\r\n<hr />\r\n<p class=\"p1\"><strong>Precis:</strong></p>\r\n<p class=\"p2\">The United Arab Emirates Federal Supreme Court recently upheld important principles in relation to well-known trademark protection and elements; bad faith as a reason to lose ownership of a prior-filed application; and the need to consider ownership in the country of origin.</p>\r\n<p class=\"p3\">Recent case law has set a precedent in the United Arab Emirates. The Federal Supreme Court has upheld important principles in relation to:</p>\r\n\r\n<ul>\r\n 	<li>well-known trademark protection and elements;</li>\r\n 	<li>bad faith as a reason to lose ownership of a prior-filed application; and</li>\r\n 	<li>the necessity to consider ownership in the country of origin.</li>\r\n</ul>\r\n<p class=\"p3\">A trademark owner in the restaurant and cafe services sector, specializing in selling cupcakes and sweets, noted that a potential franchisee had moved to file and register the owner’s trademark, which had originated in Jordan. The owner therefore moved and opposed the mark on the following grounds:</p>\r\n\r\n<ul>\r\n 	<li>It owned the trademark in the country of origin and therefore had prior use of the mark and ownership of prior registration;</li>\r\n 	<li>It alleged bad faith based on various correspondence between the parties relating to use of the mark in the United Arab Emirates; and</li>\r\n 	<li>It had prior use in the United Arab Emirates based on advertisements and marketing materials published in international magazines which were possibly distributed in the United Arab Emirates.</li>\r\n</ul>\r\n<p class=\"p3\">The Trademark Office rejected the registration application on grounds of bad faith based on opposition filed by the prior owner. This principle does not explicitly exist in UAE trademark law as bad faith, but is rather implied from the law as a form of ‘unjustified registration’. The opposition registrar held that the trademark was applied for while the applicant was still contracted with the legitimate owner for use of the mark in the United Arab Emirates and therefore the application was made in bad faith.</p>\r\n<p class=\"p3\">The registrar’s decision was challenged before the Grievance Committee, which reversed the decision and accepted the application. However, the trademark owner appealed before the Abu Dhabi Federal Court of First Instance according to UAE trademark law.</p>\r\n<p class=\"p3\">The Court of First Instance appointed a specialist trademark expert who met with the parties and made the following conclusions in his report:</p>\r\n\r\n<ul>\r\n 	<li>The owner had prior use based on advertisements in magazines published in the United Arab Emirates;</li>\r\n 	<li>The applicant had acted in bad faith; and</li>\r\n 	<li>The mark was well known by virtue of the various registrations. Registration was accomplished in only a few countries in the region, but this was enough for the purpose of meeting the definition of ‘well-known trademark’ according to UAE trademark law.</li>\r\n</ul>\r\n<p class=\"p3\">The Court of First Instance affirmed the findings of the report, overturned the Grievance Committee decision and rejected the trademark registration.</p>\r\n<p class=\"p3\">The case went to the Court of Appeal, which argued, among other things, that the Court of First Instance had failed to consider the appellant’s documents which proved its use of the mark in the United Arab Emirates. The Court of Appeal took up the matter and while it did uphold the primary decision, it also addressed the issue of bad faith in trademark infringement and identified a list of criteria to determine bad faith. This is an important issue which is seldom broached in this type of case. Foremost among these criteria are the following</p>\r\n\r\n<ul>\r\n 	<li>A trademark registration may be challenged as invalid if it was procured in bad faith.</li>\r\n 	<li>Instances which can be considered as bad faith include an agent or representative of a trademark owner registering the mark in its own name without authorization from the trademark owner.</li>\r\n 	<li>Written evidence that can be relied upon to establish bad faith includes:</li>\r\n</ul>\r\n<ul>\r\n 	<li>\r\n<ul>\r\n 	<li>correspondence between the parties regarding the products which carry the trademark;</li>\r\n 	<li>a distribution agreement under which the registrant distributes the products of the party having prior use of the mark where the latter seeks to have the registration in the name of the registrant deleted;</li>\r\n 	<li>purchase orders issued by the registrant to the person having prior use in order to procure the products which carry the trademark; and</li>\r\n 	<li>prior cooperation between the parties.</li>\r\n</ul>\r\n</li>\r\n</ul>\r\n<p class=\"p3\">The Court of Appeal dismissed the appeal. However, the case was brought to the Court of Cassation on the same grounds, but with an emphasis on the Court of Appeal’s failure to consider evidence of the appellant’s use of the mark in the United Arab Emirates which proved its prior rights in the mark.</p>\r\n<p class=\"p3\">The Court of Cassation reversed the Court of Appeal’s decision and, while dismissing most grounds for appeal, reversed the judgment on grounds of evidence of use.</p>\r\n<p class=\"p3\">The Court of Appeal, on remand from the Court of Cassation, affirmed its earlier finding. It balanced the prior use evidence and confirmed that the owner of the trademark in Jordan provided evidence of prior use via advertisements which was sufficient to prove prior use. The Court of Cassation then received a further appeal but it was dismissed.</p>\r\n<p class=\"p3\">This case highlights the following points:</p>\r\n\r\n<ul>\r\n 	<li>Well-known trademark elements – there is no need to show use and registration on all continents to find a trademark to be famous. This can be proven if use and registration are shown in three or more countries, so long as the court finds that the mark exceeds the country of origin and has become famous in other countries.</li>\r\n 	<li>Prior use of a trademark is acquired only through commercial activity – in this case, actual marketing and distribution of the product or service carrying the trademark in the United Arab Emirates. However, other forms of usage such as advertisements for service marks can be considered.</li>\r\n 	<li>Bad faith – this does not exist in the law explicitly, but it can be considered when pursuing illegitimate trademarks.</li>\r\n</ul>\r\n&nbsp;'),
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	(99458,5405,'content_description','In a recent Dubai Court of Cassation decision (Property Appeal 454 of 2015, dated 13 April 2016), the court highlighted that in the absence of an agreement between shareholders that sets out the sharing of losses (and profits), the courts will treat the company as a ‘de facto’ company. In the event there is an agreement but it is silent on losses/profits, the trial court has the discretion to interpret a contract and determine the parties’ intent by establishing its objects and terms in light of the circumstances surrounding its formation. The courts will not consider an incorrect description of the parties’ agreement.'),
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	(99439,5404,'content_description','The Qatar Court of Cassation issued an important judgment at the end of May 2016, when it ordered a Qatari bank to pay a Bahraini bank’s director and sub-committee members their bonus entitlements. Al Tamimi represented the successful foreign bank. '),
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	(99441,5404,'pageSummary','The Qatar Court of Cassation issued an important judgment at the end of May 2016, when it ordered a Qatari bank to pay a Bahraini bank’s director and sub-committee members their bonus entitlements. Al Tamimi represented the successful foreign bank.'),
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	(99443,5404,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/jun-jul/qatar-court-of-cassation-finds-individual-company-members-can-represent-company.html'),
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	(99453,5404,'_yoast_wpseo_metadesc','The Qatar Court of Cassation issued an important judgment at the end of May 2016, when it ordered a Qatari bank to pay a Bahraini bank’s director and sub-committee members their bonus entitlements. Al Tamimi represented the successful foreign bank.'),
	(99454,5405,'content','June - July 2016\r\n\r\n<hr />\r\n<p class=\"p1\"><strong>Introduction</strong></p>\r\n<p class=\"p2\">In a recent Dubai Court of Cassation decision (Property Appeal 454 of 2015, dated 13 April 2016), the court highlighted that in the absence of an agreement between shareholders that sets out the sharing of losses (and profits), the courts will treat the company as a ‘de facto’ company. In the event there is an agreement but it is silent on losses/profits, the trial court has the discretion to interpret a contract and determine the parties’ intent by establishing its objects and terms in light of the circumstances surrounding its formation. The courts will not consider an incorrect description of the parties’ agreement.</p>\r\n<p class=\"p2\">A de facto company is a company which operates as if it were a corporation although it has not completed the legal steps to become incorporated (i.e. is not yet a ‘de jure’ company) but nevertheless continues to function. As a result of the absence of express provisions on the sharing of profits and losses, this inevitably leads to disputes in the event the de facto company fails or succeeds.</p>\r\n<p class=\"p2\">The existence or otherwise of a de facto company between persons that have expressed an intent to participate in risk-bearing activities is for the trial judge to determine based on the circumstances of the case and the evidence presented to the courts.</p>\r\n<p class=\"p1\"><strong>Summary of the Facts</strong></p>\r\n<p class=\"p2\">The Claimant entered into an agreement with the Defendant for the latter to purchase a plot of land that was to be partitioned, subdivided and sold to third parties with the Claimant acquiring a joint share in ownership of a company (expressed as a percentage of the total price of the plot) as well as a share of the profits from the sale. The Claimant advanced finance to the Defendant to purchase the plot.</p>\r\n<p class=\"p2\">The Defendant failed to comply with its obligation to furnish proof of purchase of the plot and failed to register the Claimant’s joint share. The Defendant failed to provide proof that the plot had been partitioned, subdivided and offered for sale. The Claimant filed its dispute with the Centre for Amicable Settlement of Disputes (“CASD”) and requested the contract be rescinded and the return of the purchase price.</p>\r\n<p class=\"p2\">The Defendant argued that the matter was premature because the parties’ relationship involves a de facto company which the Claimant has not sought to liquidate. The Claimant, as a partner in the company, may not bring an action to claim his share of the capital before liquidation proceedings are commenced.</p>\r\n<p class=\"p2\">The dispute was not settled at CASD and subsequently was referred to the Court of First Instance.  On 26 February 2015, the Court of First Instance held in favour of the Claimant and ordered the Defendant to refund the Claimant the purchase price plus 9% interest from the date of the action (9 April 2013) until paid. The Court held that the Memorandum of Association was in fact an investment contract.</p>\r\n<p class=\"p2\">On 27 August 2015 the Defendant appealed the decision, but the Court of Appeal upheld the Court of First Instance judgment. The court took the view that the contract was an investment contract rather than a de facto company’s Memorandum of Association, because the document did not have a loss sharing provision.</p>\r\n<p class=\"p2\">The Defendant appealed on 21 September 2015 to the Cassation Court which overturned the Court of Appeal’s ruling.</p>\r\n<p class=\"p1\"><strong>The Court of Cassation</strong></p>\r\n<p class=\"p2\">The Court of Cassation held that it was well established that where a Memorandum of Association only provides a profit sharing ratio, that ratio also applies to loss unless the parties intended not to share corporate risk and to share profits only but not losses (Article 659 of the Civil Transactions law):</p>\r\n<p class=\"p2\"><em>“There is a presumption that the profit-sharing ratio is also the loss-sharing ratio. The fact that there is no contractual provision concerning loss sharing does not of itself indicate that the contract is not a Memorandum of Association.”</em></p>\r\n<p class=\"p2\">In addition, the criterion when interpreting contracts is the intention of the parties and the meaning of the words used, and not the form. The existence or otherwise of a de facto company between persons that have expressed an intent to participate in risk-bearing activities (where each partner assumes a share of the risk by sharing in profit and loss) is for the trial judge to determine based on the circumstances of the case and the evidence and presumptions on the record if there is scope for interpretation of the contract.</p>\r\n<p class=\"p2\">The enquiry must be into the common intention of the contracting parties, without stopping at the literal meaning of the words, and taking guidance from the nature of the transaction and the necessary element of trust and confidence that should exist between the contracting parties in accordance with the current custom in transactions.</p>\r\n<p class=\"p2\">In the absence of an agreement between shareholders that sets out the sharing of losses (and profits), the courts will treat the company as a de facto company. In the event there is an agreement but it is silent on losses/profits, the trial court has the discretion to interpret a contract and determine the parties’ intent by establishing its objects and terms in light of the circumstances surrounding its formation.</p>\r\n<p class=\"p2\">In this case, the argument of the claimant that the Memorandum of Association is an Investment Contract was refuted and it was concluded that the parties had agreed to create a de facto company that included a profit-sharing ratio but was silent on the lost-sharing. The Claimant, as a partner in the company, may not bring an action to claim his share of the capital before liquidation proceedings are commenced.</p>\r\n<p class=\"p2\">The claim was accordingly premature and was dismissed.</p>\r\n<p class=\"p1\"><strong>Conclusion</strong></p>\r\n<p class=\"p2\">The Court of Cassation’s judgment is important because it clarifies the circumstances in which the courts will  interfere to characterize a de facto company. This can have important consequences for parties to a joint venture when these arrangements have not been duly incorporated. This case helps investors to define their position by setting out the necessary elements which form their common intention.</p>'),
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	(99424,5403,'content_description','In a recent Dubai Court judgment (case number 1677/2016 (Commercial)), a ship building company (the “Claimant”) brought a claim against a ship owning company (the “Defendant”). The Dubai Court of First Instance’s judgment was issued in favour of the Defendant and is notable for departing from the former practice regarding ship arrests and the substantive claims which follow them.'),
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	(99426,5403,'pageSummary','In a recent Dubai Court judgment (case number 1677/2016 (Commercial)), a ship building company (the “Claimant”) brought a claim against a ship owning company (the “Defendant”). The Dubai Court of First Instance’s judgment was issued in favour of the Defendant and is notable for departing from the former practice regarding ship arrests and the substantive claims which follow them.'),
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	(99428,5403,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/jun-jul/ship-arrests-the-enforceability-of-the-procedure-in-the-uae-maritime-commercial-law.html'),
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	(99434,5403,'_yoast_wpseo_metadesc','In a recent Dubai Court judgment (case number 1677/2016 (Commercial)), a ship building company (the “Claimant”) brought a claim against a ship owning company (the “Defendant”). Read more about the nature of the Claim and the Defendant’s Arguments.'),
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	(99435,5404,'content','<p class=\"p1\"><span class=\"s1\">The Qatar Court of Cassation issued an important judgment at the end of May 2016, when it ordered a Qatari bank to pay a Bahraini bank’s director and sub-committee members their bonus entitlements. Al Tamimi represented the successful foreign bank. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">The Court upheld the lower court’s decision that the foreign bank (the Claimant) was entitled in its capacity as the bank to claim entitlements from the Qatari Bank on behalf of four of its board members. The Court dismissed arguments that board members could only claim for payments in their personal capacity as individuals. The Qatari Bank’s counterclaim was also dismissed, in which it had argued that the Board members’ lack of voting on Resolutions was damaging to the Appellant’s interests.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">This is a significant outcome and highlights a key precedent with respect to the rights of banks in Qatar and their board members.</span></p>\r\n<p class=\"p3\"><strong>Background</strong></p>\r\n<p class=\"p1\"><span class=\"s1\">The Claimant (a foreign bank) brought a claim against the Respondent (a Qatari bank) seeking judgment against the latter for QAR 2,232,000. This was the balance due to the directors appointed by the Claimant to the Defendant’s Board of Directors (“BoD”) in respect of bonus entitlements for 2012. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">The Claimant contended that, as a Bahraini shareholding company, it had purchased a 40% stake in the Respondent, a Qatari shareholding company. According to the Respondent’s Articles of Association (“AoA”), the Board of Directors were to consist of 10 members, 4 to be appointed by the Claimant and the remainder to be appointed by the Respondent. The Respondent did not pay the directors their entitlements so the Claimant proceeded to court. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">The Respondent filed a counterclaim against the Claimant for QAR 10 million in damages, contending that the Claimant was represented on the BoD by four directors who, while attending BoD meetings, did not vote on BoD resolutions, thereby impeding the Respondent’s activities and denying it the opportunity of making profit. </span></p>\r\n<p class=\"p3\"><strong>Court of First Instance</strong></p>\r\n<p class=\"p2\">The Court of First Instance dismissed both claims on the grounds of lack of capacity. The case had been filed by the foreign bank itself, whilst in the court’s judgment the bank did not have capacity to request the entitlements as they should have been requested by the board members in their personal capacity.</p>\r\n<p class=\"p2\"><strong>Court of Appeal </strong></p>\r\n<p class=\"p1\"><span class=\"s1\">The Claimant and Respondent appealed the judgments made at the Court of First Instance. At the Court of Appeal it was ordered that the Respondent pay the Claimant the full amount of the claim, and upheld the dismissal of the Respondent’s counterclaim. The Court of Appeal held that the bank enjoys the necessary capacity to claim for the entitlements of the board members  on the basis that the bank is a juridical entity which should be represented by natural persons such as the board members pursuant to article 54 of the Civil Code.</span></p>\r\n<p class=\"p3\"><strong>Court of Cassation</strong></p>\r\n<p class=\"p1\"><span class=\"s1\">The Respondent appealed the decision. It argued that since the Court of First Instance had dismissed the action due to the Claimant’s lack of capacity, it was contrary to the two-tier procedural rule for the Court of Appeal to adjudicate on the merits of the case. The Court of Cassation dismissed this argument, on the basis that a plea that an action should not be heard due to the Claimant’s lack of capacity is a substantive plea in response to the case as a whole.  </span></p>\r\n<p class=\"p1\"><span class=\"s1\">The Court of Appeal had found that the Claimant did have the capacity to claim the entitlements of its representative Board members, since the Respondent was entrusted to appoint the Board members and thus could pursue such actions on their behalf. The Court of Cassation upheld these findings.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The Court of Cassation also upheld the Court of Appeal’s conclusion that the conduct of board members of refraining to vote at BoD meetings did not give rise to liability for damages and was not intended to impede the Appellants interests.  </span></p>\r\n<p class=\"p3\"><strong>Significance of the Ruling</strong></p>\r\n<p class=\"p1\"><span class=\"s1\">This judgment highlights that any juridical person (i.e. an entity created by law, such as a company) should be represented by a natural person to express the former’s will. Accordingly, the court of first instance committed an error in the interpretation of the provisions of the civil law which state that entitlements awarded to board members should be paid to the company which possess the appointing and removing authority for these members. The main role of board members is that they are merely representing the appointing company. Accordingly, all the fruits of such representation should be yielded back to the appointing company.</span></p>'),
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	(99393,5400,'pageSummary','Like most jurisdictions in the Middle East and North Africa, Qatar has adopted a civil law system. This has its roots in the French Napoleonic Code and is distinct from a common law system.'),
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	(99420,5403,'content','<p class=\"p1\"><span class=\"s1\">In a recent Dubai Court judgment (case number 1677/2016 (Commercial)), a ship building company<strong> (the “Claimant”) </strong>brought a claim against a ship owning company <strong>(the “Defendant”)</strong>. The Dubai Court of First Instance’s judgment was issued in favour of the Defendant and is notable for departing from the former practice regarding ship arrests and the substantive claims which follow them.</span></p>\r\n<p class=\"p3\"><strong>Background</strong></p>\r\n<p class=\"p1\"><span class=\"s1\">In 2007, the Claimant entered in a shipbuilding agreement with the Defendant in which the Claimant undertook to build a ship for the Defendant. In 2010, both the Claimant and Defendant <strong>(the “Parties”)</strong> entered into amended agreements where it was agreed that the remaining cost of building the ship (which was USD 75,000,000) would be deferred, with the addition of an interest of 6.5% per annum that should be paid within 12 months as of the date of the ship’s delivery. In 2011, the ship building works were completed and on 3 November 2011 the ship was delivered to the Defendant. On the same date the ship was delivered, the Defendant granted the Claimant a First Preferred Ship Mortgage over the ship in the sum of USD 75,000,000 (ie. 100% of the deferred amount as well as the agreed interest). </span></p>\r\n<p class=\"p3\"><strong>The Nature of the Claim</strong></p>\r\n<p class=\"p1\"><span class=\"s1\">On 22 December 2015, the Claimant obtained an arrest order over the ship which was at Dubai Drydocks at the time. The Claimant based the arrest order request on the First Preferred Ship Mortgage over the ship. Furthermore, on 28 December 2015, the Claimant brought a substantive claim before the Dubai Court of First Instance against the Defendant seeking the sum of USD 106,237,341 in addition to legal interest at the rate of 12% as of the date the claim was made until the full payment is made. The Claimant claimed that the Defendant has not paid the cost of building the ship price in addition to the agreed interest and provided the Court with the relevant documents including the original and duly attested First Preferred Ship Mortgage. Further, on 28 December 2015, the court bailiff went to Dubai Drydocks and drafted the notice of the ship’s arrest. The court bailiff fixed a hearing for the validity of the debt’s claim on 15 February 2016 and requested the Ship’s master to attend the said hearing.</span></p>\r\n<p class=\"p3\"><strong>The Defendant’s Arguments</strong><strong><span class=\"s1\"> </span></strong></p>\r\n<p class=\"p1\"><span class=\"s1\">i. The Claimant’s claim: </span></p>\r\n<p class=\"p1\"><span class=\"s1\">The Defendant argued that the claim should be dismissed based on two grounds. First, the Dubai Court of First Instance does not have jurisdiction to hear the claim, as the Parties agreed in the shipbuilding agreement to refer any dispute relating to or arising out of this agreement to arbitration in London. Since this claim arises from the agreement, the Dubai Court of First Instance should not have jurisdiction to hear it. Second and alternatively, the Claimant did not file the claim in the form that is required by law under Articles 119 and 120 of the UAE Maritime Commercial Law.  </span></p>\r\n<p class=\"p1\"><span class=\"s1\">Article 119 of the UAE Maritime Commercial Law states:</span></p>\r\n<p class=\"p1\"><em><span class=\"s1\">“1. Copies of the notice of arrest shall be delivered to the master of the vessel or his deputy thereon, a second copy to the relevant maritime authority in the port in which the arrest is effected to prevent the vessel from sailing, and a third copy to the Registration Bureau in the said port. </span></em></p>\r\n<p class=\"p1\"><em><span class=\"s1\">2. If the vessel is registered in the State, the Registration Bureau of the port in which the arrest is effected, whether within the State or abroad, shall notify the vessels Registration Bureau of the arrest for endorsement thereof on the register.”</span></em></p>\r\n<p class=\"p1\"><span class=\"s1\">Article 120 of the UAE Maritime Commercial Law states:</span></p>\r\n<p class=\"p1\"><em><span class=\"s1\">“1. The notice of arrest shall contain a summons to attend before the relevant civil court in the area of which the arrest is effected for adjudication on the validity of the debt, of whatever amount. </span></em></p>\r\n<p class=\"p1\"><em><span class=\"s1\">2. A time shall be fixed for the hearing not later than thirty days from the date of the notice of arrest. The court shall speedily enquire into the claim, and the time shall not be further extended.”</span></em></p>\r\n<p class=\"p1\"><span class=\"s1\">ii. The validity of the debt claim:</span></p>\r\n<p class=\"p1\"><span class=\"s1\">In the alternative, the Defendant argued that such a claim must be dismissed, as the court bailiff did not fix the hearing of the validity of the debt claim within 30 days as per Article 120 of the UAE Maritime Commercial Law. </span></p>\r\n<p class=\"p2\"><strong><span class=\"s1\"> </span>Dubai Court of First Instance’s Judgment</strong></p>\r\n<p class=\"p1\"><span class=\"s1\">The Court found that the Claimant did not file the claim in the form that is prescribed by Articles 119 and 120 of the UAE Maritime Commercial Law; thereby the Court dismissed the Claimant’s claim. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">Furthermore, the Court rejected the validity of the debt claim. Since the substantive claim was dismissed for incorrect form, the Claimant did not prove the validity of the debt claim. </span></p>\r\n<p class=\"p3\"><strong>Comment:</strong></p>\r\n<p class=\"p1\"><span class=\"s1\">The practice under UAE Law is that once an arrest order is granted over a ship, the substantive claim should be filed with the Court by the claimant(s) within 8 days of the day the arrest order is served on the vessel  as per Article 255 of the Civil Procedures Law, otherwise the arrest order would be deemed void. Moreover, the procedures that are set out in Articles 119 and 120 of the Maritime Commercial Law have not been followed by the UAE Courts.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">It had even been previously argued that claims that are filed after arrest orders obtained within 8 days must be dismissed and the arrest order deemed void for not following the procedures that are set out in Articles 119 and 120 of the UAE Maritime Commercial. Law; however, the UAE Courts had ignored such arguments or ruled that this would not result in voiding the arrest order.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">However, it seems that the Dubai Court has changed its approach and started applying the procedures set out in Articles 119 and 120 of the UAE Maritime Commercial Law. Moreover, if such procedures are not met when a ship is arrested, Dubai Court will dismiss the substantive claim that is filed within 8 days as of the date of the arrest order. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">The Dubai Court’s approach may be followed by other UAE Courts in the future. Therefore, it is always advisable to request the UAE Courts to apply the procedures set out in Articles 119 and 120 when a ship arrest application is filed and to double check with the court bailiff that such procedures are met. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">It should however be noted that this judgment is not final and the Claimant has filed an appeal with Dubai Court of Appeal challenging such judgment. </span></p>'),
	(212744,5403,'core_values',''),
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	(99391,5400,'content_description','Like most jurisdictions in the Middle East and North Africa, Qatar has adopted a civil law system. This has its roots in the French Napoleonic Code and is distinct from a common law system. '),
	(99389,5400,'lawUpdateArticleMonth','5379'),
	(99390,5400,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(99388,5400,'_content','field_59b649b5c8b2b'),
	(99358,5398,'_content','field_59b649b5c8b2b'),
	(99359,5398,'lawUpdateArticleMonth','5379'),
	(99360,5398,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(99361,5398,'content_description','Electronic payments are processed through an integrated system of plans and programs offered by banking and financial institutions in order to facilitate secure electronic payment transactions. '),
	(99362,5398,'_content_description','field_59b641c07f473'),
	(99363,5398,'pageSummary','Electronic payments are processed through an integrated system of plans and programs offered by banking and financial institutions in order to facilitate secure electronic payment transactions.'),
	(99364,5398,'_pageSummary','field_59e59b307dec8'),
	(99365,5398,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/may-9/moneys-electronic-payment-in-iraq.html'),
	(99366,5398,'_currentURL','field_59d35123ab1e7'),
	(99367,5398,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','618'),
	(99368,5398,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(99369,5398,'lawUpdateArticleWriters','1'),
	(99370,5398,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(99371,5398,'_yoast_wpseo_metadesc','Electronic payments are processed through an integrated system of plans and programs offered by banking and financial institutions in order to facilitate secure electronic payment transactions.'),
	(99372,5399,'content','May 2016\r\n\r\n<hr />\r\n\r\nThe focus of this note will be to outline the rules specified in the executive bylaws that companies should be aware of in relation to trading securities, premium shares, and treasury shares, which became immediately effective upon issuance of the new executive bylaws.\r\n\r\n<strong>Trading Securities</strong>\r\n\r\nThe rules governing the buying and selling of securities of Kuwaiti public and closed shareholding companies are spelled out in Chapter 8 of Book 11 of the CMA Executive Bylaws (the ‘Rules’). The Rules set forth that, with respect to the securities of a listed company, securities are transferable if the transfer is completed in accordance with the rules and procedures outlined by the Kuwait Stock Exchange and upon registration of the securities with the clearing agency. The ownership of unlisted shareholding company’s securities are transferred through the process and procedures for transfer by the clearing agency. The Rules further specify that founders and shareholders of a listed Kuwait shareholding company are subject to a lock up period with respect to transacting in their shares.\r\n\r\nPursuant to the Rules, non-Kuwaiti investors may subscribe and acquire sukuk, Shari’a-compliant certificates that represent an undivided interest in an underlying tangible asset proportionate to the value of the holder’s investment, and bonds subject to any restrictions imposed in the prospectus and any other law. Finally, Chapter 8 provides rules and conditions in relation to the issuance of profit shares, including their assignment and the ability to enter into repurchase agreements with respect to the selling of securities.\r\n\r\n<strong>Premium Share Rules</strong>\r\n\r\nKuwaiti public and closed shareholding companies may issue, trade, transfer and redeem shares which enjoy rights and privileges in voting, profits, liquidations or any other rights (‘Premium Shares’) in accordance with the rules and conditions outlined in Chapter 13 of Book 11 of the CMA Bylaws. Among the conditions a company must adhere to in order to issue premium shares is that the company’s memorandum and articles of association must explicitly allow for the issuance of Premium Shares by vote of an extraordinary general assembly of the company which shall describe the rights and privileges of the Premium Shares.\r\n\r\nUnless the CMA otherwise approves an issuance of Premium Shares by public offering, Premium Shares may only be issued by private placement. Any issuance of Premium Shares shall only be effected after the CMA has been provided with a prospectus in accordance with the rules and conditions set forth in the CMA Bylaws, and the same is furnished to professional clients (as such term is defined in the CMA Bylaws). A company issuing Premium Shares must comply with the disclosure requirements set forth in the CMA Bylaws and any other regulatory body in relation to Premium Shares.\r\n\r\n<strong>Treasury Shares</strong>\r\n\r\nThe purchase, re-sale and use by a Kuwaiti public or closed shareholding company of its own issued shares (’Treasury Shares’) is regulated by the CMA under Book 11, Chapter 14 of the Rules. Chapter 11 provides specific instances in which a company may transact with its Treasury Shares, including, without limitation, in the following circumstances: (i) in the event the company desires to reduce its share capital; (ii) in event the company wishes to pay an existing debt obligation; (iii) in the event of a distribution of the Treasury Shares in connection with an employee share option plan; or (iv) in any other event or circumstance determined by the CMA.\r\n\r\nA company may acquire its shares only if the company’s memorandum and articles of association provides that it may do so. In addition, a company may only acquire the number of shares which equals or is less than 10% of its issued share capital according to the market value of the company’s shares. A Company wishing to buy or sell Treasury Shares must seek and obtain the approval of the CMA and, in relation to the company purchasing its shares; it must submit a report to the CMA detailing the reasons for such acquisition. It is important to note, that a sale or purchase by the company of its Treasury Shares can only be effected upon approval by the company’s general assembly and, in the event that the sale of the Treasury Shares is to particular shareholders, those shareholders are prohibited in participating in any general assembly vote.\r\n\r\nFinally, Chapter 14 sets forth explicit instructions on the accounting treatment with respect to Treasure Shares, including, amongst other things, that (i) such shares shall be recorded in the company’s financial statements under the shareholders’ equity and (ii) that the shares shall not be entitled to cash profits. Treasury shares are not included in the calculation of the required quorum for validity of the general assembly meeting and voting.\r\n\r\nIn conclusion, whilst the new CMA Rules are a welcomed change in Kuwait because they offer clearer guidance, companies desiring to transact in securities should pay close attention to the Rules to ensure strict compliance.'),
	(161843,5399,'core_values',''),
	(161844,5399,'_core_values','field_59b64ab071de4'),
	(99373,5399,'_content','field_59b649b5c8b2b'),
	(99374,5399,'lawUpdateArticleMonth','5379'),
	(99375,5399,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(99376,5399,'content_description','On 9 November 2015, the Kuwait Capital Markets Authority (the ‘CMA’) introduced extensive reform to its executive bylaws with the aim of bringing the capital markets framework in the State of Kuwait in line with that of international practice. '),
	(99377,5399,'_content_description','field_59b641c07f473'),
	(99378,5399,'pageSummary','On 9 November 2015, the Kuwait Capital Markets Authority (the ‘CMA’) introduced extensive reform to its executive bylaws with the aim of bringing the capital markets framework in the State of Kuwait in line with that of international practice.'),
	(99379,5399,'_pageSummary','field_59e59b307dec8'),
	(99380,5399,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/may-9/kuwaits-new-cma-bylaws-regarding-trading-securities-premium-and-treasury-shares.html'),
	(99381,5399,'_currentURL','field_59d35123ab1e7'),
	(99382,5399,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','724'),
	(99383,5399,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(99384,5399,'lawUpdateArticleWriters','1'),
	(99385,5399,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(99386,5399,'_yoast_wpseo_metadesc','Al Tamimi & Company outlines the rules specified in the executive bylaws that companies should be aware of in relation to trading securities, premium shares, and treasury shares, which became immediately effective upon issuance of the new executive bylaws.'),
	(99387,5400,'content','May 2016\r\n\r\n<hr />\r\n\r\nA key difference between the two legal systems is that there is no system of binding precedent under a civil law system.\r\n\r\nThe primary legislation that governs guarantees in Qatar is the Civil Code. While other contracts may be concluded verbally, guarantees must be concluded in writing. For a guarantee to be valid under the laws of Qatar, reference should be made to the underlying debt being guaranteed. In other words, the guarantor must guarantee a specific debt. Notwithstanding this, a guarantor may guarantee future and unspecified obligations of a debtor, provided that the maximum amount being guaranteed and the maximum duration of the guarantee are specified in the guarantee document.\r\n\r\nWhere a future obligation is being guaranteed and there is no specification of either the upper limit of the guarantor’s exposure or the time limit on the length of the guarantee, the guarantor may withdraw the guarantee. Under article 824 of the Civil Code the creditor must first exhaust its remedies against the primary obligor before taking enforcement measures against the guarantor. However, article 824 would not apply if the primary obligor and the debtor are said to be jointly liable for the debt.\r\n\r\n<strong>Restrictions</strong>\r\n\r\nPursuant to the Civil Code, a guarantee must state a maximum time-frame for the obligations of the guarantor. However, there is no reference in either the Civil Code or the Commercial Code as to a limit on the guaranteed amount. Therefore, the concept of a so-called all monies guarantee is not prohibited under Qatari law, provided that a maximum duration and an amount for the guarantee are stated in the guarantee.\r\n\r\n<strong>Demands</strong>\r\n\r\nDemands under a guarantee must be made in writing. Where the primary obligor has defaulted on its obligations and the guarantor notifies (or warns) the lender that such a default has occurred, the lender has six months from the date of notification to commence enforcement proceedings.\r\n\r\n<strong>Enforceability</strong>\r\n\r\nThe Civil Code provides, inter alia, in relation to contracts of guarantee that:\r\n<ul>\r\n 	<li>the obligation of the guarantor is incidental to the obligation of the principal obligor. Any discharge of the principal obligor’s obligations may, therefore, result in the guarantee no longer being valid; and</li>\r\n 	<li>if the principal obligor becomes bankrupt, the creditor must prove its debt (which it is owed) in the bankruptcy. Failing this, the creditor will lose its right to claim against the guarantor to the extent of any sums the creditor might have received had it proved the debt in the bankruptcy.</li>\r\n</ul>\r\n<strong>Corporate benefit</strong>\r\n\r\nThere is no general concept of corporate benefit under Qatari Law. However, under the Commercial Code, the board of directors must act in the company’s best interests when determining if a guarantee should be provided. The board of directors must also act lawfully and may not misuse its power.  This article was first published in the April 2016 issue of IFLR Magazine.'),
	(161809,5400,'core_values',''),
	(99343,5397,'_content','field_59b649b5c8b2b'),
	(99344,5397,'lawUpdateArticleMonth','5379'),
	(99345,5397,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(99346,5397,'content_description','Iraq’s recent history has been characterized by unrest, an ever-changing political regime, and economic fluctuations.'),
	(99347,5397,'_content_description','field_59b641c07f473'),
	(99348,5397,'pageSummary','Iraq’s recent history has been characterized by unrest, an ever-changing political regime, and economic fluctuations.'),
	(99349,5397,'_pageSummary','field_59e59b307dec8'),
	(99350,5397,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/may-9/iraqs-resurgence-the-last-25-years.html'),
	(99351,5397,'_currentURL','field_59d35123ab1e7'),
	(99352,5397,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','666'),
	(99353,5397,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(99354,5397,'lawUpdateArticleWriters','1'),
	(99355,5397,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(99356,5397,'_yoast_wpseo_metadesc','Al Tamimi & Company highlights the most significant legislative initiatives and enactments issued in the last two decades, namely the Iraqi Constitution, certain legislation geared towards developing Iraq’s economy, and other noteworthy changes to the laws of Iraq.'),
	(99357,5398,'content','May 2016\r\n\r\n<hr />\r\n\r\nSuch a system operates under certain rules and laws that aim to guarantee the confidentiality of secure and protected procurement procedures which ensure the delivery of the service. This system has achieved great success in many countries and is considered a globally applicable system.\r\n\r\nIn Iraq, and despite the development which has occurred in the accredited mechanism of the payment of money globally, the banks and companies specialised in this field are not up to the level of payment processing. The only bank which issues internationally accredited electronic payment cards is the Trade Bank of Iraq. Further, another example of e-payment in Iraq is a prepaid credit card private company which is licensed by the Central Bank of Iraq and  associated with the Iraqis’ Al Rafidain and Al Rasheed banks (public sector banks) to provide Iraqi employees with their pensions. Taking into consideration the aspiration of the Iraqi market to adopt electronic payments, in both the public and the private sector, and for the importance of keeping up with developments in this field, the Council of Ministers issued Regulation No. (3) of 2014 (“Regulation”), based on the provisions of subsection (iii) of Article (80) of the Constitution and Article 27 of the Electronic Signature and Electronic Transaction Law, in order to clarify the steps for setting up companies specialised in electronic payment processing. Thus, it is important to take into account the following:\r\n\r\n<strong>Expanding Knowledge on the Activities of the Electronic Payment Company</strong>\r\n\r\nPursuant to the Regulation, the activities which an e-payment company can conduct in Iraq, are specified as follows:\r\n<ul>\r\n 	<li>issuance of tools for the electronic payment of monies;</li>\r\n 	<li>management of cash deposits and withdrawals through automated teller machines (“ATM”) and point of sale (“POS”) terminals;</li>\r\n 	<li>implementing the electronic payment of debtors and creditors’ operations so that the funds are guaranteed by a credit limit;</li>\r\n 	<li>the execution of electronic debt and credit payment operations by any means of digital communications, information technologies, or network operators that act as an intermediary between the user of electronic payment and the provider of equipment and services, or any receipt of funds including transactions through mobile phones; and</li>\r\n 	<li>the execution of electronic payment operations in accordance with the total settlement immediacy system or securities settlement system or automated clearing system.</li>\r\n</ul>\r\nTo obtain an electronic payment licence for conducting electronic payment services, it is important to note the following:\r\n<ul>\r\n 	<li>it is not permissible to conduct electronic payment services without obtaining a licence from the Iraqi Central Bank (“CBI”);</li>\r\n 	<li>on the request of the licensee, CBI can modify a licence by adding the electronic payment services activity or changing the type of service listed on the licence – the licence will be valid for five (5) years and renewable upon the request of the provider of electronic payment services within ninety (90) days of the licence’s expiration;</li>\r\n 	<li>it is a condition for the provider of electronic payment services to be a legal entity and have the technical and organisational skills to run such a service;</li>\r\n 	<li>the service provider must have a permanent work location for carrying out the services and meet the technical and financial requirements required by CBI;</li>\r\n 	<li>continuous practice of the licensed activity is required; engaging with other parties or total or partial waiver of the license to others during the licence’s duration is not permitted without obtaining CBI approval; and</li>\r\n 	<li>the provider is required to adopt the necessary systems and mechanisms for the control, internal audit, and risk management related to operating and managing electronic payments, which includes:</li>\r\n</ul>\r\n<ul>\r\n 	<li>\r\n<ul>\r\n 	<li>appointing individuals to manage the payment processing system who are technically qualified and not convicted of a crime, offence, or misdemeanour involving moral turpitude;</li>\r\n 	<li>ensuring that the standards of accessing the system are safe and do not inappropriately differentiate between the system’s users;</li>\r\n 	<li>ensuring a continuity of availability and operation of the system;</li>\r\n 	<li>implementing measures that reduce the risks related to the payment processing system and manage such risks;</li>\r\n 	<li>implementing measures to secure and protect the electronic transactions, and saving and storing the operations that relate to the system in such a way as to deter disclosure, misuse, loss, damage or theft; and</li>\r\n 	<li>ensuring the access of the CBI to the payment processing system for the purpose of supervision and surveillance.</li>\r\n</ul>\r\n</li>\r\n</ul>\r\n<strong>The Submission of the Request to Obtain the Licence</strong>\r\n\r\nTo obtain a licence from the CBI to conduct such activities, the following are required:\r\n<ul>\r\n 	<li>a copy of the certificate of incorporation, the articles of incorporation, and the minutes of appointing the managing director certified by the registrar of companies;</li>\r\n 	<li>the company’s name and address;</li>\r\n 	<li>the names of the company’s managing directors, founders, shareholders, and their nationalities and permanent addresses;</li>\r\n 	<li>the title deed or lease agreement for the building which is taken as the head quarter for the company;</li>\r\n 	<li>the capital assigned by the bank from time to time; and</li>\r\n 	<li>an economic feasibility study with the following information:</li>\r\n</ul>\r\n<ol>\r\n 	<li>the work plan and projected outcome and the financial estimates for the first three (3) years of operating the system;</li>\r\n 	<li>the aim of incorporation;</li>\r\n 	<li>the services to be performed;</li>\r\n 	<li>the operating costs;</li>\r\n 	<li>a contingency plan for any unexpected circumstances;</li>\r\n 	<li>the procedures to be taken to manage and control the risks to which the service provider may be exposed; and</li>\r\n 	<li>the procedures to be taken to protect the electronic payment service users, including the creation of separate accounts for such money.</li>\r\n 	<li>the payment of licence fees; and</li>\r\n 	<li>a confirmation letter from the relevant authorities confirming that there is no security objection impediment in granting the licence the company.</li>\r\n</ol>\r\n<strong>Suspension of the licence</strong>\r\n\r\nSuspension of such an electronic payment provider’s licence may occur in the following circumstances:\r\n<ul>\r\n 	<li>failure of the electronic payment service provider to provides electronic payment services within one hundred and eighty days (180) from the issuance of the licence;</li>\r\n 	<li>denial of entrance of CBI representatives for the purpose of inspection or obstructing their work;</li>\r\n 	<li>violation of the related laws or regulations, instructions or orders;</li>\r\n 	<li>failure to provide electronic payment services within the agreed standards and specifications or providing unqualified services;</li>\r\n 	<li>engaging in activities which threaten the stability of the financial system in the country;</li>\r\n 	<li>disadvantaging users from utilizing the service.adjudication of the company’s manager or owner of a felony or misdemeanor involving moral turpitude;</li>\r\n 	<li>stopping electronic payment services for a period exceeding thirty (30) days.</li>\r\n 	<li>failing to maintain any of the conditions of the granted licence; or</li>\r\n 	<li>obtaining the licence through false documentation or any other illegal ways.</li>\r\n</ul>\r\n<strong>Conclusion</strong>\r\n\r\nThe development of this Regulation strongly indicates that Iraq is a promising market for electronic payment systems.  The Iraqi market is in need of such services which can be used by governmental departments and private companies, for the payment of salaries for example, as well as in malls and trading shops for the processing of consumer payments.'),
