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	(100401,5460,'content','September 2016\r\n\r\n<hr />\r\n<p class=\"p1\">The internet data centre and cloud computing industry in the Middle East has huge potential. Media reports identify Aliyun, AWS, Cisco, EMC, Equinix, Hewlett Packard, Huawei and Virtustream as just some of the international players interested in the Middle East market. In this context, it comes as no surprise that Saudi Arabia’s Communications and Information Technology Commission (“CITC”) has recently invited public submissions in response to its proposed regulation of cloud computing.</p>\r\n<p class=\"p1\"> CITC is the authority charged with the regulation of the information and communications technology sector in Saudi Arabia. CITC seeks to create a favourable environment for cloud computing services, and it is currently reviewing the existing regulatory framework to determine whether cloud-specific regulations are appropriate. In late July 2016, CITC invited feedback from interested parties on its proposed approach to the regulation of cloud computing in Saudi Arabia.</p>\r\n<p class=\"p1\">‘Cloud Services’ can be understood as ICT services involving the processing of user content via a scalable pool of physical or virtual resources (such as servers, operating systems and applications). Cloud services are cost effective, because the provision of infrastructure and other resources can be centralised via specialist cloud service providers, allowing multiple users to benefit without having to duplicate the resources used to deliver the services. Internet data centres can be understood as the physical premises from which cloud services are made available to users via computer networks.</p>\r\n<p class=\"p1\">Referring to Saudi Arabia’s recently issued Vision 2030 objectives, CITC notes that the development of a strong cloud services industry in Saudi Arabia is a key part of creating a developed digital infrastructure, which is integral to today’s advanced industrial activities.</p>\r\n<p class=\"p1\">In considering whether the current regulatory framework adequately provides for the development of a modern internet data centre and cloud computing industry, CITC has identified that there is currently no single cloud-specific law or regulation in Saudi Arabia. CITC identified a variety of laws and regulations with potential to impact on cloud computing in the Kingdom, including the Telecommunications Act (which vests regulatory power for the ICT sector in CITC, and which addresses issues such as lawful and unlawful interception), the Telecommunications Bylaw (which addresses licensing requirements for communications service providers and aspects of network security), the Electronic Transactions Law and the Anti-Cyber Crimes Law. Significantly, where government sector clients are likely to be big users of cloud services, CITC has also referenced Council of Ministers decision No. 81 of 1430H (2009), which requires government entities to host their websites on government networks or through providers with local hosting infrastructure and who are licensed by CITC.</p>\r\n<p class=\"p1\">Having reviewed the current regulatory landscape, and having undertaken a bench-marking exercise against other jurisdictions, CITC has concluded that it would be beneficial for users of cloud services, and for the development of the cloud industry in Saudi Arabia, to develop a cloud-specific regulatory regime. The objectives of this approach, as expressed in CITC’s public consultation document, include:</p>\r\n\r\n<ul>\r\n 	<li>Providing clarity and regulatory certainty on the rights and obligations of the providers and users of cloud computing services.</li>\r\n 	<li>Establishing a clear regulatory basis to manage potential security risks connected with the use of cloud services.</li>\r\n 	<li>Encouraging improved quality of cloud services.</li>\r\n 	<li>Encouraging investment in a local cloud industry.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p5\">Importantly, CITC has noted that the nature of cloud computing is such that services and business models are likely to be continually changing. As a result, it is important for a regulatory framework to be flexible - and in some way ‘future proof’. CITC has proposed a general regulatory framework that defines general rules and regulations applicable to cloud computing in Saudi Arabia, and an approach to licensing that sets out the different cases in which cloud service providers need to obtain a licence, whilst contemplating more detailed guidelines, codes of conduct and model clauses that CITC may issue to enhance the regulatory framework.</p>\r\n<p class=\"p1\">CITC is proposing a regulatory framework that applies to cloud computing services provided within Saudi Arabia, regardless of the location of the servers or the internet data centres from which the cloud services are provided or the jurisdiction from which the cloud service provider operates. Aspects of the proposed regulations will apply to cloud computing services provided from infrastructure located in Saudi Arabia, even if the user is based outside Saudi Arabia.</p>\r\n<p class=\"p1\">As for the licensing regime itself, CITC appreciates that not all cloud service offerings are the same. It is therefore proposing a multi-tiered approach to reflect different types of market players in the cloud space. Variables that it has taken into account when determining the licence options include: the extent of a cloud service provider’s commercial presence in Saudi Arabia, the extent to which the cloud service provider has direct dealings with consumers, the extent of information security requirements that might apply to the subject data, and whether or not the cloud service provider has control over critical infrastructure in Saudi Arabia.</p>\r\n<p class=\"p1\">The proposed regulations also touch on information security and data protection obligations, including in respect of requirements to classify data for information security purposes, obligations to permit users’ the right to access, verify and/or delete their user data, and obligations to report instances of security breaches and data breaches.</p>\r\n<p class=\"p1\">The proposed regulations include proposals regarding the liabilities and obligations of the parties if unlawful content (including content that infringes intellectual property rights) is processed via a licensed cloud service. Specifically, CITC’s view is that cloud service providers should not be responsible for actively monitoring user content in order to detect and remove or restrict illegal content - but they should be obliged to remove such content or render it inaccessible in Saudi Arabia if directed to do so by the CITC (or some other relevant authority), and otherwise to notify the relevant authorities if they become aware of illegal content.</p>\r\n<p class=\"p1\">Consumer protection is also considered, and the proposed regulations address issues such as minimum contractual terms, whether it is appropriate for certain types of liabilities to be limited or excluded, and the extent and nature of any customer support that cloud services providers should be required to provide.</p>\r\n<p class=\"p1\">This note is a very high level summary of some of the key issues raised in the public consultation document. The deadline for feedback on the twenty questions that CITC has specified in the public consultation document is 18 September 2016.</p>\r\n<p class=\"p1\">The full document is available here, on the CITC website: <a href=\"http://www.citc.gov.sa/en/mediacenter/pressreleases/Pages/20160724001.aspx\" target=\"_blank\" rel=\"noopener\">http://www.citc.gov.sa/en/mediacenter/pressreleases/Pages/20160724001.aspx</a></p>\r\n<p class=\"p6\">Al-Tamimi &amp; Company’s <em>Technology, Media &amp; Telecommunications</em> team regularly advises on issues relating to cloud computing, internet data centres, lawful interception, and data protection related issues. For further information please contact Nick O’Connell (n.oconnell@tamimi.com) or Andrew Fawcett (a.fawcett@tamimi.com).</p>'),
	(159512,5460,'core_values',''),
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	(100384,5459,'content','September 2016\r\n\r\n<hr />\r\n<p class=\"p1\">A VPN is a private network that extends across a public network or the internet, enabling users to send and receive data across shared or public networks as if their devices were directly connected. Anecdotally, VPNs appear to be widely used in the UAE, both by consumers wanting to access content unavailable locally (eg. e-commerce or media websites focusing on specific foreign markets), and commercial enterprises wanting to directly link international offices for improved security and cost management.</p>\r\n<p class=\"p1\"><span class=\"s1\"> Many residents of the UAE, and businesses operating in the UAE, were concerned by recent changes to Federal Law No. 5 of 2012 on Combatting Information Technology Crimes (known locally as the “Cyber Crimes Law”). Specifically, Federal Law No. 12 of 2016 amending the Cyber Crimes Law was reported as criminalising the use of VPNs in the UAE. This would have a significant impact on businesses relying on VPNs. However, it appears now that the media largely overstated the effect of these changes. </span></p>\r\n<p class=\"p1\">Federal Law No. 12 of 2016 amending the Cyber Crimes Law was issued last month and has only recently been gazetted and come in to effect.</p>\r\n<p class=\"p1\">Article 1 of Federal Law No. 12 of 2016 amending the Cyber Crimes Law provides for replacing the text of Article 9 of the Cyber Crimes Law as follows:</p>\r\n<p class=\"p2\"><em>A punishment of temporary imprisonment and a fine of not less than AED 500,000 and not more than AED 2,000,000, or either of these two penalties, shall be imposed on whoever uses a fraudulent computer network protocol address by using a false address or a third-party address or by any other means for the purpose of committing a crime or preventing its discovery.</em></p>\r\n<p class=\"p1\">The corresponding provision in the Cyber Crimes Law as issued in 2012 read as follows:</p>\r\n<p class=\"p2\"><em>Any person that circumvents the protocol address of the internet by using a delusive address or an address belonging to others or by any other means for the purpose of committing a crime or preventing its discovery shall be punished by imprisonment and a fine not less than (AED 150.000) and not exceeding (AED 500.000) or by any of these punishments.</em></p>\r\n<p class=\"p1\">The primary change is actually just an increase of the applicable fines (from the previous AED150,000 - AED500,000 range to the new AED500,000 - AED2,000,000 range). The change does not make using a VPN on its own illegal. To be illegal, there is still the requirement of using a fraudulent IP address for the purpose of committing a crime or preventing its discovery (which was already the case under Article 9 of the original Cyber Crimes Law).</p>\r\n<p class=\"p1\"><span class=\"s1\"> Accordingly, if the VPN is being used for legitimate purposes, the use of the VPN itself would not constitute a crime. </span></p>\r\n<p class=\"p1\">Only recently the Telecommunications Regulatory Authority issued a media release clarifying that there is no regulation that prevents VPN used by companies, institutions and banks to gain access to internal networks via the internet. But using it for the purpose of manipulating internet protocols with the intent to commit any fraud or crime is punishable by law.</p>\r\n<p class=\"p1\"><span class=\"s1\"> The over-arching query that remains relates to exactly what is likely to be considered a crime for the purposes of this provision. In practical terms, a broad spectrum of offences could be captured by the prohibition on the use of a VPN to mask the commission of an offence. It is our expectation that the authorities are more interested in the likes of preventing access to nefarious content likely to damage the community (eg. recruitment videos for terrorist groups) than preventing otherwise law-abiding citizens from accessing foreign TV series that are not yet available in the UAE (eg. the latest series of Game of Thrones).</span></p>\r\n<p class=\"p4\">Al Tamimi &amp; Company’s <em>Technology, Media &amp; Telecommunications</em> team regularly advises on issues relating to local telecommunications regulations and media content related issues. For further information, please contact Andrew Fawcett (a.fawcett@tamimi.com) or Sana Saleem (s.saleem@tamimi.com).</p>'),
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	(226198,8182,'content','<p dir=\"LTR\" align=\"LEFT\"><img class=\" wp-image-8236 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/09/August-Edition-DPS_Page_04_Image_0003.jpg\" alt=\"\" width=\"440\" height=\"376\" />In the UAE, commercial agents are granted numerous statutory rights under the Commercial Agency Law (Federal Law No. 18 of 1981, as amended).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">These rights are designed to protect an agent who may devote considerable effort and costs to build a profitable market for products or services.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In many cases in the UAE, a terminated agent may use the Commercial Agency Law to prevent a foreign principal from registering a replacement agent unless the original agent is paid what is due under the original commercial agency agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In two recent cases, Federal Supreme Court Case 811 of 2017 and Federal Supreme Court Case 814 of 2017 both dated 27 March 2018, the agent’s performance was poor and it was clear that he was in breach of a commercial agency agreement. As a result, he was terminated and the commercial agency struck off the Ministry of Economy’s register. The Federal Supreme Court found that the agent was unable to prove that the termination was unjustified and was not entitled to receive compensation from the principal. The agent was also unable to preclude the principals from registering a replacement agent.</p>\r\n\r\n<h3 dir=\"LTR\" align=\"LEFT\">Background</h3>\r\n<p dir=\"LTR\" align=\"LEFT\">In the early 1980s, two principals (the \"Principals\") appointed an agent (the \"Original Agent\"), to represent them in the UAE. The Original Agent agreed to distribute, sell, and provide services on behalf of the two Principals in relation to three brands, two for Principal 1 and the third for Principal 2.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In 2004, problems arose when the Original Agent failed to pay for shipments within the timeframe agreed (30-90 days). As a result, the Principals obtained guarantees from the Original Agent and sent regular reminders to pay on time. The Principals continued to send shipments (because of the guarantees) and warned the Original Agent that he would be in breach of their commercial agency agreement if he continued to default. If he continued to be in default, the Principals would terminate the agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Original Agent defaulted under the agreement and a letter of termination was sent to him. The letter included a notice period for the Original Agent to improve and comply with the payment terms agreed upon and to settle all outstanding payments, failing which the agreement would be terminated. The parties attempted but failed to resolve their issues amicably and the Original Agent continued to breach the payment terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the Commercial Agency Law, the Minister of Economy is permitted to cancel a commercial agency arrangement if material reasons exist to terminate. The Minister at the time cancelled the commercial agency arrangement based on the letter of termination. Three letters were sent (one for each brand) and the Principals encashed the guarantees in lieu of the outstanding invoices.