	(161877,5398,'core_values',''),
	(161878,5398,'_core_values','field_59b64ab071de4'),
	(99328,5396,'_content','field_59b649b5c8b2b'),
	(99329,5396,'lawUpdateArticleMonth','5379'),
	(99330,5396,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(99331,5396,'content_description','The cornerstone of the Jordanian legal system is, and has been since its introduction in 1976, the Jordanian Civil Code. Civil matters in Jordan are and continue to be ultimately governed by broad guiding principles, as opposed to detailed regulations. '),
	(99332,5396,'_content_description','field_59b641c07f473'),
	(99333,5396,'pageSummary','The cornerstone of the Jordanian legal system is, and has been since its introduction in 1976, the Jordanian Civil Code. Civil matters in Jordan are and continue to be ultimately governed by broad guiding principles, as opposed to detailed regulations.'),
	(99334,5396,'_pageSummary','field_59e59b307dec8'),
	(99335,5396,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/may-9/jordan-a-window-into-the-last-25-years-of-development.html'),
	(99336,5396,'_currentURL','field_59d35123ab1e7'),
	(99337,5396,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','666'),
	(99338,5396,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(99339,5396,'lawUpdateArticleWriters','1'),
	(99340,5396,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(99341,5396,'_yoast_wpseo_metadesc','The cornerstone of the Jordanian legal system is, and has been since its introduction in 1976, the Jordanian Civil Code. Civil matters in Jordan are and continue to be ultimately governed by broad guiding principles, as opposed to detailed regulations.'),
	(99342,5397,'content','May 2016\r\n\r\n<hr />\r\n\r\nThese conditions, by their very nature, necessitated that new laws and regulations be introduced in order to adapt and amend the Iraqi legal framework as per the requirements of the changing regimes. The focus of this article shall be on the most significant legislative initiatives and enactments issued in the last two decades, namely the Iraqi Constitution, certain legislation geared towards developing Iraq’s economy, and other noteworthy changes to the laws of Iraq.\r\n\r\n<strong>The Iraqi Constitution </strong>\r\n\r\nIn line with the change of regime in 2003, the Iraqi Interim Constitution of 1970, originally enacted by the Revolutionary Command Council, ceased to be valid on 9 April 2003. It was replaced by the Law of Administration for the State of Iraq for the Transitional Period of 2004, and remained in force until the issuance of the new Constitution on 20 May 2006.\r\n\r\nThe adoption of a unified Iraqi Constitution in 2006 represented a new beginning for the state of Iraq. It is  considered by many to be the first legal instrument in Iraq’s recent history (going back as early as 1924) to be drafted and concluded by the Constituent Assembly in accordance with due process. In many respects, therefore, the Constitution marked the sovereignty of the new Republic of Iraq.\r\n\r\nOne of the key features of the newly enacted Iraqi Constitution is that it provides for both a federal and decentralized system of Government, recognizing federal and regional authorities.\r\n\r\n<strong>Legal Changes to the Economic Sector </strong>\r\n\r\nSignificant changes have been made to laws and regulations affecting the economic sector. Our focus shall be on the enactment of the various laws regulating companies, bank operations, and investment operations generally in Iraq, as follows:\r\n\r\n<strong>1. Companies Laws</strong>\r\n\r\nIn the years prior to 2003, the private and public sectors were regulated by the Companies Law No. 21 of 1997 and by the General Corporate Law No. 22 of 1997. These laws regulated the establishment, management and liquidation of private and public companies through the use of financial and administrative provisions, principles and guidelines with the aim of achieving the highest levels of productivity and growth, and achieve self-sufficiency\r\n\r\nIn 2003, once the regime had changed, several amendments were made to these legislative provisions to allow the law to remain relevant in light of the changes to the economic situation, and in order to encourage continued investments in Iraq.\r\n\r\nThis was accomplished through the 2004 amendment to the Companies Law, which was adopted as a law regulating the establishment and operations of companies in the private sector, as per the new economic policy, which aimed to transform Iraq into a free market economy. Further, the said amendment provided, for the first time, the possibility of adopting a system of online registration for companies.\r\n\r\nAs regards the public sector, several amendments to the Companies Law were adopted. Some of the most significant changes include the First Amendment in 2000, the Second Amendment No. 9 in 2002, the Third Amendment No. 14 in 2002, the Fourth Amendment No. 73 in 2012, and the changes brought about by Section 5 of CPA Order No. 76 which relate to the merger of public companies. These changes resulted in the grant of wider powers to the Board of Directors of state-owned companies in resolving the company’s administrative, financial and strategic decisions. It further allowed for state-owned companies to be transformed into private or public shareholding companies. Furthermore, Article 15 stipulated that state-owned companies shall have the right to cooperate with (effectively, form joint ventures with) foreign companies for the purposes of implementing the state-owned company’s activities and objectives in Iraq.\r\n\r\n<strong>2.  Investment Laws</strong>\r\n\r\nIn line with the newly adopted Iraqi Constitution of 2005, the Iraqi Government looked towards creating a better platform for investments in Iraq. In this regard, the Iraqi Constitution provides a responsibility on the state to promote and do all that is necessary to encourage investment in the various sectors of the economy. In furtherance of said goals, the Iraqi Investment Law No. 13 of 2006 grants a number of benefits and guarantees to investors; some of these include exemptions from custom fees and duties, protection against confiscation of goods, the possibility of applying for an Investment License, the right to participate in certain commercial activities and/or to establish branches and commercial offices, as well as the unfettered right to transfer any profits generated from the project abroad.\r\n\r\nFurther amendments have since been made to the Investment Law to better suit the Government’s investment objectives. The latest such amendments came in 2015, which provide for the right of qualified Iraqi and foreign investors alike to own land allocated for residential and industrial projects belonging to the state or owned by the public sector. It further permitted Iraqi and foreign investors to purchase land or real estate belonging to the private sector for the sole purpose of setting up housing projects.\r\n\r\n<strong>3.  Further Protections to Traders:</strong>\r\n\r\nAmendments have been made to the Trademark Law No. 21 of 1975 by the Coalition Provisional Authority in 2004, as a remedy to the fact that the old law was not consistent with established international standards of protection, and as a result of the need to ensure compliance with such international standards in order to revitalize and improve the economic situation in Iraq, and convert it from a centralized economy into a free market economy.\r\n\r\n<strong>4.  Sector Specific Laws</strong>\r\n\r\nBanking Laws\r\n\r\n<em>The period between 1991 to 9 April 2003</em>\r\n\r\nThe first major change occurred with the introduction of Amending Law No. 12 of 1991, which was issued as an amendment to the Central Bank of Iraq Law No. 64 of 1976. This allowed for shareholding companies, duly registered under the Companies Act No. 36 of 1983, to engage in comprehensive banking activities subject to certain licensing conditions.\r\n\r\nAs a direct result of this, a number of new banks were established in Iraq, including Bank of Baghdad, the Trade Bank, Middle East Bank, the Iraqi Investment Bank, the Private Bank of Al Basra, the Iraqi Islamic Bank, the United Bank for Investment, Dar Es Salaam Bank, Credit Bank, Babylon Bank, Gulf Bank, Al Warka Bank, Sumer Bank, Economy Bank, Mosul Bank and Al Barka Bank.\r\n\r\n<em>The Coalition Provisional Authority (the years 2003 / 2004) </em>\r\n\r\nThe Coalition Provisional Authority (CPA) issued Order No. 20 of 2003, providing for the establishment of the Trade Bank of Iraq, with a capital of one hundred million US Dollars in order to facilitate the importation and exportation of goods and services, with the aim of encouraging trade and revitalizing Iraq’s economy. To that end, the Trade Bank of Iraq is often engaged to issue Letters of Credit (L/Cs) on behalf of the Iraqi Government and its institutions.\r\n\r\nThe CPA also issued Order No.18 of 2003 declaring the independence of the Central Bank of Iraq (CBI), and recognizing the CBI as the lead regulating authority for monetary and credit policies of Iraq, free from any political influence.\r\n\r\nIn 2004, the CPA further issued a number of laws regulating the workings of the CBI, the operation and regulations of “banks” incorporated in Iraq, the manner for dealing with money laundering undertakings, and laws relating to the establishment of an Iraq Stock Exchange, as follows:\r\n<ul>\r\n 	<li>The Central Bank of Iraq Law No. 56 of 2004’s main objective was to achieve stability in local currency and work towards preserving a stable financial system founded on a free competitive market through the workings of the Central Bank of Iraq. In that regard, the CBI is granted the authority to formulate and adopt monetary policy, license banks in Iraq (including branches of foreign banks), issue the related regulations and circulars, and the like.</li>\r\n 	<li>In 2004, the Banking Law No. 94 of 2004 was issued to create a better regulated banking system, with the aim of ensuring that trust in the banking system is restored through greater transparency requirements and the provision of additional protection to depositors. The Banking Law also delineated the activities reserved exclusively to licensed banks, and conversely, listed certain activities prohibited to banks, as well as providing the requirements applicable to obtaining licenses in this field.  Additionally, the law sought to eradicate financial crimes including, but not limited to, fraud, money-laundering and funding terrorism. This was further supported by the introduction of the Anti-Money Laundering Law, in accordance with CPA Order No. 93, in the same year.</li>\r\n 	<li>The Anti-Money Laundering Law incriminates a number of financial crimes, and obliges all financial institutions operating in Iraq to adhere to a myriad of Know-Your-Client requirements and reporting obligations. The said Anti-Money Laundering Law has since been replaced by a new Anti-Money Laundering No. 39 of 2015.</li>\r\n 	<li>Moving towards the Iraqi Stock Exchange, the same is governed by the provision of the Interim Law of the Iraqi Stock Market No. 74 of 2004, and which has, since 2009, adopted a system of electronic dealings and settlement in collaboration with NASDAQ-OMX. The said Iraqi Stock Exchange operates under the supervision of the Iraqi Securities Commission, an independent entity established under the auspices of the aforesaid Interim Law of 2004.</li>\r\n</ul>\r\n<em>Post-2004 to date</em>\r\n\r\nSince its enactment, the CBI has issued various regulations and circulars governing the operations of banks incorporated in Iraq. Importantly, in 2010, the CBI issued a series of regulations collectively known as the “Regulations Facilitating the Implementation of the Banking Law No. 94 of 2004”. These regulations detail the requirements and formalities for granting licenses and permits to banks and financial institutions, as well as providing information on the process and procedures of merging banks, and of the voluntary and compulsory liquidation of banks. The said Regulations also detail the credit, liquidity, economic concentration and risk controls generally applicable to banks.\r\n\r\nFollowing this, in 2011, the CBI further issued the Importing Foreign Currencies for Licensed Banks Regulation No. 4 of 2011. Said regulation grants licensed banks the right to import foreign currency to Iraq, conditioned on the consent of the CBI and in accordance with its requirements and procedures which have been set out in the Regulation.\r\n\r\nIn 2014 and pursuant to the CBI Law No. 56 of 2004 and the Banking Law No. 94 of 2004, the CBI issued the Electronic Payment System No. 3 of 2014. The Law regulates the procedures for registering E-Payment companies, and the related operational conditions applicable to such companies and systems.\r\n\r\nIn furtherance to the E-Payment Law, the CBI also issued the Exchanging Credit Information Regulation of 2004, which aims to regulate the relationships between the parties involved in the Credit Information Exchange System including the CBI, the beneficiaries, the information providers, the users, the clients and any other parties so specified by the CBI. It also provides for the establishment of a comprehensive credit record and central database to gather information, check, organize and issue credit reports and to generally make use of said information gathering exercises centrally.\r\n\r\nA final noteworthy development in the Banking sector is the introduction of the Islamic Banking Law No. 43 of 2015, which deals exclusively with Islamic banks (separately from conventional banking requirements). This Law regulates the operations of Islamic Banks and illustrates the procedures for setting up an Islamic Bank in Iraq including the requirements for obtaining a license from the CBI.\r\n\r\nThe said Islamic Banking Law and related regulations stipulate the activities that can be conducted by Islamic banks, including but not limited to, financing arrangements through Musharaka, Mudarabah, Salam, Istissna’a, Ijara, and certain bargaining. They further entitle Islamic banks to incorporate companies for these purposes, conclude various undertaking with a shareholding not to exceed 20% of the capital, own movable and immovable assets necessary for their investments or for leasing, fund internal and external trading activities, and participate in agricultural, industrial, and architectural projects. These laws and regulations also provide for the establishment of Sharia Boards, in that they obligate Islamic banks and Islamic windows at conventional banks to have a Sharia Board which shall carry out the responsibility of providing a Sharia opinion on the operations of the bank in order to ensure its compliance with Sharia law. One of the most significant provisions of the Islamic Banking Law is that it excludes Islamic banks and branches from taxes and fees arising from such dealings and from those relating to the contracts of sale or leasing of estate, lands, and cars, thereby allowing Islamic banks greater flexibility in structuring Islamic financing products.\r\n\r\n<strong>Oil and Gas Laws</strong>\r\n\r\nThough to date Iraq has yet to adopt a specific oil and gas law (with drafts continuing to be considered by Parliament) significant developments have, nonetheless, marked the development of the oil and gas sector in Iraq.\r\n\r\nImportantly, the Private Investment Law for the Refining of Crude Oil No. 64 of 2007 (the “Private Refinery Law”) was amended in 2008 to permit private companies (both local and international) to establish private refineries in Iraq. Pursuant to the Private Refinery Law, such projects would enjoy the benefits offered by companies established within the free zone.\r\n\r\nIn addition, the Private Refinery Law provides that the Iraqi Government shall sell crude oil to qualifying investors with reference to the price sold by the Government, and in return the investor shall arrange for the refining of the oil, with the freedom to set its price for future sales in line with international markets.\r\n\r\nThe practical application of this Law remains to be seen, and won’t be known until investors look to develop and operate private refineries in Iraq.\r\n\r\n<strong>Insurance</strong>\r\n\r\nThe Iraqi Law Regulating the Insurance Business No. 10 of 2005 governs the operations of public and private companies (whether local or foreign) that engage in Iraq insurance or reinsurance activities. The said Law divides insurance activities into two main types: Life Insurance and General Insurance.\r\n\r\nIn line with the requirements of a “safe” insurance market, the Insurance Law further protects the rights of beneficiaries, by monitoring the financial capability of insurers to provide adequate insurance coverage.\r\n\r\n<strong>5. Laws relating to the Conclusion of Governmental Contracts </strong>\r\n\r\nDevelopments in this field include:\r\n\r\nCPA Order No. 87 of 2004, issued to regulate the tendering requirements applicable to governmental contracting in line with international standards of transparency, as well as to establish mechanisms to resolve disputes arising in connection with such governmental contracts.\r\n\r\nPursuant to the above mentioned Order, the Implementing Governmental Contracts Regulation No. 1 of 2008 further details the conditions applicable to contracts executed between Iraqi Governmental entities and Iraqi or non-Iraqi corporations, particularly as regards the supply of goods or services (including consultancy services) to said Governmental entities. The Regulation also stipulates the authority/department responsible for opening bids, reviewing the same, and awarding a contract as a result thereof. In addition, the Regulation depicts the mechanisms for challenging decisions of the authorized governmental bodies. The said Regulation has since been amended by the Implementing Governmental Contracts Regulation No.2 of 2014.\r\n\r\n<strong>6. Labor Laws </strong>\r\n\r\nMost recently, the Iraqi Parliament has issued a new Iraqi Labour Law No. 37 of 2015, which entered into force on 7 February 2016. This Law replaces the preceding Labour Law No. 71 of 1987.\r\n\r\nDiscussions regarding the new Iraqi Labour Law had taken place over a number of years (since 2005 to 2010) before a draft acceptable to all involved parties was finally submitted to the State Council.\r\n\r\nThe adoption of the new Iraqi Labour Law was particularly necessary due to the significant changes that occurred over to Iraq’s economy over the last thirty years, including importantly, the  transformation of the Iraqi economy from a state-driven economy to an open market, and with regards especially to the entry of foreign expats to Iraq.\r\n\r\n<strong>Concluding Remarks </strong>\r\n\r\nIraq is on the right track to establish the required legal framework to attract foreign and local investors, and to rebuild the country’s economy. Since 2003, the abovementioned legal developments and many others have to a considerable extent contributed to the regulation of Iraq’s economy and to the setting up of realistic strategies to develop a free and competitive market in Iraq. Despite all the difficulties, Iraq remains a promising investment market.'),
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	(99316,5395,'content_description','It has been nearly two years since national service was made compulsory in the UAE by virtue of the UAE National Service Law (“Law”) which was introduced in June 2014 and which Al Tamimi reported on at the time. '),
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	(99318,5395,'pageSummary','It has been nearly two years since national service was made compulsory in the UAE by virtue of the UAE National Service Law (“Law”) which was introduced in June 2014 and which Al Tamimi reported on at the time.'),
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	(99326,5395,'_yoast_wpseo_metadesc','It has been nearly two years since national service was made compulsory in the UAE by virtue of the UAE National Service Law (“Law”) which was introduced in June 2014 and which Al Tamimi reported on at the time.'),
	(99327,5396,'content','May 2016\r\n\r\n<hr />\r\n\r\nThe result is that, notwithstanding the proliferation of specific laws in recent years, reference continues to be made to the Jordanian Civil Code, particularly in areas that are not specifically regulated.\r\n\r\nThat is not to say that the Jordanian legal system has not undergone significant changes over the past 25 years. In fact, the number of laws and regulations in Jordan that have been amended or introduced in recent years, have made the Jordanian legal system, in many respects, virtually unrecognizable from the previous state of law.\r\n\r\nOne area in particular requires specific attention. The Jordanian government, in its commitment to enhancing the investment regime in Jordan, has issued a vast array of laws, regulations and instructions, which together are seen to further investment in Jordan. These range from the recognition of intellectual property rights (as early as 1992), to the various changes being made to the Jordanian Investment Laws, the Companies Law, the Labour Laws, Tax Laws, and more recently to the Securities Laws and Banking Laws.\r\n\r\n<strong>Intellectual Property Laws </strong>\r\n\r\nIntellectual property rights in Jordan initially focused solely on the recognition and protection of certain trademarks as per the Jordanian Trademark Law of 1952, to meet and protect the economic expectations and rights of established traders.\r\n\r\nThe earliest recognition of other protectable intellectual rights did not, however, occur until 1992 when the Jordanian government enacted its first Copyright Law to protect works of literature, art and science irrelevant of their classification, importance, or purpose of production, and which include works expressed in writing, by sound, drawing, photography or movement.\r\n\r\nFollowing on from this, the remainder of the 1990s marked the most expansive development in intellectual property protection and enforcement in Jordan, to include not only works of literature, art and science but also other industrial and patentable rights. Most significantly, the years 1999 and 2000 saw Jordan acceding to the World Trade Organization and the Berne Convention , as well as enacting a myriad of laws and regulations covering the protection of patents, industrial designs and models, integrated circuits, and even geographical indications and the protection of new varieties of plants. Jordan has further introduced laws prohibiting unfair competition practices, and providing additional protection to trade secrets.\r\n\r\nThe Jordanian Government continues to introduce amendments to these laws, regulations and instructions in line with international developments, whilst having regard to the needs of the innovators, authors and other right holders as well as the wider public interest in the availability of material and information. For instance, since its original enactment in 1992, the Jordanian Copyright Law has been amended eight times to date in line with global standards and changing requirements.\r\n\r\n<strong>Investment Laws</strong>\r\n\r\nJordan is committed to the development of a favourable investment regime to ensure the continued and sustainable development of its economy both locally and on an international scale.\r\n\r\nOver the past 25 years, this has been achieved through the introduction of various investment laws, including the Investment Promotion Law in 1995 and again in 2003, the Investment Law of 2003 and the Development and Free Zones Law of 2008. These laws provide various incentives to foreign and local investors investing into Jordan, as well as assisting in the establishment of a comprehensive framework through which investments may be established and conducted efficiently.\r\n\r\nMore recently, the Jordanian Government introduced the Jordanian Investment Law No. 30 of 2014, which provides for the establishment of the Jordan Investment Commission (JIC). The JIC is a legal successor to each of the Jordan Investment Board, the Development and Free Zones Commission and the Export Promotion Directorate of the Jordan Enterprise Development Corporation.\r\n\r\nThe unification of the abovementioned roles under one authority is regarded as a welcome initiative, contributing to the simplification and efficiency of the investment process. Importantly, the JIC is tasked with the management of an Investment Window, which acts as a “one-stop shop” for the registration and licensing of investment projects, thereby simplifying and facilitating the establishment of investment projects and the process for obtaining the necessary permits and licenses.\r\n\r\nThe JIC further aims to improve the legislative framework and regulations related to investments, and enhance the incentives granted to investors.\r\n\r\nThe new investment regime provides for equal treatment to be granted to foreign and local investors alike, unless otherwise provided for under applicable laws. In effect, this means that no foreign ownership restrictions apply unless otherwise provided under the related regulations. Currently, Regulation No.5 of 2000 provides a limited list of activities which may only be undertaken by Jordanians, including passenger and freight road transportation services, quarries for certain stones, and certain security and clearance services. The said Regulation also stipulates that certain activities and services require a local partner (50-51%), including most retail activities, engineering and construction services, certain maritime and transport activities, certain brokerage and money exchange services, among others.\r\n\r\nThe above notwithstanding, the related laws expressly contemplate the possibility of applying to the Council of Ministers for an exemption from the foreign ownership restrictions detailed above. Further, the said foreign ownership restrictions do not apply to investments in companies duly incorporated in the Free Zones or Development Zones of Jordan.\r\n\r\nA further change to be noted is that unlike previous Investment Laws, the Investment Law of 2014 grants tax exemptions to projects undertaken in any sector in Jordan, not only those relating to industry, agriculture, maritime, transport, gas and petroleum operations and the like. In granting the said exemptions, the focus of the new Investment Law is on the benefit to be derived from the goods and/or services being offered as well as the geographical area where the project is to be established, rather than one that is sector specific. For said purpose, the Council of Ministers is granted the authority to issue schedules detailing the goods/services to be exempted.\r\n\r\n<strong>Free Zones and Development Zones</strong>\r\n\r\nThe Jordanian Government has delineated numerous free zones and development zones in Jordan, previously governed under a myriad of differing laws and regulations.\r\n\r\nMost recently, the aforesaid newly issued Investment Law of 2014 provides for a uniform investment regime applicable to all development zones and free zones in Jordan, with the exception of the Aqaba Special Economic Zone, for which separate laws continue to apply.\r\n\r\nThe Investment Law accords companies setting up in the development zones and the free zones in Jordan special treatment. For instance, it decreases the income tax applicable to certain commercial activities in the development zones to 5%, whilst exempting certain companies operating in the free zone from taxes altogether. A further incentive worthy of note under the new Investment Law is the exemption from custom fees for any material imported for the purposes of maintaining or repairing any machinery or equipment used for a prjoect in the development zone\r\n\r\nSaid incentives taken together, are in line with the Jordanian Government’s commitment to supporting investment.\r\n\r\n<strong>Companies Law</strong>\r\n\r\nIn connection with changes made to the Companies Law in recent years, the Jordanian Companies Law No. 12 of 1964 has been superseded by the Jordanian Companies Law No. 22 of 1997.\r\n\r\nThe Companies Law of 1997 further streamlined the process for incorporating and running a company in Jordan, allowing for the establishment of non-profit companies as well as of civil companies by specialised and professional persons (e.g. lawyers), and providing for the introduction of other corporate forms in establishing a company or other body.\r\n\r\nIn addition to the Limited Liability Company already provided for, corporate forms introduced by the Companies Law include a Private Shareholding Company, an Operating Foreign Company (branch), and a Non-Operating Foreign Company (representation office) and an Exempt Company as follows:\r\n<ul>\r\n 	<li>Private Shareholding Company (PSC): a PSC is a company comprised of two or more shareholders (unless the Companies Controller consents to the incorporation of a PSC comprised of one shareholder), with a minimum share capital of JOD 50,000 and which is managed by a Board of Directors. The main advantage of a PSC is that it offers flexibility to shareholders to set different types and categories of shares under its Memorandum and Articles of Association, and which may differ in terms of their nominal value, voting force, method of profit and loss distribution among shareholders, as well as their rights, priorities, restrictions, and advantages.</li>\r\n 	<li>Operating (branch) and Non-Operating (representation office) Foreign Companies: these companies are legal extensions of their foreign, parent company. A Jordanian representative must be appointed to manage the branch or representation office and to act as a liaison officer to the relevant governmental and regulatory authorities, An Operating Foreign Company may be incorporated for the execution of certain works (e.g. construction) in Jordan under a contract with a Jordanian employer, and is limited to the purpose and period of the said contract. Whereas, a Non-Operating Foreign Company may be incorporated to act as a regional or representation office in Jordan for operations it concludes outside of Jordan. The Non-Operating Foreign Company is prohibited from carrying out any business or commercial activities in Jordan, including operations of commercial agencies and intermediaries, and for this reason is granted various tax exemptions and privileges under the Jordanian Companies Law.</li>\r\n 	<li>Exempt Company: an Exempt Company is a company registered as a Jordanian (local) company that is prohibited from carrying out any operations in Jordan. Because of this, an Exempt Company is similarly granted various tax exemptions and privileges under the Jordanian Companies Law. It should be noted that differing corporate forms are available for the incorporation of an Exempt Company.</li>\r\n</ul>\r\n<strong>Labour Law</strong>\r\n\r\nThe Jordanian Labour Law has undergone various amendments in recent years, all aimed towards enhancing the protection afforded to employees in Jordan. Some of the more recent changes to the Jordanian Labour Law and related regulations include increases to the minimum wage of employees, entitling all employees (not covered by Social Security) to end-of-service remuneration irrespective of the reason for terminating their employment contracts, and introducing changes in connection with Collective Labour Contracts and the formation and operation of Trade Unions.\r\n\r\nFurther, under the amended Labour Law, public holidays, religious holidays and weekends are not to be calculated as part of the employee’s annual leave, even in situations where they fall within the leave period. Also, in connection with sick leave entitlements, an employee is entitled to an additional 14 days full-pay leave (previously, 14 days half-pay leave) on the basis of a report from an accredited medical commission, even if the employee is not hospitalized.\r\n\r\nOther changes to the employment environment have also been advocated by the Jordanian Court of Cassation. These include a recent judgment by the Court annulling the inclusion of an arbitration clause under an employment contract on the basis that such matters fall within the jurisdiction of Jordanian courts, and with regard to the fact that arbitral proceedings are generally considered more burdensome and costly for employees.\r\n\r\n<strong>Looking Ahead: Other Developments </strong>\r\n\r\nThe changes introduced in connection with each of the above sectors should not be viewed as comprehensive, but rather as a brief snapshot of the vast changes that have taken place over the past 25 years. Significant developments have also been made to the Jordanian Banking &amp; Finance Sectors, the Securities Market, the Jordanian Tax Regime, and the Jordanian Property Market to name but a few. These changes have, in conjunction, had a significant impact in shaping and enhancing Jordan’s legal framework in line with investor expectations, technological developments, and global trends.\r\n\r\nFuture changes have also come in the form of a greater appreciation of corporate governance initiatives, particularly amongst banks and listed companies. The Jordanian Central Bank has issued the Corporate Governance Instructions for Banks No. 58 of 2014 and the Corporate Governance for Islamic Banks Instructions No. 61 of 2015 which oblige conventional and Islamic banks respectively to comply with the corporate governance controls provided therein. Similarly, the Jordanian Securities Commission has introduced a non-binding Jordanian Corporate Governance Code for (a) listed Public Shareholding Companies, (b) Private Shareholding Companies, Limited Liability Companies, and Non Listed Public Shareholding Companies, and (c) Insurance Companies respectively.\r\n\r\nMoving forward, these changes and improvements will continue to mold and shape Jordan’s future, paving the way for continued advancement and development.'),
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	(204176,5394,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Hamid Mojtahedi'),
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	(99312,5395,'content','May 2016\r\n\r\n<hr />\r\n\r\nWith the fifth batch of recruits now being called for service, this article looks to remind employers of their obligations in relation to employees who have been called to serve and recent changes which have been introduced.\r\n\r\n<strong>By way of recap...</strong>\r\n\r\nThe Law applies only to UAE nationals and is mandatory for males who meet the criteria set out below, but optional for females provided that permission from their parents is obtained. The criteria are that the individual must:\r\n<ul>\r\n 	<li>be between 18 and 30 years old;</li>\r\n 	<li>be medically fit; and</li>\r\n 	<li>have obtained approval from the UAE National and Reserve Service Committee (“NRSC”) to serve.</li>\r\n</ul>\r\nAny individual with a UAE family book and who falls within the above criteria has to register for national service. There are however some exemptions (permanent and temporary) permitted by the Law.  The Law provides that the only son of a family, and individuals who are medically unfit, receive a permanent exemption from national service. Temporary exemptions apply in respect of those who are the sole providers for their families and also for those serving jail terms.\r\n\r\nNational service is also postponed for students until they obtain the relevant qualification, on the basis that they are less than 29 years old and have obtained a high school diploma with an average grade of at least 90%, or 18 years old and still attending secondary school.\r\n\r\nWith regard to length of service, under the Law, recruits who have completed a high school diploma are required to serve nine months, while those who have not are required to serve two years. Women who volunteer are required to serve nine months, regardless of their education level. There has been a recent change to the length of service however which we have commented on further below.\r\n\r\nEmployer’s obligations – A reminder\r\n\r\nThere has recently been an increasing number of complaints made to the NRSC about employers who have denied promotions, salary increases and other benefits to employees away on national service. Subsequently, a number of employers have been issued with warnings by the NRSC to ensure that they do not discriminate against any employees who have been called to carry out national service. Importantly, the NRSC has also specifically warned that any employers who do so are acting in breach of the Law and may risk prosecution.\r\n\r\nIt is, therefore, important for employers to be aware of and act in accordance with their obligations in relation to employees within their organisations who are called to carry out national service.\r\n\r\nThe key considerations for a private sector employer in relation to an employee carrying out national service are as follows:\r\n<ul>\r\n 	<li>The service period must be taken into account for all employment benefits including, seniority, promotions and salary increases, retirement benefits and pension;</li>\r\n 	<li>The individual has the right to return to the same role or an equivalent role following completion of the service (thus their job has to be reserved until they complete their service);</li>\r\n 	<li>The individual must continue to receive their salary, bonus, allowances, promotions and/or raises during the service term, 50% of which is paid by the UAE Armed Forces and 50% by the employer; and</li>\r\n 	<li>For the purposes of calculating any retirement benefits or pension, the service term must be taken into account when calculating continuous employment with the employer.</li>\r\n</ul>\r\nFinally, it should be noted, and is important for employers to bear in mind, that once an individual has completed national service, he or she becomes part of the reserved forces and can be called up for further service or training. The same obligations on employers as set out above shall apply in relation to employees who are called for further service or training.\r\n\r\n<strong>New changes and initiatives introduced </strong>\r\n\r\nRecent increase to length of national service\r\n\r\nOn 7 March 2016, a resolution was announced by the NRSC which extends the current length of national service from nine months to twelve months. The change applies to both male and female UAE nationals who have a high school diploma or higher. Those who do not have a high school diploma are still required to serve for a minimum of two years. This change may have an impact, albeit not significant, on an employer’s workforce planning as employees who are called to serve now shall be absent from the workplace for a slightly longer period than previously.\r\n\r\nNew initiative of national service being opened up to older recruits\r\n\r\nOn 15 March 2016, the NRSC announced that it would receive applications from older recruits of both sexes aged between 30 and 40. Since the announcement, hundreds of Emirati men in the above-mentioned age bracket have queued at the NRSC’s recruitment camps in order to register for voluntary national service.\r\n\r\nEach applicant will be required to undergo various medical fitness tests before their application is accepted. With regard to the length of service for older recruits, it should be noted that, in comparison with younger recruits who are now required to carry out twelve months of mandatory national service, the older recruits will have to complete fifteen weeks of voluntary national service only. As a result of the new initiative to invite older recruits for voluntary service, employers should consider how this may impact their workforce in that now a larger number of employees than previously may be out of the workplace at any given time completing either mandatory or voluntary national service.\r\n\r\n<strong>Conclusion </strong>\r\n\r\nIt is important that employers seek to remind themselves of their obligations in relation to employees who have been called for national service and ensure that they comply with such obligations as failure to do so may amount to a breach of the Law for which there could be serious repercussions including the risk of prosecution as warned by the NRSC. As a result of the new changes and initiatives introduced, employers should take note that employees who are called to serve now will be absent from the workplace for a slightly longer period than previously and a larger number of employees than previously may be out of the workplace at any given time carrying out national service.'),
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	(99297,5394,'content','May 2016\r\n\r\n<hr />\r\n\r\nThis articles sets out a high level review of the legislation governing the existing banking system in Iran and options available to international institutions looking to undertake financial activities in or with Iran.\r\n\r\nThe legal system in Iran is a civil law based system which incorporates, where applicable, the principles of Islamic laws and jurisprudence.\r\n\r\n<strong>The Regulator</strong>\r\n\r\nAt present, there are no fully licensed foreign banks in Iran. Many banks in Iran are Iranian government owned, while the rest are private Iranian banks. The Monetary and Banking Law of Iran issued on 9 July 1972 provides that the Central Bank of Iran is responsible for the formulation and implementation of monetary and credit policies with due regard to the general economic policy of the country. Among other things, the Central Bank is responsible for the supervision of banks and credit institutions in accordance with the Monetary and Banking Law.\r\n\r\nThe Central Bank’s scope of authority both in the Monetary and Banking Law and in the Banking and Monetary Act of Iran issued on 27 May 1960 is subject, in many cases, to the supervision and approval of the Currency and Credit Council. The Council’s duties, amongst other things, are to:\r\n<ul>\r\n 	<li>cooperate with the governor of the Central Bank in the general management of the Central Bank;</li>\r\n 	<li>direct and supervise all banking affairs, as provided in the Banking and Monetary Act;</li>\r\n 	<li>define what constitutes banking operations; and</li>\r\n 	<li>approve the granting of banking licences on a case by case basis.</li>\r\n</ul>\r\nIn the discharge of its duties, the Council may demand any information from, or issue any directive to, banks operating in Iran. As per the Banking and Monetary Act, all banks operating in Iran are under the obligation to implement the Council’s directives. There are, however, a few exceptions to this obligation, mostly in relation to the Council’s competence to request personal information pertaining to customers.\r\n\r\nAs a general observation, there is an overlap between the scope of competence of the Central Bank and the Council in some areas. It is well established, however, that the Council is the highest policymaking body of the Central Bank.\r\n\r\n<strong>Islamic Banking</strong>\r\n\r\nThe Law for Usury (Interest) Free Banking, as approved by the Council of Protectors in September 1983, includes a number of objectives and duties applicable to the banking system in Iran, including adherence to Islamic jurisprudence and interest free lending. This applies to all forms of lending, regardless of the currency in which the loan is made. The Regulations on Monetary and Banking Operations in Free Trade – Industrial Zone of the Islamic Republic of Iran contain an exception to this prohibition on interest, whereby foreign currency transactions conducted from within a free zone are exempt from implementing the Islamic banking system. It remains unclear, however, whether this exemption is consistently applied in practice.\r\n\r\nThe Law for Usury (Interest) Free Banking also empowers the Central Bank to intervene in, and supervise, the monetary and banking activities in Iran through the following mechanisms:\r\n<ul>\r\n 	<li>Fixing a minimum or maximum ratio of profit for banks in their joint venture and Modarabah activities (these ratios may vary for different fields of activity).</li>\r\n 	<li>Designation of various fields for investment and partnership within the framework of the approved economic policies, and the fixing of a minimum prospective rate of profit for the various investment and partnership projects. The minimum prospective rate of profit may vary with respect to different branches of activity.</li>\r\n 	<li>Fixing a minimum and maximum margin of profit, proportionate to the cost price of the goods transacted, for banks in installment and hire-purchase transactions.</li>\r\n 	<li>Determination of the types, and the minimum and maximum amounts, of commissions for banking services and the fees charged for putting to use the deposits received by banks.</li>\r\n 	<li>Determination of the minimum and maximum ratios in joint venture, Modarabah, investment, hire-purchase, installment transactions, buying or selling on credit, forward deals, and customer deposits with respect to various fields of activity, and fixing the maximum facility that can be granted to each customer.</li>\r\n</ul>\r\n&nbsp;\r\n\r\n<strong>Licensing and Cross-border Lending</strong>\r\n\r\nThe Banking and Monetary Act provides that: “Engagement in banking operations is prohibited, except with the permission of the Currency and Credit Council. The articles of association of banks also must be approved by the Currency and Credit Council...”. The banking legislation in Iran is however silent about what constitutes “banking operations”, which can make it difficult to identify its scope and reach.\r\n\r\nThe legislation does however make it clear that, at the time of applying for a licence, an applicant foreign bank must formally include the proposed activities for its entity in Iran, which shall be assessed and decided on a case by case basis by the Council in line with the provisions of the Banking and Monetary Act. For the purposes of the Banking and Monetary Act, a bank shall be considered a “foreign bank” if more than 40% of its capital is owned by non-Iranian individuals or entities. Although the Banking and Monetary Act distinguishes between domestic and foreign banks based on the percentage of foreign or domestic ownership, the regime governing foreign and domestic banks under the Iranian banking legislation seems to be substantially similar. The Council is given absolute discretion to approve the permitted activities for each applicant bank on a case by case basis.\r\n\r\nAll financial institutions in Iran, including foreign banks established in Iran, branches, and representative offices, may not engage in any banking activities or ancillary services (including marketing and cross-border marketing activities) without express approval and licences from the Council and the Central Bank, respectively. Contacting a customer for general relationship management purposes including socialising, discussing general economic trends, general education about financial services, and generally responding to customers, including other modes of marketing, also requires the approval of the Council and the Central Bank. It should be noted that the establishment and permitted activities of a foreign financial institution registered within any of Iran’s free zones would also be subject to the relevant laws and regulations governing the operations of entities in the relevant free zone.\r\n\r\nIn terms of the different forms of on ground presence available in Iran, the Monetary and Banking Law provides that domestic and foreign banks (as defined above) may only take the form of public joint stock companies. With regard to the establishment of a branch in Iran, the Procedural Regulations for the Establishment, Operation, Supervision, and Winding Up Of Branches of Foreign Banks in Iran issued in July 2011 permits the establishment of branches. As for the establishment of a representative offices or any other alternative form of presence, the Monetary and Banking Law is silent and, in essence, provides the Council with an absolute discretion to approve any proposal or application submitted to it. All activities to be undertaken by such entities (including branches and representative offices) must be disclosed to the Council at the time of submission of application for licensing and the Council has discretion to consider and grant the right on a case by case basis.\r\n\r\nIranian banking legislation is silent with regard to cross-border lending, i.e. lending to Iranian companies from outside Iran. It is also silent on the permissibility of a bank taking security in Iran without establishing a presence in Iran. To date, it is our understanding that Iranian applicants wishing to avail a loan from outside Iran are required to declare the loan to the Ministry of Finance in Iran, which assesses the reasons for the loan and grants its approval accordingly. Failure to obtain such approval may lead to sanctions by the relevant authorities, which may include freezing of the borrower’s account and restrictions on remitting the repayment instalments outside of Iran. In terms of security agency arrangements, cross-border loans were commonly secured through the issuance of an Iranian bank guarantee issued at the request of the Iranian loan applicant and presented to the lending bank as a “security” for the cross-border loan. We understand that this practice has been banned by the Central Bank for some time.\r\n\r\nIt is too early to assess the degree to which Iran will reform, or the speed at which it will reform, its banking and finance related legislation and framework following years of isolation. Issues of sanctions and limitations on US dollar transactions will also continue to be inhibiting factors to some financial institutions. However, progress has started with the recent reconnection of Iranian banks to SWIFT. Also, with an economy full of opportunities and as one of the world’s largest Islamic financial systems, Iran is clearly a jurisdiction which many financial institutions will be eager to explore, whether through establishing an on the ground presence or on a cross-border basis.'),