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Original Agent filed three administrative cases (two against Principal 1 and one against Principal 2) seeking a declaration that the Minister’s decision was null and void and asking for reinstatement as the agent in the Commercial Agency Register maintained by the Ministry of Economy. The agent argued that, according to Article 14 of the UAE Commercial Agency Law, a meeting should have been called first within 60 days of the letter of termination to address the Principals’ reasons for its request to deregister and to give the Original Agent an opportunity to respond to those reasons. However, the Ministry failed to call such meeting within the 60 day timeframe and the Original Agent argued that the requirements under the law were therefore not met.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of First Instance rejected the Original Agent’s claim and held that the Ministry’s duty was satisfied because of the communications exchanged between the parties. The Original Agent appealed the decision to the Court of Appeal, where he argued that the Court of First Instance was incorrect. He argued that calling a meeting was merely a formality but it existed to protect the rights of the agent. The Principals appealed to the Supreme Court. The Supreme Court upheld the Court of Appeal decision.</p>\r\n\r\n<h3 dir=\"LTR\" align=\"LEFT\">New agents</h3>\r\n<p dir=\"LTR\" align=\"LEFT\">After the Ministry struck the Original Agent from the Commercial Agency Register, the Principals appointed new agents (the \"New Agents\"). Principal 1 appointed two agents for the emirate of Sharjah and the Northern Emirates and a second for the emirate of Abu Dhabi. Principal 2 appointed an agent for the whole of the UAE. Both New Agents were registered in the Commercial Agency Register.</p>\r\n\r\n<h3 dir=\"LTR\" align=\"LEFT\">Court of First Instance judgment on the Original Agent’s request to cancel the registration of the New Agents</h3>\r\n<p dir=\"LTR\" align=\"LEFT\">The Original Agent filed an action to declare the Minister’s decision null and void and also to cancel the registrations of the New Agents. His request was rejected by the Court of First Instance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">One of the remedies sought by the Original Agent in addition to the request to nullify the Ministry’s decision was the request to be reinstated in the Commercial Agency Register. However, the Court refused this on the basis that the New Agents had already been registered. The Court of First Instance did not issue a decision to cancel the new agency and the Original Agent then filed an appeal.</p>\r\n\r\n<h3 dir=\"LTR\" align=\"LEFT\">Court of Appeal</h3>\r\n<p dir=\"LTR\" align=\"LEFT\">The Original Agent appealed to the Court of Appeal. The Court of Appeal ruled in favour of the Original Agent and declared the Minister’s decision null and void.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the Court of Appeal refused to issue a decision on the deregistration of the New Agents on the basis that this issue was not addressed by the Court of First Instance at the time of issuing its judgment. The Court further ruled that, as this issue was overlooked by the Court of First Instance, the Original Agent could not appeal the Court of First Instance’s decision. He must therefore go back to the Court of First Instance to seek a remedy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Original Agent appealed to the Supreme Court, who requested that the matter be referred to three experts (one for each brand). All three experts said that the Original Agent was in breach of his obligations and not entitled to any compensation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Original Agent won a judgment in its favour, the New Agents were still registered in the Commercial Agency Register. The Original Agent asked the Execution Court to enforce the Court of Appeal judgment and requested to be reinstated as agent, reiterating that the Minister’s decision was declared invalid and therefore the effect of its decision should also be declared null and void. This request was rejected.</p>\r\n\r\n<h3 dir=\"LTR\" align=\"LEFT\">Compensation claims by the Original Agent: Part 1</h3>\r\n<p dir=\"LTR\" align=\"LEFT\">The Original Agent filed three claims (one for each brand) against the Principals. The total claim amount was approximately AED 600 million (representing loss of earnings and expenses).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of First Instance referred the cases to a panel of experts. The new panel of experts (like the previous panel) concluded that the Original Agent was in breach of the agreements and caused substantial loss to the Principals. The three experts reported that the breaches had been brought to the attention of the Original Agent to no avail. Therefore, they were not entitled to compensation. The Court of First Instance dismissed the three claims and the Original Agent appealed to the Court of Appeal. The Court of Appeal upheld the Court of First Instance judgment. The Original Agent again went to the Supreme Court and the Supreme Court rejected his appeal.</p>\r\n\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8237\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/09/August-Edition-DPS_Page_05_Image_0001.jpg\" alt=\"\" width=\"304\" height=\"846\" />Compensation claims by the Original Agent: Part 2</h3>\r\n<p dir=\"LTR\" align=\"LEFT\">In 2014, the Original Agent filed three new lawsuits. In the new cases, he claimed approximately a total of AED 5 billion. The Original Agent also included the Ministry, the New Agents and the Principals as defendants to the action.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Principals raised many defences including res judicata (as this new case was similar to the previous case already decided) and limitation on the grounds the claim was time-barred because the termination was in 2005 and the new claim was filed in 2014. In addition, the Principals also argued that the case should be rejected because of the Original Agent’s breach of his agreement and the fact that there is no standing to sue (there is no relationship between the New Agents and the Original Agent).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of First Instance accepted the New Agents’ defences and rejected the case against the Ministry. The Original Agent appealed to the Court of Appeal. The Court of Appeal rejected the Original Agent’s appeal.</p>\r\n\r\n<h3 dir=\"LTR\" align=\"LEFT\">Supreme Court of Cassation (final time)</h3>\r\n<p dir=\"LTR\" align=\"LEFT\">The Original Agent appealed to the Supreme Court for the second time. The Supreme Court dismissed the appeal and upheld the Court of Appeal judgment based on the grounds set out in the Court of Appeal decision.</p>\r\n\r\n<h3 dir=\"LTR\" align=\"LEFT\">Summary of case</h3>\r\n<p dir=\"LTR\" align=\"LEFT\">In summary, the Court of Appeal in all matters filed by the Original Agent referred the matter to a panel of experts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">All three panels confirmed that the Original Agent had committed many breaches such as non-payment of invoices, poor management of the business, lack of customer service and therefore the agent was not entitled to any compensation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Accordingly, the Federal Supreme Court issued its judgment.</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">It rejected the appeal of the Original Agent and upheld the Court of First Instance judgment in its entirety.</li>\r\n 	<li dir=\"LTR\">It held that the cases should have been filed as a tort claim as it was a request for compensation for a wrongful act because of the alleged wrongful termination.</li>\r\n 	<li dir=\"LTR\">The Original Agent did not substantiate his claims and provide proof of damages allegedly suffered as a result of the agency being struck off the Commercial Agency Register.</li>\r\n 	<li dir=\"LTR\">The New Agents’ involvement in the dispute had no legal basis. The New Agents were not a party to the dispute nor was there any evidence of any damage caused by the New Agents’ appointment.</li>\r\n 	<li dir=\"LTR\">As confirmed by the panel of experts, the Original Agent had breached the terms of the agency agreement by failing to make timely payments to the Principals and did not report declining sales until the business incurred a major loss.</li>\r\n 	<li dir=\"LTR\">The Court of First Instance was correct in dismissing the action against the Principals.</li>\r\n</ol>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Comments</h3>\r\n<p dir=\"LTR\" align=\"LEFT\">The outcome of the case was excellent for the Principals.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision confirms that notwithstanding the protections afforded to agents, agents who choose not to perform as expected will not benefit from the protections provided under the Commercial Agency Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This case also demonstrates the importance of substantiating any claims against a non-performing agent to justify termination.</p>'),
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	(100349,5456,'_yoast_wpseo_metadesc','Al Tamimi & Company sets out a high-level overview of the key registration requirements for short-term lease agreements in the Emirate of Dubai, Abu Dhabi and Sharjah, as well as repercussions of non-registration.'),
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	(100350,5457,'content','<p class=\"p1\">2016 kicked off with three new Ministerial Decrees which formed part of the UAE Labour Law reform (see our January 2016 Law Update). Shortly afterwards, the previously named Ministry of Labour was given a make-over and renamed the Ministry of Emiratisation and Human Resources (the ‘Ministry’).</p>\r\n<p class=\"p1\"><span class=\"s1\"> In the past few months alone, the Ministry has issued six new Decrees. While these Decrees have been issued, until such time as they are published in the UAE official gazette (issued monthly), there could still be changes to them and/or they may not subsequently come into force. At the time this Article went to print, the August gazette had not been issued.   </span></p>\r\n<p class=\"p1\">Key themes amongst the recent legislation seem to be a drive to increase the employment of UAE Nationals in the private sector in line with Emiratisation and greater protection for low income workers. Given the recent activity, we thought it timely to set out a summary of these recent developments.</p>\r\n<p class=\"p2\"></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Housing for Low Income Workers </strong></span></p>\r\n<p class=\"p1\">Ministerial Resolution Concerning the Commitment of Establishments to Provide Accommodation to their Workers (Resolution No. 591 of 2016) requires employers (with 50 or more employees) to provide accommodation for employees whose total monthly earnings are less than AED2,000. Employers who do have employees who earn under this threshold should look to provide accommodation or alternatively to increase the salaries of those employees.</p>\r\n<p class=\"p1\"><span class=\"s1\"> <em>Status</em> – The Resolution is available on the Ministry’s website and was formally published in the June official gazette. The Resolution itself confirms it will come into force on 1 September 2016 but that the requirement to provide the accommodation will come into force six months after the Resolution was issued i.e. 31 December 2016. </span></p>\r\n<p class=\"p2\"></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>UAE Data Entry Clerks</strong></span></p>\r\n<p class=\"p1\">Ministerial Resolution Concerning Data Entry Clerks (Resolution No. 710 of 2016) imposes a requirement for any companies with 1,000 or more employees to register with Tas’heel (the Ministry’s online service) details of at least two UAE Nationals in data entry related positions.</p>\r\n<p class=\"p1\">Essentially, the Resolution introduces a requirement for employers to create and have in place two dedicated data entry roles which must be filled by UAE Nationals.</p>\r\n<p class=\"p1\"><em>Status</em> – the Resolution was formally published in the July official gazette and the requirement to have UAE national data entry clearks will come into force from 1 January 2017.</p>\r\n<p class=\"p3\"></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>UAE National Health and Safety Officers in the Construction Industry </strong></span></p>\r\n<p class=\"p1\">Ministerial Resolution Concerning Occupational Health and Safety Officers at the Constructions and Industrial Sector (Resolution No. 711 of 2016) requires construction companies with 500 or more employees to appoint a UAE national as a Health and Safety Officer.</p>\r\n<p class=\"p1\"><span class=\"s1\"> <em>Status</em> – the Resolution has been published on the Ministry’s website but has not yet been published in the official gazette. On the assumption that it is gazetted this year, the requirement will come into effect on 1 January 2017. </span></p>\r\n<p class=\"p2\"></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Work Permits for Students </strong></span></p>\r\n<p class=\"p1\">Ministerial Resolution Concerning the Employment and Training of Students (Resolution No. 713 of 2016) introduces a new short-term work permit for students.</p>\r\n<p class=\"p1\"><span class=\"s1\"> The new work permit will be issued for a duration of three months and will enable students between the ages of 12 -18 years, who are residents in the UAE and under the sponsorship of a guardian/parent to work for no more than six hours a day. Students are however banned from working in certain sectors such as mining, petroleum refineries, bars etc.</span></p>\r\n<p class=\"p1\">The introduction of this short-term work permit is a welcome one as employers who have wanted to offer internships or similar work placement opportunities to the younger generation of workers found themselves restricted by the lack of a work permit for such purpose.</p>\r\n<p class=\"p1\"><em>Status</em> - the Resolution has been published on the Ministry’s website but has not yet been formally gazetted. Once gazetted, employers will be able to start applying for this type of work permit.</p>\r\n<p class=\"p2\"></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Penalties for Late Payment </strong></span></p>\r\n<p class=\"p1\">Ministerial Decree Concerning the Protection of Wages (Decree No. 739 of 2016) stipulates that as of 1 October 2016, all companies employing 100 or more staff must pay their employees within 10 days of the payment due date registered in the government monitored Wage Protection System (“WPS”). In practice, however, a company will not face any repercussions until the 16th day of non-payment and penalties will vary depending on how many days the salary has been overdue.</p>\r\n<p class=\"p1\">Where salary is 16 days overdue, the Ministry will stop issuing new work permits to the company on the 16th day and the company will therefore be unable to hire new employees. If the company pays the salary within 29 days of the due date, the ban on new work permits will be lifted. However, if the salary remains overdue on day 30, the Ministry will send this case to the judicial authority, which may decide to:</p>\r\n\r\n<ul>\r\n 	<li>downgrade the company category to a level which requires higher bank guarantees; or</li>\r\n 	<li>temporarily stop the employer from registering any new companies.</li>\r\n</ul>\r\n<p class=\"p6\">The company category (as determined by the Ministry) determines the amount of bank guarantee the company needs to provide in respect of each new employee it hires. Lower category companies pay higher bank guarantees.</p>\r\n<p class=\"p1\">Furthermore, during any period where salary remains unpaid, the company will not be able to hire any new employees.</p>\r\n<p class=\"p1\">In the event salary remains unpaid for 60 days, the Ministry will issue fines of AED 5,000 per unpaid employee up to a maximum of AED 50,000. Where the salaries have been outstanding for over 60 days, even once the employer pays the salary the ban on new work permits will remain in place for a further 60 days from the date the salaries are then paid.</p>\r\n<p class=\"p1\">Although the Decree predominately applies to employers with 100 or more employees, if a smaller employer repeatedly fails to pay salary in a timely manner (more than once in a year) the above sanctions can also be applied to employers with under 100 employees.</p>\r\n<p class=\"p1\"><em>Status</em> – the Decree has been published and is available on the Ministry’s website. However, it has not yet been formally gazetted. It will come into force on publication in the official gazette.</p>\r\n<p class=\"p2\"></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>In the News – Maternity Rights</strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">It has been reported in the press that a new national committee has been set up to review maternity rights in the UAE. The review is intended to implement the Government’s ‘Gender Balance Index’ which aims to ensure men and women in the UAE are on a level playing field. </span></p>\r\n<p class=\"p1\">At present, it is unknown whether the law will extend the amount of statutory maternity leave (currently just 45 calendar days) or if it will look to offer mothers greater protection or more rights in relation to their maternity leave and subsequent return in the workplace. However, rest assured we will provide readers with updates as and when they are available.</p>'),