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	(99296,5393,'_yoast_wpseo_metadesc','The new UAE Commercial Companies Law (Federal Law No. 2 of 2015) (“CCL”) came into effect on 1 July 2015 and we reported on the principal amendments made by the CCL in our June/July 2015 edition of Law Update.'),
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	(99282,5393,'content_description','The new UAE Commercial Companies Law (Federal Law No. 2 of 2015) (“CCL”) came into effect on 1 July 2015 and we reported on the principal amendments made by the CCL in our June/July 2015 edition of Law Update. '),
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	(99284,5393,'pageSummary','The new UAE Commercial Companies Law (Federal Law No. 2 of 2015) (“CCL”) came into effect on 1 July 2015 and we reported on the principal amendments made by the CCL in our June/July 2015 edition of Law Update.'),
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	(99277,5392,'_yoast_wpseo_metadesc','A development company has engaged a contractor under a minimally-amended FIDIC construction contract on a time-sensitive project for the construction of a number of villas.'),
	(99278,5393,'content','May 2016\r\n\r\n<hr />\r\n\r\nThe following is a snapshot of the key developments brought about by the CCL in relation to LLCs:\r\n<ul>\r\n 	<li>The pre-emption process remains the same save that in the event of a dispute as to price, the price will be determined by financial experts appointed by DED, rather than the company’s auditor.</li>\r\n 	<li>As an exception to the minimum two shareholder rule for LLCs, the CCL permits an Emirati natural or legal entity to incorporate a single person LLC.</li>\r\n 	<li>Ordinary shareholder resolutions shall not be valid unless passed by a majority of the partners present in person (or represented) unless the MOA provides for a higher majority (previously it was absolute majority of shareholdings present).</li>\r\n</ul>\r\n<strong>The CCL removed the cap on the number of managers (previously 5)  </strong>\r\n\r\nNotices to general assemblies can now be sent on 15 days notice or such shorter notice period as the shareholders agree and in addition, the CCL permits notices to be sent by whichever means of communication shareholders agree on, including email.  Under the old law, notices had to be sent by registered mail.\r\n\r\nThe quorum for general assemblies has been raised to 75% of share capital from 50% previously.\r\n\r\nThe process relating to reconvening of inquorate meetings has been shortened such that inquorate general assemblies shall be reconvened within 14 days of the date of the first meeting and the quorum at the reconvened meeting shall be presence of shareholders representing 50% of the company’s share capital.  In the event the second meeting is inquorate, the meeting shall be adjourned to a date that is at least 30 days after the second reconvened meeting and such third reconvened meeting shall be quorate provided one shareholder attends.\r\n\r\nUnder the CCL, shares in an LLC may be pledged and the pledge can be registered in the Commercial Register.  LLCs should anticipate that lenders may now require a pledge of shares as part of their security package and both lenders and borrowers alike should review existing powers of attorney and authorisations to ensure that they cover entry into and registration of share pledges\r\n\r\nThe CCL provides that the provisions relating to joint stock companies will apply to LLCs, unless otherwise stated; however, to apply this indiscriminately is an unsound approach given the technical differences in the form of these entities and the disparate objectives for which each is usually employed\r\n\r\nOf critical importance is that fact that if a company does not comply with the new law by 1 July 2016, it will be deemed dissolved (Article 374). This is taken to mean that an LLC will need to have made necessary amendments to its Memorandum of Association to ensure compliance to continue to exist. In addition, Article 357 provides that a fine of AED 2000 per day of delay will be imposed on any company that fails to amend its Memorandum of Association and Articles of Association to be compliant with the provisions of the Law.\r\n\r\nThe matters that may require consideration and amendment in an LLC’s memorandum of association are set out in the table below.\r\n<div>\r\n<table class=\"MsoTableGrid\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td valign=\"top\" width=\"231\">Mandatory changes</td>\r\n<td valign=\"top\" width=\"243\">Optional changes</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"231\"><em>Quorum:</em> The CCL sets the quorum for the general assembly at shareholders representing 75% of the share capital of the LLC, as opposed to the previous threshold of 50%. Where the 75% quorum is not met at the first meeting, the meeting shall be adjourned and a second meeting will be held where the required quorum will be 50%.  In the event such 50% quorum is not met at the second meeting, a third meeting shall be held where the quorum shall be valid irrespective of the shareholders present at the meeting.\r\n\r\nIn the event the company’s MOA stipulates a 50% quorum threshold for the first called general assembly, this will need to be amended to reflect the new position under the CCL.</td>\r\n<td valign=\"top\" width=\"243\"><em>Notice period:</em> Shareholders now have the option to reduce the previous 21 day notice period for general meetings to 15 days or such shorter notice period as agreed between the shareholders <em> </em></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"231\"><em>Right of first refusal:</em> The selling shareholder must provide in its pre-emption notice to the continuing shareholders the name of the proposed purchaser in addition to the terms of sale, such as price. On a dispute as to price, the old law provided that the company’s auditor would adjudicate on price.  The new CCL requires value to be determined by a DED appointed financial expert.</td>\r\n<td valign=\"top\" width=\"243\"><em>Notice of meetings</em> The CCL permits invitations to general assemblies to be sent by any means of communication that the shareholders agree upon, as opposed to the previous position which required registered mail.  This means that the MOA could be amended to permit email communications</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"231\"><em>Financial:</em> The CCL requires LLCs to use International Accounting Standards and this should be reflected in the MOA. The CCL requires that the MOA stipulate the commencement and expiry date of the fiscal year</td>\r\n<td valign=\"top\" width=\"243\"><em>Dismissal of manager:</em> The new CCL provides for the dismissal of managers by way of an ordinary resolution at a general meeting as opposed to the previous position under the old law requiring a special resolution if the MOA permitted dismissal of the manager, or unanimous resolution if the MOA was silent. In light of the fact that the manager can now be dismissed by an ordinary resolution, companies should consider including a higher threshold in their MOAs.</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n</div>\r\n<div>\r\n<table class=\"MsoTableGrid\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td valign=\"top\" width=\"231\">\r\n<p class=\"MsoNormal\"><em>Shareholder details:</em></p>\r\n<p class=\"MsoNormal\">The name, nationality, date of birth and domicile of each shareholder must be provided in the MOA.</p>\r\n<p class=\"MsoNormal\">If the managers/directors are named in the MOA, their full names, nationalities, places of residence and powers.</p>\r\n</td>\r\n<td valign=\"top\" width=\"243\">\r\n<p class=\"MsoNormal\"><em>Share pledges:</em></p>\r\n<p class=\"MsoNormal\">Since the new CCL provides for shares to be pledged in accordance with the CCL and the company’s MOA, shareholders are advised to consider whether to detail the terms upon which shares may be pledged in the MOA</p>\r\n<p class=\"MsoNormal\"></p>\r\n</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"231\">\r\n<p class=\"MsoNormal\"><em>Branches:</em></p>\r\n<p class=\"MsoNormal\">In addition to the head office, the MOA must also now list any branches that the company has (if any).</p>\r\n</td>\r\n<td valign=\"top\" width=\"243\"></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"231\">\r\n<p class=\"MsoNormal\"><em>References:</em></p>\r\n<p class=\"MsoNormal\">Any references to the old companies law in the MOA should be updated to refer to the applicable provisions contained in the CCL.</p>\r\n</td>\r\n<td valign=\"top\" width=\"243\"></td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n</div>\r\n<p class=\"MsoNormal\">Once consideration has been given to the amendments to be made to a company’s constitutional documents, the new memorandum and/or articles of association need to be drafted and executed by the shareholders before the notary public.</p>\r\n<p class=\"MsoNormal\">As explained above, if a company fails to make the necessary changes in order to comply with the CCL, the company will be deemed to be dissolved. Other than the obvious consequences of a dissolution, this could also potentially mean that since the company would no longer exist, the officers of the company, being the manager and/or directors, could be held personally liable for any liabilities of the company.  This is in addition to the daily fine of AED 2,000 per day potentially being imposed on the company.  Given these consequences and the fact that the clock is ticking, companies would be well advised to review their constitutional documents and make the necessary changes as soon as possible.</p>\r\n<p class=\"MsoNormal\"><em>With contributions from Omer Khan, Partner, Corporate Structuring</em></p>'),
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	(99240,5391,'content_description','Private Home Owners and Authorised Tenants can now Apply Directly for a License to Operate a Holiday Home'),
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	(99242,5391,'pageSummary','Private Home Owners and Authorised Tenants can now Apply Directly for a License to Operate a Holiday Home'),
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	(99251,5392,'content','May 2016\r\n\r\n<hr />\r\n\r\nIt has sold all of the villas off plan, and the purchase and sale agreements contain a fixed date for handover.  If the development company fails to handover the villas on the specified date, it will be in breach of the purchase and sale agreements and liable to the owners for damages and may lose the agreements should the buyers elect to terminate the purchase and sale agreements.  The contractor completes 75% of the work but begins experiencing cash flow problems and, as a result, slows its performance.  60 days prior to the handover date, it becomes clear that the contractor will be unable to meet the deadlines.  The development company reviews the FIDIC contract and wants to know what its options are, if any, to achieve a commercial outcome without loss of reputation and money.\r\n\r\n<strong>What can the development company do?</strong>\r\n\r\nUnder an un-amended FIDIC contract the development company will have limited options to ensure it meets the fixed handover date or to limit its liability. The FIDIC contract lacks sufficient rights and powers for employers who need to manage time-sensitive projects where the contractor is in delay.\r\n\r\nAssuming the delay to the programme is for a cause for which the contractor is not entitled to an extension to the Time for Completion, the engineer may instruct the contractor to accelerate its performance at the contractor’s own cost under clause 8.6. However, the contractor may not be in a position to accelerate its efforts especially where it is experiencing cash flow issues or has an insufficient workforce. Other than termination, the FIDIC contract does not provide for any sanctions to be imposed in instances where the contractor fails or refuses to accelerate after receiving instructions to do so. Termination of the contract may not be a solution as there will be delays in obtaining the necessary permits to complete the project and to have another contractor on site to carry out the work.\r\n\r\nIf the contractor’s delay continues and the employer misses the Time for Completion, the FIDIC contract at clause 8.7 entitles the employer to levy delay damages on the contractor for each day of delay after the stipulated Time for Completion until actual completion. The delay damages may allow the employer to mitigate any damage it may be liable to pay under other contracts however the FIDIC contract normally caps the delay damages that may be imposed on a contractor to a percentage of the contract price. This may still leave the employer exposed to liability while  the work also remains incomplete. In the scenario above, the development company may be exposed to a much higher liability under the purchase and sale agreements than the total delay damages for which the contractor is liable under the construction contract.\r\n\r\nThe FIDIC general conditions allow the employer to step in to complete the works at the contractor’s cost only where the works are defective or if the contractor fails to rectify defective works during the defects liability period. Notably, the contract is silent as to the employer stepping in to complete the works where the contractor is delayed in performance.  Any attempt by the employer to forcefully step in during a delay may have legal and criminal ramifications if the contractor resists the employer’s actions, and the employer resorts to force to enter the site.\r\n\r\nThe employer may issue a notice to correct and require the contractor correct the delay, failing which, the employer may terminate the contract for default. If the FIDIC contract has not been amended to include the proper references to the federal law, there is a further complication as the employer must obtain an order from a court or arbitral tribunal granting termination to lawfully terminate the contract in the UAE. In a worst case scenario, the contractor may claim it is owed money and exercise its rights at law to retain possession of the site preventing further work on the project until the decision in the arbitration is handed down several years later.\r\n\r\nThe employer may also consider initiating the dispute resolution process under the FIDIC contract however the processes in both the FIDIC 1987 and the 1999 construction contracts are protracted and require a determination by the engineer or the dispute adjudication board (which must be first appointed) to settle the dispute. These determinations may be challenged by either party and the parties must then commence arbitration to finally settle any disputes.\r\n\r\nThese mechanisms in the FIDIC contracts do not assist the time sensitive project, which could also include buildings with leases that are commencing, projects seeking to achieve a start date to make best use of the tourist season or landmark projects with announced completion times.\r\n\r\nThe employer with a time sensitive project should consider amending the FIDIC general conditions to add extra rights and powers to assist with managing the project. These amendments could include:\r\n<ul>\r\n 	<li>Limiting the reasons for which an extension to the Time for Completion could be granted and not capping damages;</li>\r\n 	<li>Including a bonus for the contractor if it completes early or on time;</li>\r\n 	<li>The right to direct the contractor to accelerate the work for any reason and at any time. This right could be where the project is on time or where there is an employer delay (for which the employer will pay the acceleration costs);</li>\r\n 	<li>An obligation on the contractor to provide more regular and detailed progress reports so that the employer is kept informed of progress and possible delays;</li>\r\n 	<li>A right to not just terminate, but to step in and take over work, or any part of the works, where work is behind schedule;</li>\r\n 	<li>Requiring the contractor to include provision in all subcontracts and supply agreements for the contracts and agreements to be novated to the employer, or employer’s nominee, where the employer exercises a right to step-in; and</li>\r\n 	<li>Managing the UAE law provisions concerning ability to terminate the contract and the contractor’s right to retain possession of the site.</li>\r\n</ul>\r\nWith the FIDIC contracts being widely used, it is a misconception that the contracts are suitable for and provide contractual parties sufficient coverage in terms of liability. For time sensitive projects  special consideration is required to ensure that your rights as an employer are better protected.\r\n\r\nAny changes need to be carefully drafted to ensure that the right outcome is achieved and that the terms are commercially acceptable. Our construction and infrastructure team at Al Tamimi can assist you manage these risks.'),
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	(99255,5392,'content_description','A development company has engaged a contractor under a minimally-amended FIDIC construction contract on a time-sensitive project for the construction of a number of villas. '),
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	(99257,5392,'pageSummary','A development company has engaged a contractor under a minimally-amended FIDIC construction contract on a time-sensitive project for the construction of a number of villas.'),
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	(99259,5392,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/may-9/when-the-clock-is-ticking-and-the-contractor-is-in-delay-what-can-you-do.html'),
	(99236,5391,'content','May 2016\r\n\r\n<hr />\r\n\r\nOn 29 April 2016, Dubai’s Department of Tourism and Commerce Marketing (‘DTCM’) announced that it has updated its regulations in respect of holiday homes. The new regulation now allows private home owners and tenants to apply for a holiday home license without the need to appoint an operator approved for this purpose by the DTCM. In relation to tenants however, the DTCM will require a no objection certificate from their landlord.\r\n\r\nBefore the new regulation came into effect, the rental and operation of holiday homes was an activity restricted under Decree concerning the Regulation of the Holiday Homes Rental Market in Dubai (No. 41 of 2013) to operators licensed by the DTCM, who must adhere to particular licensing requirements imposed by the DTCM, including but not limited to, the requirement of managing a portfolio of no less than 20 holiday homes. It is expected that, by allowing private home owners and authorised tenants to bypass the operator’s detailed licensing requirements and to directly obtain a license in their own name for the purpose of leasing their properties as a holiday home, the overall offering of holiday homes in the Emirate will increase, which in its turn will help in improving the market competitiveness with regard to this particular sector.\r\n\r\nThe DTCM has also upgraded its official web portal to allow for holiday homes’ applications to be submitted by home owners and authorised tenants online and, while payment of the license fees currently requires physical attendance of the applicant before the DTCM, it is expected that the DTCM will soon launch an e-commerce system to cater for the online payment of such fees.\r\n\r\nIt is important to note that the new regulation does not exempt, or even partially relieve, private home owners and authorised tenants from the requirements set out by the DTCM in relation to the property leased as a holiday home. Therefore, subject to classification of the holiday home as standard or deluxe, the requirements currently applicable vis-à-vis the property and related to quality standards, amenities, health and safety, insurance and other operational aspects must be observed at all times by the home owner or authorised tenant. The DTCM will regularly inspect holiday homes and it is expected private home owners and authorised tenants will, much like the licensed operators, be exposed to the same fees and fines set out in Resolution on Holiday Homes’ Fees and Fines (No. 49 of 2015) in the event of failure to comply with the requirements of the DTCM. For more information regarding the fines, please refer to our article ‘Regulation of Hotel Establishments and Holiday Homes: New Fees and Fines’.\r\n\r\nThe short term leasing of a property as a holiday home remains outside the scope of the Law Regulating Relationship Between Landlords and Tenants in the Emirate of Dubai (No. 26 of 2007 as amended by Law No. 33 of 2008). As such, the holiday home accommodation agreement between private home owners or authorised tenants on the one hand, and their guests on the other, cannot be registered on the Ejari system and the guests cannot avail themselves of the rights and remedies provided under such tenancy law (renewal of term, family visa, etc).\r\n\r\nFinally, we highlight that the license granted by the DTCM to private home owners and authorised tenants allows them to only operate the specific property that is subject to their ownership or tenancy as the case may be. That license may not be extended to include their management of other properties as holiday homes, such comprehensive management activity being restricted to licensed operators.'),
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	(99215,5390,'content_description','In a court judgment handed down in March 2016 by the Abu Dhabi Court of First Instance, Al Tamimi successfully defended an international airline in a claim for ‘Diya’ (or ‘Blood Money’) and compensation for the heirs of a passenger who died due to a heart attack on board an aircraft. '),
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	(99217,5390,'pageSummary','In a court judgment handed down in March 2016 by the Abu Dhabi Court of First Instance, Al Tamimi successfully defended an international airline in a claim for ‘Diya’ (or ‘Blood Money’) and compensation for the heirs of a passenger who died due to a heart attack on board an aircraft.'),
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	(99200,5389,'content_description','Many expatriates living in the UAE are unaware that in the absence of a Will, recognised by the UAE legal system, the process of transferring their assets after death can be time consuming, costly and fraught with legal complexity.'),
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	(99202,5389,'pageSummary','Many expatriates living in the UAE are unaware that in the absence of a Will, recognised by the UAE legal system, the process of transferring their assets after death can be time consuming, costly and fraught with legal complexity.'),
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	(99210,5389,'_yoast_wpseo_metadesc','Many expatriates living in the UAE are unaware that in the absence of a Will, recognised by the UAE legal system, the process of transferring their assets after death can be time consuming, costly and fraught with legal complexity.'),
	(99211,5390,'content','May 2016\r\n\r\n<hr />\r\n\r\nAmongst several factual issues determined by the Court, aviation law concepts such as the definition of ‘accident’, ‘death’, ‘bodily injury’ were dealt with, as well as liability of an airline generally and liability pursuant to the UAE Federal Law No.17 of 1991 (‘For Determining the Legitimate Ransom Amount For the Unintentional Death of a Person’) and the UAE Federal Law Mo.9 of 2005 (Amending the Diya Payable for Wrongful Death) (together the ‘UAE Blood Money Law’). The case highlights the importance of having a comprehensive understanding of international air law concepts, and an understanding of the particular nuances in UAE jurisprudence and law in dealing with claims for death or bodily injury.\r\n\r\n<strong>Montreal Convention</strong>\r\n\r\nThe UAE is a signatory to the Montreal Convention 1999  (the ‘Convention’), which in turn is enacted within the UAE by UAE Federal Decree No. 13 of 2000 (‘Ratifying the Convention for the Unification of Certain Rules for International Carriage by Air (Montreal Convention 1999)’). It has been in force in the UAE since 4 November 2003. The Convention applies to all cases of international carriage of persons, baggage or cargo performed by an aircraft for reward, with carriage having its origin and destination in two different contracting states, or a single state with round trip carriage with an agreed stopping place in another state. In the case of accidents, bodily injury or death on an aircraft, the relevant provision which must be considered is Article 17 of the Convention which provides that ‘the carrier is liable for damage sustained in case of death or bodily injury of a passenger upon condition only that the accident which caused the death or injury took place on board the aircraft or in the course of any of the operations of embarking or disembarking’ (emphasis added).\r\n\r\nThe particular wording of Article 17 has given rise to a great deal of litigation and case law worldwide and much of this case law is focused on the definition of ‘accident’ and what is meant by ‘bodily injury’.\r\n\r\nThere may be many occurrences or events on board aircraft which are not an ‘accident’ for the purposes of the Convention. If one takes the recent example dealt with by Al Tamimi in the Abu Dhabi Court of First Instance, a passenger suffering a heart attack on board an aircraft is not an ‘accident’ for the purposes of Article 17.\r\n\r\nThere is a wide body of international case law dealing with Article 17 interpretation of accident both under the Convention (and its predecessor the Warsaw Convention of 1929). In the United States in the case of Air France v Saks  the US Supreme Court denied recovery to a passenger who suffered deafness as a result of aircraft depressurization, which was a perfectly normal consequence of the normal operation of an aircraft in its landing descent. The Court found that the passenger’s injury to the inner ear was caused by the passenger’s own inner ear and sinus problems specific to their own body, rather than by anything ‘unusual or unexpected’ about the operation of the flight. The US Supreme Court concluded that an accident under Article 17 arises only if the passenger’s injury is caused by an unexpected or unusual event or happening which is external to the passenger.\r\n\r\nIn Kyrs v Lufthansa , a passenger suffered a heart attack on a transatlantic flight from Miami to Frankfurt and commenced proceedings against Lufthansa for aggravating the damage to the passenger’s heart by not landing the aircraft so that the passenger could immediately go to hospital, before it was scheduled to arrive in Frankfurt. The US Court of Appeal concluded that the aggravation injury was not caused by an unusual or unexpected event or happening that is external to the Plaintiff, and so did not constitute an accident within the meaning of the (Warsaw) Convention.\r\n\r\nIn the United Kingdom, the House of Lords case of In re Deep Vein Thrombosis v Air Travel Group Litigation  dealt with a class action by 55 claimants against 27 airlines alleging that passengers who had suffered from Deep Vein Thrombosis (‘DVT’) (which was then commonly known as ‘Economy Class Syndrome’), were entitled to compensation under Article 17. The allegation was that passengers sitting in a cramped position for long periods of time caused the formation of blood clots in the body which could cause a stroke or heart attack, paralysis or death. The House of Lords held that DVT and related illnesses such as thrombosis and embolisms are not accidents within the meaning of Article 17 of the Convention. The failure to warn of the risk of DVT is not an accident either.\r\n\r\nIn Ford v Malaysian Airlines System Berhard  it was held that the administration of an injection by a medically qualified person to treat another passenger, which seemed to worsen the passenger’s condition rather than improve it, was not an accident. This action was not part of the usual, normal, and expected operation of the aircraft as per Saks v Air France, but the administration of an injection by a doctor in the hope and expectation that it would relieve the condition complained of, was a usual and expected event and therefore did not constitute an accident.\r\n\r\nIn Singh v Caribbean Airlines Limited,  it was held that as long as the crew did not depart from the airline’s policies and procedures in responding to a medically ill passenger, there was no accident. In Safa v Lufthansa  the crew’s response to an immediate medical issue largely followed the airline’s policies and procedures, and again there was no accident.\r\n\r\nNevertheless there are cases where there can be recovery under Article 17. In Olympic Airways v Hussain , the US Supreme Court again considered the definition of ‘accident’ from Air France v Saks, which was that liability arises only if the passenger’s injury is caused by an unexpected or unusual event or happening that is external to the passenger. In the Olympic case the passenger had died on board the flight because he was allergic to second hand cigarette smoke. His wife had asked the flight attendant to move him to a seat further away from the cigarette smoke and the flight attendant had falsely informed her that there were no vacant seats. The Court held that any change in the causal link had to be an unexpected or unusual event or happening that is external to the passenger, and the flight attendant’s failure to lend assistance to such an event constituted an accident. It is worth noting that in the same case, in a dissenting judgment denying the claim, Justice Scalia followed case law from Australia and United Kingdom which held that inaction cannot be an event, and instead was a non-event, and therefore not an accident under Article 17.\r\n\r\nAnother issue under Article 17 is whether psychological damage can be recoverable in addition to ‘bodily injury’. The US Supreme Court, in Eastern Airline v Floyd,  concluded that recovery under Article 17 of the (Warsaw) Convention required either ‘death’ or ‘bodily injury’ and emotional damage alone would not suffice even though this was a case in which the flight lost power in all three engines and was preparing to ditch the aircraft in the ocean whereupon one of the engines restarted and the plane landed safely. The Court concluded that an air carrier cannot be held liable under Article 17 when an accident does not cause a passenger to suffer death, physical injury, or physical manifestation of injury.\r\n\r\nIn the UK, the House of Lords decision of Morris v KLM Royal Dutch Airlines  addressed the issue of whether a 16 year old girl could recover damages under Article 17 for clinical depression suffered after another passenger sexually assaulted her aboard a flight from Kuala Lumpur to Amsterdam. It was concluded that Article 17 does not allow a person to recover for emotional damage.\r\n\r\nAs can be seen from above, the concepts of accident, bodily injury and the wording of Article 17 does give rise to a great deal of case law worldwide. In the UAE matter dealt with by Al Tamimi, Convention cases and concepts were highly relevant as were the bespoke issues of local Sharia law and local procedures in the UAE Court.\r\n\r\nThe Plaintiffs were the family heirs to the deceased passenger and they lodged a claim for compensation of material, moral, physiological damages and Diya (blood money) against the airline for liability under Article 17 of the Convention, Terms of Contract of Carriage, Sharia Law, and UAE Civil Law. The Plaintiffs claimed that in addition to Diya they sustained psychological, tangible, and intangible damage.\r\n\r\nUnder UAE law, the amount of compensation that may be granted to the heirs in the event of wrongful death is called Diya. Pursuant to Article (1) of UAE Determining Blood Money Law, if a wrongful death is proven, AED 200,000 may be awarded without proving any damage which may have been suffered by the heirs. Moreover, the heirs may be entitled to compensation for moral, physical, and psychological damage in an event of a wrongful death of their bequeather, pursuant to the Federal Law No. 5 of 1985 (the ‘UAE Civil Transaction Law’), subject to proof of such damage and the establishment of three precondition elements of a claim in tort, namely; (i) fault; (ii) damage; and (iii) a causal link between such fault and the damage. If such damages are proved and the preconditions are met, the Court’s estimation of damage would range between AED 50,000 to AED 500,000.\r\n\r\nFactually, the passenger was taken ill on board a flight from Washington bound for the UAE. An hour passed from the time of the onset of symptoms to the passenger’s eventual death by heart attack. During this time the passenger was attended to by two onboard doctors, and medical care was administered, which included the use of a defibrillator and an electro cardiogram. The incident took place whilst the aircraft was flying over the sea.\r\n\r\nIn the UAE Courts, it is usual in such matters for the courts to appoint an expert with knowledge of aviation matters. In this case, the expert was able to establish that the airline was not responsible for the death, which was caused by a heart attack internal to the passenger. An emergency landing would have been difficult given that the aircraft was above the sea and the incident from start to finish lasted approximately one hour, which was not sufficient for an emergency landing. The crew were not advised by Medlink (the methodology by which aircraft crew contact medical professionals on the ground for medical advice) to make an emergency landing, and the Defendant provided the deceased with all medical care required to deal with a heart attack, including two on board doctors. As established by laws and precedents, the Court was able to rely on the expert’s report and the Court was not bound to return the assignment to the expert as the report had dealt fully with all the Plaintiffs’ objections. The Court found that there could be no liability on the part of the airline for an act of God.\r\n\r\nIn this particular case, the Court appointed expert was extremely knowledgeable on aviation issues and dealt with the matter professionally and fairly. Given the reliance the court places on expert reports, it is a reminder of how important it is for legal advisors to attend expert’s appointments and to fully brief the expert regarding the facts which occurred on board the aircraft as well as the legal and safety regimes which are pertinent to international aircraft travel. It is also important to be aware that the Convention is a comprehensive international treaty that deals with issues of international air law. Nevertheless, a thorough knowledge of local procedure and concepts of Sharia law are also required, and the importance of the appointment of a suitably qualified Court expert to facilitate the correct process of aviation liability litigation in the UAE cannot be overstated.\r\n\r\nThe case serves as a practical example as to how the UAE Courts may interpret and tackle claims for deaths on board airplanes, especially where an ordinary death has occurred. It must be borne in mind that although this judgment is a final judgment issued by the Abu Dhabi Court of First Instance, which has not been appealed by the Plaintiffs before any of the higher courts, it nonetheless helps clarify and rebut arguments often raised regarding the meaning of ‘accident’ referred to in Article 17 of the Convention. In addition, the UAE Court affirmed by this judgment its legal position on the extent of imposing Diya, which is that heirs shall not be entitled to claim when a death occurs as an Act of God, and where no act or negligence from the part of the carrier is established.'),
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	(99187,5388,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Raissa Hajjar'),
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	(99196,5389,'content','May 2016\r\n\r\n<hr />\r\n\r\nSerious complications can occur when infant children are left behind and no guardianship arrangement recognised in this country has been put in place. In default, Sharia Inheritance rules would apply to property and it would be at the discretion of a local judge to choose the child’s guardian.\r\n\r\nIf an expatriate dies without a Will, Federal Law No. 5 of 1985, concerning the issuance of Civil Transactions Law of the UAE (the “Civil Code”), and Federal Law No. 28 of 2005 regarding the UAE Personal Status Law (the “Personal Status Law”) guide the local Courts on the distribution of assets, only where it is not contrary to public policy. In some cases, it is possible that the Courts will apply principles of Shariah law to the estate of a non-Muslim and therefore mandatory rules of division between certain members of the deceased’s family will apply.\r\n\r\nAs a practical matter, access to the assets of the deceased individual is restricted. Assets cannot be transferred or be dealt with in any manner without direction from the local Court. In some circumstances, this can give rise to delays and financial complications at a critical time.\r\n\r\nMany expatriates fail to put measures in place to protect their families and their assets. Even where investments are offshore in foreign jurisdictions, individuals fail to consider what would happen to infant children, UAE bank accounts, their freehold properties or shares in this country?\r\n\r\n<strong>Can a surviving spouse access the joint bank account? </strong>\r\n\r\nA surviving spouse will not have immediate access to money in bank accounts in the UAE, or even bank accounts held jointly in the names of both spouses. In the absence of a registered Will, these accounts will remain frozen until instructions are received from a UAE Court and all the deceased’s debts in the UAE (even including parking fines) are paid. The assets will in due course, be distributed by the Courts in accordance with Sharia Law and this could potentially take weeks, or even months. Under Sharia rules the bulk of assets belonging to the husband may pass to certain family members, with the wife only taking a portion of the estate.\r\n\r\n<strong>Who will have interim and eventual guardianship of infant children?</strong>\r\n\r\nArticle 142 of the Personal Status Law defines custody as the upkeep and taking care of the child, (which is usually granted to the mother of the child) without interfering with the right of the guardian of the child. Guardianship is predominantly awarded to the father of the child since he is responsible for providing for the child financially, morally and physically.\r\n\r\nUnder Article 156 of the Personal Status Law a women’s custody of the children terminates upon a male child reaching the age of eleven and a female child turning thirteen, unless the Court decides to extend this period in the best interests of the child.\r\n\r\nIf a father of an infant resident in the UAE dies, under Sharia law the closest male relative on the father’s side of the family is usually appointed as guardian of any infant children. The mother of the children would retain custody, subject to conditions such as her not remarrying.  If a wife was to die in the UAE, then the husband would remain the guardian and custodian of any minor children. This would be subject to him having a suitable woman living within his home to care for the child (such as a female relative).\r\n\r\nIn the absence of a registered Will or specific instructions appointing interim guardians for minor children, the UAE local authorities would have to intervene and take care of the minors, until such time as the Court’s approval of a suitable guardian.\r\n\r\n<strong>Will Sharia inheritance rules apply to all or part of the UAE assets? </strong>\r\n\r\nInheritance issues for Muslims are dealt with in accordance with Sharia, whereas for non-Muslims, the law of the deceased’s nationality can be applied if a Will is made formally. The UAE Civil Code stipulates that the law of the home country of a non-Muslim can be applied to matters of inheritance as defined by Article 17 (1), which states “inheritance shall be governed by the law of the deceased at the time of his death”. However where a Will refers to the disposal of real estate in the UAE, then Article 17 (5) states that UAE law “shall apply to wills made by aliens disposing of their real property located in the state”. This is subject to an arguable exception in the case of freehold property; at present, the Dubai Courts, at least, are treating freehold property as an exception so the property can be bequeathed by a non-Muslim expatriate, under their Will.\r\n\r\nFurthermore, Article 1(2) of the Law of Personal Status allows non-Muslim expatriates, with assets in the UAE to make a Will under the law of their home country, to govern succession to his or her UAE estate instead of Sharia-based rules. However, the Will must be proved in the formal legal fashion before the Inheritance Court, a process greatly expedited if the expatriate has previously had the Will translated into Arabic and notarised here in the UAE.\r\n\r\nEven though the Personal Status Law provides non-Muslim expatriates with the right to request the UAE Court for the application of their home country law, the Personal Status Law does not however expressly amend the UAE Civil Code. This leads to potential uncertainty as to whether or not a non-Muslim’s Will would be subject to Sharia law and not according to their personal wishes, as per their home country law.\r\n\r\n<strong>How can assets and family be protected? </strong>\r\n\r\nIn May 2015, the DIFC Wills and Probate Registry introduced a new set avenue for succession and inheritance matters for non-Muslims holding assets in Dubai, backed by protocols concluded with other public authorities in Dubai.\r\n\r\nThe new rules, broadly follow UK law and practice, create legal certainty for the inheritance of an individual’s assets after death and the appointment of guardians for their children. This not only allows individuals to have testamentary freedom to dispose of their assets as they wish, it also provides peace of mind that an individual’s estate will be distributed according to their wishes. The Registry provides a simple and efficient mechanism for non-Muslims to pass on their estates, subject to a formal Will registration process which functions as an opt-in mechanism. All probate grants are issued by judges of the DIFC Court.'),