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	(100339,5456,'pageSummary','In the UAE, each Emirate has its own set of tenancy laws which govern the landlord and tenant relationship for use of the leased premises for a fixed term in return for payment of rent. With considerable socio-economic growth over the years in the rental market in UAE, each Emirate has improved upon its tenancy laws to better regulate the relationship between parties. '),
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	(100333,5456,'content','<p class=\"p1\">This article sets out a high level overview of the key registration requirements for short term lease agreements in the Emirate of Dubai, Abu Dhabi and Sharjah, as well as repercussions of non registration.</p>\r\n<p class=\"p1\">Next month, we shall focus on the short term lease requirements in the Emirates of Ras Al Khaimah, Umm Al Quwain, Ajman and Fujairah.</p>\r\n<p class=\"p1\">It is mandatory to register a short-term lease in Dubai, Abu Dhabi and Sharjah. There are consequences for not registering a short-term lease which differ from an Emirate to another. Our real estate lawyers based in Dubai, Abu Dhabi and Sharjah offices offer specialised local advice and drafting services on tenancy matters.</p>\r\n\r\n<table class=\"t1\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p1\"><span class=\"s1\"><strong>No.</strong></span></p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p1\"><span class=\"s1\"><strong>Description</strong></span></p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p1\"><span class=\"s1\"><strong>Dubai</strong></span></p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p1\"><span class=\"s1\"><strong>Abu Dhabi</strong></span></p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p1\"><span class=\"s1\"><strong>Sharjah</strong></span></p>\r\n</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">1.</p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">Applicable Tenancy Laws</p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p3\">Dubai Law governing the landlord and tenant relationship in the Emirate of Dubai (Law No. 26 of 2007 as amended by Law No. 33 of 2008);</p>\r\n<p class=\"p3\">Amiri Decree No. 43 of 2013 determining the increase in the real estate rentals in Dubai.</p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p4\"></p>\r\n<p class=\"p2\">Abu Dhabi Law concerning the lease of spaces and the regulation of the tenancy relationship between landlords and tenants in the Emirate of Abu Dhabi (Law No. 20 of 2006 amended by Law No. 6 of 2009 and Law No. 4 of 2010);</p>\r\n<p class=\"p2\">The Chairman of the Executive Council Resolutions Nos. 1 of 2008, No. 33 of 2009, No. 4 of 2011, No. 32 of 2012, No. 13 of 2016 and No. 14 of 2016;</p>\r\n<p class=\"p2\">Executive Council Resolutions Nos. 16 of 2008, No. 56 of 2010, and No. 25 of 2011.</p>\r\n<p class=\"p5\"><span class=\"s2\"><strong> </strong></span></p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">Sharjah Law regarding the Landlord and Tenant Relationship in Sharjah (Law No. 2 of 2007);</p>\r\n<p class=\"p2\">Executive Council Resolution</p>\r\n<p class=\"p2\">No. 6 of 2013,</p>\r\n<p class=\"p2\">No. 2 of 2010,</p>\r\n<p class=\"p2\">No. 26 of 2007,</p>\r\n<p class=\"p2\">No. 15 of 2007.</p>\r\n</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p2\">2.</p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p2\">Dispute Resolution Authority</p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p2\">The Rental Dispute Settlement Centre</p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p4\"></p>\r\n<p class=\"p2\">Rent Disputes Settlement Committee</p>\r\n<p class=\"p2\">Appeal Committee</p>\r\n<p class=\"p5\"><span class=\"s2\"><strong> </strong></span></p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p2\">Rent Dispute Resolution Centre</p>\r\n</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">3.</p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">Leases that can be registered</p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">All short terms leases must be less than 10 years in tenure.</p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p4\"></p>\r\n<p class=\"p2\">All short term leases not exceeding 4 years in tenure.</p>\r\n<p class=\"p5\"><span class=\"s2\"><strong> </strong></span></p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">All short term lease agreements not exceeding 5 years in tenure.</p>\r\n</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p2\">4.</p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p2\">Registration Fees</p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p2\">AED 215 is payable as Ejari registration fee for all tenancy contracts (commercial and residential)</p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p4\"></p>\r\n<p class=\"p2\">AED 100 for the registration of a lease agreement with Tawtheeq.</p>\r\n<p class=\"p2\">Additional fees shall be payable for registering the data of property units on Tawtheeq, opening a Tawtheeq account, obtaining login details, etc.</p>\r\n<p class=\"p5\"><span class=\"s2\"><strong> </strong></span></p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p2\">4% of the annual rent for residential contracts;</p>\r\n<p class=\"p2\">5% of the annual rent for commercial contracts;</p>\r\n<p class=\"p2\">3% of the annual rent in case of investment contracts.</p>\r\n</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">5.</p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p4\"></p>\r\n<p class=\"p2\">Fees to obtain the standard contract documentation</p>\r\n<p class=\"p5\"><span class=\"s2\"><strong> </strong></span></p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">There is no standard contract documentation.</p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">AED 50</p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">AED 50</p>\r\n</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p2\">6.</p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p2\">Where to register?</p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p2\">RERA (Real Estate Regulation Agency)</p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p2\">Tawtheeq at Abu Dhabi Municipality</p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p4\"></p>\r\n<p class=\"p2\">Sharjah Municipality (for registration until 1 September 2016);</p>\r\n<p class=\"p2\">All registrations from 1 September 2016 will be completed online through an electronic system.</p>\r\n<p class=\"p5\"><span class=\"s2\"><strong> </strong></span></p>\r\n</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">7.</p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">Effects of non registration</p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">Whilst there are no penalties for non registration, the tenant is likely to face practical problems for example when renewing trade licenses, visa sponsorships and utility connections.</p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p2\">An unregistered lease may not be recognised by Abu Dhabi government authorities as it has not been registered with Tawtheeq. Article 4 paragraph 2 of Abu Dhabi the Chairman of the Executive Council Resolution No. 4 of 2011 provides that any transaction, which requires a lease contract will not be accepted and will be suspended if the lease contract is not registered with Tawtheeq.</p>\r\n</td>\r\n<td class=\"td2\" valign=\"middle\">\r\n<p class=\"p4\"></p>\r\n<p class=\"p2\">Article 3 of Law No. 2 of 2007 states that if the party obligated to register the lease fails to do so with the specified time frame, the other has the right to request an execution judge to force the party to fulfil its obligation. Secondly, non registration of lease contracts will attract a fine equal to three times the registration fee upon the party who was obligated to register it. Lastly, the Sharjah Municipality or government departments or institutes may not refer to an unregistered lease contract in any dispute or transaction or to provide a service.</p>\r\n<p class=\"p5\"><span class=\"s2\"><strong> </strong></span></p>\r\n</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n&nbsp;'),
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	(100322,5455,'content_description','There are several key steps which should be generally followed when purchasing a property in the Emirate of Dubai and with specific types of property there may also be additional verification steps which are needed. However, whatever type of property you are purchasing it is important to undertake the appropriate due diligence work before being contractually bound.\r\n\r\n'),
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	(100324,5455,'pageSummary','There are several key steps which should be generally followed when purchasing a property in the Emirate of Dubai and with specific types of property there may also be additional verification steps which are needed. However, whatever type of property you are purchasing it is important to undertake the appropriate due diligence work before being contractually bound.\r\n\r\n'),
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	(92543,5028,'content_description','Qatar is in the middle of rolling out its ambitious National Health Strategy.  '),
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	(92545,5028,'pageSummary','Qatar is in the middle of rolling out its ambitious National Health Strategy.'),
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	(92549,5028,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Angelique Watkins'),
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	(92555,5028,'lawUpdateArticleNoWriters_1_lawUpdateAuthorName','Thomas Bicknell'),
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	(92557,5028,'lawUpdateArticleNoWriters_1_lawUpdateAuthorEmail','t.bicknell@tamimi.com'),
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	(92567,5028,'_yoast_wpseo_metadesc','Qatar is in the middle of rolling out its ambitious National Health Strategy.'),
	(92568,5029,'content','November 2014\r\n\r\n<hr />\r\n\r\n<strong>The Use of Trust Receipts</strong>\r\n\r\nTrust receipts assist importers in refinancing their payment obligations upon the maturity of a letter of credit (“LC”). Following payment of the purchase price by the LC issuing bank (or after an agreed period), the importer is required to reimburse the issuing bank. Until such time as the importer reimburses the LC issuing bank, the documents of title relating to the goods imported (e.g. bills of lading) are retained by the bank and this will prevent the importer from on-selling the goods. Law No 27 of 2006 (the “Commercial Code”) states that the LC issuing bank has a lien over the bills of lading until such time as the importer (being the LC issuing bank’s customer) reimburses the LC issuing bank for payments made towards purchase of the goods that have been imported.\r\n\r\nThe key issue here is one of cash flow management for the importer. The importer will prefer to first sell the goods imported before settling its payment obligations to the LC issuing bank. The trust receipt arrangement allows the LC issuing bank to release the documents of title relating to the imported goods to the importer while retaining its ownership interest in the said goods.\r\n\r\n<strong>Trust Receipts Generally</strong>\r\n\r\nThe trust receipt arrangement provides the bank with a form of quasi-security by virtue of the bills of lading relating to the imported goods being made to the order of the bank. The bank releases the bills of lading to the importer and permits the importer to sell the goods on the condition that the proceeds of sale are used to repay the bank.\r\n\r\nThe following are the typical steps in a trust receipt transaction:\r\n<ul>\r\n 	<li>The LC issuing bank (the “Bank”) issues an LC to the exporter at the request of the importer (i.e. the customer of the Bank (the “Customer”)).</li>\r\n 	<li>The exporter will provide shipping documents including a bill of lading to the order of the Bank to comply with the terms of the LC.</li>\r\n 	<li>Once the complying documents under the LC are provided to the Bank, the Bank makes payment to the exporter and the Customer is required to reimburse the Bank for the payments made to the exporter (the “LC Reimbursement Amount”).</li>\r\n 	<li>At this stage, the LC Reimbursement Amount will be treated as a short-term loan from the Bank to the Customer.</li>\r\n 	<li>The bills of lading will be released to the Customer after the Customer signs a Trust Receipt.</li>\r\n</ul>\r\nUnder the trust receipt, the bank is the owner of the goods and the Customer undertakes to deal with the goods represented by the bills of lading as the agent of the Bank. The proceeds of the sale of such goods are to be deposited by the Customer with the Bank and used to repay the LC Reimbursement Amount. The trust receipt ensures that the Bank retains its title in the goods while releasing the right to deal in the goods to the Customer.\r\n\r\n<strong>Trust Receipts under Qatar Law</strong>\r\n\r\nTrust receipts are not defined under the laws of Qatar, however they are used in Qatar as a method of import financing.\r\n\r\nAt the outset it is pertinent to consider the status of a bill of lading under Law No 15 of 1980 (the “Maritime Code”). Under Article 146 of the Maritime Code a bill of lading can be negotiated by endorsement (unless the bill of lading restricts negotiation). The holder of a bill of lading is entitled to take possession of the goods represented by the bill of lading. Further, Article 970 of the Civil Code (Law No 22 of 2004) states that possession of a moveable object or a negotiable instrument representing the movable object creates a presumption of ownership.\r\n\r\nUnder trust receipt arrangements, the bill of lading is either endorsed to the Bank or made to the order of the Bank. Therefore, there is a presumption of ownership of the goods (underlying the bill of lading) in favour of the Bank. The Bank can then deal with the goods by appointing the Customer as its agent to sell the goods on its behalf.\r\n\r\nUnder the trust receipt, the relationship of the Customer and the Bank is one of principal and agent. Article 716 of the Civil Code defines an agency as a contract by which an agent undertakes to perform a legal action for the principal. The agent should not exceed the limits of the scope of the agency unless it is impossible to obtain the consent of the principal for the overreaching of the scope (Article 722).\r\n\r\nArticle 362 of the Penal Code states that with respect to breach of trust “a penalty of not more than three years in prison and a fine of not more than ten thousand Riyals [USD 2,800] shall apply to a person who misappropriates, uses, or misuses amounts of money, bonds or any other movable properties to harm the holders or the possessors whenever delivered under a contract of trust, rent, mortgage or a proxy”.\r\n\r\nThe Qatari Court of Cassation, in judgment No. 70 of 2005, also confirmed that there are five types of “trust” or “Amana” contracts in light of Article 362 of the Penal Code. These are:\r\n<ol>\r\n 	<li>Trust;</li>\r\n 	<li>Lease;</li>\r\n 	<li>Use without consideration “E’ara”’</li>\r\n 	<li>Pledge; and</li>\r\n 	<li>Agency.</li>\r\n</ol>\r\nTherefore, the breach of any of the trust receipt arrangements (being a form of agency) would constitute a breach of trust which is subject to a penalty under Article 362 of the Penal Code.\r\n\r\n<strong>Re-Characterization Risk</strong>\r\n\r\nUnder other GCC laws (such as the UAE Commercial Code) there is a clear reference to the trust receipt structure described above. However, in Qatar while there is a legal basis to establish the trust receipt arrangement, there are no specific provisions in the Commercial Code governing the same. There is therefore a risk that a Qatari court may treat the trust receipt arrangement as a simple loan and security arrangement and not accept the presumption of ownership in favour of the Bank.\r\n\r\nTo counter this, in addition to endorsement of the bill of lading in favour of the Bank, the rights under the sale contract or invoice relating to ownership of the goods should also be transferred to the Bank. The court may then construe this as a security under Article 234 of the Commercial Code where possession of the goods has been transferred to the Bank as security such that the ownership of the goods is vested in the Bank and not the Customer.\r\n\r\n<strong>Tracing and Comparison with position in the UAE</strong>\r\n\r\nFrom the Bank’s perspective, if the Customer fails to deposit the sale proceeds from the goods with the Bank, the Bank will want recourse to such proceeds. The Commercial Code in Qatar does not have a specific provision that gives the Bank recourse to the proceeds of sale. The position in other GCC states is different. In the UAE the situation is covered by Article 439(5) of the UAE Commercial Transactions Law (UAE Law No 18 of 1993), which states that the Bank will have recourse to the goods as well as the proceeds of sale of the goods under a trust receipt arrangement. In Qatar, the Bank will rely upon the rules of agency to have such recourse. That said, there are some inherent practical difficulties with this arrangement as the control over the goods will ultimately remain with the Customer.\r\n\r\n<strong>Conclusion </strong>\r\n\r\nAlthough Qatar does not have a specific law addressing the use of trust receipts, their use remains common and is likely to remain so. Nonetheless, it would give users of trust receipts more confidence and clarify a number of issues if Qatar adopted the legislative measures taken in other GCC states, in particular the UAE.'),
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	(92572,5029,'content_description','Trust receipts are instruments commonly used in trade finance in Qatar.  This article explains why they are used in Qatar and the legal framework relating to them.'),
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	(92574,5029,'pageSummary','Trust receipts are instruments commonly used in trade finance in Qatar. This article explains why they are used in Qatar and the legal framework relating to them.'),
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	(92588,5029,'_yoast_wpseo_metadesc','Trust receipts are instruments commonly used in trade finance in Qatar. This article explains why they are used in Qatar and the legal framework relating to them.'),
	(92589,5030,'content','November 2014\r\n\r\n<hr />\r\n\r\n<strong>An Overview</strong>\r\n\r\nThe Foreign Account Tax Compliance Act (“FATCA”) is a United States (“US”) federal law with global reach aimed at curbing offshore tax evasion by US persons. FATCA draws its roots from Chapter 4 of the US Internal Revenue Code, enacted by the Hiring Incentives to Restore Employment Act 2010. The legislation aims to obtain information in connection with offshore accounts and investments directly or beneficially owned by US persons either by voluntary disclosure of accounts by such persons or by disclosure to the Internal Revenue Service (“IRS”) by the foreign financial institutions (“FFIs”) holding such accounts/investments. Failure of the FFIs to disclose or comply with the reporting requirements laid down under FATCA may lead to the IRS imposing a 30 percent withholding charge on the FFIs’ source investment income and proceeds from sale generated within the US. The criteria to apply such withholding tax is wide and may be charged by the IRS against any financial instrument/assets including bank accounts, trading in money market institutions, bills, certificates of deposit, derivatives, transferable securities, commodity futures trading, individual and collective portfolio management and other financial assets, interest, dividends and rents having their source in the US.\r\n\r\nWhilst to some this might look as an attempt by the US to collect tax from foreign entities through the proposed withholding regime, FATCA’s primary focus is to detect, deter, and discourage offshore tax abuses through increased transparency, enhanced reporting, and strong sanctions. To date, more than 80 nations, including China and Russia, have taken steps to enable their financial institutions to comply with FATCA.\r\n\r\n<strong>Inter-governmental Agreements </strong>\r\n\r\nThe obligations imposed by the FATCA regime do not take into account domestic laws (for example, data protection rules and confidentiality issues) which prohibit the sharing of the information sought by the IRS. As a result, even if an FFI is willing to share information, it may be in violation of local laws and be exposed to regulatory sanctions and potential lawsuits in the jurisdiction they operate. In light of the global reach of the FATCA regime and to manage the potential conflict with domestic laws, the US Treasury proposed the creation of an intergovernmental framework to enable compliance and reporting via intergovernmental agreements (“IGAs”). The IGAs have been modeled in two forms: Model 1 and Model 2. The two forms are primarily distinguished from each other on the basis of the reciprocity and reporting requirements. Model 1A requires a reciprocal relationship between the US and the partner jurisdiction under which FFIs in that partner jurisdiction would be required to report to their respective regulators which would in turn report to the IRS and vice versa. Model 1B does not require a reciprocal relationship between the US and the partner jurisdiction. Model 2 on the other hand requires FFIs intending to comply with FATCA requirements to directly report to the IRS in accordance with the requirements of FATCA.\r\n\r\nWith a commitment to strengthening financial stability and supporting banks and financial institutions by reducing the burden of compliance with FATCA for individual FFIs, many partner jurisdictions have commenced or completed IGA negotiation with the US. The United Arab Emirates (“UAE”) and the US reached an agreement in substance in May 2014 to include the UAE on the list of jurisdictions to be treated as having an IGA in effect. The UAE has agreed to adopt Model 1B. The result of this decision is that FFIs within the UAE have to comply with the requirements of the IGA with effect from 1 July 2014. At present, the final form of the IGA has yet to be concluded but it is understood this should happen before the end of 2014.\r\n\r\n<strong>Obligations under the Model 1B IGA (“UAE IGA”)</strong>\r\n\r\nRequirements under the UAE IGA can be divided into the following categories:\r\n\r\na. Classification Requirements: In order to meet the requirements under FATCA, an FFI within the UAE will inter alia need to:\r\n<ol>\r\n 	<li>Determine whether it is an entity within the scope of FATCA. If an FFI is within the scope of FATCA, the FFI will have to register as an FFI under the applicable category on the FATCA registration system hosted on the website of the IRS by 31 December 2014.</li>\r\n 	<li>Identify the products and services it offers which fall within the purview of FATCA.</li>\r\n 	<li>Obtain such information regarding each of its account holders (individuals/entities) and counterparties as is necessary to determine which accounts have affiliation to the US. As a first step, FFIs must identify and document account holders (new and existing) with US indicia. US indicia for individuals includes such factors as US citizenship (passport or green card holder) or US residency, US place of birth and, for entities, factors such as incorporation in the US, establishment in the US for tax purposes and a US tax identification number.</li>\r\n 	<li>Obtain relevant self certification of status for account holders as to its US tax status (or documentary evidence, if permitted) and waivers, if required.</li>\r\n</ol>\r\nb. Reporting Requirements: Once information on account holders is collected, the FFIs will need to make necessary disclosures and share information with their regulator to enable the transfer of such information to the IRS. For instance, onshore banks in the UAE would need to liaise with the UAE Central Bank, collective investment funds would liaise with the UAE’s Securities and Commodities Authority and entities incorporated within the DIFC and regulated by the Dubai Financial Services Authority (“DFSA”) would need to liaise with the DFSA. Such disclosures are to be made on an annual basis and are to commence in 2015. Account holder information to be provided to the IRS inter alia includes:\r\n<ul>\r\n 	<li>the name, address and taxpayer identification number or social security number of each US affiliated account holder;</li>\r\n 	<li>the account number of such person or entity;</li>\r\n 	<li>the account balance or value;</li>\r\n 	<li>other information regarding income and transactions.</li>\r\n</ul>\r\nc. Withholding Requirements:  FFIs in the UAE will benefit from the UAE IGA between the UAE and the US since FATCA’s withholding requirements will not apply to such FFIs provided they are in compliance with the UAE IGA. As a penalty for non-compliance of the requirements under the FATCA, FFIs would be required to withhold 30 percent from US source payments made to non-participating/non-complying financial institutions or non-complying account holders. Other compliant partner jurisdictions’ FFIs, which act as intermediaries with respect to withholdable payments, are required to provide information to the paying entity about applicable payments for withholding and reporting purposes.\r\n\r\n<strong>Impact of FATCA</strong>\r\n\r\nWith the large number of US tax obligors living in or otherwise having financial accounts in the UAE, FATCA compliance is important to both UAE financial institutions and to US individuals and entities holding accounts with such institutions. All customers of FFIs within the UAE should be aware that they are likely to be asked if they have any US indicia and to make declarations in respect of the existence of such indicia. US persons should expect greater due diligence requirements from FFIs when opening accounts and a more rigorous on-boarding process. FFIs have the largest burden of having to first determine if FATCA applies to them and then ensure their systems are capable of collecting the necessary information. Additionally, FFIs must be aware of their counterparties’ FATCA compliance and ensure their terms and conditions do not inhibit compliance with FATCA. This includes having in place mechanisms for monitoring account balances and changes in status of accounts and account holders to stay in line with FATCA. Finally, FFIs within the UAE must be mindful of the relevant time frames in order to avoid being in contravention of FATCA requirements and exposing itself to any form of withholding charge.'),
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	(92593,5030,'content_description','The Foreign Account Tax Compliance Act (“FATCA”) is a United States (“US”) federal law with global reach aimed at curbing offshore tax evasion by US persons. '),
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	(92595,5030,'pageSummary','The Foreign Account Tax Compliance Act (“FATCA”) is a United States (“US”) federal law with global reach aimed at curbing offshore tax evasion by US persons.'),
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	(92609,5030,'_yoast_wpseo_metadesc','The Foreign Account Tax Compliance Act (“FATCA”) is a United States (“US”) federal law with global reach aimed at curbing offshore tax evasion by US persons.'),