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	(99173,5388,'content','May 2016\r\n\r\n<hr />\r\n\r\nThe aim of this guide is to provide our readers with an overview on the regulatory landscape governing hotel operations across the Middle East region. To achieve its aim, the guide answers initial practical questions that are of general interest to hotel operators, owners and investors alike. In this first part, we will explore the regulatory framework of Bahrain, Egypt, Iraq and Jordan. The second part will cover Kuwait, Oman, Qatar, the Kingdom of Saudi Arabia and the United Arab Emirates.\r\n\r\nThe guide has been compiled on the basis of information provided as at the date of its publication, and therefore may be subject to amendments from time to time. Please note that this guide is intended to provide a high level overview of current laws, regulations and procedures. Separate legal advice on matters specific to the hotel property and the regulatory framework under which it operates should always be sought, including undertaking enquiries with the relevant Ministries and Authorities having jurisdiction over the property as necessary. If, based on the above, you require any further information, please do not hesitate to contact our Hospitality team on hospitality@tamimi.com.\r\n<table border=\"0\" width=\"886\" cellspacing=\"0\" cellpadding=\"0\"><colgroup> <col width=\"156\" /> <col width=\"180\" /> <col width=\"177\" /> <col width=\"180\" /> <col width=\"193\" /> </colgroup>\r\n<tbody>\r\n<tr>\r\n<td class=\"xl65\" width=\"156\" height=\"21\"></td>\r\n<td class=\"xl66\" width=\"180\">Bahrain</td>\r\n<td class=\"xl66\" width=\"177\">Egypt</td>\r\n<td class=\"xl66\" width=\"180\">Iraq</td>\r\n<td class=\"xl66\" width=\"193\">Jordan</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl106\" colspan=\"5\" width=\"886\" height=\"21\">HOTEL OPERATOR RELATED</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl108\" rowspan=\"2\" width=\"156\" height=\"432\">Is the Operator required under the local legal requirements to establish a Special Purpose Vehicle (“SPV”), ie. a branch company, a representative office or a permanent establishment in order to provide Hotel Management Services?</td>\r\n<td class=\"xl67\" width=\"180\">The Operator is required to incorporate an SPV and obtain a commercial registration from the Ministry of Industry and Commerce (\"MOIC\"). The SPV will also be required to obtain a Tourism Licence from Tourism Affairs.</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"177\">Pursuant to Companies Law No. 159 of 1981 and Investment Law No. 8 of 1997, the Operator is required to incorporate an SPV at the Commercial Registry to undertake hotel management services in Egypt.</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"180\">Pursuant to the Investment Law No. 4 of 2006, the Operator cannot conduct any commercial business in Iraq unless it incorporates an SPV, which is generally a Limited Liability Company (“<span class=\"font5\">LLC</span><span class=\"font6\">”).</span></td>\r\n<td class=\"xl68\" width=\"193\">Pursuant to Article  240 (b) of the Jordanian Companies Law No. 22 of 1997, the Operator cannot conduct any commercial business in Jordan unless it incorporates an SPV. However, Article 240 (b) is not strictly applied in practice.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl69\" width=\"180\" height=\"175\">Providing hotel management services directly from abroad without any legal presence in Bahrain is only possible if the Operator is the parent company (or the owner) of a chain of hotels and it has established a Hotel in Bahrain as part of that chain or hotel group.</td>\r\n<td class=\"xl70\" width=\"193\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl108\" width=\"156\" height=\"68\">Is a local partner/sponsor required?</td>\r\n<td class=\"xl92\" width=\"180\">A local partner/ sponsor is not required in Bahrain.</td>\r\n<td class=\"xl92\" width=\"177\">A local partner/ sponsor is not required in Egypt.</td>\r\n<td class=\"xl92\" width=\"180\">A local partner/ sponsor is not required in Iraq.</td>\r\n<td class=\"xl111\" width=\"193\">A local partner/ sponsor may be required in Jordan, depending on the objectives of the company.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" rowspan=\"2\" width=\"156\" height=\"228\">May the Operator be able to establish within a ‘free zone’ where 100% foreign ownership of the legal establishment is permitted?</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"180\">The SPV may be 100% owned by foreigners and/ or GCC nationals.</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"177\">The SPV may be 100% owned by foreigners. As a general rule, no hotel Operator is undertaking activities in a free zone to date.</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"180\">The Operator generally establishes an LLC which allows 100% foreign ownership. However, there is no free zone in Iraq.</td>\r\n<td class=\"xl76\" width=\"193\">If the Operator establishes an SPV in Jordan, the foreign ownership restrictions are subject to the objectives of the company.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl77\" width=\"193\" height=\"88\">In respect of hotel management, the SPV may be fully owned by non-Jordanians pursuant to the Foreign Ownership Regulation.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" rowspan=\"4\" width=\"156\" height=\"348\">What is the most common form of legal entity used by the Operator in the Territory and how long does it usually take to set up such legal entity?</td>\r\n<td class=\"xl67\" width=\"180\">A Single Person Company (“<span class=\"font5\">SPC</span><span class=\"font6\">”) or a With Limited Liability Company (“</span><span class=\"font5\">WLL</span><span class=\"font6\">”) are the most common form of legal entity used in Bahrain.</span></td>\r\n<td class=\"xl67\" width=\"177\">A Joint Stock Company is the most common form of legal entity used in Egypt.</td>\r\n<td class=\"xl67\" width=\"180\">A LLC is the most common form of legal entity used in Iraq. It shall be registered as an Iraqi national company at the Registrar of Companies.</td>\r\n<td class=\"xl76\" width=\"193\">The most common form of legal entities in Jordan are:</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"87\">3 to 5 weeks are approximately required to register such companies.</td>\r\n<td class=\"xl63\" width=\"177\">3 days from the date of submitting the required documents to the Authority are approximately required to register such company.</td>\r\n<td class=\"xl63\" width=\"180\">1 to 2 months are approximately required to register such company.</td>\r\n<td class=\"xl72\" width=\"193\">·         A LLC (may be established within a period not exceeding one month);</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl79\" height=\"69\"></td>\r\n<td class=\"xl80\"></td>\r\n<td class=\"xl80\"></td>\r\n<td class=\"xl72\" width=\"193\">·         A private shareholding company (may be established within a period not exceeding one month); and</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl78\" width=\"180\" height=\"88\"></td>\r\n<td class=\"xl78\" width=\"177\"></td>\r\n<td class=\"xl69\" width=\"180\"></td>\r\n<td class=\"xl77\" width=\"193\">·         A foreign operating branch (may require approximately 40 days to be established and is subject to certain conditions).</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" width=\"156\" height=\"92\">What would the typical licensed activity be for the Operator?</td>\r\n<td class=\"xl92\" width=\"180\">Hotel, flats and restaurants for tourist service management</td>\r\n<td class=\"xl92\" width=\"177\">Hotel management services</td>\r\n<td class=\"xl92\" width=\"180\">NA, as the Operator is not required to hold any licence other than completing its registration as an LLC.</td>\r\n<td class=\"xl93\" width=\"193\">Managing and operating touristic restaurants and hotels.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" rowspan=\"5\" width=\"156\" height=\"381\">Are there any requirements in terms of minimum capital applicable to the Operator?</td>\r\n<td class=\"xl67\" width=\"180\">Generally, the minimum capital requirement is subject to the form of the SPV incorporated by the Operator to manage the business.</td>\r\n<td class=\"xl92\" rowspan=\"5\" width=\"177\">The minimum capital requirement applicable to an SPV is EGP 250,000 for a Joint Stock Company with 10% paid in upon establishment and 15% paid in within 3 months from establishment.</td>\r\n<td class=\"xl92\" rowspan=\"5\" width=\"180\">The minimum capital requirement applicable to an LLC is 1,000,000 IQD. However, we generally recommend investing at least 10,000,000 IQD.</td>\r\n<td class=\"xl76\" width=\"193\">The minimum capital requirement is subject to the form of the SPV incorporated by the Operator to manage the business:</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"87\">The minimum capital requirement for an SPC is BHD 50,000 and the minimum capital requirement for a WLL is BHD 20,000.</td>\r\n<td class=\"xl72\" width=\"193\">·       For an LLC: 1 Jordanian Dinar divided into indivisible shares of equal value.</td>\r\n</tr>\r\n<tr>\r\n<td height=\"52\"></td>\r\n<td class=\"xl72\" width=\"193\">·       For a Private Shareholding Company: 50,000 Jordanian Dinars.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl64\" width=\"180\" height=\"69\"></td>\r\n<td class=\"xl72\" width=\"193\">·       For a Foreign Branch: it will be in accordance with the mother company’s subscribed capital.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl64\" width=\"180\" height=\"1\"></td>\r\n<td></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" rowspan=\"2\" width=\"156\" height=\"224\">Are any licences/permits required for the Operator to undertake the business of managing hotels in the country where the Hotel is located?</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"180\">A Management of Hotel Apartments licence (Hospitality management) from Tourism Affairs is required for the Operator.</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"177\">No specific licences or permits are required for the Operator to undertake the business of managing hotels in Egypt.</td>\r\n<td class=\"xl67\" width=\"180\">No specific licences or permits are required for the Operator to undertake the business of managing hotels in Iraq.</td>\r\n<td class=\"xl93\" rowspan=\"2\" width=\"193\">A licence issued by the Ministry of Tourism and Antiques is required for the Operator.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl69\" width=\"180\" height=\"53\">The Owner is responsible for applying for all the licences and permits.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" width=\"156\" height=\"252\">Is the Operator subject to withholding tax in respect of its services provided in the country where it has not incorporated a legal establishment there?</td>\r\n<td class=\"xl92\" width=\"180\">There is no withholding tax imposed to hotel services in Bahrain.</td>\r\n<td class=\"xl92\" width=\"177\">The Operator is subject to withholding tax imposed to hotel services at the rate of 20%.</td>\r\n<td class=\"xl92\" width=\"180\">There is no specific legislation that addresses withholding tax on payments for royalties in Iraq. However, there are provisions in the tax law which the tax authority could use to argue that such payments should be taxable in Iraq, i.e. if the income is considered to be ‘income arising in Iraq’.</td>\r\n<td class=\"xl93\" width=\"193\">The Operator is subject to withholding tax imposed to hotel services at the rate of 10%. It must be deducted by the resident and paid in to the Income and Sales Department on behalf of the non-resident within a period not exceeding 30 days from the date of effecting the payment or it becoming due.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" rowspan=\"2\" width=\"156\" height=\"332\">Are there any currency restrictions on transfer of funds by the Operator outside of the country?</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"180\">There are no currency restrictions on transfer of funds by the Operator outside of Bahrain. However, the government authorities will generally recognise sanctions imposed by the United States, the United Nations and the European Union in this regard.</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"177\">In principle, there are no currency restrictions on transfer of funds by the Operator outside of Egypt. However, there are currently practical restrictions due to the directives of the Central Bank of Egypt to protect the foreign currency reserve by limiting transfers abroad.</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"180\">Pursuant to to the Anti-Money Laundry Law and the Iraqi Central Bank (“<span class=\"font5\">CBI</span><span class=\"font6\">”) regulations, there are currency restrictions on transfer of funds above USD 10,000 by providing supporting documents showing the sources/origin of these funds. Such supporting documents shall be provided to the bank which will undertake to submit them to the CBI to obtain the required approvals.</span></td>\r\n<td class=\"xl76\" width=\"193\">In principle, there are foreign currency restrictions and/or repatriation of cash restrictions that might be imposed by the Central Bank of Jordan.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl72\" width=\"193\" height=\"76\">However, to our knowledge, the Central Bank of Jordan has not imposed any restrictions so far.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl103\" colspan=\"5\" width=\"886\" height=\"20\">HOTEL OPERATION RELATED</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl100\" width=\"156\" height=\"125\">Who is the tourism classification authority in the Territory?</td>\r\n<td class=\"xl88\" width=\"180\">The Minister of Industry and Commerce (more specifically the Tourism Affairs) is responsible for tourism affairs and classifications of hotels and serviced apartments.</td>\r\n<td class=\"xl88\" width=\"177\">The Ministry of Tourism</td>\r\n<td class=\"xl88\" width=\"180\">The Tourism Commission</td>\r\n<td class=\"xl88\" width=\"193\">The Ministry of Tourism and Antiques</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" rowspan=\"4\" width=\"156\" height=\"145\">What are the various classifications applicable to Hotels and Serviced Apartments (stars, grades, categories)?</td>\r\n<td class=\"xl92\" rowspan=\"4\" width=\"180\">Stars and grades are based on international classification and must be in accordance with the regulations of the Tourism Affairs.</td>\r\n<td class=\"xl92\" rowspan=\"4\" width=\"177\">Stars and grades are based on international classification and must be in accordance with the regulations of the Ministry of Tourism.</td>\r\n<td class=\"xl92\" rowspan=\"4\" width=\"180\">The Regulation of the Touristic Utilities Classification No.1 of 2004 illustrates in details the classifications of the hotels by providing a list of requirements for each classification from one to five stars.</td>\r\n<td class=\"xl76\" width=\"193\">The classification for hotels is 5 stars, 4 stars, 3 stars, 2 stars, 1 star and Not Touristic.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl72\" width=\"193\" height=\"20\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl72\" width=\"193\" height=\"52\">The classification for Services Apartments is Band (A), Band (B) and Band (C).</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl77\" width=\"193\" height=\"21\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl86\" rowspan=\"8\" width=\"156\" height=\"333\">What other government departments are involved in the licensing of the hotel industry within the country?</td>\r\n<td class=\"xl63\" width=\"180\">·         Tourism Affairs;</td>\r\n<td class=\"xl63\" width=\"177\">·         Ministry of Foreign Affairs;</td>\r\n<td class=\"xl63\" width=\"180\">·         Tourism Commission;</td>\r\n<td class=\"xl94\" rowspan=\"8\" width=\"193\">Ministry of Tourism</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"52\">·         Directorate of Public Health - Environment Health Section;</td>\r\n<td class=\"xl63\" width=\"177\">·         Tourism Development Authority.</td>\r\n<td class=\"xl63\" width=\"180\">·         Immigration Department.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"35\">·         Department of Public Health - Food Section;</td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl64\" width=\"180\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"35\">·         General Directorate of Civil Defence;</td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl64\" width=\"180\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"35\">·         General Directorate of Criminal Investigation;</td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl64\" width=\"180\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"20\">·         Municipality Affairs;</td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl64\" width=\"180\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"52\">·         Ports and Maritime Affairs (in cases of licensing a floating tourist hotel) ; and</td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl64\" width=\"180\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl75\" width=\"180\" height=\"69\">·         Coast Guard Directorate (in cases of licensing a floating tourist hotel).</td>\r\n<td class=\"xl74\" width=\"177\"></td>\r\n<td class=\"xl74\" width=\"180\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl100\" rowspan=\"9\" width=\"156\" height=\"757\">What permits/licences must the Owner obtain for operation of the Hotel? Can these be held in an individual’s name or must it be a corporate entity?</td>\r\n<td class=\"xl73\" width=\"180\">The Owner must obtain:</td>\r\n<td class=\"xl73\" width=\"177\">The Owner must obtain a licence from the Ministry of Tourism.</td>\r\n<td class=\"xl73\" width=\"180\">The Owner must obtain a Profession Practice License from the Tourism Commission (which can be held by the Owner or by the Operator).</td>\r\n<td class=\"xl73\" width=\"193\">The Owner must obtain a license from the Ministry of Tourism and Antiques.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"121\">·         Hotel licence (5 stars) from Tourism Affairs;</td>\r\n<td class=\"xl63\" width=\"177\">The licence can be held in an individual’s name or a corporate entity.</td>\r\n<td class=\"xl63\" width=\"180\">The licence can be held in an individual’s name or a corporate entity.</td>\r\n<td class=\"xl63\" width=\"193\">A request must be submitted by the corporate entity to the Ministry of Tourism and Antiques, alongside the land registration certificate and all building plans duly certified by the relevant authorities.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"156\">·         Health Certificate (Public Health) from the Directorate of Public Health;</td>\r\n<td class=\"xl79\"></td>\r\n<td class=\"xl80\"></td>\r\n<td class=\"xl63\" width=\"193\">Thereafter, the Minister of Tourism may  issue a temporary two-year permit during which time the construction or redecorating of the Hotel must be completed. The two-year period may be extended upon approval of the Minister.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"52\">·         Traffic Site Approval from the General Directorate Of Traffic Licensing Affair;</td>\r\n<td class=\"xl63\" width=\"177\"></td>\r\n<td class=\"xl63\" width=\"180\"></td>\r\n<td class=\"xl63\" width=\"193\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"52\">·         Fire Safety approval from the  General Directorate of Civil Defence;</td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl64\" width=\"180\"></td>\r\n<td></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"69\">·         Police site suitability approval from the General Directorate Of Criminal Investigation;</td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl64\" width=\"180\"></td>\r\n<td class=\"xl63\" width=\"193\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"52\">·         Municipality Site Approval from the Municipality Affairs.</td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl64\" width=\"180\"></td>\r\n<td class=\"xl63\" width=\"193\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"20\"></td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl64\" width=\"180\"></td>\r\n<td class=\"xl64\" width=\"193\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"63\">The approval can be held in an individual’s name or a corporate entity</td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl64\" width=\"180\"></td>\r\n<td class=\"xl64\" width=\"193\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl86\" width=\"156\" height=\"84\">Must the permits/licences be obtained prior to opening of the Hotel?</td>\r\n<td class=\"xl89\" width=\"180\">Yes</td>\r\n<td class=\"xl89\" width=\"177\">Yes</td>\r\n<td class=\"xl89\" width=\"180\">Yes</td>\r\n<td class=\"xl94\" width=\"193\">Yes</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl85\" rowspan=\"2\" width=\"156\" height=\"251\">Is there a mandatory requirement to register the Hotel Management Agreement (and ancillary agreements) in the Territory?</td>\r\n<td class=\"xl88\" rowspan=\"2\" width=\"180\">There is no mandatory requirement to register the Hotel Management Agreement in Bahrain. However, the Tourism Affairs may request to present the same upon renewing the Tourism Licence.</td>\r\n<td class=\"xl88\" rowspan=\"2\" width=\"177\">There is no mandatory requirement to register the Hotel Management Agreement in Egypt.</td>\r\n<td class=\"xl88\" rowspan=\"2\" width=\"180\">Legally speaking, there is no mandatory requirement to register the Hotel Management Agreement in Iraq. However, we recommend legalising the Hotel Management Agreement before the Notary Public to provide it the highest legal strength since the term of the agreement is for a long period.</td>\r\n<td class=\"xl96\" rowspan=\"2\" width=\"193\">The Hotel Management Agreement must be presented to the Ministry of Tourism and Antiques, but the Jordanian laws do not explicitly impose a requirement of registration.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" rowspan=\"6\" width=\"156\" height=\"231\">May the Hotel Management Agreement be subject to merger clearance under any competition and anti-trust legislation that may exist within the Territory?</td>\r\n<td class=\"xl92\" rowspan=\"6\" width=\"180\">No merger clearance under <span class=\"font6\">competition and anti-trust legislation may apply to the Hotel Management Agreement. In Bahrain, there is no existing generic competition law or similar legislation applying to all sectors.</span></td>\r\n<td class=\"xl92\" rowspan=\"6\" width=\"177\">No merger clearance under <span class=\"font6\">competition and anti-trust legislation may apply to the Hotel Management Agreement.</span></td>\r\n<td class=\"xl92\" rowspan=\"6\" width=\"180\">No merger clearance under <span class=\"font6\">competition and anti-trust legislation may apply to the Hotel Management Agreement.</span></td>\r\n<td class=\"xl93\" rowspan=\"6\" width=\"193\">No merger clearance is required before signing a Hotel Management Agreement. However, pursuant to Competition Law No. 33 of 2004, a transaction will be approved if it does not negatively affect competition or it has positive economic benefits that outweigh any negative effect on competition.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" width=\"156\" height=\"168\">Can the Parties include an arbitration clause in the Hotel Management Agreement to settle disputes arising from the Agreement?</td>\r\n<td class=\"xl92\" width=\"180\">Yes, parties may agree to include an arbitration clause to settle disputes arising from the Hotel Management Agreement.</td>\r\n<td class=\"xl92\" width=\"177\">Yes, parties may agree to include an arbitration clause to settle disputes arising from the Hotel Management Agreement.</td>\r\n<td class=\"xl92\" width=\"180\">Yes, parties may agree to include an arbitration clause to settle disputes arising from the Hotel Management Agreement.</td>\r\n<td class=\"xl93\" width=\"193\">Yes, parties may agree to include an arbitration clause to settle disputes arising from the Hotel Management Agreement.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" rowspan=\"3\" width=\"156\" height=\"249\">What arbitration institutes exist in the Territory?</td>\r\n<td class=\"xl67\" width=\"180\">·     The Bahrain Chamber of Dispute Resolution (“<span class=\"font5\">BCDR</span><span class=\"font6\">”), in association with the American Arbitration Association;</span></td>\r\n<td class=\"xl92\" rowspan=\"3\" width=\"177\">The Cairo Regional Centre for International Commercial Arbitration (“<span class=\"font5\">CRCICA</span><span class=\"font6\">”)</span></td>\r\n<td class=\"xl92\" rowspan=\"3\" width=\"180\">Pursuant to the Iraq Procedural Law No. 83/1969, arbitration in Iraq shall fall within the jurisdiction of the first instance court. This court has the authority to approve arbitral awards partially or entirely or to reject and return them to the arbitrators.</td>\r\n<td class=\"xl93\" rowspan=\"3\" width=\"193\">There are several institutes but they are not operative. Arbitration would be conducted pursuant to the Jordanian Arbitration Law unless agreed upon otherwise.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"35\">·     The GCC Arbitration Centre.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl64\" width=\"180\" height=\"3\"></td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" rowspan=\"7\" width=\"156\" height=\"805\">Would a foreign arbitral award rendered in connection with the Hotel Management Agreement be recognised and enforced by the local courts of the Territory without consideration of the merits of the case, or do the local courts have the power to reopen the matter?</td>\r\n<td class=\"xl67\" width=\"180\">Bahrain is a party to the New York Convention (“<span class=\"font5\">NY Convention</span><span class=\"font6\">”) on the Recognition and Enforcement of Foreign Arbitral Awards.</span></td>\r\n<td class=\"xl67\" width=\"177\">Egypt is a party to the NY Convention on the Recognition and Enforcement of Foreign Arbitral Awards.</td>\r\n<td class=\"xl67\" width=\"180\">Iraq is not a party to the NY Convention on the Recognition and Enforcement of Foreign Arbitral Awards.</td>\r\n<td class=\"xl76\" width=\"193\">Jordan is a party to the NY Convention on the Recognition and Enforcement of Foreign Arbitral Awards.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"87\"></td>\r\n<td class=\"xl63\" width=\"177\"></td>\r\n<td class=\"xl63\" width=\"180\"></td>\r\n<td class=\"xl72\" width=\"193\">A foreign arbitration award may be enforced by the Jordanian Courts  without retrial or further review of the merits of the case subject to:</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"208\">The result of this is that the enforcement of foreign awards should occur pursuant to the terms of the NY Convention.</td>\r\n<td class=\"xl63\" width=\"177\">Enforceability of an arbitral award must follow a certain process and the award must satisfy certain criteria. However, local courts do not reopen the matter, as a general rule.</td>\r\n<td class=\"xl63\" width=\"180\">Under certain conditions and in case of reciprocity, Iraqi courts shall give effect to foreign judgments as well as foreign arbitral awards pursuant to the provisions of the Execution of Foreign Judgment Act No.30/1928.</td>\r\n<td class=\"xl72\" width=\"193\">·   the arbitration tribunal which issued the award being competent to issue such award;</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"87\"></td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl63\" width=\"180\"></td>\r\n<td class=\"xl72\" width=\"193\">·   the arbitration award being final, binding and conclusive as between the parties thereto and enforceable in the country where the award was issued;</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl64\" width=\"180\" height=\"228\">Bahrain has also recently issued Law No. 9 of 2015 promulgating the Arbitration Law adopting the UNCITRAL Model Law on International Commercial Arbitration (the “<span class=\"font5\">Arbitration Law</span><span class=\"font6\">”). The Arbitration Law provides specific grounds under which a foreign arbitration award may be refused. </span></td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl63\" width=\"180\">Pursuant to the Iraqi Execution of Foreign Judgment Law No. 30, in order to execute a foreign award in Iraq, a claim must be filed with the relevant court, requesting recognition of the foreign award and issuance of a decision to enforce it.</td>\r\n<td class=\"xl72\" width=\"193\">·   any relevant notification or service being validly made;</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"35\"></td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl63\" width=\"180\"></td>\r\n<td class=\"xl72\" width=\"193\">·   the award being obtained in a non- fraudulent manner; and</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl64\" width=\"180\" height=\"56\"></td>\r\n<td class=\"xl64\" width=\"177\"></td>\r\n<td class=\"xl63\" width=\"180\"></td>\r\n<td class=\"xl72\" width=\"193\">·   the award not being contradictory to Jordanian Public Policy and Morals.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" rowspan=\"2\" width=\"156\" height=\"285\">Are there any restrictions on arbitration proceedings applying to government entities?</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"180\">There are no restrictions on arbitration proceedings applying to government entities.</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"177\">Yes, if the government body enters into an agreement for operation of a public domain, the approval of the competent minister must be obtained to include an arbitration clause as part of the agreement.</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"180\">There are no restrictions on arbitration proceedings applying to government entities if the arbitration took place in Iraq or in one of the signatory countries of the Riyadh Arab Agreement for Judicial Cooperation. The government shall own 100% of the shares of the company to be qualified as a government entity in Iraq.</td>\r\n<td class=\"xl93\" rowspan=\"2\" width=\"193\">There are no restrictions on arbitration proceedings applying to government entities.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" rowspan=\"2\" width=\"156\" height=\"240\">Are there any restrictions on employment of foreign staff (ie. any roles reserved specifically for national employees), or a policy of nationalisation?</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"180\">Yes, there is a quota of nationals applicable to each activity undertaken by an entity subject to its number of employees (from 0% to 25%). This is known as “Bahrainisation”.</td>\r\n<td class=\"xl92\" rowspan=\"2\" width=\"177\">Yes, 90% of the employment force of the entity must be Egyptian nationals holding at least 80% of the total wages.</td>\r\n<td class=\"xl67\" width=\"180\">The Iraqi labour law prohibits employers from employing any foreign staff, unless it is granted a work permit issued by the Ministry of Labour according to its regulations.</td>\r\n<td class=\"xl93\" rowspan=\"2\" width=\"193\">Yes, pursuant to the Jordanian Labour Law, the approval of the Minister of Labour must be obtained to employ foreign staff, given that the foreign staff member has skills and qualifications that are not available in Jordan. The matter is at the discretion of the Ministry of Labour and there is no guarantee that a foreign individual will obtain a work permit.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl69\" width=\"180\" height=\"71\">However, there are no restrictions regarding the roles and nationalities of the employees.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" rowspan=\"4\" width=\"156\" height=\"125\">What work permits and visas are required for non-national employees?</td>\r\n<td class=\"xl92\" rowspan=\"4\" width=\"180\">A work permit and residency are required for non-national employees, except GCC nationals.</td>\r\n<td class=\"xl92\" rowspan=\"4\" width=\"177\">A work permit and residency for the foreign employee are required.</td>\r\n<td class=\"xl92\" rowspan=\"4\" width=\"180\">A work visa from the Immigration Department and a work permit from the Ministry of Labour and Social Security are required.</td>\r\n<td class=\"xl93\" rowspan=\"4\" width=\"193\">A work permit and a residency permit are required. Both must be renewed on a yearly basis.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" width=\"156\" height=\"124\">Do Hotel staff generally belong to a trade union within the Country?</td>\r\n<td class=\"xl92\" width=\"180\">Trade unions are not very common within the private sector. However, trade unions for hotel staff exist in Bahrain.</td>\r\n<td class=\"xl92\" width=\"177\">Hotel employees generally do not belong to a trade union, but there are collective bargaining agreements usually applicable.</td>\r\n<td class=\"xl92\" width=\"180\">No</td>\r\n<td class=\"xl93\" width=\"193\">No</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl82\" width=\"156\" height=\"169\">Is the Hotel obliged to provide a local rate for the room applicable to nationals paying in local currency, with a different (usually higher) US$ rate for non-nationals?</td>\r\n<td class=\"xl83\" width=\"180\">No</td>\r\n<td class=\"xl83\" width=\"177\">No</td>\r\n<td class=\"xl83\" width=\"180\">No</td>\r\n<td class=\"xl84\" width=\"193\">No</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" rowspan=\"3\" width=\"156\" height=\"380\">Is it possible to obtain an alcohol licence for the sale and supply of alcohol at the Hotel? Who applies for this licence, and what is the authorising entity? Are there any restrictions on the grant of the licence?</td>\r\n<td class=\"xl92\" rowspan=\"3\" width=\"180\">Yes, hotels are able to sell alcohol by virtue of their commercial activity and do not require a separate licence. Hotels are not allowed to import alcohol; however, they may sell alcohol obtained from local distributors.</td>\r\n<td class=\"xl92\" rowspan=\"3\" width=\"177\">Yes, an alcohol licence may be obtained by Owner from the Ministry of Tourism under certain conditions. There are only a few restrictions on the sale of alcohol by hotels and people can generally buy alcohol from most of the hotel bars all over Egypt.</td>\r\n<td class=\"xl67\" width=\"180\">Yes, the Owner may apply for an alcohol licence before the Tourism Commission.</td>\r\n<td class=\"xl93\" rowspan=\"3\" width=\"193\">Yes, an alcohol licence may be obtained. The decision to grant a Hotel an alcohol licence and a licence to host musical groups is issued by the Minister of Tourism in coordination with the Tourism Committee. There are usually no restrictions on the sale of alcohol by 4 &amp; 5 star hotels, whereby such a licence would be granted.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"52\">However, the issuance of such licence is on hold since 2009.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"88\">Hence, in practice, the inspection committee does not impose any penalties on hotels selling alcohol without any licence.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" width=\"156\" height=\"184\">Are there any specific registrations applicable to Hotels within the country ie. segregation of male/female swimming/leisure facilities, female only floors etc.?</td>\r\n<td class=\"xl92\" width=\"180\">No; however, due to cultural customs and traditions, some hotels have female only swimming/leisure facilities.</td>\r\n<td class=\"xl92\" width=\"177\">Yes but specific registrations are only applicable in observance of public rules and behaviour, like separate toilets.</td>\r\n<td class=\"xl92\" width=\"180\">There are no specific registrations applicable to hotels but the Hotel Management Agreement shall comply with the Iraqi public order and morals.</td>\r\n<td class=\"xl93\" width=\"193\">There are no specific registrations applicable to hotels in Jordan.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl91\" width=\"156\" height=\"192\">Can Operator employees be seconded to the Owner’s employment under a local employment contract in respect of providing services from the Hotel?</td>\r\n<td class=\"xl92\" width=\"180\">Yes, a secondment agreement may be entered into between the Operator and the Owner.</td>\r\n<td class=\"xl92\" width=\"177\">Yes, a secondment agreement may be entered into between the Operator and the Owner.</td>\r\n<td class=\"xl92\" width=\"180\">Yes, a secondment agreement may be entered into between the Operator and the Owner, providing that both parties are jointly and severally liable for enforcing the employees’ rights and benefits under the Iraqi Labour Law.</td>\r\n<td class=\"xl93\" width=\"193\">Yes, a secondment agreement may be entered into between the Operator and the Owner. However, employees must be subject to the Jordanian Labour Law and be registered with the Social Security Department in Jordan.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl85\" rowspan=\"4\" width=\"156\" height=\"403\">Are guests subject to payment of any tax/service charge/tourism fee upon reservation of a room in the Hotel?</td>\r\n<td class=\"xl73\" width=\"180\">Guests are subject to:</td>\r\n<td class=\"xl88\" rowspan=\"4\" width=\"177\">Yes, guests are subject to a government tax and a service charge at the rate of 24.32% upon reservation of a room in a Hotel.</td>\r\n<td class=\"xl88\" rowspan=\"4\" width=\"180\">No tax/service charge/tourism fee are applicable to the reservation of a room in a Hotel.</td>\r\n<td class=\"xl71\" width=\"193\">Guests are subject to:</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"104\">·       Government levy of 10% as stated under Ministerial Order 106 of 2015 amending Ministerial Order No. 4 of 1994 in relation to Hotel Service Charges;</td>\r\n<td class=\"xl72\" width=\"193\">·   Sales Tax in the amount of 16% applicable on all reservations;</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl63\" width=\"180\" height=\"191\">·       a Hotel Services Fee of no more than 10% which is generally imposed on all services provided by hotels of all categories and levels.</td>\r\n<td class=\"xl72\" width=\"193\">·   Service charge in the amount of 10% to be charged on all invoices for services provided by hotels which are classified as 3 stars or above in accordance with the Regulations for Additional Taxes on the Sales and Services of hotels and restaurants no. 2 for the year 1988.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"xl78\" width=\"180\" height=\"88\"></td>\r\n<td class=\"xl77\" width=\"193\">·     The Service Charge is collected by the Hotel itself and thereafter, sales tax shall be remitted to the Income and Sales Tax Department.</td>\r\n</tr>\r\n</tbody>\r\n</table>'),
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	(99158,5387,'content','May 2016\r\n\r\n<hr />\r\n\r\nThe Dubai Data Law is now publicly available and in this article we provide further information on its substance.\r\n\r\nThe Dubai Data Law is aimed primarily at ensuring that data gathered by Dubai government entities is effectively shared amongst such entities and with the private sector, so as to maximise opportunities to capture the benefit of such data for the emirate’s residents, visitors, and economy.\r\n\r\nThe aims of the Dubai Data Law include managing data in conformity with international best practices, promoting transparency and establishing rules for data dissemination and exchange, increasing the efficiency of services provided by federal government entities and local government entities, and providing data necessary to non-governmental entities with a view to supporting the development of the Emirate of Dubai.\r\n\r\nThe Dubai Data Law applies to Data Providers, which include the likes of federal government entities and local government entities that possess data relating to the Emirate of Dubai, individuals, and entities (including sole proprietorships, public interest organisations, companies, associations, etc.) that produce, own, publish or exchange data relating to the Emirate of Dubai, irrespective of whether they are located in ‘onshore’ Dubai or in a free zone (such as the Dubai International Financial Centre).\r\n\r\nThe Dubai Data Law contemplates two classes of data, collectively referred to as Dubai Data:\r\n<ul>\r\n 	<li>Open Data - this is data that may be disseminated without restriction or under minimum constraints; and</li>\r\n 	<li>Common Data – this is data whose dissemination is subject to certain restrictions.</li>\r\n</ul>\r\nThe Dubai Data Law provides that Dubai Data shall be published and exchanged via an electronic system, bulletins, reports, and any other means determined by a Competent Authority.\r\n\r\nThe Competent Authority contemplated under the Dubai Data Law is intended to administer the application of the Dubai Data Law and issue associated administrative and financial regulations. The functions and powers of the Competent Authority include:\r\n<ul>\r\n 	<li>approving the data classification;</li>\r\n 	<li>determining the operating rules of the electronic platform used for the dissemination and exchange of data;</li>\r\n 	<li>auditing Data Providers’ compliance with the policies relating to the dissemination and exchange of data, at the level of operations as well as at the technical levels;</li>\r\n 	<li>conducting training courses on the dissemination and exchange of data; and</li>\r\n 	<li>investigating complaints / violations in relation to Data Providers’ non-compliance with the Dubai Data Law.</li>\r\n</ul>\r\nData Providers are generally required to:\r\n<ul>\r\n 	<li>publish Open Data in accordance with the applicable controls approved by the Competent Authority;</li>\r\n 	<li>exchange Common Data in accordance with the applicable controls approved by the Competent Authority;</li>\r\n 	<li>provide the infrastructure for the publication and exchange of Dubai Data, including providing a connection to the electronic system for the publication and exchange of Dubai Data; and</li>\r\n 	<li>comply with applicable technical regulations in relation to the dissemination and exchange of Dubai Data.</li>\r\n</ul>\r\nImportantly, the Dubai Data Law provides that Data Providers shall take all steps to maintain the confidentiality and privacy of data during dissemination and exchange of such data in accordance with the Dubai Data Law.\r\n\r\nInterestingly, Dubai Data is deemed a state-owned asset and may be disposed by the Data Providers only in accordance with the Dubai Data Law, including any resolutions issued under the Dubai Data Law. It will be interesting to observe the practical implications of this provision.\r\n\r\nRecently, the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, issued a law establishing the Dubai Data Establishment. We understand from press releases that the Dubai Data Establishment aims to enhance Dubai’s capabilities in the field of publishing and exchanging data, contribute to establishing a knowledge database to serve the public and private sectors, and oversee, regulate, and coordinate between government entities to facilitate the implementation of the law. The Dubai Data Establishment appears to be the Competent Authority referred to in the Dubai Data Law, and if this is the case then the regulations associated with the Dubai Data Law are likely to become available in the near future, providing greater insight into the practical effect of the Dubai Data Law.\r\n\r\nAl Tamimi &amp; Company’s Technology, Media &amp; Telecommunications team regularly advises on data-related issues, including big data analytics, open data and data protection related issues. For further information please contact Sana Saleem (s.saleem@tamimi.com) or Nick O’Connell.'),
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	(99099,5384,'content_description','As healthcare spending in Dubai increases, and new healthcare services and treatment options enter the market, the healthcare regulatory framework in the Emirate must adapt to support these advances.  '),
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	(99111,5384,'_yoast_wpseo_metadesc','As healthcare spending in Dubai increases, and new healthcare services and treatment options enter the market, the healthcare regulatory framework in the Emirate must adapt to support these advances.'),
	(99112,5385,'content','May 2016\r\n\r\n<hr />\r\n\r\nFor some, it’s not about what you’re wearing; it’s about who you’re wearing. High fashion goods are a billion-dollar market, and this is the reason why fashion houses value their brand equity. It is due to this brand recognition and equity that the fashion houses develop a bond with their customers. As such, considerable resources are invested in protecting the names and brands through trademark registrations.\r\n\r\nHowever, many brands protect their trademarks yet neglect other forms of intellectual property which may also be protectable, for example the shape of a handbag can be also be protected as an industrial design. The fashion industry invests huge sums to create new and original designs each season. Despite this significant investment, little use is made of the relevant design laws to register and protect these designs beyond the name of the brand. The main benefit of registering a design is to deter others from copying the design, and to fight unscrupulous competitors or even infringers from copying the design of the protected article.\r\n\r\nIn the UAE, Chapter 3 of the UAE Federal Law No. 17 of 2002 (“UAE Patents and Design Law”) covers industrial designs, described as “any innovative three-dimensional shape that can be used in industry or craft” or “any innovative creation of lines or colors that generates a product that can be used in industry or craft”.\r\n\r\nMany high fashion houses often overlook the registration of the shape and look of their designs, reasoning that goods such as handbags are considered to have a short product life cycle – often no more than six-to-twelve months. While fashion trends may come and go, some designs stay timeless and are considered classic pieces. For example, the “Kelly” bag from Hermès grew to fame in 1956, when the Hollywood actress Grace Kelly married Prince Ranier III of Monaco and was photographed with the bag.  It became known as the “Kelly” bag thereafter (although it was only formally re-named as such in 1977) and is seen by many as the ultimate classic handbag in any fashionista’s closet. Many fashion houses strive to create such classic design pieces. If the design succeeds and if the designer has not obtained the appropriate design protection in time, infringers will be able to copy their designs.\r\n\r\nDespite the fact that some designs are only created for one season and are not meant to be long term, designers need to be aware of the fact that in the longer term a failure to protect their designs, and other intellectual property, from unauthorised copies and cheaper knock-offs damages the brand’s goodwill in terms of lost sales, loss of value to their new work, existing portfolio and inventory.\r\n\r\nTo this end, design protection is an essential step to take. It is important to protect a product design using the appropriate legal vehicles in a strategic manner. For example, protecting a unique 3D industrial design or a visual shape is critical to keep competitors from using and copying the creative design and the hard work invested by the designer. In addition, intellectual property protection of product designs adds to the assets of the business and therefore increases its commercial value.\r\n\r\nArguably, over the years the shape of a designer handbag has become more recognisable than the name on the bag. By way of example, in the early 1990’s the Louis Vuitton Monochrome bags with the letters LV affixed were highly popular, one reason being that these heavily branded bags are highly noticeable.  Although Louis Vuitton Monochrome bags remain very popular, designers are slowly moving away from heavily branding their bags with their logos and rather concentrating on the unique shapes of their bags.  The aim is for people to notice the bag from afar, not only by the name written on it.\r\n\r\nIn the current business environment, the primary source of competitive advantage for all businesses, including those in the fashion industry, is innovation and original creative expressions. In order to maintain their market share in this highly lucrative industry, designers need to identify such valuable intangible assets in a timely manner, determine their business relevance, and agree on those to be protected and leveraged as intellectual property.\r\n\r\nTo this end, a designer’s reputation is priceless, as it is an extension of their creativity. Consumers spend thousands on a single bag based on the shape of the bag and not just the logo because they want to be unique. In other words, if other merchants are selling similar bags, the designer piece will no longer be considered as unique.\r\n\r\nIn a nutshell, fashion houses are driven by their creativity and by the intellectual capital invested in them. Protecting that intellectual capital in the form of intellectual property assets serves to boost income through sales, licensing, and commercialisation of existing and new products, to improve market share, raise profit, and to effectively enforce their intellectual property against infringers looking to unduly take advantage of the designer’s creative work.\r\n\r\n<strong>Keep your designs to yourself.</strong>\r\n\r\nAppreciate your creativity and protect it!\r\n\r\n&nbsp;'),
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	(99116,5385,'content_description','The purchase of a designer handbag is most satisfying, despite being among the most expensive in the shopping list of any woman. '),
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	(99118,5385,'pageSummary','The purchase of a designer handbag is most satisfying, despite being among the most expensive in the shopping list of any woman.'),
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	(99122,5385,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Ahlam Al Tamimi'),
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	(99134,5385,'_yoast_wpseo_metadesc','The purchase of a designer handbag is most satisfying, despite being among the most expensive in the shopping list of any woman.'),
	(99135,5386,'content','May 2016\r\n\r\n<hr />\r\n\r\nThe UAE is considered as one of few countries in the region which has implemented specific legislation to penalise such violations.\r\n\r\nInfringers recently have developed decoders which are programmed to be connected with external servers out of the UAE. Those external servers are used to record and store specific TV programmes/shows and upon connecting the decoders with the internet, external servers are allowed to share those TV programmes/shows with the decoders in the UAE and broadcast the content to the decoders via the internet. The classic form of infringement occurs when traders import TV decoders from neighbouring countries and start receiving that country’s TV satellite signal and ignoring the exclusive IP and distribution rights in the UAE. The violators here benefit from the difference in the subscription fees between different countries ignoring the exclusive rights of the local service providers.\r\n\r\nDealing with torrent websites may also constitute a violation to IP rights and the original uploader of the content can be traced in the UAE. In a case handled in Ajman, the police were able to track down the original uploader of the torrents, who was carrying out the activities from his home.\r\n\r\nLocal media companies are the main victims of these types of IP infringement. As such, media companies are carefully monitoring the local market in order to apprehend the infringers. Media companies are also working side by side with different enforcement authorities in the UAE such as the Department of the Economic Development (“DED”) and the Criminal Investigation Department (“CID”), in order to locate and bring to justice the operators who are illegally taking part in such activities. With a CID raid operation, time is of essence since the infringers have the ability to deactivate the decoders and destroy the incriminating evidence, often by means of associates with access to the system which activates the decoders. Maintaining and preserving the evidence in such cases is the biggest challenge, and it is an essential step to engage the CID lab during such operations. To this end, the CID lab is vigilant in collecting the required evidence from the site of violation or the CID may be primed to examine the decoders immediately after raiding the site of the violation.\r\n\r\nInfringers face severe punishments in the UAE, which may lead to deportation for expats. In a recent case, the Dubai Court sentenced an individual for distributing/promoting unauthorised decoders which use internet protocol television (“IPTV”). The Court issued its judgment based on Article 38 of the UAE Federal Law of Copyright, Law No. 7 of 2002 and its amendments, which states the following:\r\n\r\n<strong>Article 38:</strong>\r\n\r\nWithout prejudice to any severer punishment stipulated under any other law, any person, who performs any of the following acts without prior written consent of the author or neighbouring right holder, shall be punished by detention for not less than three months and payment of fine not less than AED 50,000 and not more than AED 500,000:\r\n\r\nUnlawful producing or importing for the purpose of selling, renting out, or dealing in any devices, instrument, or apparatus designed or prepared for the purpose of fraud against  any  technique used by the author or right holder to broadcast, offer for public, administer, or manage the copyrighted work or maintain the qualities of the copyrighted work)\r\n\r\nIn addition, Article 121 of the UAE Criminal Law, Law No. 3 of 1987 and its amendments, states:\r\n\r\n<strong>Article 121: </strong>\r\n\r\nIf a foreigner is sentenced to a custodial punishment for a felony or a misdemeanour, the Court may order in its sentence that he/she be deported from the state.\r\n\r\nIn a similar case, the Abu Dhabi Federal Court sentenced an infringer for selling decoders which allowed the broadcasting of exclusive TV channels. The infringer was further deported based on Articles 34 and 42 of the Federal Decree by Law No. 5 of 2012 concerning Combating Cyber Crimes, which state:\r\n\r\n<strong>Article 34: </strong>\r\n\r\nAny person who benefited or unlawfully facilitated to third party the use of communication services or audio or visual transmission channels through the Information Network or the Information Technology Instrument shall be punished by imprisonment for a period not less than one year and a fine not less than (AED 250.000) and not exceeding (AED 1.000.000) or by any of these punishments.\r\n\r\n<strong>Article 42: </strong>\r\n\r\nThe Court shall adjudge to deport the foreigner convicted for committing any of the crimes provided for in this Decree by Law after executing the prescribed punishment.\r\n\r\nIn conclusion, UAE legislation provides a wide range of legal actions against copyright violators especially for those who use the internet as the means to commit the crime. The punishment of such acts can vary between a fine, imprisonment, closing the operations, and possible deportation of expats.'),
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	(99139,5386,'content_description','The developments in the technology sector and the increased number of paid TV channels in the UAE have created a hotbed for illegal activities which may lead to intellectual property (“IP”) violations. '),
	(99140,5386,'_content_description','field_59b641c07f473'),
	(99141,5386,'pageSummary','The developments in the technology sector and the increased number of paid TV channels in the UAE have created a hotbed for illegal activities which may lead to intellectual property (“IP”) violations.'),
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	(99094,5383,'_yoast_wpseo_metadesc','On 27 March 2016, the Egyptian National Supreme Administrative Court, Conseil d’Etat, confirmed the dissolution of the Egyptian Football Association’s (EFA) Board of Directors in its decision in case number 24259 for the Supreme judicial year 61. Why?'),