	(92610,5031,'content','November 2014\r\n\r\n<hr />\r\n\r\nSome governments have provided assistance to private providers, primarily by engaging them to manage public facilities and reimbursing them for treating government-funded or insured patients. Generous cash incentives and a guaranteed supply of patients have been offered to top-rated international teaching hospitals, the aim of which is to ensure that reputable and well recognised provider brands will create competition and raise standards of care throughout the region.\r\n\r\nCompetition in the healthcare market must be properly regulated to ensure that public or insurer funds are appropriately spent and that the opportunity for corrupt practices is extinguished. It is impractical, for example, to guarantee a certain volume of patients for all private providers, as such guarantees are costly and reduce the incentive for providers to raise their quality and compete for patients. Since most private providers compete with public facilities to attract patients, governments must create a fair system in which both public and private healthcare providers issue claims and receive appropriate reimbursement for their services.\r\n\r\n<strong>Incentive payments for healthcare services</strong>\r\n\r\nIt is reported that a practice has evolved across the region in which, following reimbursement by an insurer to a laboratory or diagnostic imaging center, the service provider pays a percentage of its fee back to the hospital or clinic requesting the service.  Such payments are typically described as a referral fee, or commission fee, or ‘kickback’.\r\n\r\nThe practice of paying kickbacks is incompatible with the laws of most established international jurisdictions. For example in the United States, federal anti-kickback laws and the ‘Stark’ laws have curtailed the practice of commission payments and self-referral, where the referring physician is found to be referring patients to another facility in which that physician has a personal financial interest. In the UK, the government is consulting with the healthcare sector with a view to introducing the ‘NHS National Tariff Payment System’ which will regulate how hospitals and providers are paid. Private providers must sign-up for the scheme, agree to be regulated, and provide undertakings.\r\n\r\nIn the UAE, the Emirates of Abu Dhabi and Dubai have introduced mandatory insurance schemes to fund healthcare services (Abu Dhabi Law No.23 of 2005 and Dubai Health Insurance Law No.11 of 2013, respectively). Reimbursement controls are in place. In Abu Dhabi, the Health Authority-Abu Dhabi (HAAD) has introduced a policy on health insurance fraud and abuse which states that kickbacks are to be regarded as health insurance fraud.  In addition, HAAD has introduced a standard provider contract requiring all contracts between insurers and providers to meet minimum standard terms and conditions.  It is a condition of such contracts that reimbursement of healthcare fees are made in accordance with a mandatory tariff, which dictates the price paid for basic services. Together these measures should stop the practice of insurance payments being used to pay commissions or kickbacks between providers.\r\n\r\nIn an attempt to curb such practices, HAAD issued Circular (DG 16/14) on 1 May 2014 relating to ‘Kickbacks in Medical Laboratory Services’ requiring compliance with mandatory local insurance laws, and Federal Law No. 10 of 2008 concerning Medical Liability, and prohibiting the payment of “commissions and financial incentives or making illegal profits” when referring patients for medical tests. This was quickly followed by a local insurer requiring that providers sign an ‘Anti-Incentives Undertaking Letter’ that they will ensure strict compliance with the contractual requirements of the contract together with an undertaking that no volume incentives or commissions are being paid for ordering services. Violation of the undertaking will constitute a material breach of the contract in respect of which the insurer will take any necessary legal action, including termination of the contract and reporting of the facility to HAAD. If this approach is successful, other healthcare insurers across the region are likely to require providers in their locality to give similar undertakings.\r\n\r\nEfforts to curb kickback payments are likely to have the most significant impact on the smaller secondary care private providers, such as those providing medical laboratory services or specialist diagnostic imaging centers, which generate much of their revenue from the larger hospitals or clinics proving primary care services and rely on receiving a certain volume of business from those primary providers. One way of securing referrals is to pay kickbacks, so if this practice is no longer permitted providers will need to compete for business by being more creative, and offering commercially attractive reasons for using their services, developing closer business relationships with primary care providers, and entering into service contracts securing exclusivity of referrals.\r\n\r\n<strong>Incentive payments in the pharmaceutical sector</strong>\r\n\r\nThe pharmaceutical industry has recently come under scrutiny once again for the practice of offering bribes. GlaxoSmithKline was recently fined $489 million for corruption in China and is now looking into allegations of corruption in the United Arab Emirates.\r\n\r\nNew entrants to the GCC pharmaceutical market should familiarise themselves with high-level policy initiatives currently under discussion at the Council of Ministers of Health at the GCC which will control the prices and discounts which may be offered on medicines. A mechanism to standardise medicine prices in member countries of the GCC is expected to be implemented in stages over the next four years, and which will be aimed at reducing and maintaining uniform prices of medicines and profit margins.\r\n\r\nThe UAE was one of the first GCC countries to introduce price controls for medicines.  Article 64 of Federal Law No. 4 of 1983 concerning the Profession of Pharmacy and Pharmaceutical Institutions, prescribes controls over the price of medicines and pharmaceutical preparations, and regulates the payment process between all parts of the payment chain, from distributor through to patient. Ministerial Resolution No. 834 of 2008 clarified how to calculate drug prices, and Ministerial Resolution No. 171 of 2011 regulates the profit margins of distributors and pharmacies, and prohibits the offer of bonuses or discounts other than in accordance with the fixed margins. All commissions, incentives or any offer of a financial benefit are subject to these regulations, which are strictly enforced.\r\n\r\n<strong>Conclusion</strong>\r\n\r\nThe region’s population is expected to exceed 50 million by 2020, which will increase consumption of healthcare services. The GCC healthcare market is expected to grow at the rate of 12% per annum to meet the demand, with outpatient markets expected to account for 79% of overall market-share.  The demand for healthcare services will create scope for increased insurance penetration, and in order that costs remain affordable, extinguishing corrupt claims and reimbursement practices will become a priority. The GCC countries are tackling the regional issue of corruption, having all become signatories to the United Nations Convention against Corruption (UNCAC).\r\n\r\nIn the UAE, Federal Decree No. 8 of 2006 implements UNCAC, and a new federal anti-corruption law aimed at curbing misappropriation of public money is currently awaiting implementation. Bribery is governed by Federal Law No. 3 of 1987 (the Penal Code), and in Dubai, local laws have been introduced governing the recovery of public and private monies obtained illegally. The combination of regional pressure, coupled with local law and health policy, has created a barrier to corrupt practices in general, and the practice of paying kickbacks specifically, and requires that providers act in accordance with sound legal and ethical principles when competing for their share of the healthcare market.\r\n\r\n&nbsp;');

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	(92625,5032,'content','November 2014\r\n\r\n<hr />\r\n\r\nOver the past year, beIN Sports has been the subject of significant press attention as a result of repeated ‘black outs’ in its coverage of English Premier League football matches due to online piracy of its live transmissions. This article gives an overview of illegal sports streaming and also highlights some of the key issues faced by broadcasters in the Middle East in their battle against piracy.\r\n\r\n<strong>beIN Sports example</strong>\r\n\r\nbeIN Sports, the Qatar-based channel group, has exclusive live rights to English Premier League matches across multiple countries within the MENA region. The network is the subject of ongoing press attention because over the course of the last year it has blocked a number of games to which it has the live rights. This has resulted in complaints from disgruntled fans who have paid subscriptions to access channels in good faith, in the expectation that certain matches will be made available.\r\n\r\nReportedly, the key issue behind beIN Sports blocking such matches is that broadcasts were being illegally re-broadcast into other territories, such as the UK, where beIN Sports does not hold the rights. The Saturday 3pm English Premier League games are particularly popular for illegal re-distribution because Sky and BT in the UK are restricted from broadcasting those matches domestically (a historical decision taken to preserve ground attendance at lower league fixtures).\r\n\r\n<strong>The scale of the problem</strong>\r\n\r\nThe beIN Sports case is merely one example of a much broader problem. A large number of popular peer-to-peer and unicast website services enable users to view pirated streams of live sports, including football, for free. To give a sense of the scale of the problem, it has been reported that the English Premier League has detected and removed more than 45,000 illegal internet streams of its matches during the 2013 - 2014 football season. Following a recent arrest in the UK, it was estimated that the series of offending sites contributed to a loss across the relevant subscription services of more than £10 million.\r\n\r\nThe film and music industries experience similar problems with illegal file downloads. However, unlike downloading, when you stream the information is essentially broken down into packets of data that are then sent across the internet and reassembled on receipt. This means that live streams play near-instantly. Illegal streaming of sports therefore significantly undermines the economic value of broadcasting rights in the live coverage. If live coverage is available via the internet for free, then the rights holder will not be able to generate as much revenue from selling the live broadcast rights on an exclusive basis.\r\n\r\nArguably the effect of such economic loss is not just felt by the rights holder and licensees. The football industry is a good example of where revenue generated from the sale of broadcast rights is, in part, put back into the clubs.\r\n\r\nWith the wide availability of fast internet connections in the Middle East and a multi-cultural population with varied sports interests, these sites are popular. It is unfortunate that the disruption to beIN Sport’s football coverage (as a result of illegal viewing overseas) is reportedly driving usage of such sites by consumers in the region in order to access those matches that are deliberately not being shown.\r\n\r\n<strong>Broader television piracy issues in the Middle East</strong>\r\n\r\nWhilst illegal file sharing of premium movies, television series and sports content remains a serious problem in the region, broadcasters tend to be focused on the fight against satellite piracy. In particular, broadcasters are clamping down on (i) pirate satellite channels (airing premium content without licences from the content owners) and (ii) the importation of set-top boxes and other hardware components from overseas, which can be utilised to give customers access to hundreds of legitimate channels at a lower price point than the incumbent offerings. It has been reported that in excess of one million set-top boxes capable of allowing illegal access to pay TV channels are imported into the GCC every year.\r\n\r\nAlthough copyright legislation exists across the region, illegitimate services seek to exploit the difficulties of enforcement in particular jurisdictions. UAE copyright law, for example, states that a “broadcast authority” has the “Right to cease any communication of its records or programmes to the public in any manner, without [its] authorisation”. The provision goes on to clarify that “Recording, copying, reproducing, renting out, broadcasting or re-broadcasting or presenting the same to the public in any medium shall be deemed as illegal exploitation”. A “broadcast authority” means any authority which “carries out any radio audio, visual or audio-visual transmission”. This therefore gives UAE broadcasters a degree of legislative protection. However, in practice it can be very difficult to identify the companies that are responsible for infringing the broadcasters’ rights. Infringing entities may hide behind shell companies and broadcast into the UAE from other jurisdictions or via the internet.\r\n\r\nThe cost and difficulty of taking legal action (which is a common theme across many jurisdictions) is leading stakeholders to consider other options. For instance, when it comes to addressing online piracy (whether through illegal streaming or downloading), some governments are working directly with the ISPs to restrict access to offending sites. Another option is to target advertisers and agencies in an attempt to cut a key source of funding for such websites. For example, the City of London specialist intellectual property unit has created a list of illegal websites which advertisers and agencies can reference to ensure their clients’ brands do not appear on those sites. The police and other regulatory authorities have a key role to play when it comes to enforcement in the context of satellite piracy.\r\n\r\nOther options include pay-TV companies making value-for-money services more easily available. Increasingly we are seeing regional broadcasters buying the rights to make premium television series available on or shortly after the date the shows are broadcast in their countries of origin and video-on-demand offerings are ever improving. Another tack is to invest in monitoring systems, improved encryption and set-top box technology.\r\n\r\nEducation of consumers is also key. It is important for consumers to understand that ultimately, piracy affects consumers because it damages the industries that create the content they enjoy. The case in point of beIN Sports is evidence of piracy having a direct negative effect on fans.\r\n\r\nRachael Hammond (r.hammond@tamimi.com) is an Associate in the Technology, Media and Telecommunications team and a member of Al Tamimi &amp; Company’s dedicated Sports Law practice. Rachael regularly provides commercial and regulatory advice to clients on broadcast and digital media related issues.'),
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	(92644,5033,'content','November 2014\r\n\r\n<hr />\r\n\r\nIt is timely that the Health Authority - Abu Dhabi has recently introduced regulations to define minimum standards for telemedicine as a means to provide healthcare services to patients in the Emirate of Abu Dhabi.\r\n\r\n<strong>What is Telemedicine?</strong>\r\n\r\nThe term “Telemedicine” generally refers to the use of information and communications technology to transfer medical information from one site to another to improve a patient’s clinical health status.\r\n\r\nRemote diagnosis and consultation through the application of telecommunications is not a new phenomenon. For example, back in the 1930s pioneers living in remote areas of Australia used two-way radios to communicate with the Royal Flying Doctor Service.\r\n\r\nHowever advances in technology together with the growing availability of broadband on ultra fast fiber and 4G mobile networks means that right now telemedicine is rapidly evolving  to cover a variety of applications using voice, video or image data.\r\n\r\nPatient consultations via video conferencing, transmission of medical images, remote patient monitoring, e-health patient portals and continuing medical education are all now part of telemedicine.\r\n\r\nAlthough most medical specialities lend themselves, at least in part, to having evaluations performed using telemedicine, specialities that require less direct patient contact, such radiology or pathology, have  to date tended to be the best candidates for telemedicine.\r\n\r\nNow mobile telemedicine is posed for significant innovation.  While there are already many consumer focused telemedicine apps available, with big brands like Apple and Samsung making significant pushes into the area, telemedicine could soon become a mainstream proposition.\r\n\r\nApple recently unveiled its new Health app for health and fitness data and a cloud-based information platform known as “HealthKit” that can integrate data from across different providers and which is open to developers.  HealthKit has been included by Apple in iOS8 the iPhone’s new operating system that has just been released in conjunction with the iPhone 6.\r\n\r\nApple has also announced “partnerships” with a number of large healthcare institutions for developing consumer facing healthcare apps.  These partners include Epic Systems, one of the largest suppliers of electronic medical record systems in the United States.\r\n\r\nSamsung has unveiled a new hardware reference design called Simband for developers building devices or applications that leverage data captured through wrist‒worn sensors (either Samsung’s or other manufacturers). The Simband connects to Samsung’s new, open source SAMI platform, which uses a mix of hardware and a cloud backend for sensor data. Samsung hopes its new software platform will bring together data from various sources to provide more helpful health data analysis\r\n\r\n<strong>Benefits</strong>\r\n\r\nThe principle benefits of telemedicine include:\r\n<ul>\r\n 	<li>Improved access  – Telemedicine allows patients living in remote areas to receive clinical care from doctors or specialists at a distance. Similarly, it allows the specialists and health facilities to expand their reach beyond their physical premises.</li>\r\n 	<li>Convenience – Rather than have to visit a doctor’s surgery for a consult, patients can do so from the comfort of their own home without exposing them to other sickly patients.  This reduces travel time and stress for the patient and possible transmission of infectious illnesses.</li>\r\n 	<li>Cost Efficiencies – Telemedicine can reduce the cost of healthcare and increase efficiency by better management of chronic diseases, sharing of professional staffing, reduced travel and fewer or shorter hospital stays.</li>\r\n</ul>\r\nBy contrast, one of the main disadvantages with telemedicine is the perceived risk that personal health information may be compromised by transmission and offsite storage.\r\n\r\nRegulators around the world have sought to set standards that balance enhancing the portability of personal health information for the better integration of health services, while at the same time improving accountability to protect the confidentiality of that shared information.\r\n\r\nFor example, in the US the Health Insurance Portability and Accountability Act 1996 sets out privacy and security standards for the use and distribution of health care information. The privacy rules regulate the use and disclosure of personal health information, while the security rules impose administrative, physical and technical security safeguards for electronic personal health information.\r\n\r\n<strong>HAAD Telemedicine Regulations for the Emirate of Abu Dhabi</strong>\r\n\r\nConsistent with the Abu Dhabi Economic Vision 2030 to develop a robust, world-class healthcare sector in the Emirate, in recent months the Health Authority - Abu Dhabi (“HAAD”) has introduced regulations to define minimum standards for telemedicine as a means to provide healthcare services to patients in the Emirate of Abu Dhabi.\r\n\r\nThe HAAD Service Standards for Tele-counseling in the Emirate of Abu Dhabi, which came into effect on 25 November 2013 (“Tele-counseling Standard”), defines minimum standards for the use of tele-counseling and aims ensure the integrity of physician – to - physician counseling conducted via telemedicine interfaces.\r\n\r\nThe HAAD Standards for Tele-consultation in the Emirate of Abu Dhabi, which came into effect on 20 March 2013 (“Tele-consultation Standard”), defines minimum standards for the use of tele-consultation and aims to ensure the quality and safety of physician – to – patient telemedicine services.\r\n\r\nImportant features of the Tele-consultation Standard are, amongst other things:\r\n<ul>\r\n 	<li>It defines the services that may be offered through tele-consultation services.  Invasive clinical interventions are excluded.</li>\r\n 	<li>Outlines the principles of patient consent that have to be upheld.</li>\r\n 	<li>Requires that healthcare facilities wishing to provide tele-consultation services must  be a HAAD licensed healthcare facility specifically licensed to provide  tele-consultation  or an existing HAAD licensed facility that is authorized  by HAAD to provide tele-consultation.</li>\r\n 	<li>HAAD regulates healthcare professional’s use of tele-consultation under the existing professionals licensing requirements (i.e. no tele-medicine licence will be required or issued for healthcare professionals wishing to provide tele-consultation services).</li>\r\n</ul>\r\n<strong>Key features of the Tele-counseling Standard are:</strong>\r\n<ul>\r\n 	<li>It is the responsibility of the originating HAAD licensed healthcare facility/provider/professional to ensure that tele-counseling services are only sought from providers authorised by HAAD (where the provider is located in Abu Dhabi) or licensed by the relevant country regulator where the professionals/providers are located outside of Abu Dhabi.  The primary responsibility for the clinical and medical healthcare with the HAAD licensed local facility, where the local facility raises the tele-counseling request.</li>\r\n 	<li>The local facility that uses tele-counseling must have policies and procedures  that govern the use of tele-counseling.</li>\r\n 	<li>It outlines the requirements for the arrangements (i.e. written agreements, memoranda of understanding and contracts) between HAAD licensed healthcare providers and tele-counseling service providers.</li>\r\n 	<li>Under each of the Tele-counseling Standard and the Tele-consultation Standard the HAAD licensed healthcare professionals and providers using telemedicine to provide services have the broad duty to develop and implement clinical and quality governance systems to protect the privacy concerns of the patient and the confidentiality and security of their medical information and records at the relevant healthcare provider’s site and during transmission.  In particular, confidentiality, privacy and security of health data and records must comply with the requirements prescribed by the following other HAAD regulations:</li>\r\n</ul>\r\n<ol>\r\n 	<li>The data management policy in the  HAAD Healthcare Regulator Policy Manual;</li>\r\n 	<li>HAAD Medical Record/Health Information Retention and Disposal Policy; and</li>\r\n 	<li>The HAAD Data Standards.</li>\r\n</ol>\r\nUnder the Tele-counseling Standard and the Tele-consultation Standard the healthcare facilities and the healthcare providers respectively have to ensure that the telemedicine services meet certain technical standards, including:\r\n<ul>\r\n 	<li>The equipment and devices is appropriate to support the telemedicine services.</li>\r\n 	<li>The equipment and devices are compatible with that of the distant site used to access the telemedicine services.</li>\r\n 	<li>Having appropriate systems in place to ensure sufficient availability of the network for critical connectivity.</li>\r\n</ul>\r\n<strong>Teleradiology Services in Dubai</strong>\r\n\r\nSince 2012 the Dubai Health Authority (“DHA”) has regulated the use of the specific telemedicine service of “teleradiology” in Dubai under the DHA Diagnostic Imaging Services Regulation. “Teleradiology” is defined in the DHA regulation as the transmission of diagnostic images and related data from one location to another for the purposes of interpretation or consultation.\r\n\r\nAmongst other things, the DHA’s teleradiology standards have express requirements as to the personnel at the transmitting site and the receiving site.  The transmitting site should comprise of at least one full time radiologist, one radiographer and a system manager with informatics certification, whereas the receiving site should employ a radiologist licensed in the country the service is provided.\r\n\r\n<strong>Need help?</strong>\r\n\r\nTelemedicine is emerging as a significant service delivery mechanism for healthcare in the 21st century.  Telemedicine’s growing potential also raises a number of legal, clinical and technical questions for regulators. HAAD has recently responded by setting minimum standards for telemedicine as a means to provide healthcare services to patients in the Emirate of Abu Dhabi.  The DHA has regulated the use of the specific telemedicine service of teleradiology in Dubai since 2012.'),
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	(92659,5034,'content','November 2014\r\n\r\n<hr />\r\n\r\nA novation needs to be properly documented and, if possible, the employer’s initial agreement with the consultant and the contractor should require them to enter into a novation agreement if the employer later so elects.\r\n\r\n<strong>How does it work?</strong>\r\n\r\nA design consultant novation occurs when a consultancy agreement signed between an employer and consultant for initial design services, is replaced with a new contract on (usually) the same terms, under which the contractor engages the consultant as if the contractor had originally contracted with the consultant. A novation agreement documents this relationship change between the parties.\r\n\r\nIn a design and build procurement, it is common for an employer to appoint a consultant to prepare a design brief or concept design and then break ties with the consultant, and transfer the design and responsibility for the design to the main contractor by novation. The main contractor will be best placed to develop the design and the buildability of the design will become a natural consequence of this risk transfer.\r\n\r\nNovation of a design consultant is often a desirable strategy for an employer, given that:\r\n<ol>\r\n 	<li>the employer has control of the early design and choice in the design consultant;</li>\r\n 	<li>the contractor will assume a single point of contractual responsibility for construction as well as design; and</li>\r\n 	<li>the transfer to the contractor of the responsibility for the design should promote a more buildable design, without undesirable document discrepancy risk being retained by the employer.</li>\r\n</ol>\r\nAt the same time, the contractor will have the comfort that as the novation assumes that the contractor and consultant had entered into the novated consultancy agreement before any design had commenced, the contractor would have recourse against the consultant if it turned out that the consultant had made any errors in the design prepared before its engagement with the contractor.\r\n\r\n<strong>Documenting the novation</strong>\r\n\r\nIn an ideal world the form of the novation agreement, including the agreement of the consultant (and the contractor) to any novation at the employer’s discretion, will be included as an appendix to the initial agreement which appoints the consultant and the construction contract which appoints the contractor.\r\n\r\nArticles 381 to 386 of the Qatari Civil Code deal with novation and require express approval of the parties prior to a novation taking effect. Thus, the consent of all parties is required to effect a novation of the design consultant in the scenario discussed above. The novation agreement achieves this purpose. A clause inserted in the original consultancy agreement and construction contract that requires the consultant and contractor to enter into a novation agreement, if the employer decides to pursue the novation option, will go a long way to facilitating any novation to occur in the smoothest manner possible.\r\n\r\nIf an employer does not obtain agreement to a potential novation from the consultant and contractor as part of their original agreements with the employer, there is no pre-agreement by these parties to the novation at a later stage. Ensuring that parties are ‘on board’ with the possibility of such a novation when they are originally engaged, will minimise the hardship that is likely to be encountered if the employer attempts to force a novation.\r\n\r\nThe drafting of the novation agreement should ensure that:\r\n<ol>\r\n 	<li>care is taken to avoid creating unnecessary conflicts of interest between the parties;</li>\r\n 	<li>separate lists of services that the consultant will perform for the employer and the contractor are incorporated; and</li>\r\n 	<li>the contractor and the employer are granted a suitable warranty by the consultant for any losses arising out of services performed pre-novation.</li>\r\n</ol>\r\nFor an employer seeking to prepare and enter into a novation agreement, it is critical that the agreement is drafted in clear terms, as omitting obligations on the consultant or the contractor may defeat the point of the employer’s intended transfer of obligations. It is also important that the novation agreement imposes only specific acceptable obligations and liabilities on the consultant and the contractor, without seeking to impose illogical duties on these parties. A clear and simple agreement will give the employer the best chance of having the agreement signed by the parties, if that is what the employer wants once the project is up and running. This article first appeared in Qatar Construction News October edition.\r\n<div></div>'),
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	(92682,5035,'content','November 2014\r\n\r\n<hr />\r\n\r\nAt the beginning of April 2014, and according to Article 27 of the Electronic Signature &amp; Electronic Transactions Law No. 78 of 2012, which stated that the electronic transfers of money should be regulated by a regulation that to be suggested by the Central Bank of Iraq (CBI), the Iraqi Council of Ministers issued Regulation No. 3 of 2014 regarding the Electronic Payment Services of Money (The “Regulation”).  This Regulation covers all the electronic payment activities including issuing the electronic payment tools, managing the deposits and cash withdrawals through ATMs and selling points, implementing of electronic payment processes (payable and receivable) that their money be guaranteed by the credit of the services user or by any means of digital communications or information technology, and implementing of electronic payment processes in accordance with the overall settlement system or the clearing mechanism system.\r\n\r\nThe provider of the electronic payment services (The “Provider”):\r\n\r\nThe Provider of such services should be licensed by the CBI.  The license is valid for 5 years, and can be renewal based on a written request submitted by the Provider to the CBI within 90 days before the license expiry date.  The Provider should be a legal entity, has the technical and organisational skills to operate the required mechanism, taking all measures to secure and protect the electronic transactions, ensures that the CBI can enter into the used system at any time for the supervision and control purposes, and has submitted an economic feasibility study to the CBI in this regard.  The Provider is able to appoint an agent/s and authorise him to provide the electronic payment services.  The Provider should submit to the CBI all the agent information including name, address, the internal control mechanisms used by the agent, description to the provided services by the agent, and any additional information considered necessary by the CBI.  The agent name will be recorded in a record that can be seen by the public at the CBI, and the Provider is obliged to inform the CBI with any changes related to the agent to be amended in the above mentioned record.  Article 16 of the Regulation listed the Provider obligations as following:\r\n<ol>\r\n 	<li>Implementing the settlement processes through the immediate overall settlement system.</li>\r\n 	<li>Providing interoperable systems according to the technical standards set by the CBI.</li>\r\n 	<li>Providing the CBI with the required measures and procedures according to the Money Anti-Laundry Laws.</li>\r\n 	<li>Providing appropriate measures to protect the security and confidentiality of information from any intrusion and to protect customers’ records and information based on the laws and international best practices, which shall be reviewed periodically.</li>\r\n 	<li>Determining the procedures that regulate the agents’ work and the selling points.