	(99095,5384,'content','May 2016\r\n\r\n<hr />\r\n\r\nThis year, the Dubai Health Authority issued nine healthcare regulations which address developments in the delivery of healthcare in Dubai.  While six of these regulations are new, others provide much needed updates to existing regulations in order to create a more robust and comprehensive regulatory framework to govern the licensing, practice, and delivery of healthcare services in Dubai.\r\n\r\nAccording to the latest Dubai Health Authority (“DHA”) report, total healthcare spending in Dubai for 2014 was AED 12.77 billion, up from AED 10 billion in 2012.  Thirty percent was funded by the Dubai government, forty-five percent through private sector employers and corporations, and twenty-five percent by households, being families and individuals.  As demand for cosmetic and aesthetic procedures grows, both with residents and medical tourists, further guidelines are needed for investors seeking to fulfil demand.  The following recently issued regulations seek to improve quality standards in healthcare facilities and ensure continuous development of Dubai’s health and medical professionals.\r\n\r\n<strong>Comprehensive Oncology Regulation</strong>\r\n\r\nThis new regulation seeks to be a comprehensive base for the assessment of oncology services – medical oncology, radiation oncology, and surgical oncology.  The provision of oncology services is limited to hospitals, or a unit attached to a hospital, day surgical centres, and cancer treatment centres.  As with other healthcare services, the provision of oncology services is subject to licensure under the DHA.  These requirements apply to semi-governmental and private healthcare facilities, as well as those operating in free zone areas.\r\n\r\nAs a part of a comprehensive oncology treatment plan, the regulation promotes the incorporation of palliative care as part of the care plan provided by the health facility.  Detailed in the regulation are facility licensure requirements, general facility design considerations, oncology service delivery standards, healthcare professional staffing and licensure requirements, and patient care and assessment standards.\r\n\r\n<strong>Hyperbaric Oxygen Therapy Service Standards</strong>\r\n\r\nThis new standard applies to healthcare facilities providing hyperbaric oxygen therapy (“HBOT” and “HBOT Standard”) services.  HBOT treatment is defined under the HBOT Standard as “a treatment in which the patient is placed in a chamber and breathes near 100% oxygen or special mixed gases at higher than local atmospheric pressure”.  The demand for this treatment as grown as the prevalence of diabetes as increased in the Emirate.  The provision of HBOT services is limited to hospitals, day surgical centres, and outpatient care facilities with certain specialities.  As with other healthcare services, the provision of HBOT services is subject to licensure by the DHA.  In addition to governing the delivery of HBOT services, the HBOT Standard stipulates the requirements of licensure, professionals carrying out the HBOT care, facility location and configuration, and patient care delivery.  These requirements apply to semi-governmental and private healthcare facilities, as well as those operating in free zone areas, except facilities regulated by the Dubai Healthcare City Authority.\r\n\r\n<strong>Laser and IPL Hair Reduction Standards</strong>\r\n\r\nThis standard (“IPL Standard”) revises and updates the previous standard on the topic, which was implemented in 2011.  The IPL Standard sets out the minimum requirements for health facilities (hospitals, day surgical centres, and outpatient care facilities) providing light amplification by stimulated emission of radiation (“laser”) and intense pulsed light (“IPL”) services for hair reduction.  These minimum standards are a prerequisite to obtaining and maintaining licensure by the DHA for such activities.  The scope of the standards includes laser and IPL treatment for hair reduction but does not include the application of laser treatment in any other type of procedure.  These requirements apply to semi-governmental and private healthcare facilities, as well as those operating in free zone areas, except the facilities regulated by the Dubai Healthcare City Authority.\r\n\r\n<strong>Sleep Laboratory Guidelines</strong>\r\n\r\nThe number of sleep laboratories in the Emirate has grown over the past few years due to a growth in the demand for these services.  This guideline (“Sleep Guidelines”) outlines the basic mandatory requirements to ensure that health facilities and healthcare professionals provide a certain basic level and quality of care to patients with sleep disorders.  The Sleep Guidelines covers sleep studies performed at a sleep laboratory, such as polysomnogram (“PSG”), multiple sleep latency tests (“MSLT”), and maintenance of wakefulness test (“MWT”).  Such studies can be performed health facilities licensed as hospitals and outpatient care facilities with certain twenty-four hour services.  The Sleep Guidelines enumerate the requirements for facility licensure, general facility design considerations, healthcare professional staffing and licensure, and patient care and safety.  These requirements apply to semi-governmental and private healthcare facilities, as well as those operating in free zone areas, except the facilities regulated by the Dubai Healthcare City Authority.\r\n\r\nHair Transplant Service Standards\r\n\r\nThis standard (“Hair Transplant Standards”) outlines the basic mandatory requirements for a health facility (hospitals, day surgical centres, and outpatient care facilities) to be licensed and to maintain such licensure to provide hair transplant services.  The Hair Transplant Standards defines hair transplantation as a surgical method of hair restoration.  Such methods of hair transplantation include follicular unit hair transplantation and mini-micro-grafting transplantation. As with other healthcare services, the provision of hair transplant services is subject to licensure under the DHA.  Enumerated in the Hair Transplant Standards are requirements for facility licensure, general facility design considerations, healthcare professional staffing and licensure, patient selection, preoperative counselling and informed consent, and patient care and assessment.  The Hair Transplant Standards apply to semi-governmental and private healthcare facilities, as well as those operating in free zone areas, except the facilities regulated by Dubai Healthcare City Authority.\r\n\r\n<strong>Colon Hydrotherapy Guidelines</strong>\r\n\r\nThese guidelines (“Colon Hydrotherapy Guidelines”) outline the basic mandatory requirements for a health facility (specialty clinic or polyclinic with certain specialties) to be licensed, and to maintain such licensure, to provide colon hydrotherapy services.  Enumerated in the Colon Hydrotherapy Guidelines are requirements for facility licensure, general facility design considerations, healthcare professional training and licensure, and patient care.\r\n\r\nThe Colon Hydrotherapy Guidelines define colon hydrotherapy as the irrigation and cleansing of the colon. Specifically prohibited is the provision of colon hydrotherapy in an independent health facility that provides only this service.  Further, the Colon Hydrotherapy Guidelines require the equipment used in the provision of colon hydrotherapy to be approved by the Ministry of Health in the UAE and at least of the following international authorities: Food and Drug Administration, Health Canada, Conformité Européenne, or Australian Register of Therapeutic Goods.\r\n\r\nThe Colon Hydrotherapy Guidelines apply to semi-governmental and private healthcare facilities, as well as those operating in free zone areas, except the facilities regulated by the Dubai Healthcare City Authority.\r\n\r\nAreas of clinical expertise under new Scope of Practice and Clinical Responsibilities regulations:\r\n<table class=\"MsoTableGrid\" border=\"1\" width=\"398\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td valign=\"top\" width=\"133\"><strong>General Practitioner</strong></td>\r\n<td valign=\"top\" width=\"133\"><strong>Family Medicine</strong></td>\r\n<td valign=\"top\" width=\"133\"><strong>Obstetrics and Gynaecology</strong></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Adolescent health</td>\r\n<td valign=\"top\" width=\"133\">Adolescent health</td>\r\n<td valign=\"top\" width=\"133\">Antenatal care</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Cardiology</td>\r\n<td valign=\"top\" width=\"133\">Allergy and immunology</td>\r\n<td valign=\"top\" width=\"133\">Early pregnancy care</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Dermatology</td>\r\n<td valign=\"top\" width=\"133\">Cardiology</td>\r\n<td valign=\"top\" width=\"133\">Maternal medicine</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Emergency and urgent care</td>\r\n<td valign=\"top\" width=\"133\">Care of the surgical patient</td>\r\n<td valign=\"top\" width=\"133\">Management of labour</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">End of life care (Palliative care)</td>\r\n<td valign=\"top\" width=\"133\">Chronic illness care</td>\r\n<td valign=\"top\" width=\"133\">Management of delivery and intra-partum complications</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Endocrinology</td>\r\n<td valign=\"top\" width=\"133\">Dermatology</td>\r\n<td valign=\"top\" width=\"133\">Postpartum care</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">ENT and eye care</td>\r\n<td valign=\"top\" width=\"133\">Emergency and urgent care</td>\r\n<td valign=\"top\" width=\"133\">Fetal medicine</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Gastroenterology</td>\r\n<td valign=\"top\" width=\"133\">End of life care (Palliative care)</td>\r\n<td valign=\"top\" width=\"133\">Gynaecological care</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Genetics</td>\r\n<td valign=\"top\" width=\"133\">ENT and eye care</td>\r\n<td valign=\"top\" width=\"133\">Urogynaecology and pelvic care</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Geriatrics</td>\r\n<td valign=\"top\" width=\"133\">Genetics</td>\r\n<td valign=\"top\" width=\"133\">Surgical procedures and postoperative care</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Gynaecology and women’s health</td>\r\n<td valign=\"top\" width=\"133\">Geriatrics</td>\r\n<td valign=\"top\" width=\"133\">Sexual and reproductive health</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Musculoskeletal</td>\r\n<td valign=\"top\" width=\"133\">Gynaecology and women’s health</td>\r\n<td valign=\"top\" width=\"133\">Termination of pregnancy</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Occupational health</td>\r\n<td valign=\"top\" width=\"133\">Maternity care</td>\r\n<td valign=\"top\" width=\"133\">Female sterilization and reproduction</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Oncology</td>\r\n<td valign=\"top\" width=\"133\">Men’s health</td>\r\n<td valign=\"top\" width=\"133\">Infertility</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Pediatrics</td>\r\n<td valign=\"top\" width=\"133\">Mental health</td>\r\n<td valign=\"top\" width=\"133\">Gynaecological oncology</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Public health</td>\r\n<td valign=\"top\" width=\"133\">Musculoskeletal</td>\r\n<td valign=\"top\" width=\"133\"></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Respiratory</td>\r\n<td valign=\"top\" width=\"133\">Neurology</td>\r\n<td valign=\"top\" width=\"133\"></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Sexual health</td>\r\n<td valign=\"top\" width=\"133\">Nutrition</td>\r\n<td valign=\"top\" width=\"133\"></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Substance abuse</td>\r\n<td valign=\"top\" width=\"133\">Occupational medicine</td>\r\n<td valign=\"top\" width=\"133\"></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Urology</td>\r\n<td valign=\"top\" width=\"133\">Oncology</td>\r\n<td valign=\"top\" width=\"133\"></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\">Travel medicine</td>\r\n<td valign=\"top\" width=\"133\">Pediatrics</td>\r\n<td valign=\"top\" width=\"133\"></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\"></td>\r\n<td valign=\"top\" width=\"133\">Respiratory</td>\r\n<td valign=\"top\" width=\"133\"></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\"></td>\r\n<td valign=\"top\" width=\"133\">Substance use disorders</td>\r\n<td valign=\"top\" width=\"133\"></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"133\"></td>\r\n<td valign=\"top\" width=\"133\">Travel medicine</td>\r\n<td valign=\"top\" width=\"133\"></td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n&nbsp;\r\n\r\n<strong>Scope of Practice and Clinical Responsibilities - Family Medicine </strong>\r\n\r\nThis new version of the scope of practice and clinical responsibilities of family medicine sets out a more a more comprehensive framework for the family medicine physician’s general scope of practice as well as required areas of clinical expertise.\r\n\r\nThe family medicine title, issued by DHA, is awarded to physicians who meet the Professionals Qualification Requirements.  Licensing is issued under one of the following titles: consultant; specialist; or specialist under supervision.  Family medicine physicians licensed by the DHA may practice in a hospital, day surgical centre, outpatient care facility (including polyclinics), specialty clinics, and home healthcare facilities.\r\n\r\nFamily medicine is defined as the medical specialty which provides continuing, comprehensive healthcare for the individual and family, integrating the biological, clinical and behavioural sciences. “The scope of practice of family medicine physicians encompass all ages, both genders, each organ system and every disease entity”.\r\n\r\n<strong>Scope of Practice and Clinical Responsibilities - General Practitioner </strong>\r\n\r\nThis new version of the scope of practice and clinical responsibilities of a general practitioner sets out a more a more comprehensive framework for the family medicine physician’s general scope of practice as well as required areas of clinical expertise.\r\n\r\nThe General Practitioner (“GP”) title, issued by DHA, is awarded to physicians who meet the Professionals Qualification Requirements.  These requirements include the completion of a basic medical degree from an accredited institution and, with limited exceptions, the successful completion of the required training and clinical experience.  A GP licensed by the DHA may practise in a hospital, day surgical centre, outpatient care facility (including polyclinics), general clinics, home healthcare facilities, and school clinics.\r\n\r\nA GP, also known as general practice physician or general physician, is described as a physician who practises general medicine, which is neither limited to any particular area of medicine or specialty nor limited by age, gender, body system, disease process or service site.  Part of the GP’s role is to provide “general diagnosis and treatment for patients in all aspects of general medicine within their physical, psychological, social, cultural and existential dimensions”.\r\n\r\n<strong>Scope of Practice and Clinical Responsibilities – Obstetrics and Gynaecology</strong>\r\n\r\nThis new scope of practice and clinical responsibilities for obstetrics and gynaecology practitioners sets out a comprehensive framework for the obstetrics and gynaecology physician’s general scope of practice as well as required areas of clinical expertise.\r\n\r\nAn obstetrician or gynaecologist title, issued by DHA, is awarded to physicians who meet the Professionals Qualification Requirements.  Licensing is issued under one of the following titles: consultant; specialist; or specialist under supervision.  An obstetrician or gynaecologist licensed by the DHA may practice in a hospital, day surgical centre, outpatient care facility (including polyclinics or speciality clinics), and fertility centres.\r\n\r\nThe practise of obstetrics and gynaecology is described as the integrated medical and surgical care of women’s health throughout their lifespan.  “The combined discipline of obstetrics and gynaecology requires extensive study and understanding of reproductive physiology, including the physiologic, pathologic, social, cultural, environmental and genetic factors that influence disease in women”.  The scope of practice includes preventive health, reproductive health, gynaecological surgery, and maternal and fetal care for women of all ages.\r\n\r\n<strong>What’s Next</strong>\r\n\r\nAs more specialist healthcare services advance across the Emirate and investors continue to bring new and innovative care delivery models to the UAE, we can expect to see the DHA continues to review, update, and add new regulations to the current healthcare regulatory framework.\r\n\r\nAs the Emirate seeks to compete on an international level, we can expect the DHA to take a tougher stance on any violations of the regulations through the issuance of warning letters, financial fines, and, in some cases, revocation of licensure.'),
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	(99076,5383,'content','May 2016\r\n\r\n<hr />\r\n\r\nThis article looks at the reasons for this decision and its implications.\r\n\r\n<strong>Background </strong>\r\n\r\nThe issue that led to the decision of the Court arose from a dispute regarding elections that were held in 2012 for appointments to the Board of Directors of EFA, the governing body for football in Egypt, for the period 2012 – 2016.\r\n\r\nLosing candidates claimed that the elections were void due to procedural violations. These violations included (i) defects in the invitation to the general assembly meeting (as it was sent by a person who did not have the required authority to send the invitation); (ii) the change of venue of the elections , 24 hours prior to the general assembly meeting by the executive manager of the EFA, who did not have the capacity to take such a decision; (iii) providing hotel rooms and common transportations for a number of EFA former board members and members of the general assembly, which reflected potential bias; (iv) breaches relating to sorting the votes, and the final results of the voting process. It was further stated that the relevant electoral committee, when sorting the candidates’ votes, followed the “partial” invalidation method of the voting card instead of the “complete” invalidation method, which is, according to the Decision, required by Article 24.2 of the EFA Articles of Association and Article 5 of the Sports Associations Bylaws hence leading to the invalidity of the elections’ final results.\r\n\r\nA case was first filed on 20 October 2012, by these former candidates before the Administrative Court in Cairo (case number 3548 for the judicial year 67). They requested the Court to rule on an expedited basis to stop the issuance and declaration of the final results of the EFA elections, and to revoke the results. The Court requested the State Commissioners Office to prepare an opinion on the matter. The State Commissioners Office report is non-binding on the Court, therefore, whilst the report was in favor of the claimants, the Court decided against the claimants as they did not find the violations in the voting process material to the extent that would lead to revoking the results.\r\n\r\nThe claimants appealed the Court’s decision before the Egyptian National Supreme Administrative Court, Conseil d’Etat, in case number 24259 for the Supreme judicial year 61. The Supreme Court decided for the claimants in its final and binding judgment dated 27 March 2016. In its judgement, the Supreme Court confirmed the dissolution of the EFA’s Board of Directors.\r\n\r\n<strong>Consequences - Is there a risk that the EFA gets suspended?</strong>\r\n\r\nFIFA (Fédération Internationale de Football Association) is the governing body for world football and organises the World Cup. Article 17 of the FIFA Statutes states that the members (e.g. EFA) shall manage their affairs independently and with no influence from third parties (e.g. national governments). The provision is quite general and does not specify exactly which types of interventions would be considered influence by third parties.\r\n\r\nTherefore, questions have been raised as to whether FIFA’s Associations Committee would find the dissolution of the EFA’s Board of Directors by the Court amounts to being “influence from third parties” leading to the risk of suspension. If suspended, Egypt would not be able to take part in recognised international matches, most significantly the African Cup of Nations.\r\n\r\nFurther questions have been raised as to whether the Egyptian Minister of Youth and Sports would interfere and whether such interference, in addition to the decision on dissolution, would amount to being “influence from third parties” leading to the risk of suspension. The Minister was quoted saying that any actions from his side would not take place prior to the regionally-perceived critical matchup between Egypt and Nigeria, to be played in Alexandria on 29 March 2016 as part of the 2017 Africa Cup of Nations qualifications.  The match was played following the withdrawal of the Chadian national team from the 2017 Africa Cup of Nations qualifications, specifically Group G, which includes Egypt, Nigeria and Tanzania.  The withdrawal of Chad led to the cancelation of the points relating to matches played against it within Group G; this required that another match between Egypt and Nigeria takes place during this tournament following such withdrawal.  Egypt won the match raising its points to 7 points, while Nigeria’s points became 2 and Tanzania 1.Following the match the Minister was further quoted saying that he will respect and comply with the FIFA regulations.\r\n\r\nUntil date, no new elections have been announced by the EFA. To the contrary, the dates for the next elections seem to be unchanged (September 2016) despite the dissolution of the Board of Directors. There have been announcements by Egyptian media outlets, including Al Ahram Online on 26 April 2016, that FIFA warned Egypt that any interference in football affairs is strictly prohibited. It has been stated that FIFA notified Egypt that “sanctions will be considered, including suspension” if the court judgment is enforced. The existence of such warning is yet to be confirmed.\r\n\r\n<strong>Will a New Sports Law Help?</strong>\r\n\r\nDiscrepancies between the national sports laws and international sports laws and regulations remain an issue in Egypt. A new draft law for sports has been proposed and discussed this year, taking into consideration the international regulations, the requirements set by the sports’ governing bodies including the International Counsel for Sports Arbitration, the Olympics and the different federations.  However the draft law has yet to be passed.\r\n\r\nIt remains to be seen how Egypt’s Minister for Youth &amp; Sports and the relevant authorities will deal with the Court’s decision in light of the currently enforced Egyptian Laws and the non-intervention requirement by the FIFA Statutes. Any infringement of the FIFA requirement may lead to a complaint being filed against Egypt with FIFA, and could lead to Egypt’s suspension and the risk that the national team does not participate, yet another time, in the African Cup of Nations (which will next take place in 2017). This would undoubtedly demoralise Egyptians in what is already a trying time for the nation. Football remains Egypt’s favorite pastime, a sport followed with passion. Given Egypt’s historical success at the African Cup of Nations, an inability to participate would only add salt to the open wound.\r\n\r\nLaila El Shentenawi (l.elshentenawi@tamimi.com) is a Senior Associate in the Arbitration and Dispute Resolution practice based in the Dubai office and a member of Al Tamimi’s dedicated Sports Law &amp; Events Management practice.  Laila focuses on international commercial arbitration, investment arbitration, mediation and sports dispute resolution. Her clients include governments, regional organisations, international organisations, multi-national companies, banks, investors, international athletes and sports bodies.'),
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	(99042,5381,'content','May 2016\r\n\r\n<hr />\r\n\r\nThese hold that personal freedom and the rights of movement outside the state should not be restricted except in accordance with the law.\r\n\r\n<strong>Background </strong>\r\n\r\nA local company (the “Claimant”) filed a civil case against a foreign company (the “Defendant”) requesting the court to issue a judgment obligating the Defendant to pay a ratio of 5% of the total sum of the contracted project, in addition to compensation in the amount of QAR 1,000,000.\r\n\r\nSimultaneously, the Claimant submitted a request for the court to impose a travel ban against the Defendant’s representatives (ie. managers and authorised signatories). The Claimant’s grounds for the request were that the Defendant may smuggle the company’s assets outside Qatar. The competent judge issued an order imposing a travel ban against the Defendant’s representatives.\r\n\r\nThe Defendant’s representatives (the “Petitioners”) appealed the decision of the judge regarding the imposition of the travel ban, before the Court of First Instance, based on the following reasons:\r\n<ul>\r\n 	<li>The Defendant, for which the petitioners work, is one of the largest foreign construction companies, maintains a high level of creditability and executes large projects in Qatar. Thus, the  fear that the Defendant may dissipate the Defendant’s assets was unreasonable;</li>\r\n 	<li>The order imposing the travel ban violated Article (36) of Qatar’s Constitution which stipulates that “Personal freedom is guaranteed. No person may be arrested, detained or searched as well as his stay or his freedom of residence or movement may not be restricted except in accordance with provisions of the law”; and</li>\r\n 	<li>The Defendant is a limited liability company which has a separate legal personality independent of its shareholders and so the shareholders are not responsible for the company’s debts. The Court of Cassation in Appeal No. 37 of 2008 stated “a limited liability company has its financial disclosure which is independent from its partners’ custody and hence the representative director of this company has his own financial disclosure that is independent from it. Thus, he is not antagonised for its debts and not asked to fulfil them with his own money”.</li>\r\n</ul>\r\nIn view of the above, the Petitioners argued that the court’s order preventing them from travelling restricts their freedom in breach of the principle of freedom of movement guaranteed by the Qatari Constitution and the provisions of the Commercial Companies law. The reasoning for this was twofold:\r\n<ul>\r\n 	<li>The petitioners are not personally liable to the Claimant for the financial commitments of the Defendant. Therefore, even in the event the court issues a verdict against the Defendant, the petitioners should not be held responsible for paying the value of this debt, thus, the travel ban does not guarantee any rights to the Claimant.</li>\r\n 	<li>There is no merit to the Claimant’s claim and no factual evidence was presented to support the Claimant’s allegations. Hence, the travel ban constitutes a violation of the provisions of the Qatari Constitution which requires a high threshold for the instances under which the freedom of persons may be restricted and confirms that such instances must be kept to the minimum extent possible. The case at hand does not satisfy the threshold of “seriousness” that must be applied in issuing a travel ban particularly because the Claimant’s request is not based on any substantiated evidence.</li>\r\n</ul>\r\n&nbsp;\r\n\r\n<strong>Ruling of the Court of First Instance</strong>\r\n\r\nThe Court of First Instance accepted the Petitioners’ arguments and issued a judgment revoking the travel ban based on the following reasons:\r\n<ul>\r\n 	<li>The claimed amount in this case was not substantiated in fact to the Petitioners personally;</li>\r\n 	<li>It was established that the Defendant is a credible company with a project value exceeding two billion Qatari Riyals. In addition, the project was extended for an additional duration. Therefore, there was no fear that the Defendant may dissipate any of the Claimant’s claimed assets;</li>\r\n 	<li>The Petitioners’ arguments were legally correct since the Defendant has an independent juristic person separate from its shareholders. Thus, the managers should not be held personally responsible for the Defendant’s debts except in the circumstances determined by the law.</li>\r\n 	<li>The freedom of movement is guaranteed by virtue of the constitution and it is prohibited to place restrictions on this freedom except for serious reasons.</li>\r\n</ul>\r\nThe Claimant did not submit an appeal for this judgment; therefore, the judgment became final.\r\n\r\n<strong>Significance of the Ruling </strong>\r\n\r\nThis judgment is a clear example of the court’s application of the provisions of the Qatari Constitution which uphold a person or persons’ freedom of movement without any restrictions. The judgment confirmed that a travel ban should be restricted to circumstances where there are serious reasons justifying its imposition, such as that the debtor will flee the country or will transfer his assets outside Qatar. It should be subject to the applicant’s ability to provide prima facie evidence that such risks exist. The judgment should allay limited liability managers’ fears that a travel ban may be imposed against them for the debts or liabilities of their company.');

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	(99057,5382,'content','May 2016\r\n\r\n<hr />\r\n\r\nIn this case, the court decided that both the Insurance company and the carrier are jointly liable to indemnify the receivers based on distinct legal bases. The Insurance company was required to pay the damages to the Receiver and, subsequently, filed a recourse case against the carrier, as identified by the court, after obtaining a subrogation of rights from the Receiver. The recourse case was based on both the judgement and the subrogation at the same time.\r\n\r\nThe Case:\r\n\r\nA cargo of steel plates was shipped on board a chartered under time basis vessel to Jebel Ali port for several receivers. After discharging the cargo at Jebel Ali port, it was delivered to the receivers designated in the bills of lading which were issued by the charterers. One of the receivers (the “Receiver”) found there was a shortage in the quantity of steel plates (the “Cargo”) delivered to him equivalent to a certain amount of money. The Cargo was insured under a marine insurance policy for the voyage from port of loading to the port of discharge stated in the bills of lading the Receiver held.\r\n\r\nThe Receiver filed a court case before Dubai Court of First Instance (the ”Court of First Instance”) in order to appoint an expert to examine the short landed cargo and the cause and to claim such loss against the sellers, ship-owners, the vessel and the insurers of the Cargo (the “Insurers”). The Court of First Instance appointed an expert who concluded the value of the cargo short landed which had happened due to the wrong delivery by the ship agent appointed by the charterers.  The Receiver amended his statement of claim and requested the defendants to pay jointly and severally the value of the short landed Cargo (the “Claimed Amount”).\r\n\r\nThe Court of First Instance found that:\r\n<ul>\r\n 	<li>The sellers shipped the cargo on board the vessel as per the description in the bill of lading and, therefore, they are not responsible for any short landed Cargo;</li>\r\n 	<li>The ship-owners are not responsible as they are not the issuers of the bill of lading which was issued by the charterers and, accordingly, not the carrier under the bill of lading;</li>\r\n 	<li>The Insurers are responsible to indemnify the receivers pursuant to the insurance policy covering the Cargo for the Claimed Amount plus interest at 9% per annum and cost; and</li>\r\n 	<li>The Court of First Instance rejected the case against the other defendants.</li>\r\n</ul>\r\nThe Receiver filed an appeal before the Appeal Court of Dubai (the “Appeal Court”) on the basis that the judgment should include the other two defendants to pay the awarded amount jointly with the Insurers as the owners are the carriers under the bill of lading. The Insurers filed another appeal before the Appeal Court on the basis that the claimed damages are not covered by the insurance policy and that the interest should start counting from the date the judgment becomes final. Both appeals were joined in one hearing. The Insurers argued in their appeal that the judgment relied on an expert report which was incorrect in its findings as the cargo was fully discharged at Jebel Ali but the shortage was due to the wrong delivery by the ship agent. The ship-owners argued that they are not the carriers under the bill of lading and that the case is time barred.\r\n\r\nThe Appeal Court found that according to the customs bill of entry, it is clear that the number of plates discharged at the port were as per the bill of lading and that there was the correct number of plates at the port and there was no short lading in the number of plates. The findings of the expert appointed by the Court of First Instance contradicted the bill of entry as there was no certificate of shortage issued by the customs. Therefore, the court adopted the customs bill of entry as issued by an official body and found that there was no short landing and, accordingly, all the defendants were found not liable. The court of First Instance judgment was cancelled accordingly.\r\n\r\nThe Receiver filed an appeal case before the Cassation Court of Dubai (the “Cassation Court”) on the following basis:\r\n<ul>\r\n 	<li>The delivery order attached with the bill of entry shows that the quantity of steel plates received was less than the quantity stated in the bill of lading and that there was a balance quantity of steel plates rejected by the Receiver as they did not form part of the shipment.</li>\r\n 	<li>The bill of entry did not state the specifications of the delivered steel plates which were mentioned in the appointed surveyor’s report and the report issued by the court appointed expert.</li>\r\n 	<li>The judgement of the Appeal Court did not consider any of the documents submitted by the Receiver, such as the packing list, bill of lading, insurance policy, mate receipt, the surveyors report and the court appointed expert.</li>\r\n</ul>\r\nThe Cassation Court accepted the appeal, cancelled the Appeal Court judgment and returned the case to the Appeal Court to reconsider the case and also concluded that:\r\n<ul>\r\n 	<li>The Carrier was under an obligation to actually deliver the cargo to the receivers and to put it under their disposal in order to inspect it.</li>\r\n 	<li>If the cargo was damaged after the receipt by the carrier and before the delivery then it is considered to be caused during the passage unless the carrier was able to prove that the damage was not attributed to him or his employees but rather due to the act of the shipper or any other cause not related to him. The wrong delivery of the cargo, or part of which is considered to be a shortage of delivery, entitles the Receiver to claim indemnity against such shortage.</li>\r\n 	<li>The marine insurance policy was issued in connection with the bill of lading and the beneficiary should be the party  who has interest to avoid the occurrence of the insured risk.</li>\r\n 	<li>The beneficiary under the insurance policy had the right to claim the indemnity under the insurance policy.</li>\r\n 	<li>If the court issues its decision not in conformity with the expert report then it must explain this.</li>\r\n 	<li>The court should have given enough reasoning upon which its decision was made.</li>\r\n</ul>\r\nWhen the case was returned to the Appeal Court, it considered the same points of the original appeals filed before. The Appeal Court found the following:\r\n<ul>\r\n 	<li>The sellers are not liable as per the court appointed expert report because it delivered the cargo on board the vessel as contractually agreed and the short landing is not attributed to them.</li>\r\n 	<li>The owners are not liable because the bill of lading was issued by the charterers who signed the bill of lading and did not mention that they are the representatives of the owners.</li>\r\n 	<li>The Insurers are liable because the policy covers such loss and it was proven that the cargo left at the port did not belong to the shipment and did not hold any remarks.</li>\r\n</ul>\r\nThe Insurers appealed the decision of the Appeal Court before the Cassation Court on the following basis:\r\n<ul>\r\n 	<li>The Appeal Court did not consider the bill of entry issued by the Customs which proves that the cargo was discharged without any shortage. Such bill may not be refuted except by proving that it is forged.</li>\r\n 	<li>The Receiver tried to obtain a certificate from the port to prove the shortage but the port refused based on the customs bill of entry.</li>\r\n 	<li>The steel plates left at the port of discharge did not hold any remarks that show that they belong to another shipment and the court appointed expert did not mention on what basis he concluded that there was wrong delivery and not a failure on part of the shipper/seller to load the agreed shipment.</li>\r\n</ul>\r\nThe Cassation Court refused the appeal and confirmed the Appeal Court judgment on the basis of the court appointed expert report.\r\n\r\nThe Receiver appealed the decision of the Appeal Court on the following basis:\r\n\r\nThe sellers must be jointly liable with the Insurers for the shortage because they failed to ship the total agreed cargo quantities. The court refused this point on the basis that the shipper, as per all reports issued at the port of loading and by the court appointed expert, shipped the total agreed cargo quantities.\r\n\r\nThe ship-owners must be jointly liable with the Insurers for the shortage because they are the carriers under the bill of lading which was signed by the agent on behalf of the master. The bill of lading did not state that the vessel was under charter and did not mention the name of the charterer or the owner, also the charterparty was not attached to the bill of lading.\r\n\r\nThe charterparty was referred to by the court appointed expert but only a photocopy was attached which the Receiver denied.\r\n\r\nThe Cassation Court found the following:\r\n<ul>\r\n 	<li>Refused the argument that the Court of Appeal relied on the charterparty photocopy since the photocopy does not hold the signature of the Receiver and it is left to the court to accept the charterparty as valid evidence or to set it aside.</li>\r\n 	<li>The Appeal Court should not have adopted the expert report in its finding in relation to legal points, such as the identity of the carrier under the bill of lading, and the Appeal Court should have explained on what basis it found that the owners were not the carrier under the bill of lading. Thus, the Appeal Court judgment was cancelled on this part.</li>\r\n</ul>\r\nThe case was returned to the Appeal Court to reconsider the parts of the judgment that were cancelled by the Cassation Court. The Appeal Court found that:\r\n<ul>\r\n 	<li>The owners were the Carrier under the bill of lading and the master agent’s receipts, which were signed by this agent, stated the name of the ship-owners and that the freight is due under the charterparty. The defence raised by the ship-owners that they are not the carriers under the bill of lading and that the name of the carrier under the bill of lading is the charterers was not correct based on the master agent’s receipt and the bill of lading which mentions the name of the ship-owners.</li>\r\n 	<li>The bill of lading and the two mate receipts were signed by the master.</li>\r\n 	<li>The name of the agent at the discharge port, as per the docket submitted in the last hearing, identify the name of the agent. It is not true that either the named ship agent is the alleged ship agent or the charterers are the carrier. Also, the email sent by the charterers to the ship-owners pertaining to the appointment of the ship agent in the port of discharge was issued 13 months before the bill of loading date and thus it should be ignored.</li>\r\n 	<li>The master, as per the UAE Commercial Maritime law, represents the owner of the vessel.</li>\r\n 	<li>The carrier was responsible for the delivery of complete quantities of cargo and he is considered responsible for any short delivery (missing cargo).</li>\r\n 	<li>The case is not time barred and the Owners are liable to pay together with the Insurance the claimed amount.</li>\r\n</ul>\r\nThe ship-owners filed an appeal before the Cassation Court on the following basis:\r\n<ul>\r\n 	<li>The ship-owners are not the carrier under the bill of lading based on the arguments raised before. The bill of lading was signed and stamped by the charterers (for and on behalf of the master).</li>\r\n 	<li>The mate receipts which were signed by the master clearly state that the name of the ship-owners as ship-owners and the charterers as the shipping line.</li>\r\n 	<li>The ship agent at the port of discharge was appointed by the charterers as per an e-mail sent by the charterers to the ship-owners directly after delivery of the vessel to the charterers. The letter is one year older than the date of the shipment but this letter is a statement from the charterer to the ship-owners as to the names of the ship agents at different ports who represent them. The court could not find any relation between the Arabic and English names of the ship agent, but this is incorrect as there was no deference between the ship agent names.</li>\r\n 	<li>The shortage was caused by the wrong delivery by the ship agent who represents the charterer, therefore, the charter should be held liable for his agent’s fault. The court did not consider the ship-owners supporting documents as they had submitted the evidence to prove that the vessel was under a charter.</li>\r\n</ul>\r\nThe Cassation Court rejected all the arguments and confirmed the Appeal Court’s judgment.\r\n\r\nWhile the Cassation Court was considering the appeal filed by the shipowners, the Insurers filed a case against the shipowners in order to claim the amount paid by the Insurers to the Receiver, pursuant to the foregoing proceedings in which the judgement was issued in favour of the Receiver and the execution claim filed by the Recievers against the Insurers.  This will be addressed further in Part II of this article.'),
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	(98976,5376,'content_description','There have been some recent developments in Qatar in relation to the interpretation and practical application of taxation of capital gains. '),
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	(98978,5376,'pageSummary','There have been some recent developments in Qatar in relation to the interpretation and practical application of taxation of capital gains.'),
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	(98994,5376,'_yoast_wpseo_metadesc','There have been some recent developments in Qatar in relation to the interpretation and practical application of taxation of capital gains.'),
	(98995,5377,'content','April 2016\r\n\r\n<hr />\r\n\r\nThis article sets out some of the new procedures regarding registering a trademark in Kuwait.\r\n\r\n<strong>Publication of Ministerial Decision </strong>\r\n\r\nMinisterial Decision No. 500 of 2015 was published in the Official Gazette (Issue 1268) on December 27 2015 and took effect the following day. The decision was issued pursuant to Law No. 13 of 2015 Approving the Law (System) of Commercial Trademarks of the States of Cooperation Council for the Arab Gulf Countries, which was published in the Official Gazette (Issue 1228) on March 22 2015.\r\n\r\nThe Ministerial Decision governs trademark registrations, licence agreements, the duration of protection, assignment, mortgage and seizure. The decision has also extended the definition of a ‘trademark’ to include single colours, combinations of colours, sound marks and smell marks. The latter should be applied for in the form of musical notes and/or a written description.\r\n\r\n<strong>Application Requirements</strong>\r\n\r\nA trademark application must be accompanied by:\r\n<ul>\r\n 	<li>four images of the marks</li>\r\n 	<li>legalised and translated power of attorney</li>\r\n 	<li>proof of business practice</li>\r\n 	<li>a translation of the mark if it is not in the Arabic language, with an explanation of how it should be pronounced.</li>\r\n</ul>\r\nThe trademark application shall be confined to the registration of a trademark in one class only. However, a single application may be filed in respect of multiple classes, subject to the approval of the Kuwait Trademark Office in accordance with the Nice Classification (the International Classification of Goods and Services for the Purposes of the Registration of Marks published by the World Intellectual Property Organisation).\r\n\r\n<strong>Priority Claims</strong>\r\n\r\nThe new system allows the trademark applicant or its successor to claim priority on the basis of a previous application filed in a state that is a signatory to a multilateral international convention to which a Gulf Cooperation Council (‘GCC’) State is a member. To do so, the applicant must submit, along with its application, a statement showing the date and number of the previous application and the state in which it was filed. The applicant must also deposit a certificate stating the filing date as issued by the state of the previous application, along with a copy of the previous application and its translation into Arabic, within six months of the date of the previous application for which priority is claimed. If the applicant fails to comply with these requirements, its priority claim will not be accepted.\r\n\r\n<strong>Examination Time</strong>\r\n\r\nAccording to the Ministerial Decision, the Kuwait Trademark Office should conduct a formal examination within 90 days of filing by either accepting or rejecting the application in terms of its formality; the applicant then has another 90 days to complete missing information, documents or explanations.\r\n\r\n<strong>Appeals </strong>\r\n\r\nAn appeal committee formed by the Ministry of Commerce and Industry will hear an appeal against rejected applications within 60 days of notification. It will then examine the appeal and take a decision, which will be delivered to the appellant within 30 days of issue. The appellant can appeal the committee’s decision to the court within 60 days of notification.\r\n\r\n<strong>Temporary Protection</strong>\r\n\r\nThe Ministerial decision has also established a new system for the temporary protection of trademarks used in exhibitions. Any party that wishes to obtain temporary protection for its trademark in respect of products or services displayed at an exhibition in Kuwait or a GCC state must notify the Kuwait Trademark Office of this desire at least one month before the exhibition’s inauguration. Notification should be filed on a specific form accompanied by four images of the trademark and evidence of payment of the requisite fees. The Kuwait Trademark Office will issue a certificate of temporary protection for the trademark used in exhibitions for a period not exceeding six months from the exhibition’s opening date.\r\n\r\n<strong>Increased Fees</strong>\r\n\r\nThe Ministerial Decision has increased the official fees for trademark registration services. This increase will affect all trademark applications filed after the effective date of the Ministerial Decision, as well as pending applications.\r\n\r\n<strong>Conclusion</strong>\r\n\r\nWe expect that the changes to the Kuwait trademark system and the increased fees will create some challenges for the Kuwait Trademark Office and brand owners while the new procedures are being implemented. If you have any questions on trademark registrations in Kuwait please contact Ahmed El Klatawy at a.elklatawy@tamimi.com.'),
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	(98997,5377,'lawUpdateArticleMonth','5353'),
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	(98999,5377,'content_description','The Kuwaiti Minister of Commerce and Industry has recently issued a new regulation that introduces changes to the trademark application, examination, publication and registration procedures, and governs the assignment, mortgage and seizure of trademarks. '),
	(99000,5377,'_content_description','field_59b641c07f473'),
	(99001,5377,'pageSummary','The Kuwaiti Minister of Commerce and Industry has recently issued a new regulation that introduces changes to the trademark application, examination, publication and registration procedures, and governs the assignment, mortgage and seizure of trademarks.'),
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	(99003,5377,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/april-9/new-kuwait-trademark-registration-procedures.html'),
	(99004,5377,'_currentURL','field_59d35123ab1e7'),
	(99005,5377,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Ahmed El Klatawy'),
	(99006,5377,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(99007,5377,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','a.elklatawy@tamimi.com'),
	(99008,5377,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(99009,5377,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
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	(99012,5377,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(99013,5377,'_yoast_wpseo_metadesc','The Kuwaiti Minister of Commerce and Industry has recently issued a new regulation that introduces changes to the trademark application, examination, publication and registration procedures, and governs the assignment, mortgage and seizure of trademarks.'),
	(99014,5378,'content','April 2016\r\n\r\n<hr />\r\n\r\nOman’s Ministry of Commerce and Industry is in the latter stages of implementing a new foreign investment law which was drafted with consultation from the World Bank.  The stated purpose of the new law is clear: attract a greater variety of global investors to the Omani economy.\r\n\r\nWhile still in draft form and subject to final review by the legislative and administrative bodies, if the new law is approved in its current form it is likely to contain provisions which achieve the following:\r\n<ul>\r\n 	<li>allow foreign investors to conduct business in Oman without requiring a local sponsor in certain business sectors;</li>\r\n 	<li>increase the maximum percentage a foreign investor can generally hold in an Omani company from 70% to 100% in certain business sectors;</li>\r\n 	<li>lower or remove the share capital requirement threshold (currently OMR 150,000 / USD 390,000) in certain business sectors; and</li>\r\n 	<li>provide an opportunity to use arbitration to settle disputes.</li>\r\n</ul>\r\n<strong>Key Sectors to Benefit</strong>\r\n\r\nThe new law, if passed, will resonate positively with global investors and provide additional encouragement to capitalise on a market where transparency and ease of doing business have improved considerably in recent years, according to figures collected by independent bodies.\r\n\r\nWith a population that grew by 8 percent between the end of 2014 and September 2015, demand for financial services, tourism, hospitality, manufacturing, and healthcare is poised for rapid growth as Oman makes strides towards its Vision 2020 programme of economic diversification.\r\n\r\nOnce approved, the new foreign investment law could dovetail well with the proposed new law on the mining of Oman’s rich reserves of metals and minerals as investors look towards the start of the next upturn in the commodities cycle.\r\n\r\n<strong>Future</strong>\r\n\r\nA further update will be issued later this year once the new law has been ratified and passed.\r\n\r\n&nbsp;\r\n\r\n&nbsp;'),