</li>\r\n 	<li>Operating a payment system which is able to contribute to the effective and stable performance in the financial system, in line with the best international practices and standards related to the electronic payment systems, including the infrastructure principles of the financial market issued by the Bank for International Settlements.</li>\r\n 	<li>Providing electronic payment services which comply with the standards and instructions issued by the CBI.</li>\r\n 	<li>Adopting appropriate regulatory measures in order to reduce the risk of loss or lack of related funds or assets.</li>\r\n 	<li>Sending the electronic payment accounts data to the CBI separately from the consolidated balance sheet attached with it, in case that the Provider provides other activities than the electronic payment services.</li>\r\n 	<li>Providing the CBI with the required data and information related to the provided electronic payment services, and the compliance to the conditions imposed by the CBI.</li>\r\n 	<li>Determining the appropriate means which enable the CBI to directly enter into the used electronic system by the Provider for the supervision and control purposes.</li>\r\n 	<li>Preparing database to the customers.</li>\r\n</ol>\r\nIn addition to the above obligations, and if the Provider providing the electronic payment services through the mobile phone, he is obliged to:\r\n<ul>\r\n 	<li>Sign written agreements with mobile operators, and provide the CBI with copies of the same.</li>\r\n 	<li>The payment process to be inside Iraq, and by national currency.</li>\r\n 	<li>Settlement of accounts through the immediate overall settlement system, or doing the same through a guarantor bank in the absence of a settlement bank account.</li>\r\n</ul>\r\n<strong> How to do the electronic payment process? And what is the service contract in such process?   </strong>\r\n\r\nAccording to the Regulation, the electronic payment process can be done when the Provider informs the customer (in advance) by the maximum time to proceed with the payment process, in addition to provide the payee with the other necessary information such as the Identification Number, payer information, the paid amount (in the currency that used in electronic payment account where the amount deposited), exchange rate adopted by the Provider, Provider fees, and the amount entitlement date.\r\n\r\nThe electronic payment command considered as delivered to the Provider at the time when the latter received the payment directly or indirectly from the payer, and if the delivery time was in a day which is not within the Provider’s working days, so the command considered delivered to the Provider as the first command in the next working day.  In case that the Provider refused to proceed with the electronic payment process, he shall inform the customer with the reasons for rejection, and the corrective measures for the mistakes that led to the rejection.  The customer cannot withdraw the electronic payment command after the same delivered to the Provider.  The Provider fees should be deducted from the customer as soon as the money transfer process completed unless there is an agreement between the payer and the Provider that the latter fees can be deducted from the transferred amount before recording the same in the payee account provided that the total amount and the fees amount should both be clearly mentioned in the information provided to the payer.\r\n\r\nThe contracts of the electronic payment services are divided to “continuous service contracts” (contracts that organising continuous payment services to customers) and “single service contracts” (contracts that organising the use of the electronic payment service once).  Continuous service contracts should include the following:\r\n<ol>\r\n 	<li>The Provider name.</li>\r\n 	<li>The address and contact details of the Provider’s headquarter (main office), or the agent in case that the service done thorough a Provider’s agent.</li>\r\n 	<li>The Provider’s official information including the CBI license number and date.</li>\r\n 	<li>Description of the key features of the electronic payment service that is going to be served.</li>\r\n 	<li>The Provider fees.</li>\r\n 	<li>The information that to be provided by the customer.</li>\r\n 	<li>Information about protection measures and correction mechanisms in the event of an error.</li>\r\n 	<li>The contract duration.</li>\r\n 	<li>The maximum duration to implement the electronic payment services.</li>\r\n 	<li>Calculating methods of the interest, and the possible changes in the same</li>\r\n 	<li>Means of communication, which have been agreed upon between the parties, for the purpose of delivering the information or notices.</li>\r\n 	<li>Guarantees for any improper use of the service.</li>\r\n</ol>\r\nSingle service contracts should include the following:\r\n<ol>\r\n 	<li>Information about the payer, payee, paid amount, date, and time, and all should be recorded in the electronic payment special form.</li>\r\n 	<li>The maximum period of time to complete the process.</li>\r\n 	<li>The Provider fees.</li>\r\n 	<li>The exchange rate adopted by the Provider.</li>\r\n</ol>\r\nThe customer rights:\r\n\r\nThe customer has the right to know all of his rights and obligations. The Provider shall inform the customer in this regard, including placing a bulletin board at the entrance of the Provider’s workplace.  The customer has the right to be financially compensated in the case of delayed money transfers for the agreed period, and in the case of loss or lack of his money as a result of negligence or mismanagement.'),
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	(92684,5035,'lawUpdateArticleMonth','5015'),
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	(92686,5035,'content_description','At the beginning of April 2014, and according to Article 27 of the Electronic Signature & Electronic Transactions Law No. 78 of 2012...'),
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	(92688,5035,'pageSummary','At the beginning of April 2014, and according to Article 27 of the Electronic Signature &amp; Electronic Transactions Law No. 78 of 2012...'),
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	(92695,5035,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(92696,5035,'_yoast_wpseo_metadesc','At the beginning of April 2014, and according to Article 27 of the Electronic Signature & Electronic Transactions Law No. 78 of 2012...'),
	(92697,5036,'content','November 2014\r\n\r\n<hr />\r\n\r\n<strong>Introduction</strong>\r\n\r\nOne of the lesser known facts about Jordan is its highly developed microfinance market, which competes with other similar markets on an international scale. Microfinance is a relatively recent concept invented in the 1970s, that refers to the provision of banking services to financially underprivileged people by providing small loans, otherwise known as microcredit. Jordan has several active microfinance institutions (“MFIs”) operating within the country, and it has been said that the microfinance market is nearing saturation despite having penetrated Jordan only within the last two decades, a testament to its enormous popularity and demand. This financial instrument is also reputed to economically empower women, the majority of subscribers, with one statistic suggesting they constitute 75% of the market. Given its success it is no surprise that the Jordanian government is keen on developing the regulatory infrastructure further. This article will discuss two salient points in light of such developments: first, the new proposed legislation seeking to support and enhance the microfinance market and second, the issue of the prohibition of MFIs accepting deposits.\r\n\r\n<strong>The Current Situation</strong>\r\n\r\nCurrently there is no legal requirement to have a governmental licence in order to generally lend money, and, provided certain basic requirements are met, any permissible legal entity may engage in lending. Except for the fact that one must be a fully-regulated bank in order to accept deposits, the regulatory environment is relatively relaxed in this area, with several regulatory bodies used to govern the lending entities depending on the legal structure such entities  assume.  Accordingly, the nature of the legislation regulating this market is somewhat ad hoc and dispersed. The majority of MFIs are non-profit organisations and are regulated by the Ministry of Social Development, whilst profit-seeking MFIs are governed by the Companies Control Department at the Ministry of Industry and Trade. Furthermore, where the entity is a commercial bank, the Central Bank of Jordan (“CBJ”) itself steps in to oversee its microlending activities. The Ministry of Planning and International Cooperation (“MOPIC”) plays an important role in supporting the industry and requests MFIs to report certain indicators on a quarterly basis; however, MOPIC is not formally responsible for any kind of supervisory or regulatory activities. Thus, the problem with the current regime becomes apparent when trying to standardise all microfinancing activities under a consistent regulatory framework. There is no streamlined process for handling company registrations or treating tax, and financial reporting standards are not always adhered to by all MFIs. This is exacerbated by the fact that the market is fragmented by the various authoritative bodies which MFIs must report to according to their differing goals.\r\n\r\nIt is in light of the above issues that a proposed new bill, the Microfinance for Companies Regulation of 2014 (the “Regulation”), has been prepared. Once enacted, the Regulation will be the first legislation introduced into Jordan which directly and specifically governs microfinancing activities, and will hopefully bring all such activities within the ambit of a unified regulatory framework, spearheaded by the CBJ.\r\n\r\n<strong>The Proposed Legislation</strong>\r\n\r\nThe first major change in the new Regulation involves regulating the activity of lending from an MFI perspective. An an example, Article 3 of the Regulation specifies that no one is permitted to practise the activity of microfinancing unless licensed by the CBJ, and all companies engaged in such an activity must have the phrase ‘microfinance’ included in their trade name. As mentioned, it was previously the case that after having met some basic conditions, any permissible legal entity could lend money without needing to be licensed.\r\n\r\nThe new proposed legislation maintains the prohibition of MFIs taking deposits from its clients, pursuant to Article 10(b), in sharp contrast to several other microfinance markets which allow MFIs to accept deposits. This raises a serious question as to how commercial MFIs fund their operations and generate profit, or how non-governmental organisations (“NGOs”) survive without being able to use deposits to give out credit. As a result, the overwhelming majority of MFIs in Jordan currently depend on foreign subsidies, either in the form of direct loans or credit lines extended to MFIs, from a variety of donor agencies including the World Bank and USAID. Such funds are channelled through the CBJ itself. It seems that this will continue until a defined period when the CBJ feels that MFIs are meeting its required benchmarks. To a limited extent there is some equity funding being provided by local banks and international microfinance investment vehicles.\r\n\r\nAlthough it is still prohibited to accept deposits, the Regulation permits MFIs to engage in a range of other activities which were previously left undefined. Article 10 of the Regulation specifies that all MFIs will be allowed to conduct the following:\r\n<ol>\r\n 	<li>Grant loans;</li>\r\n 	<li>Provide finance in accordance with the Islamic Sharia, i.e. without interest (with further additional rules outlined in the Regulation);</li>\r\n 	<li>Act as an insurance agent;</li>\r\n 	<li>Act as an agent for mobile-payment services; and</li>\r\n 	<li>Any other activity the CBJ approves of.</li>\r\n</ol>\r\nThe Regulation also specifies which types of companies are allowed to practise the above activities, and they must be either a limited liability company, a private shareholding company or a branch of a foreign company which is already providing microfinance services (subject to the requirements of the CBJ). The minimum start-up capital for any MFI company is at least 2 million JOD, and Article 4 clarifies that such a company may choose to be either a profit-making or a non profit-making entity.\r\n\r\nAll companies seeking a licence to provide microfinancing services must submit the following documents and information to the CBJ:\r\n<ol>\r\n 	<li>Name of the company, memorandum and articles of association, address and number of branches;</li>\r\n 	<li>Founders’ names and nationality and the nature of their work, start-up capital amount, and proof of their financial solvency;</li>\r\n 	<li>Authorised share capital;</li>\r\n 	<li>Organisational structure and an undertaking signed by the founders to abide by the specific conditions and criteria set out in this Regulation which concern senior management;</li>\r\n 	<li>Estimated budgets for the first three years;</li>\r\n 	<li>Audited financial statements signed by a chartered accountant for every legal founder for the past 2 years, if available;</li>\r\n 	<li>Details of the activities and services of the company; and</li>\r\n 	<li>Any other condition, demand or document the CBJ may request or stipulate.</li>\r\n</ol>\r\nIf successful, the applying candidate will be granted a non-transferable licence of unlimited duration.\r\n\r\n<strong>The Need for MFIs to Accept Deposits</strong>\r\n\r\nIt is imperative that as the next milestone the CBJ focuses on adapting the Regulation to allow MFIs to accept deposits. This will ensure that all MFIs are provided with a vital source of stable income and facilitate the process of making them independently subsisting entities. It should also stimulate even greater interest in the microfinance market, by offering a variety of previously-unavailable products to potential customers. Thus, the enactment of the above Regulation is a conscientious step sure to be welcomed by all practitioners of the microfinancing industry. The next step should be the CBJ granting permission for MFIs to accept and, therefore, make use of deposits.'),
	(177030,5036,'core_values',''),
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	(92698,5036,'_content','field_59b649b5c8b2b'),
	(92699,5036,'lawUpdateArticleMonth','5015'),
	(92700,5036,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(92701,5036,'content_description','One of the lesser known facts about Jordan is its highly developed microfinance market, which competes with other similar markets on an international scale. '),
	(92702,5036,'_content_description','field_59b641c07f473'),
	(92703,5036,'pageSummary','One of the lesser known facts about Jordan is its highly developed microfinance market, which competes with other similar markets on an international scale.'),
	(92704,5036,'_pageSummary','field_59e59b307dec8'),
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	(92706,5036,'_currentURL','field_59d35123ab1e7'),
	(92707,5036,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Faris Abdel Hadi'),
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	(92709,5036,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','f.abdelhadi@tamimi.com'),
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	(92711,5036,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(92712,5036,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(92713,5036,'lawUpdateArticleNoWriters_1_lawUpdateAuthorName','Zaid Qatarneh'),