	(162459,5378,'core_values',''),
	(98972,5376,'content','April 2016\r\n\r\n<hr />\r\n\r\nThese developments may affect the settlement of capital gains tax in respect of the sale of shares  by a non-resident shareholder in a private company, which in resident in Qatar.\r\n\r\nThe sale of shares in a limited liability company giving rise to a capital gain was clarified in Qatar in 2011 when the Minister of Finance introduced the Executive Regulations of the Income Tax Law No.10 (the Executive Regulations). Article 7 of the Executive Regulations provides that:\r\n\r\nIn determining gross income, all revenues arising from transactions carried out by a taxpayer, including the disposal of assets and sporadic transactions, shall be taken into account unless subject to an exemption.\r\n\r\nWhile the definition of taxpayer as a ‘‘natural or legal person subject to tax under the provisions of this law’’ in Article 1 of the Income Tax Law No.21 of 2009 (the Income Tax Law) is rather circular, it is clear that any gain made by a foreign company selling shares it owns in subsidiaries in Qatar would necessarily be construed as taxable income. The current applicable tax rate is 10%. However, there are no provisions under the Income Tax Law or the Executive Regulations that set out how the computation of capital gains or capital losses must be determined in Qatar.\r\n\r\nNotwithstanding the taxable nature of any sell out of a subsidiary in Qatar in terms of a capital gain, until recently there was the situation that, while taxes on such capital gains were payable in Qatar, these taxes were not being imposed on non-residents. This was not because of any policy decision but rather because after the introduction of the tax card registration system, the Public Revenue and Tax Department of the Ministry of Finance (the PRTD) had not put into place any mechanism for non-resident taxpayers to lodge a return without a tax card.\r\n\r\nHowever, the PRTD has recently announced that tax returns can be lodged without holding a tax card or commercial registration in Qatar. This means that in the future it is possible that non-residents will be expected to lodge a return in respect of gains made from disposals of their interest in subsidiary companies.\r\n\r\nThe PRTD already examines every transfer of shares in a limited liability company in Qatar where a foreign party is a transferee or transferor. The PRTD must give its consent by way of an official stamp on the instrument recording the transfer, failing which the Ministry of Justice will not authenticate such instrument. This authentication is a pre-requisite to registering a share transfer on the Commercial Register with the Ministry of Economy and Commerce.\r\n\r\nThe current practice when seeking a request for tax clearance/consent to a sale of shares where a foreigner is a participant in the company is that generally the PRTD will seek confirmation that the taxpayer has filed all the tax returns until the last accounting period, together with confirmation from the auditors that the taxpayer will file a tax return for the next accounting period. In some instances the PRTD seeks to obtain audited financial statements up to the date of sale, notwithstanding that there is no requirement to submit audited financial statements up to that date.\r\n\r\nThe result of these recent developments may be that the PRTD will now be looking to a non-resident entity to file a tax return and settle tax due on capital gains arising on the disposal of shares, before it will issue a tax clearance and/or stamp the Share Transfer. Certainly it would appear from recent practice that the PRTD is, looking to consider capital gains issues upon receiving a request for tax clearance to a share transfer.\r\n\r\nAt this stage the PRTD seems to be accepting the sale price set out in the transfer instrument itself as a legitimate valuation of shares being disposed. However, one would expect that as the process becomes more standardised, the PRTD may be looking beyond the sale price specified in the transfer instrumentto reach a valuation for capital gains tax purposes. As yet, the Qatar tax authorities have not made any formal announcement of this new approach, or provided any guidance as to how this approach may be implemented, including the basis it may adopt for calculating any such gain. This article was first published in the February 2016 issue of IFLR Magazine\r\n\r\n&nbsp;'),
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	(98953,5375,'content_description','The Iraqi Parliament has issued the new Iraqi Labour Law No, 37 of 2015 (“New Labour Law”), which entered into force on 7 February 2016. '),
	(98954,5375,'_content_description','field_59b641c07f473'),
	(98955,5375,'pageSummary','The Iraqi Parliament has issued the new Iraqi Labour Law No, 37 of 2015 (“New Labour Law”), which entered into force on 7 February 2016.'),
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	(98941,5374,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Ronette Druskovich'),
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	(98949,5375,'content','April 2016\r\n\r\n<hr />\r\n\r\nThis law shall replace the old labour law No. 71 of 1987. The New Labour Law took a long time to be issued as the draft of the law went through many amendments and was under discussion from 2005 to 2010 with international, local and governmental entities before its submission to the State Council. The issuance of the New Labour Law was necessary, due to the significant changes that occurred over the last thirty years and the transformation of the Iraqi economy from Socialism to an open economy, especially with the entrance of working expats to Iraq.\r\n\r\n<strong>Scope of New Labour Law </strong>\r\n\r\nThe New Labour Law applies to all employees in Iraq (i.e. including Iraqis and foreigners) except public sector employees who have been hired according to the Civil Service Law and all security forces.\r\n\r\n<strong>Observations on the New Labour Law </strong>\r\n\r\nIn terms of its content, the New Labour Law appears to be more detailed than its predecessor.  It aims, as described by the Iraqi Parliament, to address the old law’s shortcomings and align Iraq’s labour regulations with international labour principles ratified by Iraq.\r\n\r\nThe New Labour Law differentiates jobs depending on the circumstances and duties that the employees are conducting, bearing in mind that the New Labour Law includes more than 170 Articles, which include a number of new terms and additions. These Articles have been set out after consulting with the labour society, labour unions, businessmen and the Ministry of Labour and Social Security.  The most significant attribute is that New Labour Law ratified all the international standards and conventions regarding labour which were not ratified by the previous law and which had been left pending.  The New Labour Law is equitable to employers and employees and is comparable to the labour laws of developed countries.\r\n\r\nThe New Labour Law’s most important advantages are as follows:\r\n<ul>\r\n 	<li>\r\n<div>The New Labour Law aims to organise all aspects of the relationship between the employer and employees, with the aim of protecting their rights and realising sustainable improvement which is based on social justice, equality and providing suitable work for everybody without discrimination.  The objective is to build the national economy, realise human rights and basic freedoms, organise the work of expatriates or those who want to work in the Republic of Iraq and execute the provisions of the Arab and International Work Agreements approved by the law. In addition, the New Labour Law aims to eliminate all types of compulsory labour, child labour and to determine a minimum working age and to prevent any discrimination or harassment, whether direct or indirect. Hence, the New Labour Law regulates the work of female employees by granting additional rights to those that existed in the old law. Furthermore, it addresses the work of subcontractors regarding the employees’ rights, following the expansion of such work in Iraq without previous regulation.</div></li>\r\n</ul>\r\n<ul>\r\n 	<li>\r\n<div>The New Labour Law differs to the old law in respect to illustrating and regulating the forms of work and states a definition for each.  The forms include: Temporary Work, Casual Work, Compulsory Work, Part-time Work and Indefinite Work. The New Labour Law states an explanation and required terms and conditions for each form. First, Temporary Work is the work that needs a specific period of time to be carried out and accomplished, which is usually adopted by companies that face a high volume of work for a specific period.  Secondly, Casual Work has been defined as work that is needed due to an emergency state, whose nature does not form part of the activities performed by the employer and should be accomplished within a period that does not exceed six months. Thirdly, Compulsory Work is work or service that is forced upon a person and in which he is employed against his will under the threat of punishment or sanction, the New Labour Law prohibits all forms of compulsory work.  Fourthly, Part-time Work, the New Labour Law addresses this form of work more widely than the old law and states clearly certain terms and conditions that should be applied in this regard.  According to the New Labour Law, part-time work is work that is performed during a number of working hours that are less than the normal daily working hours mentioned in this law, whether the work is performed daily or during specific days of the week and the working hours are calculated on a weekly basis or on the basis of the average number of working hours during a specific employment period.</div></li>\r\n</ul>\r\n&nbsp;\r\n<ul>\r\n 	<li>\r\n<div>In addition to the above, the New Labour Law regulates the work of foreigners in the country and devotes a special section to the rights of foreign workers, the work permits and visas that should be obtained, and the requirements and conditions to obtain the same. In addition, the New Labour Law gives the right to a foreign employee to submit his complaints directly to the Inspection Committees of the Ministry of Labour, in case of any violation.  Further, the New Labour Law emphasise the principal of equality among workers, to eliminate any direct or indirect discrimination in order to be compatible with international standards.</div></li>\r\n</ul>\r\n&nbsp;\r\n<ul>\r\n 	<li>\r\n<div>The New Labour Law did not fail to address the health aspect for the employees, as it stipulates that the National Centre of Occupational Health and Safety is to be in charge of planning and inspecting the implementation of health affairs in a manner that guarantees the safety of employees at work sites from occupational diseases and injuries, and sets out extensive requirements in this regard in order to achieve a healthy work environment.</div></li>\r\n</ul>\r\n<strong>Contractual Relationship</strong>\r\n\r\nAs regards to regulating the contractual relationship between the employer and the employee, the New Labour Law is organising such relations thoroughly by stating the requirements of the employment agreements, the rights of both parties and the mechanism of settling any disputes with the committees which are responsible in this regard. In addition, the New Labour Law clearly specifies the conditions of abrogating and terminating the employment agreement in order to cover all the possible circumstances that might occur during the validity of the agreement.  It also determines in a specific way the amount of compensation related to the employment agreement as a result of breach, abrogation, dismissal and termination, which allows both parties to be aware of the implications of their actions in the course of the employment agreement. Further, the New Labour Law establishes one or more labour courts in each governorate which shall govern all the disputes that might arise from employment agreements. Thus, the New Labour Law is distinct from the old law and covers thoroughly all labour aspects.  The following are the formations that the New Labour Law stipulated:\r\n<ul>\r\n 	<li>Setting up a Service Termination Committee through instructions which will be issued by the Minister of Labour. This committee shall be responsible to hear appeals filed against termination decisions and the decisions of the said committee is appealable before the labour court within thirty days from the date of notification, or the assumed notification;</li>\r\n 	<li>Setting up at least one labour court in each governorate, which shall consist of: a judge named by the Supreme Judiciary Council on the recommendation of the presiding judge of the Court of Appeal, a representative of the general federation of trade unions the most represented and a representative of the employers’ federation the most represented.</li>\r\n</ul>\r\nThis court shall have jurisdiction over civil and penal actions, matters and disputes referred to in the New Labour Law, the Pension and Social Security Law for Workers and temporary decisions involving actions within the jurisdiction of the Labour Courts.\r\n\r\n<strong>Termination of Employment Contract</strong>\r\n\r\nSimilarly to the previous Labour Law, the New Labour Law continues to restrict the termination of the employment contract, and sets limitations regarding how the employment relationship can be terminated.  However, the New Labour Law provides further details in such a case including dividing the termination instances to general ones, acts by the employer, or acts by the employee.\r\n\r\nAn important note to be mentioned here is that the New Labour Law emphasises the legal concept of mutual agreement between the employer and the employee in order to terminate the employment contract, and the same cannot be done by the employer (for his part) by only addressing a notice to the employee, unless this to be done according to one of the specific cases listed in the New Labour Law.\r\n\r\nForce majeure and the death of the employee are two new cases that have been added to the general termination instances, both to be applied according to particular conditions clarified in the New Labour Law.  These are in addition to the other general instances such as:\r\n<ul>\r\n 	<li>If the employee is sentenced to imprisonment.  The law has differentiated between imprisonment for one year and more, and imprisonment for less than a year.</li>\r\n 	<li>The death of the employer if his personality was taken into account in the employment contract, and the same cannot be completed with the employer’s heirs.</li>\r\n 	<li>If the project been liquidated pursuant to a final judicial ruling or voluntary liquidation subject to the approval of the Minister of Labour.</li>\r\n 	<li>When the parties mutually decide to terminate it, as stated in writing.</li>\r\n 	<li>On the expiry of the contract period, if for limited term.</li>\r\n 	<li>Completion of the work or performance of the service, if the contract is specified for a work or a particular service.</li>\r\n 	<li>The resignation of the employee, subject to related procedures mentioned in the law in this regard.</li>\r\n</ul>\r\nAs mentioned earlier, the employer may terminate the employment contract, for his part, in the following exclusive cases, subject to having given to the employee at least 30 days’ advance written notice before the termination date.  If such notice is not given, the employee shall be entitled to compensation amounting to his salary for the notice period.  Such cases are:\r\n<ul>\r\n 	<li>When the employee has an illness which makes him unable to work and has not been cured within 6 months, as substantiated by an official medical report.</li>\r\n 	<li>When the employee has become incapacitated to the extent of 75% or more and is unable to work, as substantiated by an official medical report.</li>\r\n 	<li>If the employee completed the retirement age according to the provisions of the Iraqi Pension and Social Security Law.</li>\r\n 	<li>When the working conditions in the establishment call for a reduction in the volume of work, subject to the approval of the Minister of Labour.</li>\r\n 	<li>When the employee has behaved in breach of his duties pursuant to the employment contract.</li>\r\n 	<li>If the employee impersonated a false persona, or presented fake documents.</li>\r\n 	<li>If the employee did not show acceptable efficiency during the probation period.</li>\r\n 	<li>If the employee has committed a grave mistake which led to severe losses and harmed the work, the workers, or the production, based on a final judicial decision.</li>\r\n</ul>\r\nThe employee may terminate the employment contract, for his part, and with no need to send a notification, in the following case:\r\n<ul>\r\n 	<li>If the employer breached any of his obligations stipulated in the New Labour Law, or in the work’s Rules of Procedure, or in the employment contract.</li>\r\n 	<li>If the employer has committed a felony or misdemeanour against the employee or any of his family members, at work or outside.</li>\r\n 	<li>If there is a grave hazard threatening the employee’s safety or health, provided that the employer is fully aware of this hazard and did not work to remove it.</li>\r\n</ul>'),
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	(98931,5374,'content','April 2016\r\n\r\n<hr />\r\n\r\nFor those in the real estate industry, the easiest way to understand the new Abu Dhabi strata law is to compare it with the already familiar Dubai strata law. The two Emirates’ laws, in most cases, reach the same place by similar means.  For property developers and owners’ association managers working across both jurisdictions, the transition should be relatively easy provided they are alert to and comply with the differences.  The Abu Dhabi law is new and untested so it remains to be seen how it will be implemented and the level of further guidance and direction that will be provided.\r\n\r\n<strong>Which Laws Apply?</strong>\r\n\r\nThe jointly owned property law for Abu Dhabi is now found in Law No. 3 of 2015 ‘Regulating the Real Estate Sector in the Emirate of Abu Dhabi’.  This law contains what are commonly referred to as strata laws in Part 7, which is titled ‘Jointly Owned Floors, Flats and Parts’.  Subsequent implementing regulations add detail to the law through the Department of Municipal Affairs Chairman Resolution No. 245 of 2015 ‘Issuing the Executive Regulations Concerning the Ownership of Jointly-Owned Properties and Owners’ Association’.  The strata regulations also refer to standard strata documents to be issued by the Department of Municipal Affairs (‘DMA’). These are not yet available.\r\n\r\nWhilst we cannot predict exactly how the Abu Dhabi law will be implemented, we are able to provide an initial view on how the law compares with laws already operating in the United Arab Emirates.  The closest comparison comes from neighbouring Dubai through Dubai Law 27 of 2007 ‘Concerning the Ownership of Jointly Owned Real Property in the Emirate of Dubai’ together with the Direction for Association Constitution, Direction for General Regulation Concerning Jointly Owned Properties and Direction for Jointly Owned Property Declarations, all effective from 13 April 2010.\r\n\r\nThe governing authority for jointly owned property in Dubai is the Real Estate Regulatory Authority (‘RERA’); in Abu Dhabi it is the DMA.\r\n\r\nThose already operating in Dubai will be aware that there is some uncertainty as to whether the Dubai directions are actually regulations, as they were not published in the Dubai Gazette.  This has resulted in an element of discretion being exercised in some areas by RERA.  As the Abu Dhabi strata regulations were published in the Abu Dhabi Gazette, it initially appears there may be less discretion available to the DMA, however the legislation itself provides some discretion to the DMA.\r\n\r\n<strong>A Quick Guide to Different Terms </strong>\r\n\r\nBelow we set out some of the common phrases that are used differently as between the laws in Dubai and Abu Dhabi.  There remains some work to be completed on the English translations of the Abu Dhabi laws so final phrasing may not be settled.\r\n<table class=\"MsoNormalTable\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td valign=\"top\" width=\"248\"><strong>Dubai Phrases / Concepts</strong></td>\r\n<td valign=\"top\" width=\"284\"><strong>Abu Dhabi Phrases / Concepts</strong></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"248\">Jointly Owned Property Declaration</td>\r\n<td valign=\"top\" width=\"284\">Strata Management Statement; or Community Management Statement, as the case may be. Note: The Abu Dhabi law sets out distinct statements depending on the type of subdivision.</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"248\">Master Community Declaration</td>\r\n<td valign=\"top\" width=\"284\">Master Development Statement or Sub- Development Statement Note: At this stage the Abu Dhabi strata laws lack definition and clarity in this area.</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"248\">Building Management Declaration</td>\r\n<td valign=\"top\" width=\"284\">Building Management Statement</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"248\">Common Property</td>\r\n<td valign=\"top\" width=\"284\">Common Facilities</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"248\">Association Manager</td>\r\n<td valign=\"top\" width=\"284\">Manager of the Owners’ Association</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"248\">Articles of Association of the Owners’ Association Note: sometimes Constitution is also used</td>\r\n<td valign=\"top\" width=\"284\">Constitution of the Owners’ Association</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"248\">Real Estate Regulatory Authority</td>\r\n<td valign=\"top\" width=\"284\">Department of Municipal Affairs</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"248\">Annual Service Charge</td>\r\n<td valign=\"top\" width=\"284\">Service Charges</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"248\">Utility Services</td>\r\n<td valign=\"top\" width=\"284\">Public Services</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"248\">Entitlement</td>\r\n<td valign=\"top\" width=\"284\">Participation Quota</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n&nbsp;\r\n\r\n<strong>Points of Similarity </strong>\r\n\r\n<em>Consumer protections </em>\r\n\r\nOf importance to consumers and developers alike, there is a high level of consistency across the disclosure statements and consumer protections in place in Abu Dhabi and Dubai.  Any difference in the matters to be disclosed is negligible.  In both cases, the developer is liable in damages for the contents of the disclosure statement for two years from the date the unit is transferred to a purchaser, including any subsequent purchaser.\r\n\r\nAlso closely aligned in both laws is the developer’s liability for defects.  The developer remains liable for structural defects in the building for 10 years from receiving a completion certificate.  For defective building installations, the defect liability period is one year and these items must be repaired or replaced.\r\n\r\n<em>Supply agreements</em>\r\n\r\nWhilst laws relating to supply agreements in both jurisdictions will, from a practical point of view, function in a similar manner, in Abu Dhabi a supply agreement must not exceed three years without approval of the Municipality of Abu Dhabi and, even if approval is given, a supply agreement must never exceed 25 years.  The Dubai strata law limits the length of supply agreements to three years and there is no provision to allow RERA to approve a longer term.\r\n\r\nThe Abu Dhabi strata law provides extensive requirements on terms that must be included in supply agreements for both supply of goods and supply of services including the requirement for market rates or a competitive process (particularly where a sub-contractor is involved), the ability to terminate or vary the services and a prohibition of commissions and secret incentives.  The Dubai strata law matches the requirements for supply agreements but expressly prohibits the use of sub-contractors.\r\n\r\nDevelopers with large portfolios who have negotiated favourable terms with suppliers may need to be mindful of the differences here.  Likewise, association managers will need to ensure they have agreements that reflect the requirements in each location.\r\n\r\n<strong>Owners’ association manager</strong>\r\n\r\nThere are some differences with the rules relating to owners’ association managers, and care will need to be taken in relation to those differences, but largely, owners’ association managers will be able to manage their operations across both jurisdictions in a very similar manner.\r\n\r\nOne area where we may see further direction is that the Abu Dhabi strata law requires that the maximum term for an association manager contract is three years.  In contrast, the Dubai strata law provides that after the end of three years, an association manager may be appointed for a further term.  It seems unlikely that Abu Dhabi would prevent an effective strata manager with a satisfied owners’ association from continuing their relationship, and we consider these are the types of issues that will be clarified over time.\r\n\r\nIn Abu Dhabi, the strata law also states that the relationship between an association manager and the owners’ association is one of agent and client to be based on trust and honesty.  This appears to contrast with the Dubai strata law, which provides for a contractual relationship and a code of conduct that the association manager must follow.  From a practical point of view, we see very few differences between these laws although there may be more scope for third parties to sue an association manager directly in Abu Dhabi.\r\n\r\nSimilarities like those explained above are numerous throughout the each part of both jurisdictions’ strata laws.\r\n\r\n<strong>Points of difference</strong>\r\n\r\n<em>The administrator</em>\r\n\r\nWhilst the requirements to constitute an owners’ association between the two jurisdictions is very similar, Abu Dhabi goes a step further with the creation of a concept not previously used in Dubai strata law.  The position of administrator of the owners’ association is the developer or another person who is appointed by the Chairman of the DMA to carry out the owners’ association’s operations.  The administrator bears responsibility for the affairs of the owners’ association including the responsibility for its management and operation of the common areas, public services and service facilities.\r\n\r\n&nbsp;\r\n\r\nThe position of administrator of the owners’ association is distinct in the appointment of a temporary administrator for certain failures of the owners’ association.  In some translations, this new position is referred to as the chief operations officer.\r\n\r\n&nbsp;\r\n\r\nAt this stage, there is limited clarity as to when and why an administrator may be appointed.  Article 40 of the Abu Dhabi strata regulations sets out that the administrator may be appointed by the DMA in special circumstances to be determined by them, taking into account such factors as the project area, whether there are multiple buildings, the uses and the project location.  The drafting of Article 66 of the law states that notwithstanding other articles that set out how an owners’ association is to be constituted, the Chairman of the DMA (with the approval of the Executive Council) may resolve to substitute the owners’ association for the developer or some other person.  We consider that the exercise of these discretions may be key to the treatment of owners’ associations in Abu Dhabi.\r\n\r\n&nbsp;\r\n\r\nWhilst the information currently available is limited, it appears that the appointment of an administrator will ordinarily be to administer the common areas of master developments (rather than sub-developments).  When there is an administrator the owners’ association will have limited influence, being only allowed to express opinions and provide advice with regard to the management, operation, maintenance and repair of the common areas in accordance with the master development statement.  Whilst the owners’ association may not interfere in any way with the duties devolved to the administrator, it may seek assistance from the DMA if the administrator fails in its duties.\r\n\r\n&nbsp;\r\n\r\nIn accordance with the strict wording of the regulation, the owners’ association may not ballot, vote or hold meetings to discuss the management, maintenance, operation and repair of the common areas.  In that case we wonder how a decision will be made to contact the DMA in the case of failure by the administrator.\r\n\r\n&nbsp;\r\n\r\nThe appointment of an Administrator is another area where we expect further direction to be released over time.  The use and implementation of this provision will be one of the key areas to watch with the Abu Dhabi strata law.\r\n\r\n&nbsp;\r\n\r\n<em>Room for creativity?</em>\r\n\r\n&nbsp;\r\n\r\nIn the Abu Dhabi strata law, there is another provision that has no direct comparison in the Dubai strata law.  Although we don’t yet have any clear guidance as to its intention or implementation, we do think there are potential opportunities for creative developers.\r\n\r\n&nbsp;\r\n\r\nIn Abu Dhabi the owners’ association has the right to own stocks and shares in service companies related to their own strata plan and to grant exclusive rights over common areas.  This law explicitly allows the not-for-profit owners’ association to own shares in a for-profit company.\r\n\r\n&nbsp;\r\n\r\nWe can imagine situations where developers could use this provision to create a point of difference for sales by offering an opportunity to eliminate or reduce service charges for unit owners by deriving profits elsewhere.  Time will tell how developers use this opportunity and how this law is administered.\r\n\r\n&nbsp;\r\n\r\nWhilst we are aware that in Dubai RERA is permitting some developers to make money from their common areas, we consider the Abu Dhabi law takes this option a step further.\r\n\r\n&nbsp;\r\n\r\n<strong>Conclusions</strong>\r\n\r\n&nbsp;\r\n\r\nHaving looked closely at both jurisdictions’ strata laws, we consider that strata property developers and owners’ association managers will easily transition between the two Emirates.  There will be some compliance issues where lawyers and property professionals will need to be careful to comply with the differing detail.  Abu Dhabi has a couple of new concepts in its strata law and further guidance on implementation, regulation and direction is to issue.\r\n\r\n&nbsp;\r\n\r\nIn time, the two jurisdictions may start to distinguish themselves but the initial legal foundations are very similar.  Abu Dhabi strata law provides scope for the exercise of discretions in some areas that will be important to follow.'),
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	(98920,5373,'content_description','Economic growth in the six GCC member states (UAE, KSA, Qatar, Kuwait, Bahrain and Oman) generally decelerated in 2015 in the light of lower oil prices, heightened geopolitical threats and the global downturn.  '),
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	(98930,5373,'_yoast_wpseo_metadesc','Economic growth in the six GCC member states (UAE, KSA, Qatar, Kuwait, Bahrain and Oman) generally decelerated in 2015 in the light of lower oil prices, heightened geopolitical threats and the global downturn.'),
	(98916,5373,'content','April 2016\r\n\r\n<hr />\r\n\r\nAgainst this backdrop, which has largely continued into 2016, companies across various sectors in the GCC have been faced with the inevitable task of conducting reorganisation and restructuring exercises with consequent overhead reductions and job role eliminations.  In this article, we briefly examine key considerations to be mindful of when seeking to implement redundancy programmes across the GCC.\r\n\r\n<strong>Legal framework</strong>\r\n\r\nOther jurisdictions offer clear and substantive definitions of redundancy, prescribed processes and procedures (including individual and collective consultation obligations) and a redundancy compensation regime.  In the GCC, redundancy as a concept is either not recognised at all or, if provided, is only recognised in very limited circumstances.\r\n\r\n<strong>UAE, Qatar and Oman</strong>\r\n\r\nThe labour laws in the UAE, Qatar or Oman do not specifically provide for the concept of redundancy or make provision for any redundancy compensation. Any such terminations would generally fall under the ordinary dismissal provisions provided for under the applicable labour laws of such countries.  When conducting redundancies, the employer must ensure that it complies with existing provisions applicable to termination of employment (both under the applicable labour laws and contract) and pays the employee his/her full termination payments.\r\n\r\nIn the UAE, the labour law makes clear that the termination of an unlimited-term contract for a reason unconnected to the employee’s performance or outside of the exhaustively defined gross misconduct grounds will be considered arbitrary, enabling the employee to claim arbitrary dismissal compensation, in addition to his/her other contractual and legal entitlements.  In cases where an employer is closing down its operations and/or has suffered substantial financial losses, the amount of compensation ultimately awarded to employees has tended to be at the lower end of the scale.  The position is similiar in Oman.  In Qatar, there are no arbitrary dismissal laws and no fixed arbitrary dismissal compensation.  An employee would have to go to a court to get an order for this and the judge would determine compensation depending upon the manner and circumstances of the dismissal.\r\n\r\n<strong>KSA, Bahrain and Kuwait </strong>\r\n\r\nThe KSA, Bahrain and Kuwait do provide for express recognition of redundancy.  In the KSA, changes to the existing labour laws in 2015 introduced new grounds for termination, permitting the employer to validly terminate the employment where the establishment is being permanently closed or if there is a cessation of the business activity where the employee works. Although the concept of redundancy is recognised for the first time in the KSA’s labour law, the change to the law does not go so far as to extend to cases where there is a diminution in the requirements of a particular role or the number of employees employed to perform that role.  In Kuwait, similiar to the KSA, redundancy terminations are restricted to those cases where the establishment is being closed.\r\n\r\nIn Bahrain, the labour law provides for a more comprehensive definition of redundancy.  The employer is permitted to terminate an employee’s employment due to the whole or partial closure of the business establishment, a reduction in its size of activity or the replacement of a production system in a manner that affects the quantity of manpower.  However, the termination must not take place unless and until the employer has given notice to the Ministry of Labour at least 30 days prior to issuing the notice of termination to employees.   The labour law also provides for a fixed redundancy compensation payment.\r\n\r\n<strong>Process</strong>\r\n\r\nEmployers generally have flexibility when carrying out redundancy exercises.  Often, employers will directly proceed to serve a notice on the employee together with a final statement and release document or discuss the issue with the “at risk” individuals first.  We recommend a limited consultation process and procedure to assist in reaching an agreement with impacted employees, whereby the various sums owing will ultimately be paid in return for the employee signing a full and final release or waiver and generally co-operating with the cancellation of his/her visa.  Employers could either set this out in a short letter, or alternatively consider entering into a short settlement agreement.    The settlement agreement is helpful to set out the timing and mechanism of payments, as well as the inclusion of key clauses such as confidentiality obligations and undertakings.  In all the GCC countries, the visa cancellation process itself is very important to ensure that any employee claims are compromised.  As part of any settlement package, employers could consider offering some form of an ex-gratia severance payment.\r\n\r\nIn addition, special consideration should be given when proposing to terminate the employment of nationals of certain of the GCC states.  For example, in the UAE, the termination of UAE nationals by those employers falling under the direct jurisdiction of the Ministry of Labour is expressly regulated and requires the prior consent and approval of the Ministry of Labour.\r\n\r\n<strong>Concluding Remarks</strong>\r\n\r\nImplementing redundancies is never an easy process (whether for the company or the employee) and for those employers operating across various integrated business units in the GCC states, grappling with the differing legal frameworks and processes can be a daunting exercise.  Redundancy policies can be a useful tool in setting out the basic framework to be adopted when implementing redundancy programmes and also provide a degree of transparency and clarity for those involved and/or impacted.  The key throughout is to engage with employees at an early stage so as to minimise the prospects of employee disputation and low staff morale.'),
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	(98905,5372,'content_description','The sports and leisure events market appears to continue to proliferate in the United Arab Emirates, hosting an established array of internationally recognised events such as the Dubai Rugby Sevens, the Formula One Abu Dhabi Grand Prix, and the Ras Al Khaimah Half Marathon.  '),
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	(98907,5372,'pageSummary','The sports and leisure events market appears to continue to proliferate in the United Arab Emirates, hosting an established array of internationally recognised events such as the Dubai Rugby Sevens, the Formula One Abu Dhabi Grand Prix, and the Ras Al Khaimah Half Marathon.'),
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	(98915,5372,'_yoast_wpseo_metadesc','This article will consider the risk of civil liability of an operator, and the potential damages which may be awarded against it as a result of an injury at a hosted event in the UAE. The article will also consider the manner in which event operators should seek to manage their liability in relation to this risk.'),
	(98867,5371,'_content','field_59b649b5c8b2b'),
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	(98870,5371,'content_description','Legislative changes in the UAE since 1991 have impacted almost every aspect of UAE life. Reviewing them not only allows us to appreciate the magnitude and scope of these changes, but also to understand how the country is developing and where its future lies. '),
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	(98872,5371,'pageSummary','Legislative changes in the UAE since 1991 have impacted almost every aspect of UAE life. Reviewing them not only allows us to appreciate the magnitude and scope of these changes, but also to understand how the country is developing and where its future lies.'),
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	(98886,5371,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Robert Karrar-Lewsley'),
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	(98888,5371,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','r.lewsley@tamimi.com'),
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	(98892,5371,'lawUpdateArticleNoWriters_1_lawUpdateAuthorName','Zane Anani'),
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	(98894,5371,'lawUpdateArticleNoWriters_1_lawUpdateAuthorEmail','z.anani@tamimi.com'),
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	(98900,5371,'_yoast_wpseo_metadesc','Al Tamimi & Company set out a review of only some of the key changes, with a focus on change at the Federal level and in Abu Dhabi and Dubai. The changes to the property laws are covered in some detail given how important the property market is in the UAE.'),
	(98901,5372,'content','April 2016\r\n\r\n<hr />\r\n\r\nMoreover, participation, as well as spectating, appears to be ever increasing, with operators advertising adventure sports including skydiving, bungee jumping, and sandboarding as well as individuals increasingly spending their leisure time entering sportives and pursuing activities such as mountaineering, rock climbing, and kite surfing.\r\n\r\nAcross the board, this is good news for the UAE economy generally as each event and activity brings with it potential revenues for businesses on a local and national scale.\r\n\r\nThis article will consider the risk of civil liability of an operator, and the potential damages which may be awarded against it as a result of an injury at a hosted event in the UAE.  The article will also consider the manner in which event operators should seek to manage their liability in relation to this risk.  Naturally, this article is general in context and non-exhaustive with regards to the topic, and any operator with specific concerns should seek appropriate professional advice.\r\n\r\nOf course, any operator must consider numerous legal issues when hosting an event, from advertising to intellectual property rights, permissions to policing.  Unfortunately, a common trait of participants and, in some cases, spectators of sports appears to be a tendency to believe that their activity is special and, perhaps, detached from reality; but, by their very nature, these activities carry a significant risk of injury to both participants and spectators.  This means that safety must be particularly considered bearing in mind this cavalier approach.  An event’s success, amongst other things, depends greatly on its reputation for safety.  Moreover, if an individual is injured and the injury is caused as a result of an act or omission of another person, that person and the operator who runs the event may be culpable under civil and criminal law and liable to the injured party in the form of damages or they may even face imprisonment.\r\n\r\nWhilst the UAE does not recognise punitive damages (those intended to deter the defendant and others from engaging in similar conduct), UAE Federal law does ensure that compensation may be available in the event of injury or harm to a person caused by another.\r\n\r\nReferences to the ‘Code’ in this article are references the UAE Civil Transactions Act (commonly referred to as the Civil Code) and references to ’sections’ are reference to sections in the Code.\r\n\r\n<strong>Liability </strong>\r\n\r\nGenerally, a person in the UAE owes an obligation (or a duty) of care to other persons under section 124(3) of the Code, which establishes liability arising from acts causing harm, and section 282, which provides that any harm done to another shall render the actor liable to make good the harm.  This duty of care extends to each natural person and also to juristic persons, which includes trading companies and public departments.  Section 313 establishes the principle of vicarious liability whereby an employer will be liable, on the face of it, for the actions of its employees.\r\n\r\nNevertheless, section 104 negates liability in circumstances when a person’s actions are not unlawful.  Therefore, in terms of harm caused to a participant or spectator during a sporting event, unless deliberate, such harm would generally need to be proved as a result of a negligent or reckless act or omission, be it by a fellow participant, an instructor, a supervisor, a volunteer, or a contractor working for the event operator.  In most circumstances the injured party would look to the operator’s indemnity insurance cover for compensation.\r\n\r\nAccordingly, an operator may be liable under these provisions where it, or someone under its authorisation, has breached the obligation of care (by a reckless act or omission), another person has suffered a loss, and there is a causal link between the breach and the loss.\r\n\r\n<strong>Breach of Obligation </strong>\r\n\r\nSection 296 makes it clear that contracting out of liability arising as a result of a ‘harmful act’ is not lawful and any attempt to do so would render such a contract void.  A ‘harmful act’ is not defined in the Code and, therefore, it will be at the sole discretion of the Court to interpret whether the operator was in fact in breach of its obligation or duty of care in a given situation.  Related commentary by the UAE Ministry of Justice has provided that “. . . there is an obligation imposed upon everybody not to cause harm to others.  A breach of that prohibition is one which involves harm.  This obligation requires an examination of conduct, and this gives rise to the principle of the care to be taken by a prudent man”.  Therefore, there is an assumption that any judgment should consider the actions of both the claimant and the defendant and consider any elements of imprudence or recklessness on the part of either.  The outcome of such a case would turn on the facts on a case by case basis.\r\n\r\nIn comparison to common law jurisdictions, such as England and Wales, the interpretation of whether a person has acted negligently (breached the duty of care) is based around a fictitious reasonable person applying binding precedent case law, which has developed the maxim of volenti non fit injuria (no injury can be done to a willing person), which is often applicable in cases involving sports related injury.  In limited circumstances, this can provide a complete defence when harm caused was not deemed to be unduly reckless nor carried out with disregard of the safety of others.\r\n\r\n<strong>Award of Damages  </strong>\r\n\r\nThe reader will no doubt be aware of the concept of punitive damages, the large financial sums which Courts in certain jurisdictions (for example, in the USA) may award in certain circumstances as a deterrent.  UAE law does not recognise the concept of punitive awards, and the general principle of damages under the Code is that compensation should be equal to the amount of loss suffered or incurred by the person.\r\n\r\nThere is a distinction made between ‘direct’ and ‘consequential’ harm under section 282 of the Code.  Compensation must be paid for any ‘direct loss’ caused by a person notwithstanding whether the act or omission amounts to a crime or breach of any contract.  On the other hand, compensation for ‘consequential loss’ will only be awarded if the act or omission includes elements of wrongful or deliberate behaviour.\r\n\r\nSection 299 of the Code provides that compensation shall be payable for harm caused to a person, which includes compensation for personal injury and death (unless diyah, or blood money, under Sharia law are payable).  Direct damages will be assessed on the basis of the extent of loss suffered by the injured person and includes material damages, future earnings, and damage to property, provided the loss was directly related to the act.  The Court will assess the amount of damages on a case by case basis.\r\n\r\nFuture loss of profits may be recoverable if they arise as a direct result of the harm and the loss was foreseeable at the time and certain to occur in the future; however, losses must be certain and prospective damages may not be recoverable.  Section 389 of the Code stipulates that if the amount of compensation is not fixed by contract or law, which will generally be the case in these circumstances, the Court will make the final determination.\r\n\r\n<strong>Managing Risk and Liability </strong>\r\n\r\nAny award for damages will be at the discretion of the Court, based on an expert’s report, which will consider the circumstances and whether the parties were reckless, imprudent, or indeed deliberate in their actions.  The Code makes it clear that contracting out of liability for harm is not possible and, therefore, an operator must seek to ensure that risk and liability are adequately managed.  In addition to complying with any and all obligations it may have under the law concerning the Security of Sports Facilities and Events (Federal Law No (8) of 2014), an operator should always consider commissioning a risk and hazard assessment in relation to specific events and implement any safety recommendations.\r\n\r\nAlthough a general legal disclaimer may, on the face of it, appear of little value, it would be imprudent, and reckless, for any event operator not to forewarn all participants and spectators in writing of the dangers and risks involved.  Such health warnings, or lack of, may impact on the assessment of damages.\r\n\r\nThird parties with an active interest in the event, such as contractors and concessionaries, should enter into collateral contracts that provide the operator with insured recourse in the event of a claim as a result of third party actions.\r\n\r\nThe operator should also fully insure the event.  Specialist insurance providers offer, amongst other things, spectator and participant coverage.  These providers are favourably positioned to provide the operator which any additional recommendations which must be satisfied to validate the cover.\r\n\r\nReducing injuries, litigation, and reputational damage are common interests, but awareness of the underlying law as it relates to sports and events is fundamental for all of those involved. Adam Powell (a.powell@tamimi.com) is Head of the Corporate Commercial Practice in Ras Al Khaimah and a member of Al Tamimi’s dedicated Sports Law &amp; Events Management practice.  Adam brings diverse legal experience to the team which he has gained from working in private practice in London for over 15 years, latterly as a partner.'),
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	(90878,4941,'content_description','A detailed analysis showing the arguments against setting aside arbitral awards in the UAE based on Public Policy'),
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	(90880,4941,'pageSummary','A detailed analysis showing the arguments against setting aside arbitral awards in the UAE based on Public Policy'),
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	(90892,4941,'_yoast_wpseo_metadesc','A detailed analysis showing the arguments against setting aside arbitral awards in the UAE based on Public Policy'),
	(90893,4942,'content','June 2014\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">The Court’s decision in Appeal No.159-2012 determines the issue of what value should be taken into account in deciding whether it has jurisdiction to hear an appeal in cases where the lower courts have issued judgments for amounts other than those pleaded by the Claimant and the Claimant has not appealed those amounts.</p>\r\n<p class=\"MsoNormal\"><strong>THE CIVIL PROCEDURE LAW (AS AMENDED)</strong></p>\r\n<p class=\"MsoNormal\">Article 173 states:</p>\r\n<p class=\"MsoNormal\"><em>“The parties may appeal on cassation against judgments passed by the courts of appeal if the value of the action exceeds Dhs 200,000, or if it is of an unquantified value...”</em></p>\r\n<p class=\"MsoNormal\">Article 48 states:</p>\r\n<p class=\"MsoNormal\"><em>“The value of the action shall be quantified as of the day it is brought, and in any event the quantification shall be made on the basis of the last claim made by the parties.” </em></p>\r\n<p class=\"MsoNormal\"><em><strong>CASE HISTORY</strong></em></p>\r\n<p class=\"MsoNormal\">An employee filed a claim against his employer in the Labour Summary Court of First Instance for AED 96,261 and an air ticket to his home country. During the course of these proceedings, he amended his statement of claim so as to seek AED 841,833. The Labour Summary Court only having jurisdiction to hear claims under AED 100,000 referred the matter to the Labour Plenary Court of First Instance. The Labour Plenary Court of First Instance issued a judgment for AED 25,740 in favour of the employee.</p>\r\n<p class=\"MsoNormal\">The employer appealed seeking to overturn the decision of the Court of First Instance and seeking to have the case dismissed for lack of merit. The employee did not appeal the decision. The Court of Appeal amended the lower Court’s award to AED 19,108, otherwise upholding the latter’s decision.</p>\r\n<p class=\"MsoNormal\"><strong>THE COURT OF CASSATION</strong></p>\r\n<p class=\"MsoNormal\">The employer appealed to the Dubai Court of Cassation to overturn the Court of Appeal’s decision. Although, no arguments were raised by the employee contesting the jurisdiction of the Court of Cassation, the Court said that the admission of appeals was a matter of public policy and therefore it could determine the issue of jurisdiction on its own motion.</p>\r\n<p class=\"MsoNormal\">The Court dismissed the appeal without considering its merits on the grounds that the value of the action did not exceed AED 200,000. The relevant amount for the purposes of establishing whether the Court had jurisdiction was not AED 841,833, being the employee’s final request for relief, but rather the appealed amount. The Court had particular regard to the fact that the employee had not appealed the decision of the Court of First Instance. The Court reasoned that since the employee did not appeal the judgment of the Court of First Instance, this should be construed as an implicit acceptance of this judgment on the part of the Claimant.</p>\r\n<p class=\"MsoNormal\">Although the decision in Appeal No.159-2012 is difficult to reconcile with a literal interpretation of Article 48 above, it represents a common sense approach as to which claims may or may not be appealed to the Court of Cassation. In a case where the Claimant has not appealed the decision of the lower courts, the relevant consideration in determining the value of an action is not the initial amount sought in the Statement of Claim, but the value of the judgement of the relevant lower Court that has not been appealed by the Claimant. In cases where the Court of First Instance and the Court of Appeal have issued judgements for less than AED 200,000, the decision in Appeal No.159-2012 has the welcome effect of preventing Claimants from relying on inflated amounts in their Statement of Claim to satisfy the AED 200,000 threshold.</p>\r\n<p class=\"MsoNormal\"><strong>PRACTICE NOTE</strong></p>\r\n<p class=\"MsoNormal\">A Statement of Claim filed at a court of first instance seeking a sum in excess of AED 200,000 may still enable the Court of Cassation to refuse jurisdiction on appeal. Claimants appealing to the Court of Cassation should ensure that the last demand made by them during the course of the appeal proceedings is in excess of AED 200,000.</p>\r\n<p class=\"MsoNormal\">An appellant should ensure that all amounts potentially claimable are included in the appeal application to the Court of Appeal and the Court of Cassation so as to satisfy the AED 200,000 threshold, even if a portion of this amount has minimal prospects of being awarded by the Court. This is because in such cases the Court of Cassation will consider the merits of the appeal, even if it later decides that a sum of less than AED 200,000 should be awarded.</p>'),
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	(90919,4942,'_yoast_wpseo_metadesc','The Dubai Court of Cassation’s jurisdiction to consider appeals is restricted to cases in which the value in the action exceeds AED 200,000 or is for an unspecified sum.'),
	(90920,4943,'content','June 2014\r\n\r\n<hr />\r\n\r\n<h4><strong>Introduction</strong><strong> </strong></h4>\r\n<ol>\r\n 	<li>There is a strange paradox associated with Middle Eastern businesses. On the one hand, family businesses are the real strength and spine of the GCC economies. Alongside sovereign enterprises, family businesses dominate the business landscape. On the other hand, close examination of particular GCC family businesses, even very large ones, frequently reveals frailties and fault lines which expose them to external business risks; and to far less visible threats from the inside.</li>\r\n 	<li>In many cases these weaknesses will not be obvious to the outside observer, or even to the families themselves. Lawyers can help family businesses counter these threats, but often the very first order of business is to educate and alert families to the risks, as it can be truly disastrous if the risks crystallise.</li>\r\n</ol>\r\n<p class=\"MsoNormal\"><strong>External Business and Legal Risks</strong></p>\r\n\r\n<ol>\r\n 	<li>Typically, GCC family businesses are highly diversified and have many compartments. Unfortunately, the famous 1912 shipwreck the <em>RMS Titanic</em> also had many compartments - but because those compartments were not totally sealed and separated the <em>Titanic</em> sank to the bottom of the ocean when the ship tilted and the rushing waters flooded over the dividing walls into every compartment.</li>\r\n 	<li>The typical GCC family business is completely exposed to a disaster in one compartment of the business spreading to the other compartments. Why? The answer is that there are serious weaknesses evident in the most commonly used family business structures, e.g:</li>\r\n</ol>\r\n<ul>\r\n 	<li>\r\n<ul>\r\n 	<li>\r\n<ul>\r\n 	<li>\r\n<ul>\r\n 	<li>businesses are often set up as sole establishments owned by an individual within the family (often the founder) therefore one catastrophe (e.g. a fire in a large building owned by the founder himself) carries financial consequences and exposures directly to the core of the family’s asset base;</li>\r\n 	<li>many families operate an array of businesses through registering multiple branches of a family “<em>mother company</em>”, a shoddy structure design. Taking this cheap and convenient shortcut means that every liability of every branch is a direct liability of the core mother company (usually the company which owns all the major assets); and</li>\r\n 	<li>failure to have a coherent corporate structure often leads to the twin evils of reliance on borrowings secured by personal guarantees and a failure to track and identify adequately the performance or losses of individual businesses within the family’s portfolio.</li>\r\n</ul>\r\n</li>\r\n</ul>\r\n</li>\r\n</ul>\r\n</li>\r\n</ul>\r\n<ol>\r\n 	<li>For the above reasons, many family businesses in the GCC inhabit glass villas - and any major hailstorm will prove calamitous.</li>\r\n</ol>\r\n<p class=\"MsoNormal\"><strong>The Fault Lines Within</strong></p>\r\n\r\n<ol>\r\n 	<li>The dangers from within the family are more subtle and these problems are often more difficult for the founder or other family members to perceive or acknowledge, let alone tackle in an effective manner. But even hairline cracks in the family can widen and invite disaster, particularly where the cracks are disagreements between siblings, the family’s bridge to the next generation.</li>\r\n 	<li>In 1967 fine corrosion cracking triggered a catastrophic collapse of the Silver Suspension Bridge across the Ohio River in West Virginia, under the twin stresses of low temperatures and high bridge loading. A total of 46 people in motor vehicles died when they fell into the river with the bridge. Likewise, in families, the twin stresses of leadership transition and business pressures can open up differences between siblings or cousins and can lead to the disintegration of the fabric of the family and the business.</li>\r\n 	<li>Most GCC family businesses were started by one or two founders who retain ownership of the equity. In the wings awaits a fresh generation of owners, and the number of heirs in the wings is often large, because the culture in the Gulf region favours large families. It is one thing to build a successful business, it is quite another task to imbue every stakeholder with a culture promoting the cohesion and continuity of the family in nurturing and growing successful business enterprises over generations.</li>\r\n 	<li>Regardless of whether or not a particular sibling understands the family business or embraces the culture, the GCC inheritance laws guarantee that this sibling will receive an inheritance share commensurate with each other sibling of the same gender, and the GCC companies laws guarantee that any heir inheriting shares will have one vote for one share inherited. This combined force of inheritance laws and companies laws means that for most families in business there is absolutely no guarantee that equity and the voting power will be vested in those heirs with the knowledge, ability, character and commitment to lead the family enterprise. Those heirs who do have the training and experience are commonly outnumbered and outvoted by other heirs without these qualities.</li>\r\n 	<li>The control of family business assets is a key which may unlock a vast reservoir of financial power, social prestige and an enviable lifestyle, so it is natural that there should be rivalry amongst heirs to lead the business. Add the element of sibling rivalry as an overlay and it can be seen that there is real potential for family business disagreements to escalate, particularly at the time when the founder ceases to play an active role.</li>\r\n 	<li>For these reasons, the inevitable transition associated with generational change and the inheritance process carries with it the potential to develop into an existential threat to the continuity of many GCC business enterprises. Even where the family business does not break apart, the paralysis of decision-making and the need for complete unanimity in the post-founder era may cause a gradual erosion of the business and asset base.</li>\r\n</ol>\r\n<p class=\"MsoNormal\"><strong>What Can Families Do?</strong></p>\r\n\r\n<ol>\r\n 	<li>The first and the most important thing is to realise that in many cases the past history of the family and its enterprises may not be a reliable guide to what will happen in the future, so something must be done to secure the future.</li>\r\n 	<li>A family which has a desire to sustain and grow a business together must:</li>\r\n</ol>\r\n<ul>\r\n 	<li>\r\n<ul>\r\n 	<li>\r\n<ul>\r\n 	<li>develop a vision;</li>\r\n 	<li>generate a consensus to embrace the vision;</li>\r\n 	<li>formulate a plan to take the practical steps to ensure the vision continues (including a succession or stewardship plan); and</li>\r\n 	<li>implement that plan in an effective way with the best advice.</li>\r\n</ul>\r\n</li>\r\n</ul>\r\n</li>\r\n</ul>\r\n<p class=\"MsoNormal\"><strong>What Can Families’ Legal Counsel Do?</strong></p>\r\n\r\n<ol>\r\n 	<li>There are clearly limitations as to what any external or in house legal counsel can achieve in managing close familial relationships. However, a family’s legal counsel can do a lot to help, particularly where the atmosphere in the family remains positive. For example:</li>\r\n</ol>\r\n<ul>\r\n 	<li>\r\n<ul>\r\n 	<li>\r\n<ul>\r\n 	<li>\r\n<ul>\r\n 	<li>create a corporate legal structure for the family which has watertight compartments;</li>\r\n 	<li>isolate “<em>blue chip</em>” investment assets from entities carrying on trading enterprises with business risks and borrowings;</li>\r\n 	<li>create a corporate legal structure which is both bankable and “<em>deal friendly</em>”;</li>\r\n 	<li>suggest that the family needs to work together to develop the right succession plan and framework of arrangements to promote stewardship, continuity and an orderly transition when generational change occurs;</li>\r\n 	<li>make sure the right questions are asked and addressed even though the questions may be tough (e.g. should present or future in-laws have a role in the business?);</li>\r\n 	<li>encourage the creation of safety valves, because if a minority of family members becomes locked into a structure which others control they may feel they have no choice but to fight to break up the business, unless the minority is provided with a fair exit option.</li>\r\n</ul>\r\n</li>\r\n</ul>\r\n</li>\r\n</ul>\r\n</li>\r\n</ul>\r\n<p class=\"ET2\"><strong>Conclusion</strong></p>\r\n\r\n<ol>\r\n 	<li>Family businesses are vital to the lifeblood of the Gulf economies and societies but there is a great need to educate families on the need to put in place the structures and governance platforms necessary for future continuity, harmony and growth in the business enterprise. The hidden economic and social costs of families in business which are dysfunctional are very high, measured in lost business revenues and missed growth opportunities. The family must put in place a leader or a leadership group which can act decisively to move the business forward. Well structured arrangements are needed to head off the ultimately destructive process of open conflict and litigation within families.</li>\r\n 	<li>The challenge for the family’s legal counsel is to win the trust of the families and apply the right guiding principles for good corporate governance to give the families the tools they needs to build a cohesive family and business dynamic for the good of future generations.<strong> </strong></li>\r\n</ol>\r\n<p class=\"MsoBodyTextIndent2\"><em>First published in The Oath Magazine, May edition.</em></p>'),
	(90921,4943,'_content','field_59b649b5c8b2b'),
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	(90925,4943,'_content_description','field_59b641c07f473'),
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	(90928,4943,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-8/june-6/families-in-business-external-risks-and-fault-lines-within.html'),
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	(90934,4944,'content','June 2014\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">However, the practical ramifications of this article have been that merchants use this it to delay payment of debts without having any serious intention to follow up with the settlement process while at the same time preventing creditors from declaring these merchants bankrupt. In this article, we will discuss a recent judgment from the Court of Appeal which changes the practical usage of this article and sets certain conditions for merchants to qualify for its protection.</p>\r\n<p class=\"MsoNormal\"><strong>Facts of the case:</strong></p>\r\n<p class=\"MsoNormal\">A judgment for the payment of the sum of JOD 1,603,000 (USD 2.26m) was enforced against the appellant in this case by the plaintiff in addition to all the fees and legal expenses.</p>\r\n<p class=\"MsoNormal\">The appellant failed to pay the above mentioned amount or offer a legal settlement. As a result the Head of the Execution Department ordered the seizure and sale of the assets of the appellant in a public auction in addition to sentencing him to 90 days in prison.</p>\r\n<p class=\"MsoNormal\">The appellant requested the Judge of the Execution Court to stop the enforcement of the judgment on the basis that he filed a motion for a preventive composition before the Court of First Instance.</p>\r\n<p class=\"MsoNormal\">Relying on Article 295 of the Commerce Law, the judge of the Execution Court approved the appellant’s motion and ruled to stop the enforcement procedures.</p>\r\n<p class=\"MsoNormal\">The plaintiff appealed the judge’s ruling, requesting that they proceed with the judgment.</p>\r\n<p class=\"MsoNormal\">The appeal was referred to the Court of First Instance in its capacity as the Court of Appeal. This appeal was looked into by two judges who accepted the appeal and reversed the judgment and ruled to proceed with the enforcement procedures.</p>\r\n<p class=\"MsoNormal\">Accordingly, the judge of the Execution Court issued a ruling to proceed with the enforcement procedures from where it paused.</p>\r\n<p class=\"MsoNormal\">The appellant requested again from the Judge of Execution to stop the judgment procedures as he had filed for the settlement precaution for bankruptcy, which the judge refused.</p>\r\n<p class=\"MsoNormal\">The appellant again appealed the judge’s ruling. The appeal was referred to the Court of Appeal and looked into by a panel of five judges.</p>\r\n<p class=\"MsoNormal\"><strong>The Judgment:</strong></p>\r\n<p class=\"MsoNormal\">The Court of Appeal determined that filing a motion for preventive composition after the beginning of the judgment procedures does not affect the position of the creditors as they remain separate and each of them possess the right to pursue their claim individually, nor does it change the position of the debtor, who remains in control of his assets.</p>\r\n<p class=\"MsoNormal\">The Court of Appeal reached this conclusion based on the fact that Article 295 should not be considered alone, but must be interpreted along with the articles preceding it, starting with Article 292.</p>\r\n<p class=\"MsoNormal\">The Court found that by interpreting these articles together, the Commerce Law drew a clear path that has to be taken when it comes to filing for preventive composition.  A motion must be filed after which the judge issues a preliminary decision regarding accepting the motion if the same contains all the requested formalities specified by the law. After verifying the formalities, and if the Judge finds the motion to be based on good merits, the judge summons the creditors to discuss the motion.</p>\r\n<p class=\"MsoNormal\">The Court found that applying Article 293 is essential as this article requests summoning the creditors which implies that the creditors should be formally notified of the motion, as well as Article 294 which requires publishing the decision issued by the Court in this motion. After following the procedures abovementioned, Article 295 may be enforced. Accordingly, the Court found that the creditors who are not entitled to proceed with the enforcement procedures against the defendant (the appellant), are those creditors who are aware of the procedures of the motion either by being summoned to discuss the motion in accordance with Article 293, or through the publishing of the decision in accordance with the same article.</p>\r\n<p class=\"MsoNormal\"><strong>Conclusion:</strong></p>\r\n<p class=\"MsoNormal\">The Court of Appeal concluded that since the motion for the preventive composition was filed after proceeding with the enforcement, Article 295 does not apply and the enforcement proceedings could not be stopped. Anything contradicting with this would result in disrupting the execution of the judgment and allowing the debtor to evade it, which is contrary to the correct interpretation of the provision.</p>\r\n<p class=\"MsoNormal\">This judgment is to be welcomed because it reduces the scope for debtors to artificially prolong the enforcement of debts against their assets.</p>'),
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	(90938,4944,'content_description','Article 295 of the Jordanian Commerce Law  1966 allows a merchant on the verge of bankruptcy to avoid bankruptcy and gain protection from creditors executing judgments against the merchant by initiating a court-sponsored settlement process with the creditors (‘preventive composition’). '),
	(90939,4944,'_content_description','field_59b641c07f473'),
	(90940,4944,'pageSummary','Article 295 of the Jordanian Commerce Law 1966 allows a merchant on the verge of bankruptcy to avoid bankruptcy and gain protection from creditors executing judgments against the merchant by initiating a court-sponsored settlement process with the creditors (‘preventive composition’).'),
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	(90951,4944,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(90952,4944,'_yoast_wpseo_metadesc','Article 295 of the Jordanian Commerce Law 1966 allows a merchant on the verge of bankruptcy to avoid bankruptcy and gain protection from creditors executing judgments against the merchant by initiating a court-sponsored settlement process with the creditors (‘preventive composition’).'),
	(90953,4945,'content','June 2014\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">In difficult market conditions, this fact leaves bunker suppliers faced with delays in payment, non-payment or requests to provide credit terms.</p>\r\n<p class=\"MsoNormal\">One of the common features of bunker supply contracts is the allowance of all or part of the purchase price to be paid after delivery of the bunker fuel. For the past few years, when the market condition was difficult and the bunker prices were high, these credit terms affected bunker traders since they were left unpaid for the bunker they supplied.  In addition, shipowners were faced with an unexpected risk of vessel arrest pursuant to the action <em>in rem</em> initiated by the unpaid bunker traders who supplied the vessel with bunkers at the request of charterers.</p>\r\n<p class=\"MsoNormal\">The supply of bunkers at the request of the vessel’s charterer is the most common practice in the industry. When merchant vessels are not trading under the owners’ control, owners will not have any control over the purchase of the bunker by charterers (and consequently the fulfillment of the charterer’s obligations under the bunker supply contracts) where the vessel is chartered out on a time or bareboat charterparty.</p>\r\n<p class=\"MsoNormal\"><strong>Arrest threat - Is a bunker claim a maritime claim?</strong></p>\r\n<p class=\"MsoNormal\">Ship arrest is an excellent way to obtain security for a claim and potentially prepare for a judicial sale of the vessel, should that become necessary. In addition, ship arrest constitutes a considerable pressure on the debtor to settle the claim due to the business disruption which usually leads parties to amicably settle the claim. Therefore, arrest may be a suitable remedy for a variety of creditors, such as unpaid bunker traders, since a bunker claim has been categorised as a maritime claim in many jurisdictions where the 1952 Arrest Convention has been ratified or where similar wording has been incorporated into domestic legislation.</p>\r\n<p class=\"MsoNormal\">Under the Arrest Convention of 1952, an arrest may be made on a vessel in respect of which the maritime claim arises if the owner is liable for the claim or if, under the applicable law, recovery against the vessel following such arrest is possible. Article 1(1) of the 1952 Arrest Convention lists these maritime claims.</p>\r\n<p class=\"MsoNormal\">These different claims are enumerated in Article 115 of the UAE Maritime Commercial Code being Federal Law No. 26 of 1981 (as amended) (the “Maritime Code”) as follows:</p>\r\n<p class=\"MsoNormal\">1. Damage caused by the vessel by reason of a collision or otherwise.</p>\r\n<p class=\"MsoNormal\">2. Loss of life or personal injuries occasioned by the vessel and arising out of the use thereof.</p>\r\n<p class=\"MsoNormal\">3. Assistance and salvage.</p>\r\n<p class=\"MsoNormal\">4. Contracts relating to the use or exploitation of the vessel under a charterparty or otherwise.</p>\r\n<p class=\"MsoNormal\">5. Contracts relating to the carriage of goods under a charterparty, bill of lading, or other documents.</p>\r\n<p class=\"MsoNormal\">6. Loss of or damage to goods or chattels being carried on board the vessel.</p>\r\n<p class=\"MsoNormal\">7. General average.</p>\r\n<p class=\"MsoNormal\">8. Towage or pilotage of the vessel.</p>\r\n<p class=\"MsoNormal\">9. <em>Supplies of products or equipment necessary for the utilisation or maintenance of the vessel, in whichever place the supply is made.</em></p>\r\n<p class=\"MsoNormal\">10. Construction, repair or fitting out of the vessel, and costs of it being in dock.</p>\r\n<p class=\"MsoNormal\">11. Sums expended by the master, shippers, charterers or agents on account of the vessel - or on account of the owner thereof.</p>\r\n<p class=\"MsoNormal\">12. Wages of the master, officers and crew, and other persons working on board the vessel under a contract of maritime employment.</p>\r\n<p class=\"MsoNormal\">13. A dispute as to the ownership of the vessel.</p>\r\n<p class=\"MsoNormal\">14. A dispute in connection with the co-ownership of the vessel, or with the possession or use thereof, or with the right to the profits arising out of the use thereof.</p>\r\n<p class=\"MsoNormal\">15. A maritime mortgage.</p>\r\n<p class=\"MsoNormal\">In addition article 117 of the Maritime Code stipulates that the vessel may be arrested for a maritime debt for which the charterer is responsible if the following conditions are met:</p>\r\n<p class=\"MsoNormal\">1. the vessel arrested is the concerned vessel (i.e. not a sister vessel); and</p>\r\n<p class=\"MsoNormal\">2. the charterer has the navigational management of the vessel, namely where he is a time charterer or a bareboat charterer and not a voyage charterer.</p>\r\n<p class=\"MsoNormal\">Therefore, the merits of a vessel arrest will depend on the jurisdiction in which the vessel is being arrested since in certain jurisdictions an arrest order will only be granted if the debtor is the owner of the vessel. In the UAE, a vessel may be arrested for a bunker claim where the bunkers were ordered by the charterer as long as the conditions stipulated in article 117 of the Maritime Code above are met. However, the issue that remains unsolved in the UAE is whether the courts will issue a judgment in the main action that needs to be filed after the arrest order against the owners obliging them to pay to the bunker traders their unpaid invoices.</p>\r\n<p class=\"MsoNormal\">Notwithstanding, if the arrest of the vessel for a bunker claim (where bunkers have been ordered by a charterer) is not possible, will the arrest be possible on the grounds of a maritime lien?</p>\r\n<p class=\"MsoNormal\"><strong>Arrest threat - Does a bunker claim give rise to a maritime lien?</strong></p>\r\n<p class=\"MsoNormal\">A maritime lien is a secured right in the property (whether vessel, cargo, freight or bunkers) which arises with the claim without registration or other formalities and which travels with the vessel surviving its conventional sale (not its judicial sale). In general, the issue of whether an unpaid bunker trader will have the right to a maritime lien will differ from one jurisdiction to another.</p>\r\n<p class=\"MsoNormal\">Under English Law, maritime liens are strictly limited to a number of claims (such as salvage claims damages caused by the ship and crew wages) and bunker traders will not have a maritime lien.</p>\r\n<p class=\"MsoNormal\">Unlike English Law, the US Maritime Lien Act provides that an unpaid bunker trader will have a maritime lien against the vessel where the bunker was ordered by “a person authorised by the owner”. This Act states that an officer or agent appointed by the charterer is “presumed to have authority to procure necessaries (bunkers) for the vessel”. In this context it must be noted that it remains possible to rebut the presumption that the charterers had authority to order the bunkers for the vessel.</p>\r\n<p class=\"MsoNormal\">In addition, and as a general rule, the US Courts will not apply the Maritime Lien Act to every arrest in the USA. They will only apply it if there is a close contact between the bunker supply and the USA. In other words, the more contacts the bunker supply has had to the USA the more likely it is that the owners and their vessel may be found to be a party to a contract between the bunker trader and charterer.</p>\r\n<p class=\"MsoNormal\">The International Convention for the Unification of Certain Rules of Law Relating to Maritime Liens and Mortgages of 1926 (the “Lien Convention”) has enumerated in article 2 the claims that give rise to lien on the freight for the voyage during which the claim giving rise to the lien arises, on the accessories of the vessel and freight accrued since the commencement of the voyage.</p>\r\n<p class=\"MsoNormal\">The Maritime Code has adopted wording similar to that of the Lien Convention. Article 84 of the Maritime Code exhaustively lists the maritime liens on the ships. The claim for “necessaries” listed at article 84 is defined as follows:</p>\r\n<p class=\"MsoNormal\">“Debts arising out of contracts made by the master, and operations carried out by him outside the port of registration of the vessel within the scope of his lawful powers for an actual requirement dictated by the maintenance of the vessel or the continuance of its voyage, whether or not the master is also the owner of the vessel, or whether the debt is due to him, or to persons undertaking supply, or lenders, persons who have repaired the vessel, or other contractors.”</p>\r\n<p class=\"MsoNormal\">Bunker supplies will, therefore, be considered as “necessaries” for the ship and/or the voyage.</p>\r\n<p class=\"MsoNormal\">In this context it must be noted that under UAE Law, unlike English Law, a claimant having a claim secured by a maritime lien will not have an automatic right to arrest the vessel in the UAE territorial waters. He will only have this right if his claim falls within the list of maritime debts defined in Article 115 of the Maritime Code.</p>\r\n<p class=\"MsoNormal\"><strong>Will invoicing to master and owners change the situation?</strong></p>\r\n<p class=\"MsoNormal\">It is common practice in the bunker industry to issue invoices to the “master and/or owners and/or operators and/or managers and/or charterers c/o” (or similar wording), followed by the name of the person or company actually ordering the bunkers. Does this type of invoicing give the bunker trader the right to arrest the vessel for unpaid bunkers even if ordered by the time charterer of the vessel?</p>\r\n<p class=\"MsoNormal\">In principle, the invoicing method cannot change the contractual relationship of the bunker supply which is between the bunker supplier and the charterer. The general rule under every legal system is that a contractual claim, such as one for the sale of bunkers, is a claim “in personam”, against a particular person who is a party to the supply contract. Thus, under many systems of law, a claim for the supply of bunkers to a time-charterer cannot be enforced against the ship.</p>\r\n<p class=\"MsoNormal\">However, even though the obligation to provide and pay for bunkers under a time charterer rests with the defaulting charterer, and the bunker supplier does not have privity of contract with the vessel and its owner, the owners and their ships are still vulnerable to action in many jurisdictions.</p>\r\n<p class=\"MsoNormal\">Therefore, invoicing to the “master and owners” and including all sorts of clauses in general trading conditions as mentioned could help in changing the position of the unpaid bunker trader and makes sense from his point of view but will not have a legal impact on the bunker supply contractual relationship.</p>\r\n<p class=\"MsoNormal\"><strong>Recommendations to bunker traders</strong></p>\r\n<p class=\"MsoNormal\">The starting point is to conduct a risk assessment for each supply. Any new customer, shipping operator with bad credit history or shipping operator that does not have a repeated presence in the jurisdiction might be identified as a potential credit risk. In addition, dealing with single ship companies might be regarded as a potential credit risk. It might be appropriate to require upfront payment or at least a substantial deposit for any such supplies.</p>\r\n<p class=\"MsoNormal\">The next most important thing is to establish a solid legal foundation for the supply, namely a well drafted contract with good terms and conditions. These terms and conditions will provide the legal foundation for many rights of enforcement that a bunker trader might not have under general law. Issues involving the terms and conditions of the contract can include retention of title (the bunkers remain the property of the supplier until paid) and the enforcement of rights against additional parties. In fact, bunker supply terms and conditions often try to address this very issue by saying that any supply is made jointly to the person ordering the supply and to the owner/vessel and that enforcement action can be taken against any or all of them. Therefore, the lack of privity between the owner and the bunker trader may be overcome if notice of the terms and conditions of the supply contract is given to the owner.</p>\r\n<p class=\"MsoNormal\">Some bunker traders try to obtain the benefit of the maritime lien recognised under the US law by stating in their terms and conditions that US law will apply to the contract. In the UAE, this type of clause does not add anything in this regard since bunker claims give rise to a maritime lien and the bunker trader should, therefore, have a right to arrest the vessel as his claim is a maritime debt in accordance to article 115 of the Maritime Code.</p>\r\n<p class=\"MsoNormal\">It is paramount for bunker suppliers to ensure that they know that they are contracting with the actual shipowner. They also need to ensure that all the documents and communications reflect this accurately and beyond doubt. This is especially important when intermediaries are involved. Failure to do so could result in a situation where the bunker supplier ends up with no security for its claim and no hope of ever obtaining payment of its bunker invoice.</p>\r\n<p class=\"MsoNormal\">Bunker suppliers should also consider insisting that payment for the supply is guaranteed by another entity, such as a group parent or holding company. Of course, the financial standing of the guarantor must be well considered as a guarantee is only as good as the financial standing of the guarantor.</p>\r\n<p class=\"MsoNormal\"><strong>Recommendations to owners</strong></p>\r\n<p class=\"MsoNormal\">P&amp;I Clubs have warned their shipowner members to protect themselves from the increasing risk of claims for charterers’ unpaid bunkers and recommended that any members, who may be exposed to such a risk, seek legal advice from local counsel regarding the matter prior to the vessel’s entry into port.</p>\r\n<p class=\"MsoNormal\">As a precaution, and to avoid a maritime lien over their vessel, some owners insert in their charterparties an anti-lien clause with wording identical to that of clause 18 of the New York Produce Exchange (NYPE) form. This clause stipulates that <em>“Charterers will not suffer, nor permit to be continued, any lien or encumbrance incurred by them or their agents, which might have priority over the title and interest of the owners in the vessel”</em>. This anti-lien clause may also be amplified, as suggested by BIMCO, by the addition of the wording below:</p>\r\n<p class=\"MsoNormal\"><em>“In no event shall Charterers procure, or permit to be procured, for the vessel, any supplies, necessaries or services without previously obtaining a statement signed by an authorized representative of the furnisher thereof, acknowledging that such supplies, necessaries or services are being furnished on the credit of Charterers and not on the credit of the Vessel or of her Owners, and that the furnisher claims no maritime lien on the Vessel therefore”</em></p>\r\n<p class=\"MsoNormal\">However, the effect of such clauses on the creation of a lien remains unclear if not notified to the bunker trader, who has no contract with the owner of the vessel.</p>\r\n<p class=\"MsoNormal\">Other owners tend to send to bunker traders a prohibition of lien notice prior to the vessel being supplied with bunkers. In addition, masters are tending to stamp the bunker delivery receipt with clauses stipulating that bunkers are not for the account of the ship and are ordered solely for the account of the charterers and that no lien or any claim against the vessel or her owners can arise thereof.</p>\r\n<p class=\"MsoNormal\">Nevertheless, all these precautionary measures will still not prevent bunker traders from creating a lien on the vessel in every jurisdiction.</p>\r\n<p class=\"MsoNormal\">The nature of the bunker supply business places bunker suppliers and shipowners in a precarious position especially when the bunkers are ordered by the charterer of the vessel. Reconciling the conflicting interests of the maritime claimants and shipowners has always been a controversial issue. From the bunker trader’s perspective, the right to arrest a ship is the single most valuable tool in enforcing his maritime claims and recovering his debts against ship owners and operators. From the viewpoint of shipowners and mortgagees, it is equally essential that a wrongful arrest, attachment, or injunction against a ship does not interrupt its legitimate trading. This struggle between two opposing interests has, for centuries, created a dichotomy, and the proper legal recourses are still being debated today.</p>'),
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	(90963,4945,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Zeina Wakim'),
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	(90965,4945,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','z.wakim@tamimi.com'),
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	(90971,4945,'_yoast_wpseo_metadesc','Bunker fuel is the fuel oil used mainly in powering ships. It gets its name from the containers on board ships and in ports that it is stored in, which are called bunkers. Bunker fuel constitutes a fundamental element and one of the largest expenses in ships operation.'),
	(90972,4946,'content','June 2014\r\n\r\n<hr />\r\n<p class=\"MsoNormal\"><strong>1.     </strong><strong>Introduction</strong></p>\r\n<p class=\"MsoNormal\">UAE investors have invested an enormous US$55 billion into foreign markets over the past three decades, allowing the UAE to emerge as the largest Arab capital exporter, accounting for around one-third of Arab capital flows. The highest foreign direct investment (‘FDI’) outflows from the UAE were during 2006-2008, when they totalled nearly US$41 billion. These outflows slowed in the following years to reach an average of US$2 billion per year. Nonetheless, UAE FDI flows increased significantly to US$ 4.4 billion in 2012.<a href=\"#_ftn1\">[1]</a></p>\r\n<p class=\"MsoNormal\">The key driver has been growth in intra-regional FDI in the Middle East, with recent reports of renewed investment by Gulf States in Egypt, while China, India and some Southeast Asian have become favoured destinations for UAE investors, who have also made significant investments into Europe.<a href=\"#_ftn2\">[2]</a></p>\r\n<p class=\"MsoNormal\">This investment activity is not without its risks, not least in the Middle East and North Africa, which has witnessed a wave of popular uprisings demanding freedom, jobs and social justice.<a href=\"#_ftn3\">[3]</a> This article outlines the protection afforded under international and regional law to outward foreign direct investment by UAE nationals, companies and other entities in neighboring Arab States and elsewhere.</p>\r\n<strong>2.     </strong><strong>Bilateral and Multilateral Treaty-Based Protections</strong>\r\n<p class=\"MsoNormal\">Investments by UAE nationals and entities, including sovereign wealth funds, are protected under international law as a result of a series of bilateral and multilateral treaties entered into by the UAE over the last three decades.</p>\r\n<p class=\"MsoNormal\">The UAE is a contracting party to the ICSID Convention and has signed 40 bilateral investment treaties (“BITs”) with developed and developing countries, 29 of which are currently in force. The UAE has entered into BITs with:</p>\r\n\r\n<ul>\r\n 	<li><strong>Middle Eastern and African states</strong>, including Algeria ,Egypt, Jordan, Kuwait , Lebanon, Morocco, Mozambique, Sudan, Syria, Tunisia, Turkey, Yemen</li>\r\n 	<li><strong>European states</strong>, including Austria, Belgium &amp; Luxemburg, Czech Republic, Finland, France, Germany, Italy, Poland, Romania, Sweden, Switzerland, UK,</li>\r\n 	<li><strong>Asian states</strong>, including China, Malaysia South Korea, Vietnam</li>\r\n 	<li><strong>Eastern European/CIS states</strong>, including Azerbaijan, Belarus, Mongolia, Tajikistan, Turkmenistan, Uzbekistan.</li>\r\n</ul>\r\n<p class=\"MsoNormal\">The UAE has also entered into a Trade Investment Framework Agreement (TIFA) with the United States (2004) to provide a framework for dialogue on economic reform and trade liberalization.</p>\r\n<p class=\"MsoNormal\">UAE BITs usually protect: (a) UAE nationals; (b) companies or enterprises constituted or organised under UAE law; and (c) the UAE Government, where they have made an investment in the other Contracting Party’s (or “host State’s”) territory (see, for example, the UAE-Austria BIT). UAE BITs do not share a common definition of the concept of an “investment”, although the term is defined broadly in most BITs. UAE BITs also confer different degrees of investor protection according to their terms. However, generally speaking, most UAE BITs share the following common features:</p>\r\n\r\n<ul>\r\n 	<li><strong>Fair and equitable treatment (FET):</strong> providing that each contracting party ‘shall accord to investments by investors of the other Contracting State fair and equitable treatment’ (Austria–UAE BIT).</li>\r\n 	<li><strong>Expropriation:</strong>  UAE BITs prohibit expropriation, although the relevant provisions vary.</li>\r\n 	<li><strong>Unreasonable, arbitrary or discriminatory measures:</strong>  UAE BITs prohibit government measures that are unreasonable, arbitrary or discriminatory and that impair or harm an investment.</li>\r\n 	<li><strong>Most-favored nation protection (MFN):</strong> A number of the UAE BITs contain most-favoured nation (MFN) protection, whereby the UAE and the relevant contracting states agree to accord investments of their respective investors treatment no less favourable than the treatment which each accords to investments of its own investors or investors of any third state. In other words, if another State with whom the UAE has concluded a BIT affords preferential treatment to the investors of another State, UAE investors may claim such preferential treatment as well, where the relevant UAE BIT includes MFN protection.</li>\r\n 	<li><strong>Investor-State Dispute Resolution (“ISDS”):</strong> Most UAE BITs provide for some form of dispute settlement mechanism between investors and the host State. In some cases, UAE BITs provide for international arbitration.  For example, the UAE-Austria BIT provides that an UAE investor may refer an investment dispute to the International Centre for Settlement of Investment Disputes (“ICSID”), established pursuant to the Convention on the Settlement of Investment</li>\r\n</ul>\r\n<p class=\"MsoListParagraphCxSpMiddle\">Disputes between States and Nationals of Other States (“the ICSID Convention”) provided that the UAE and Austria are parties to the ICSID Convention at the relevant time (which they currently are).<strong> </strong></p>\r\n<p class=\"MsoListParagraphCxSpMiddle\">However, there are no general rules in relation to the settlement of investment disputes – for example, the UAE-Syrian BIT provides that “disputes relating to various aspects of Investments and related activities belonging to one of the two States or their nationals through conciliation or arbitration, recourse to the Arab Investment Court [AIC]…,” which was established by the Unified Agreement mentioned above, as well providing for recourse to the local judiciary in a number of specified circumstances.</p>\r\n<p class=\"MsoListParagraphCxSpLast\">The AIC system differs significantly to ICSID arbitration (mentioned above): (a) whereas ICSID tribunals are appointed on an ad hoc basis, the AIC is seated at the permanent headquarters of the League of Arab States in Cairo; (b) whereas ICSID tribunals are largely composed of a mixture of practicing and academic lawyers, the AIC is composed of at  least five serving judges each with a different Arab nationality (which must not be the same nationality as either of the parties to the dispute); and (c) whereas AIC judgments  are final and binding, ICSID awards may be annulled.  On the other hand, final and binding ICSID awards and AIC judgments alike are enforceable in each of the contracting parties in the same manner as a judgment delivered by their national courts.</p>\r\n<p class=\"MsoNormal\">In addition to the foregoing BITs, the UAE is a party to various multilateral agreements,<a href=\"#_ftn4\">[4]</a> as follows:</p>\r\n\r\n<ul>\r\n 	<li><strong><em>The Convention on the Settlement of Investment Disputes between States Hosting Arab Investments and Citizens of Other States (1974)</em></strong><em>: </em></li>\r\n</ul>\r\n<p class=\"MsoNormal\">The 1974 Convention was ratified by numerous Arab countries, including the UAE, pursuant to UAE Federal Decree No. 36 of 1977 and entered into force on the 16 April 1977 (although the 1974 Convention has been superseded by the 1980 Unified Agreement for the Investment of Arab Capital in the Arab States). The Convention was modeled on the ICSID Convention and was intended to settle any legal dispute that may arise directly out of an investment between an Arab host State or any of its local agencies or corporations and the citizens of another Arab State whether an individual or corporate entity in order to provide a suitable climate that would stimulate Arab investment in Arab States. .</p>\r\n\r\n<ul>\r\n 	<li><strong><em>Unified Agreement for the Investment of Arab Capital in the Arab States (1980): </em></strong></li>\r\n</ul>\r\n<p class=\"MsoNormal\">The Unified Agreement was signed on 26 November 1980 and entered into force on 7 September 1981. This Agreement established an Arab Investment Court, open to States and investors.  The Court heard its first case in 2003 by a Saudi company, Tanmiah, against Tunisia. The Court agreed to hear the case and gave its decision on 12 October 2004.<a href=\"#_ftn5\">[5]</a>  The Court has now seven cases pending where Arab investors have filed complaints against other Arab States. As noted earlier, some UAE BITs provide for recourse in investor-State disputes to the Arab Investment Court.</p>\r\n<p class=\"MsoNormal\">The Unified Agreement was amended recently in 2013.<a href=\"#_ftn6\">[6]</a> Among other things, the amendments expanded the scope of investors covered by the Agreement, such that the investor is only required to own \"Arab capital\" which the investor \"invests in the territory of a State Party of which it is not a national, provided that the Arab investor holds directly at least 51% of the share capital\".</p>\r\n<p class=\"MsoNormal\">In addition, the amendments introduce a broad and unqualified Fair &amp; Equitable Treatment provision, while removing limitations on the free transfer of capital, and an investor obligation to refrain from actions which might violate public order, morality or involve illegitimate gains.<a href=\"#_ftn7\">[7]</a></p>\r\n<p class=\"MsoNormal\">The amended treaty is silent on its relationship with intra‐Arab BITs. So while it is possible that Unified Agreement may be amended in time to consolidate the complex network of over 100 intra‐Arab BITs in existence, it is to be assumed that such intra-Arab BITs continue in force in the meantime.</p>\r\n<p class=\"MsoNormal\">It is important to note, however, that the new version of the Unified Agreement (similar to the 1980 version) does not give prior State consent for investor claims to be brought to international arbitration.</p>\r\n\r\n<ul>\r\n 	<li><strong><em>The Agreement on Promotion, Protection and Guarantee of Investments among Member States of the Organization of the Islamic Cooperation (“OIC Agreement”)(1980):</em></strong></li>\r\n</ul>\r\n<p class=\"MsoNormal\">The OIC agreement was approved and opened for signature in June 1981 and entered into force on 23 September 1986. It has been ratified by numerous Arab countries, including the UAE, Egypt, Libya, Morocco, Tunisia and Yemen. This agreement was the first multilateral agreement to afford foreign investors the right to initiate arbitration against their host country (in the event that the parties fail to settle their dispute by conciliation) - long before other treaties, such as the North American Free Trade Agreement or the Energy Charter Treaty, did so.</p>\r\n<p class=\"MsoNormal\">However, it wasn’t until recently, especially after the so-called “Arab Spring”, that claims were brought under the OIC Agreement.  In June 2012, an arbitral tribunal constituted under the OIC Agreement held that the OIC Agreement contains an offer by each contracting party to arbitrate disputes with investors of another contracting party, entitling the latter to accept such an offer by simply commencing arbitration proceedings against the host state.</p>\r\n<strong>3.     </strong><strong>Conclusion</strong>\r\n<p class=\"MsoNormal\">Investment arbitration and access to international courts in investment matters is an established practice in the Arab world under the foregoing bilateral and multilateral agreements. However UAE investors (and indeed foreign investors in the Arab region) may be unaware of the far-reaching investment protections and remedies such treaties can provide.</p>\r\n<p class=\"MsoNormal\">With the recent developments in the Arab region, especially the political events witnessed in Egypt, Libya, Syria, Tunisia, and Yemen, the protections afforded by these multilateral and bilateral agreements are set to play an increasing role, especially where post-revolution governments revoke investment contracts concluded by former regimes.</p>\r\n<p class=\"MsoNormal\">It is timely, therefore, for UAE investors (and indeed foreign investors in the Arab region), be they private investors or sovereign funds, to review with their legal advisors the extent of protections afforded to them in relation to outward foreign direct investments in the Arab region and further afield, having regard to the persistent global crises and pressing financial, social and economic challenges faced around the world.</p>\r\n<p class=\"MsoNormal\"></p>\r\n\r\n<div>\r\n\r\n&nbsp;\r\n\r\n<hr size=\"1\" />\r\n\r\n<div><address class=\"MsoFootnoteText\"><em><a href=\"#_ftnref\">[1]</a> UAE Yearbook 2013 (published by the National Media Council). </em></address></div>\r\n<address>\r\n<p class=\"MsoFootnoteText\"><em><a href=\"#_ftnref\">[2]</a> UAE foreign direct investment has been led by the UAE’s largest institutional investors, sovereign wealth funds, including The Abu Dhabi Investment Authority, Mubadala Development Company, and Abu Dhabi National Energy Company (TAQA).</em></p>\r\n\r\n</address><address>\r\n<p class=\"MsoFootnoteText\"><em><a href=\"#_ftnref\">[3]</a> Hamed El‐Kady, “The Amendments to the 1980 Arab League Investment Agreement: Implications on the Right to Regulate Investment in Arab Countries”, T<ins cite=\"mailto:Robert%20Karrar-Lewsley\" datetime=\"2014-06-11T10:05\">ransnational </ins>D<ins cite=\"mailto:Robert%20Karrar-Lewsley\" datetime=\"2014-06-11T10:05\">ispute </ins>M<ins cite=\"mailto:Robert%20Karrar-Lewsley\" datetime=\"2014-06-11T10:05\">anagement</ins>, April 2014 (“El-Kady”).</em></p>\r\n\r\n</address><address>\r\n<p class=\"MsoFootnoteText\"><em><a href=\"#_ftnref\">[4]</a> In addition to the agreements listed below, the UAE is a party to the GGC Unified Economic Agreement (1981), but this contains no substantive rules on investment protection.</em></p>\r\n\r\n</address><address>\r\n<p class=\"MsoFootnoteText\"><em><a href=\"#_ftnref\">[5]</a> For more details on the Arab Investment Court and its first decision, see Ben Hamida, “The First Arab Investment Court Decision”, in The Journal of World Investment and Trade Vol. 7 No. 5 October 2006.</em></p>\r\n\r\n</address><address>\r\n<p class=\"MsoFootnoteText\"><em><a href=\"#_ftnref\">[6]</a> See El-Kady, above.</em></p>\r\n\r\n</address>\r\n<div><address class=\"MsoFootnoteText\"><em><a href=\"#_ftnref\">[7]</a> Ibid. </em></address></div>\r\n</div>'),
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	(90998,4947,'content','June 2014\r\n\r\n<hr />\r\n\r\nTraining contracts are defined at Article 42 of the Federal Labour Law No.8 of 1980 (as amended) as a contract whereby a company undertakes to provide full vocational training consistent with professional standards to another person (who is at least 12 years of age), who in turn undertakes to work for the employer during the training period subject to any terms and period as mutually agreed.\r\n\r\nHowever the question of the legal nature of a training contract appears to be controversial. Some legal jurists consider it a labour contract, irrespective of the purpose of the contract (training only). This view is based on the existence of dependency in the said contract.\r\n\r\nOthers regard it as a mixed contract based on the existence of both work and training in the said contract. The third view, which is the prevailing opinion, is that training contracts are of a special nature. They are not labour contracts (despite the existence of a wage, period and dependency) because of the difference in the purpose of the contracts.\r\n\r\n<strong>The Labour Law</strong>\r\n\r\nAlthough training contracts are regulated under the Labour Law in the UAE, it is still argued that the law considers such contracts as non-binding on its parties. Such an interpretation can be derived from Article 52 of the Labour Law which provides for the Minister of Labour’s authority to require certain firms, specified by him, to accept for employment a certain number or percentage of national trainees, subject to terms and conditions and for such a period as may be specified by him and agreed with the management of the firms concerned.\r\n\r\nSuch conditions suggest that local firms handling such training are in fact performing national functions with the guidance of the Ministry of Labour. The terms and conditions of the contracts are determined by agreement between the training firm and the Ministry of Labour and not the trainee, indicating that the legislator intended the training contracts to be non-binding in nature.\r\n\r\nMinisterial Decision No.71(2) of 1982 (On the Training of Nationals at Existing Firms) also specifies under Article 10 that if the firm decides to stop the training of any of the trainees before the completion of the training period due to the trainee’s incompetence or any other reason, then the firm should notify the party that nominated the trainee for the training, and the notification shall include the reason for the termination.\r\n\r\nThis provision indicates clearly the non-binding nature of the training contract as it leaves the decision of its execution or termination in the hands of the training provider. It is only the training provider which has the authority to terminate the training at any time and without even notifying the trainee. The only obligation is to notify the nominating entity of its decision to stop the training. This provision grants the training firm the right to terminate the training contract without reference to compromise or litigation and as such establishes the non-binding nature of the training contract. The legal definition of non-binding contracts under Article 218 of the Civil Code is that they are contracts that can be revoked any time without compromise or litigation.\r\n\r\nIt can threfore be argued that training contracts are not binding on the training firm. Furthermore, they can also be considered as a voluntary action because there is no consideration involved. As such any termination does not constitute breach of contract or violation of any law by either party.\r\n\r\n<strong>Legal Characteristics of Training Contracts under the Labour Law</strong>\r\n\r\nAccording to Articles 42-52 the characteristics of a training contract are as follows:\r\n<ol>\r\n 	<li>The training contract must be in writing, otherwise it shall be null and void.</li>\r\n 	<li>The contract must contain details of the identity of the contracting parties, the procedures, duration, phases and subject of the training.</li>\r\n 	<li>It must not contain any clause contrary to the Labour Law or its executive regulation or decisions. Any such provision will be deleted by the competent labour department.</li>\r\n 	<li>There must be three copies (one for the employer, trainee, and Labour Department).</li>\r\n 	<li>The contract will be deemed to have been endorsed within one month of its filing unless otherwise stated by the competent labour department.</li>\r\n</ol>\r\n<strong>Obligations of the employer / trainer under the Labour Law</strong>\r\n\r\nArticles 42-52 also describe the obligations of the employer under such contracts:\r\n<ol>\r\n 	<li>The employer/training provider should be sufficiently qualified and experienced in the relevant vocation or trade in which the trainee is required to be trained.</li>\r\n 	<li>The firm should satisfy the technical requirements and facilities necessary for providing such contract.</li>\r\n 	<li>The firm should give the trainee sufficient time to acquire theoretical knowledge.</li>\r\n 	<li>The firm must train the trainee on the principles of the occupation and the skills for which the trainee was assigned.</li>\r\n 	<li>The firm must issue an attested certificate upon completion of the training.</li>\r\n 	<li>The firm must pay the wage specified under the contract during each phase of the training. The amount must not be less than the minimum level determined for similar work in the last stage of the training.</li>\r\n 	<li>The employer may undertake in the contract to employ the trainee upon completion of the training period.</li>\r\n</ol>\r\n<strong>Obligations of the Trainee under the Labour Law</strong>\r\n\r\nThe same provisions also set out the obligations of the trainee:\r\n<ol>\r\n 	<li>A trainee who is less than 18 years old should be represented in the training contract by a guardian,legal trustee or custodian.</li>\r\n 	<li>A trainee must exert effort toward the training and show the care expected from an ordinary person.</li>\r\n 	<li>A trainee must work during the training period for the employer in accordance with the terms and conditions of the training contract.</li>\r\n 	<li>The trainee may undertake, upon completion of the training, to work for the the firm where he has been trained.</li>\r\n</ol>\r\n<strong>Termination of the Training Contract</strong>\r\n\r\nAs mentioned above, the Labour Law does not specify means of termination of the training contract save for the discretion of the training firm to terminate the contract in case it appears that the trainee is incompetent or unable to complete the training in an efficient way, or for any other reason that shall be defined later by the training firm. Accordingly, in the absence of specific rules regulating the issue of termination of the training contract, the general rules governing contracts apply. A training contract may therefore be terminated if the parties achieve their purpose or by the end of its duration. However, if the trainee enters into a labour contract after the completion of the training, then the Labour Law states at Article 47 that the contract shall continue for a period not exceeding twice the training period.\r\n\r\nNotwithstanding the above, it remains the case that due to the lack of judicial precedents it is difficult to predict the courts’ interpretation of the legal nature of training contracts. Until the courts give a definitive ruling the legal nature of training contracts will remain unresolved.'),
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	(91005,4947,'_pageSummary','field_59e59b307dec8'),
	(91006,4947,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-8/june-6/the-legal-nature-of-vocational-training-contracts-under-uae-law.html'),
	(91007,4947,'_currentURL','field_59d35123ab1e7'),
	(91008,4947,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Rihab Al Amin'),
	(91009,4947,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(91010,4947,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','r.alamin@tamimi.com'),
	(91011,4947,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(91012,4947,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
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	(91014,4947,'lawUpdateArticleNoWriters','1'),
	(91015,4947,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(91016,4948,'content','June 2014\r\n\r\n<hr />\r\n\r\nIn order to accommodate those residents of the UAE who ascribe to different religions, the Law of Personal Status permits a non-Muslim expatriate living in the UAE to elect to apply the law of his or her country to matters of personal affairs. Additionally Article 17 of the UAE Civil Code states that “inheritance shall be governed by the law of the testator at the time of his death”. This article considers a judgments issued by the Dubai Court of Cassation illustrating the applicability of these provisions.\r\n\r\n<strong>Summary of the Facts</strong>\r\n\r\nThe case was filed by the widow of a recently deceased Indian national in her personal capacity and in her capacity as the guardian of their only son. Upon the death of her husband, the deceased’s mother obtained a division of the husband’s assets pursuant to Islamic Law which gave the  mother one-sixth, the wife one-eighth and the son the remainder of the assets. The wife filed the case to dismiss this division of the assets and to give the entire estate to the son. In her claim, the wife relied on a will properly executed by her husband which gave all of his assets to his son upon his death and requested the court to enforce the will in accordance with the laws of India as her husband was a Hindu and not a Muslim.\r\n\r\n<strong>Court of Cassation Analysis</strong>\r\n\r\nThe Court of Cassation ruled that it was erroneous for the Court of First Instance and the Court of Appeal to characterise the claim as a claim to amend the previously issued division of the estate’s assets. The Court pointed out that claim was for the enforcement of a will not to amend the division of assets as the lower courts charactarised it. Since the lower courts’ decisions did not evaluate the claim correctly, they should be overruled.\r\n\r\n&nbsp;\r\n\r\nThe Court expanded further by clarifying that in the application of the husband’s will, the will should not be affected by the rules of the Law of Personal Status which state that a testator may not bequeath property to an heir. Under this rule, which is applicable to UAE Nationals and Muslim expats, a testator may not bequeath property to any of his heirs such as a son or a daughter except with the consent of the other heirs.  The Court reasoned that a will’s purpose is to pass property from one person to another and if these persons are not UAE nationals and they are not Muslims then the law they have chosen for themselves to govern their relationship shall apply to them.\r\n\r\n&nbsp;\r\n\r\nThe Court cautioned that while this principle allows non-Muslim residents to apply the law of their own country to their wills, such laws will not be applied if they clearly offend public policy. Simply having a different division of assets, the Court specified, does not offend public policy.\r\n\r\n&nbsp;\r\n\r\nPractice Note\r\n\r\n&nbsp;\r\n\r\nNon-Muslim expatriates in the UAE may choose to have the law of their country of origin as the chosen applicable law in their will as long as their heirs are also not UAE nations and not Muslim. If the will has a chosen applicable law and it is the law of the country of the origin of the testator, the court will respect that lawand apply it except in cases where it is contrary to public policy to do so. As the court clarified in this decision, a different division of assets, such as equal inheritance for all children, would not be invalidated for violating public policy. It is critical to note that the court’s enforcement of a will in accordance with foreign law is an exception and it is subject to strict procedural steps which must be followed otherwise the court will return to the default position of applying UAE law.\r\n<div></div>'),
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	(91022,4948,'pageSummary','Wills and other matters relating to personal affairs, such as custody and divorce, are generally governed in the UAE by Federal Law 28 of 2005, known as the Law of Personal Status, which is based on Islamic Law.'),
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	(91025,4948,'_currentURL','field_59d35123ab1e7'),
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	(91029,4948,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(91030,4948,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Hussain Al Matrood'),
	(91031,4948,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(91032,4948,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','h.almatrood@tamimi.com'),
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	(91034,4948,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
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	(91042,4948,'_yoast_wpseo_metadesc','Wills and other matters relating to personal affairs, such as custody and divorce, are generally governed in the UAE by Federal Law 28 of 2005, known as the Law of Personal Status, which is based on Islamic Law.'),
	(91043,4949,'content','June 2014\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">The employment relationship in Qatar is principally governed by the provisions of Law No. (14) of 2004 Regulating employment (the “<strong>Labour Law</strong>”).</p>\r\n<p class=\"MsoNormal\">On 4 February 2014, Law No. (3) of 2014 was promulgated in Qatar in order to amend certain provisions of the Labour Law (the “<strong>Amending Law</strong>”)  and this legislation recently came into force.</p>\r\n<p class=\"MsoNormal\">The purpose of this article is to consider those provisions of the Labour Law which have been amended.<strong> </strong></p>\r\n<p class=\"MsoNormal\"><strong>Amendments Introduced by Law No. (3) of 2014</strong></p>\r\n<p class=\"MsoNormal\">The principal amendments to the Labour Law are as follows:</p>\r\n<strong><em>1.             </em></strong><strong><em>Professions exempt from the Labour Law</em></strong>\r\n<p class=\"MsoNormal\">The Amending Law widened the definition of those entities which are excluded from the coverage of the Labour Law.</p>\r\n<p class=\"MsoNormal\">To provide context, Article (3/1) of the Labour Law, provides that the Labour Law shall not apply to the following categories: employees and workers of the Ministries and other governmental organs, public institutions, corporations and companies which are established by Qatar Petroleum by itself or with others, and workers whose employment affairs are regulated by special laws.</p>\r\n<p class=\"MsoNormal\">The Amending Law (Article 3/1) goes further and expands the definition (see the Labour Law above) by providing that the Labour Law shall not be applicable to:</p>\r\n\r\n<ul>\r\n 	<li>companies which have been incorporated by the government, companies in which the government has participated in the incorporation; and which work in the petroleum sector in relation to marketing and selling of petroleum products, chemicals and petrochemicals;</li>\r\n 	<li>companies which have been incorporated by Qatar Petroleum in whole or in part;</li>\r\n 	<li>companies in which Qatar Petroleum owns a stake;</li>\r\n 	<li>companies involved in exploration and production sharing agreements, field development agreements and production sharing; and</li>\r\n 	<li>joint venture agreements in the petroleum sector and petrochemical industries; and those whose employment affairs are regulated by special laws.</li>\r\n</ul>\r\n<strong><em>2.             </em></strong><strong><em>Ministerial Fees</em></strong>\r\n<p class=\"MsoNormal\">Pursuant to Article (37) of the Labour Law, fees are imposed on the following:</p>\r\n\r\n<ol>\r\n 	<li>The granting of a work permit and the renewal and replacement thereof.</li>\r\n 	<li>The granting of a licence to recruit workers from abroad and renewal and replacement thereof.</li>\r\n 	<li>The attestation of the seals of companies and establishments, employment contracts, certificates and the other documents which are to be attested by the Ministry.</li>\r\n</ol>\r\n<p class=\"MsoNormal\">The fixing of these fees and any exemptions require a resolution of the Council of Ministers.</p>\r\n<p class=\"MsoNormal\">The Amending Law introduces a further category to those listed above, namely, introducing an applicable fee where a person changes his or her profession. The Amending Law also repealed a previous provision regarding the competence of the Council of Ministers to promulgate a decree setting fees and when there shall be exemption from such fees.</p>\r\n<p class=\"MsoNormal\"><strong>Consequences of the Amending Law</strong></p>\r\n<p class=\"MsoNormal\">The key amendments addressed the scope of exemption from the application of the Labour Law. Therefore, all companies working and operating in the petroleum sector, inter alia, marketing and selling petroleum, chemical and petro-chemical products, will now be able to avail themselves of such exemption, as the exception is no longer limited to Qatar Petroleum Company only.</p>\r\n<p class=\"MsoNormal\">Accordingly, companies working and operating in the petroleum sector will need independent regulations governing labour affairs as a replacement for the Labour Law provisions which are no longer applicable. Failing this, only the contract provisions of the Civil Code will be applicable to such labour relationships.</p>\r\n<p class=\"MsoNormal\"><strong>Changes Not Substantive</strong></p>\r\n<p class=\"MsoNormal\">Notwithstanding this, employees were expecting more substantive changes to the laws to amend the provisions governing their employment relationship with their employers and perhaps to clarify some issues concerning sponsorship to reside in Qatar. The latter, however, would require an amendment of the Sponsorship Law (Law No. (4) of 2009).</p>\r\n<p class=\"MsoNormal\">On 15 May 2014, there was a formal announcement made by senior officials of the Ministry of Interior that a new Sponsorship Law will be presented to the Council of Ministers sometime in the future and the same will impact upon rules of sponsorship in connection with change of employment and other related matters. There was also mention made of reforms requiring the payment of wages electronically to ensure transparency, monitoring and timely payment. If this is accurate, then this would require another change to the Labour Law.</p>\r\n<p class=\"MsoNormal\"><strong>Conclusion</strong></p>\r\n<p class=\"MsoNormal\">Although the amendment did not result in extensive changes to the Labour Law, there are some indicators that important amendments will take place in the near future for both the Labour Law and Sponsorship Law, which may meet desires to safeguard employees’ rights and secure a better working environment.</p>'),
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	(91047,4949,'content_description','The employment relationship in Qatar is principally governed by the provisions of Law No. (14) of 2004 Regulating employment (the “Labour Law”).'),
	(91048,4949,'_content_description','field_59b641c07f473'),
	(91049,4949,'pageSummary','The employment relationship in Qatar is principally governed by the provisions of Law No. (14) of 2004 Regulating employment (the “Labour Law”).'),
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	(91051,4949,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-8/june-6/qatar-amends-laws-regulating-the-labour-law-no14-of-2004.html'),
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	(91057,4949,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','410'),
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	(91060,4949,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(91061,4949,'_yoast_wpseo_metadesc','The employment relationship in Qatar is principally governed by the provisions of Law No. (14) of 2004 Regulating employment (the “Labour Law”).'),
	(91062,4950,'content','June 2014\r\n\r\n<hr />\r\n\r\n<strong>What is Ambush Marketing?</strong>\r\n\r\nPrecisely what ambush marketing is and whether or not it is contrary to the law are two questions at the heart of the short but storied history of guerilla advertising.  Broadly speaking ambush marketing can be thought of as the abuse of publicity surrounding a major event to gain brand recognition or similar benefit despite not having paid for the legal rights to do so. For the purposes of this article, we can consider ambush marketing the attempt, usually by a competitor of a legitimate (i.e. license fee paying) sponsor, to (i) associate an entity or its products with a major event in a manner misleading to consumers (“Ambush by Association”) or (ii) interject an entity or its products at or in close proximity to an event in such a way as to gain brand exposure (“Ambush by Intrusion”).\r\n\r\nSetting aside violations of trademark and/or copyright laws (which are relatively straightforward matters), not all ambush marketing is illegal.  Whether or not such an activity is contrary to applicable law will depend on the particular execution of the activity and the specific scope and nature of applicable laws in the relevant jurisdiction.\r\n\r\nThe reason ambush marketing is most readily found in the sporting context can be attributed to a number of factors.  Most poignantly, these include the inherent global appeal of major sporting events and the development and proliferation of various streams of on-demand viewing technologies.  This has simultaneously increased the potential audience and diminished likelihood of synchronized viewing for most forms of video entertainment except live sporting events. In short, sporting events stand alone atop ratings charts in their ability to draw immediate and unmatched levels of viewer interest and this means television advertising revenues (and therefore the value of broadcast rights) vastly exceed those available in all other forms of televised entertainment. Live viewership is also key to ambush marketing because what has once been seen cannot be taken back and we might anticipate the level of reward being commensurate to the scope of risk – particularly in an area where we often see sophisticated corporates opting to pursue ambush strategies.\r\n\r\n<strong>Why should we care?</strong>\r\n\r\nThe World Cup reaches a bigger and more diverse audience than any other single-sport event.  For the organizers of any modern FIFA World Cup, revenues generated from advertizing are expected to make up the lion’s share of budgeted income.  In short, staging the most widely viewed single-sport tournament on the planet and paying for the privilege, are in significant measure premised on the ability to properly market (i) corporate sponsorship packages, (ii) television broadcast rights and (iii) merchandising opportunities.\r\n\r\nThese commercial rights generate billions of dollars and sponsors are entitled to legal protection for their vital investments.  Ambush marketing can compromise the value proposition in any one or all three of those areas.  For sponsors who pay millions of dollars for a share of those rights (and, increasingly, in a number of cases significantly more than that initial outlay in the subsequent activation campaigns designed to optimize exploitation of those rights) ambush marketing jeopardizes that investment. Unchecked, this weakens the product the organizers are offering, dilutes the value of sponsorship and ultimately reduces the ability of an event to attract future sponsors.\r\n\r\n<strong>What can we expect from recent trends?</strong>\r\n\r\nDepending on your perspective, ambush marketers could be viewed as contemptible free-riders, undermining the credibility of the advertising world or swashbuckling renegades pushing the bounds of the creative front.   The stakes are high and the potential for global exposure has been a temptation many advertisers, including a number of market heavyweights – who arguably should know better - cannot resist.  For example, while Coca-Cola will be the official drink of the FIFA 2014 World Cup in Brazil, it is likely that rival Pepsi will be positioning itself and its recently expanded catalogue of top players in a manner that could grasp some glow of association.\r\n\r\nIn the past, Nike (sportswear – Atlanta 1996/London 2012), Bavaria (beverages – South Africa 2010), Beats by Dr. Dre (audio equipment – London 2012) and Zippo (lighters – Sochi 2014), amongst a long list of others in many market sectors have notably benefitted from public interest in sporting mega-events through ambush marketing.  While the trend from organizers is the imposition of more stringent restrictions and flexible but substantial enforcement, this has not necessarily deterred advertising companies who arguably see greater reward for the risk.\r\n\r\n<strong>2022 - How can Qatar achieve robust preparedness?</strong>\r\n<ul>\r\n 	<li>Don’t reinvent the wheel. Event-specific local legislation protecting sponsors is now commonplace - even mandatory in the case of any Olympic host nation. FIFA is amongst the best and most effective bodies at protecting sponsors’ rights.  Incremental improvements in such laws are made before each new mega competition and significant consideration should be given to preparing the best possible statutory solution for Qatar, taking into consideration not only the event but Qatar’s unique cultural and legal environment.  Solid lessons already learned from experiences in South Africa, London and Sochi should be adopted; and, an eye should be kept on Glasgow and Brazil, amongst others, to incorporate effective developments in law as well as to account for market trends.</li>\r\n 	<li>Take advantage of the playing field.  The bid process for 2022 capitalized on the compact World Cup (in fact, the close proximity of the playing venues will make Qatar 2022 one of the most geographically compact FIFA World Cups ever).  This means that exclusion zones could be policed very effectively to combat Ambush by Intrusion.   In respect of Ambush by Association, elements of Intellectual Property expressly including new event-specific legislation (together with regulations, guidelines and any permit requirements), consumer protection statutes as well as the elements of contract and tort law that we have seen used effectively elsewhere can be drawn from within the Qatar Civil Code and used together to defend against these guerilla tactics.</li>\r\n 	<li>Task Force. Qatar should have a task force in place to prepare the best possible legal framework to deter ambush marketing is in place well before 2022.  As noted, the legal framework can include various tools, which should be selected and handled carefully.  This means the applicable legislation must be complimented by a flexible and dynamic ability to read the situation and enforce (or not enforce, as must be determined on a case-by-case basis) the legal rights and restrictions at its disposal to maximize sponsor value and protect the short and long-term value of the event, while taking into account public sentiment.</li>\r\n 	<li>Flexibility and responsiveness.  The effective use of these complimentary tools should be stress-tested by the task force in coordination with enforcement authorities and in consultation with PR professionals well in advance of the event. For implementation, a dynamic rapid-response team should be able to effectively read and react both on its own initiative to market developments and on sponsor complaints to competitor abuses.</li>\r\n</ul>\r\n<strong>Conclusion</strong>\r\n\r\nWe have seen a continuing trend for opportunistic and creative advertisers to attempt to exploit events and probe any gaps in the legal framework designed to protect licensed advertisers and major events.  It is a safe bet that the level of fairness required of competitors on the pitch will not be observed by advertisers off it.  Lawyers representing both sides will be expanding their toolboxes in an effort to protect and promote their clients’ interests.  Keep your eyes on Brazil and keep an eye on the games outside of the games as we look a little further forward to 2022.\r\n\r\n<em>Prior to joining Al Tamimi &amp; Company to establish the Sports Law and Events Management practice group Steve served as General Counsel at Abu Dhabi Motorsports Management LLC, where he managed all legal aspects of the iconic Yas Marina Circuit from events management through venue sponsorship and all points in between.  He has more than 14 years’ corporate commercial experience working around the world, including a number of years in Japan, where he advised the sports division of one of the largest advertising agencies in the world with regards to broadcast rights agreements and sponsorships for the 2002 and 2006 FIFA World Cup events, Major League Baseball broadcast rights in the Far East, Toyota’s sponsorship of the X-Games, Princess Cup, and World Football Club Championships and numerous high-profile athlete endorsement and appearance rights deals.</em>'),
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	(91066,4950,'content_description',' HIGH STAKES CAT ‘N MOUSE - Competition can be just as aggressive and determined off the field as it is on it'),
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	(91068,4950,'pageSummary','HIGH STAKES CAT ‘N MOUSE - Competition can be just as aggressive and determined off the field as it is on it'),
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	(91075,4950,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(91076,4950,'_yoast_wpseo_metadesc','HIGH STAKES CAT ‘N MOUSE - Competition can be just as aggressive and determined off the field as it is on it'),
	(91077,4951,'content','June 2014\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">On 2 April 2014 the Dubai Land Department (“DLD”) issued Administrative Resolution No. 134 of 2013 ( “Resolution”) relating to the registration of leases in Dubai and resolving as follows:</p>\r\n\r\n<ol>\r\n 	<li>Any lease for a term of more than 10 years and up to 99 years shall be deemed a long term lease and registrable in accordance with Dubai Law No. 7 of 2006 Concerning Real Property Registration in The Emirate of Dubai (“Law No. 7”);</li>\r\n 	<li>Any lease for a term of 10 years or less shall be registrable in accordance with Dubai Law No. 33 of 2008 (amending the provisions of Law No. 26 of 2007) Regulating the Relationship Between Landlords and Tenants in the Emirate of Dubai.</li>\r\n</ol>\r\n<p class=\"MsoNormal\"><strong>What does this mean in practice?</strong></p>\r\n<p class=\"MsoNormal\">What this effectively means is that leases referred to in category i) above are registrable as dispositions on the Real Property Register maintained by the DLD and leases falling within category ii)  are registrable on the Ejari Register which is maintained by the Real Estate Regulatory Agency (“RERA”).</p>\r\n<p class=\"MsoNormal\">Law No. 7 mandated that rights of ownership of property in Dubai were restricted to UAE or GCC nationals or companies but that there would be specific areas as determined by the Ruler where foreign nationals could own freehold, usufruct and leasehold rights for periods not exceeding 99 years. Such rights would be registrable real property rights in the Real Property Register. However the law did not set a lower limit relating to the term of the lease for when a lease would constitute a registrable disposition on the Real Estate Register. It has been generally understood, based on DLD practice, that leases for over 10 years were registrable on the Real Estate Register but this was never formally codified in the law. We believe that the Resolution endeavours to provide final clarity on this.</p>\r\n<p class=\"MsoNormal\">In the meantime, and in practice, RERA has been accepting leases with terms up to 5 years as capable of being registered on the Ejari system. Therefore, prior to the Resolution a grey area began to emerge as to where leases with terms of more than 5 but less than 10 years were to be registered.  There was no clear guidance on this in the law and we believe that the Resolution has been issued in an attempt to eradicate this grey area.</p>\r\n<p class=\"MsoNormal\"><strong>What difference does it make where a lease is registered?</strong></p>\r\n<p class=\"MsoNormal\">First and foremost, one of the most important implications of whether a lease is registrable as a real property right on the Real Property Register or on the Ejari system is that the former is an ownership interest recognized as a right <em>in rem</em> and not just a contractual right.</p>\r\n<p class=\"MsoNormal\">As a registrable interest it means that it can be disposed of and a mortgage may be registered against it.  Law No. 14 of 2008 Concerning Mortgages in the Emirate of Dubai states in Article 5 that a mortgagor must be the owner of the mortgaged property and that a mortgage may be created over property that is capable of being disposed of. This concept of ownership is not further defined and therefore arguably a tenant with a lease registered at DLD would technically fall within this category, thereby allowing the tenant to grant a legal registrable mortgage against the title of the leasehold interest.</p>\r\n<p class=\"MsoNormal\">The second key difference relates to the rate of registration fees payable for registration of leases in the different registers. Understandably, the registration of a real property right would be more expensive than registration in the Ejari system.</p>\r\n<p class=\"MsoNormal\">The latest resolution setting out fees concerning the DLD is Executive Council Resolution No. 30 of 2013, which states that the fee for registration of a long term leasehold interest is 4% of the “total value of rent contract”, discussed further below. It is often the case that a long term  lease will be subject to a premium charged by the landlord at the outset followed by a lower annual rental sum during the remainder of the lease term. Alternatively, depending on what has been agreed between the parties, a long term lease may have no premium and a yearly escalating rent throughout the term instead. The question therefore arises as to how this 4% registration fee is calculated in practice.</p>\r\n<p class=\"MsoNormal\">As stated above the “total value of rent contract” needs to be determined in order for the fee to be calculated. The fee should be payable on the total value of rent payable throughout the term of the lease. If there is a premium payable at the commencement of the lease this would be included in the calculation of the fee.  This resolution goes on to state in Article 3 that, unless agreed otherwise, 50% of the fee is payable by the landlord and 50% by the tenant. This effectively mirrors the rule for a sale and purchase transaction <em>vis-à-vis</em> a seller and purchaser and is subject to the same fine (double the fee due) if evaded.</p>\r\n<p class=\"MsoNormal\">The fee payable for a lease registered on the Ejari system is currently a flat fee and not linked to the rental value of the lease.  As at the date of writing this article the fee is AED 160 plus typing charges of AED 35, therefore a total of AED 195.</p>\r\n<p class=\"MsoNormal\"><strong>Conclusion</strong></p>\r\n<p class=\"MsoNormal\">We welcome the Resolution as providing clarity on the correct forum for the registration of leases according to the length of the term. This clarity will assist commercial tenants in knowing the full implications of entering into a lease with a term of over 10 years. In addition it provides clarity to lenders at the outset as to when they can seek to acquire a registered legal mortgage at the DLD when they provide financing to a tenant.</p>\r\n<p class=\"MsoNormal\">A grey area remains, however, where a lease of over 10 years is granted to a non UAE or GCC citizen or company, of land or property in an area which has not been designated by the Ruler as an area where foreigners can acquire freehold, usufruct or long leasehold interests. The law states that such an interest is not registrable on the Real Property Register and Article 26 of Law No. 7 states that any disposition granted which is not in accordance with the law is void. This is consistent with Article 1277 of the Civil Code of the UAE, which states that the “Ownership of real property or other rights <em>in rem</em> over real property may not be transferred between the two contracting parties so as to be valid against a third party save by registration in accordance with the special laws.” Such a lease is also incapable of being registered on Ejari as it is for a term exceeding 10 years.</p>\r\nThe question therefore arises as to the validity of such a lease. There is an argument that despite such a lease being incapable of registration, it may still be enforceable on the basis of it conferring contractual rights on the parties to it. This would depend upon the court’s interpretation of the relevant provisions of Law No. 7 and the Civil Code.  At the time of writing this article we are not aware of any court judgment that addresses this issue.\r\n<p class=\"MsoNormal\"><strong> </strong></p>'),
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	(91095,4952,'content','June 2014\r\n\r\n<hr />\r\n\r\nWith the number of sports and major events taking place across the GCC on the increase (not least the FIFA 2022 World Cup, the annual Formula 1 in Abu Dhabi and Bahrain, and many international rock bands attracting large crowds) the international spotlight turns on whether health and safety management at major events has been afforded a sufficiently high priority, and whether applicable standards are being maintained.\r\n\r\n<strong>Regional laws</strong>\r\n\r\nThe GCC countries have implemented laws to ensure the health and safety of workers and the public, which provide a certain level of protection. The standards vary across the region. While a detailed examination of the differences is beyond the scope of this article, we use the developments in the Emirate of Abu Dhabi as an indicator of the pattern of improvements taking place across the region. In the Emirate of Abu Dhabi, Executive Council Resolution No. 42 of 2009 (concerning the system of environmental, health and safety management for the Emirate) establishes mandatory laws through partnership between all government and private sectors, to ensure that activities within the Abu Dhabi are undertaken in a responsible, safe and sustainable manner.\r\n\r\n<strong>Health and Safety: not just about slips, trips and falls</strong>\r\n\r\nHealth and safety management of sports and major events goes beyond the obvious protection of crowds against slips, trips and falls. There are a multitude of risks which require consideration, risk management analysis, control and mitigation measures, including fire safety, security, crowd control, public hygiene, food safety, and controls against prohibited items or hazardous substances entering the stadium.\r\n\r\nThe control of fire risks is crucial to the safe management of sports and major events.  New buildings and stadiums in the region are built to international standards, such as the International Building Code (edition 2009) and International Fire Code (edition 2009). Older buildings are subject to the requirement to bring fire safety equipment up to date. In Abu Dhabi, additional instruments requiring compliance are in force, including a Code of Practice relating to Fire Prevention, Planning and Control (AD EHS RI Code of Practice 7.0 Version 2), and the UAE Fire Code.  Depending upon the date of construction of the building, the owner or lessee must either comply with the international requirements, or local requirements to retro-fit updated fire-fighting equipment.\r\n\r\nFire safety codes typically cover general issues of fire safety, such as the requirement to implement a Fire Safety Management Plan to plan, organise, control, monitor and review the risks. There are also further requirements which relate to ensuring that there are adequate emergency escape routes and maintenance requirements.  Buildings in Abu Dhabi are inspected annually by the Civil Defence Authority, who must be satisfied that the aforementioned laws, codes of practice and international codes are met.  Similar arrangements are in place across the region.\r\n\r\n<strong>International Standards</strong>\r\n\r\nBest practice entails drawing from existing international standards in developing a risk management strategy alongside the business continuity strategy for the successful management of a major event. Examples of relevant international standards include ISO 14001 and OHSAS 18001, Quality Standard ISO 9001, Auditing Standard ISO 1901, Risk Management Standard ISO 31000, and the new ISO 20121 standard for sustainable events management.\r\n\r\nISO 20121 was developed by participating ‘standards bodies’ from countries across the globe to agree a framework to implement a system to manage an event’s sustainable development issues and requires a systematic approach to addressing sustainable development issues in relation to event planning.\r\n\r\nCompliance with ISO and similar standards is not always a strict legal requirement, however many governments in the region stipulate adherence to such standards at the contract procurement stage so that to get pre-approval, contractors must demonstrate that they achieve these or equivalent safety and quality standards. The benefits of ISO certification are wide-ranging and assist companies in demonstrating good governance, processes and systems, which are central to the management of corporate risk and liability. At the recent GCC Regulators Conference in Dubai, the regulators were in broad agreement that governance and quality systems which met international standards would be considered in mitigation against non-compliance with local regulations and result in reduced penalties for breach of applicable laws.\r\n\r\n<strong>Food Safety </strong>\r\n\r\nSafety and hygiene are critical risk issues where food and beverages are available for consumption at sports and major events. Food safety is regulated at regional level by the GCC Standards Organisation (GSO), with in-country regulators responsible for local compliance, regulation and enforcement. In the UAE, the Emirates Authority for Standardization and Metrology (ESMA) is the responsible body, in cooperation with other members of the GSO, for developing and adopting all standards, and to date has approved more than 700 food standards.\r\n\r\nEstablishments selling food at major events require a licence, and are required to meet stringent food safety standards.  In the UAE, food safety law is currently organised on an Emirate level (in consultation with ESMA and GSO) and have their own enforcement regime.  However, in a new UAE federal food law, expected to be published imminently, tougher penalties will be introduced for those found to be endangering food safety across the UAE. The bill suggests a jail term of up to three years and a fine of up to AED 2 million for food safety offenders. The legislation also outlines the key requirements for the establishment of a system of effective regulatory and oversight services to ensure the protection of public health and provides for a prison term of not less than a month and a fine of up to AED 500,000 for those who deal in food or products that contain pork or alcohol, or any of their by-products, without permission.\r\n\r\n<strong>The importance of ‘competency’ of individuals undertaking health and safety functions</strong>\r\n\r\nEvent management companies should ensure that those assigned specific health and safety duties and responsibilities within their job description have the requisite competency to carry out their functions.  Some GCC countries have created registration or licensing schemes whereby the qualifications and level of competencies of companies and individuals working in occupational health and safety roles are assessed and ‘approved’.  In Abu Dhabi, the “Qudorat” scheme is a national program for the qualification and competency development of establishments and individuals working in the field of safety, occupational health and work environment. The aim of such schemes is to improve quality in the performance of individuals and companies so that they can achieve better health and safety outcomes.\r\n\r\n<strong>Enforcement </strong>\r\n\r\nThe regulatory framework of GCC countries typically establishes a series of regulators responsible for certain industry sectors, with powers to implement laws and regulations, and to take enforcement action in the event of non-compliance. In Abu Dhabi, the Environment Health and Safety Center regulates matters concerning safety, and has delegated authority to Sector Regulatory Authorities to govern specific sectors. The construction and management of stadiums (for sports or other events) falls under the joint management of the Department of Municipal Affairs and the Abu Dhabi Tourism and Culture Authority.  The relevant regulator will carry out inspections of the health and safety policies and procedures, and depending on the nature of the event, may take an active role in closely supervising its management.\r\n\r\n<strong>Penalties</strong>\r\n\r\nThe penalties for failure to comply with health and safety laws are typically wide ranging and will depend on the facts of the matter, the seriousness of the breach, and nature of the damage or outcome. A major incident (or fire) at a large stadium which causes (or has the potential to cause) serious injury or fatalities could lead to both criminal and civil sanctions, commercial implications, and suspension or revocation of a trade licence.\r\n\r\nCriminal sanctions can be very severe. Pending an investigation by the regulators or police, a director or senior manager may be detained while enquiries are made, or have their passport taken to prevent them from leaving the jurisdiction of the court. The courts have power to impose lengthy prison sentences. In the case of injury or fatality, there is an entitlement to compensatory damages, and the payment of blood money.\r\n\r\n<strong>Conclusion</strong>\r\n\r\nCompanies with responsibility for managing major events would be well advised to understand their obligations in order to meet regulatory expectations. We recommend having in place a robust corporate governance framework, supported with a business continuity policy, risk management strategy, and policies and procedures to address all safety and hygiene related risks. A crisis management policy is essential, as is a pre-determined strategy for dealing with the regulators.\r\n\r\nThe Regulatory Practice Group at Al Tamimi &amp; Company leads the region on regulatory issues and is ranked by Chambers and Partners for our experience in advising on all aspects of health and safety management. The Regulatory Practice and Sports Law group routinely work together in connection with major events.'),