	(92714,5036,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(92715,5036,'lawUpdateArticleNoWriters_1_lawUpdateAuthorEmail','z.qatarneh@tamimi.com'),
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	(92717,5036,'lawUpdateArticleNoWriters_1_lawUpdateAuthorLocation',''),
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	(92719,5036,'lawUpdateArticleNoWriters','2'),
	(92720,5036,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(92721,5036,'_yoast_wpseo_metadesc','One of the lesser known facts about Jordan is its highly developed microfinance market, which competes with other similar markets on an international scale.'),
	(92722,5037,'content','November 2014\r\n\r\n<hr />\r\n\r\nA sector that has remained largely immune to economic fluctuation in Dubai has been the health sector, which, given the government of Dubai’s objective to make the Emirate a preferred destination for medical tourism, continues to experience robust growth. Concurrent with this growth, activities supporting the healthcare sector have been on the rise. One such supporting activity is providing consultancy services to the health sector.\r\n\r\nUnder the Department of Economic Development’s classification list, this activity is codified as 851909 and described as health planning and consultancies. Under this activity, corporate entities can provide consultation and feasibility studies to health facilities, including hospitals and clinics, to determine requirements of medical equipment and supplies, technical staff qualification, as well as providing suggestions on health facility engineering layout and setting up health quality assurance program to promote the service level of these health facilities.\r\n\r\nThis article discusses certain regulatory considerations being faced by investors wishing to provide Health Planning Consultancies in Dubai.\r\n\r\nIn mainland Dubai, the activity of Health Planning Consultancies can be licensed, but under the current policy of Department of Economic Development, issuance of such licence is restricted to sole establishments, civil partnership companies and branches of foreign companies set up under Federal Law No. 8 of 1984 Concerning Commercial Companies. A limited liability company, which is generally the preferred form of corporate entity, cannot currently be licensed to conduct the activity of Health Planning Consultancies.\r\n\r\nThis restriction poses a challenge for an investor who wishes to conduct the activity of Health Planning Consultancies in the UAE through a limited liability company. To add to this complexity, none of the free zones, other than Dubai Healthcare City, license an activity as wide as activity number 851909. Therefore, as the current regulatory practices stand, there are no other options available for a prospective investor who wishes to provide the services under Health Planning Consultancies. Practical considerations such as lack of office space or preference for another free zone can make provision of Health Planning Consultancies through a limited liability company virtually impossible.\r\n\r\nRecently, a party approached Dubai Silicon Oasis, a free zone in Dubai, with a proposal to allow the licensing of Health Planning Consultancies as described as activity number 851909. Dubai Silicon Oasis agreed to license this activity, subject to an approval from the Dubai Health Authority. Given the nature of the activity of Health Planning Consultancies, the premise of the proposal was that an approval from Dubai Health Authority would not be required, as under this activity a corporate entity does not provide any medical or health services.\r\n\r\nDubai Silicon Oasis and the Dubai Health Authority, initially showed reluctance, however, in successive deliberations, both Dubai Silicon Oasis and Dubai Health Authority accepted the view that no such approval from the Dubai Health Authority would be required for setting up a free zone limited liability company in Dubai with Silicon Oasis to conduct the activity of health planning and consultancies.\r\n\r\nBased on this, a corporate entity can now be set up in the free zone of Dubai Silicon Oasis as a free zone limited liability company with the licensed activity of Health Planning Consultancies, without the approval of the Dubai Health Authority. The advantages of setting up in Dubai Silicon Oasis are as follows:\r\n<ol>\r\n 	<li>The activity of health planning and consultancies can now be licensed;</li>\r\n 	<li>Permitted 100% ownership of the free zone company by a foreign investor;</li>\r\n 	<li>Dubai Silicon Oasis is relatively inexpensive compared to other free zones in Dubai; and</li>\r\n 	<li>Dubai Silicon Oasis, like other free zones in the United Arab Emirates, provides certain benefits to the investors, including:</li>\r\n 	<li>No requirement for a UAE national sponsor / partner;</li>\r\n</ol>\r\n<ul>\r\n 	<li>No imposition of corporate tax;</li>\r\n 	<li>Import / export duties exemptions;</li>\r\n 	<li>No restriction on repatriation of capital or profits.</li>\r\n</ul>\r\n&nbsp;\r\n\r\nTo ensure that the free zone company in Dubai Silicon Oasis can be set up for the activity of health planning consultancies and expand into mainland Dubai (so that it can bid for government projects, etc.), the free zone company will be able to set up a branch office in mainland Dubai. In this regard, discussions with the Department of Economic Development have confirmed that it will have no objection to licensing such a branch as long as a no-objection letter from Dubai Silicon Oasis is obtained. A benefit of this structure is that it will facilitate setting up branches and subsidiaries in mainland Dubai and outside of the UAE, subject to the laws of the local jurisdiction.\r\n\r\nThis structure should support the objective of Dubai government to make the Emirate a destination of choice for health related services by facilitating experts providing health related services and services supporting the health sector to set up a limited liability company in Dubai which is 100% owned by foreign investors.'),
	(176996,5037,'core_values',''),
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	(92723,5037,'_content','field_59b649b5c8b2b'),
	(92724,5037,'lawUpdateArticleMonth','5015'),
	(92725,5037,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(92726,5037,'content_description','A sector that has remained largely immune to economic fluctuation in Dubai has been the health sector, which, given the government...'),
	(92727,5037,'_content_description','field_59b641c07f473'),
	(92728,5037,'pageSummary','A sector that has remained largely immune to economic fluctuation in Dubai has been the health sector, which, given the government...'),
	(92729,5037,'_pageSummary','field_59e59b307dec8'),
	(92730,5037,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-8/november-5/health-planning-and-consultancies-in-dubai.html'),
	(92731,5037,'_currentURL','field_59d35123ab1e7'),
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	(92735,5037,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(92736,5037,'_yoast_wpseo_metadesc','A sector that has remained largely immune to economic fluctuation in Dubai has been the health sector, which, given the government...'),
	(92737,5038,'content','November 2014\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">Cloud computing in all its various forms is now the ideal model for a wide range of sectors (including government entities) in view of what it offers in terms of improved data security features, reduced operating costs, reliability, infrastructure, high levels of responsiveness to user needs in addition to its flexible financial model. Regardless of where the data is held (i.e. whether on site, within the jurisdiction, or elsewhere in the world), data security and privacy remains the biggest challenges in earning public confidence in cloud computing. For these reasons, many countries have taken steps to introduce rules and legislation to help secure the private data of their citizens. The International Organization for Standardization (ISO) has issued ISO 27018, the first-ever standard for cloud data protection. The key features of ISO 27018 are presented below.</p>\r\n<p class=\"Default\"><strong>The new standard, ISO 27018, will strengthen data privacy by adding key protections for sensitive customer information stored in the cloud. </strong>Published in July 2014 by the International Organization for Standardization, ISO 2708 sets forth guidelines for cloud service providers concerning Personally Identifiable Information (“PII”). The standard was developed in consultation with contributors from 14 countries and 5 international organizations.<strong> </strong></p>\r\n<p class=\"Default\"><strong>Modernizing Security &amp; Privacy in the Cloud </strong></p>\r\n<p class=\"Default\">Before ISO 27018, there wasn\'t a robust, internationally-recognized benchmark for protecting cloud stored PII. The well-established ISO/IEC 27001:2005 standard provides a flexible system for identifying overall information security risks and choosing controls to address them. As an addendum to ISO 27001, ISO 27018 provides specificity to cloud service providers for assessment of risks and implementation of state-of-the-art controls for protection of PII stored in the cloud.<strong> </strong></p>\r\n<p class=\"Default\"><strong>Key Elements of ISO 27018 and the Benefit to Customers </strong></p>\r\n<p class=\"Default\">Cloud service providers adopting the new standard must operate under a stronger, industry-wide framework of key principles:</p>\r\n<p class=\"Default\">• <strong>Consent</strong>: As part of ISO 27018, cloud providers must not use the data they receive for purposes of their own advertising and marketing unless expressly instructed to do so by the customer. Moreover, it must be possible for a customer to use the service without submitting to such use of its personal data for advertising or marketing.</p>\r\n<p class=\"Default\">• <strong>Transparency</strong>: Cloud providers must inform customers where their data resides and make clear commitments about how that data is handled.</p>\r\n<p class=\"Default\">• <strong>Accountability</strong>: The standard asserts that any breach of information security should trigger a review by the service provider to determine if there was any loss, disclosure, or alteration of PII.</p>\r\n<p class=\"Default\">• <strong>Communication</strong>: In case of a breach, cloud providers should notify customers and regulators, and keep clear records about the incident and the response to it.</p>\r\n<p class=\"Default\">• <strong>Independent Audit</strong>: A successful third-party audit (from one of the big fours) of a cloud service’s compliance with 27018 documents the service’s conformance with the standard, and can then be relied upon by the customer to support their own regulatory obligations.</p>\r\n<p class=\"Default\">• <strong>Control</strong>: Customers have explicit control of how their information is used.</p>\r\n<p class=\"Default\"><strong>Streamlined Standard </strong></p>\r\n<p class=\"MsoNormal\">ISO 27018 standard creates a more streamlined system for adhering to regulations set by data protection authorities around the world. Since the standard incorporates the input of multiple regional regulators, embracing the standard will help demonstrate adherence to the requirements of any individual Data Protection Authority’s requirements. The ISO 27018 standard brings a degree of uniformity to the industry, and adds needed protections to improve PII security and compliance in an increasingly cloud-based information environment.</p>\r\n<p class=\"MsoNormal\"><strong>Summary</strong></p>\r\n<p class=\"MsoNormal\">ISO 27018 specifies guidelines based on other international standards (such as EU standards) for cloud data protection. This should enhance overall confidence in cloud computing adoption worldwide. ISO 27018 manages to address the numerous challenges of data protection in the cloud while achieving the intricate balance between a user’s fundamental rights and the requirements to deliver services in a cloud computing model based on transparency (i.e. location of the data, methods of deletion as well as data sovereignty).</p>\r\n<p class=\"MsoNormal\">ISO 27018 is already generating positive feedback as some cloud service providers have already commenced the requisite steps for adopting these new standards and are expected to get certified very soon.  We anticipate an increasing number of cloud service providers to follow in their footsteps.</p>'),
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	(92739,5038,'lawUpdateArticleMonth','5015'),
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	(92762,5041,'content','December 2014 - January 2015\r\n\r\n<hr />\r\n\r\nThe courts have highlighted this attribute in holding that arbitrators are not bound to follow all the procedural rules applicable to judges apart from the basic rules of affording the parties a fair opportunity to present evidence and arguments in their cases and compliance with certain mandatory rules and public policy.\r\n\r\nDespite the great strides that have been made and continue to be made over the last two decades in the region to accommodate international arbitration, in terms of the regional courts’ support of the flexibility of arbitrations the wheels of progress continue to turn slowly. This is due in part to a lack of modern legislation that can keep pace with the latest changes in international arbitration systems, and to the hindrance posed by judicial systems which sometime issue rulings on matters of international arbitration that often raise more questions than they resolve.\r\n\r\nIn this article we will examine two contentious issues that currently arise in arbitrations conducted in the UAE and that are subject to the UAE Civil Procedure Law.  One of those issues is the place where the tribunal signs an arbitral award and the consequences of failing to sign a domestic arbitral award in the UAE, and the other relates to the failure to sign all the pages of an arbitration award. <strong> </strong>\r\n\r\n<strong>1. Place of Signature of Domestic Arbitral Awards: </strong>\r\n\r\nArticle 212(4) of the Federal Civil Procedure Law states:\r\n\r\n<em>“The arbitral award shall be issued in the UAE; otherwise the rules pertaining to foreign arbitral awards shall apply.”</em>\r\n\r\nThe objective of the law is clear: to make a distinction between the rules which apply to domestic awards and those which apply to foreign awards, particularly at the stage of executing the award. While Article 212 affords parties the freedom to agree on the procedure to be followed by the arbitrator, the prospect of a court applying a different set of rules simply because of where the Tribunal signed the award at the end of the process can cause concern.\r\n\r\nWhat if an arbitrator or arbitral tribunal or any of its members signed a domestic arbitral award outside the UAE? Given the lack of explicit precedent on this point, there are two possibilities:\r\n\r\n<strong>First Possibility: An Invalid Arbitral Award</strong>\r\n\r\nIt can be argued that signing an award outside of the UAE in circumstances where the parties have agreed to the UAE being the legal seat, will invalidate the award. This is because by signing the award outside of the UAE the tribunal has essentially moved the legal place outside of the UAE, in contravention of the parties’ agreement. The parties wanted a UAE award, but now they have a foreign award.\r\n\r\nThis is not just a theoretical problem. The legal place of the arbitration is also the only jurisdiction that can annul the award. By agreeing to the UAE as the seat, the parties are agreeing to the UAE Courts having the power to annul the award. This will be frustrated if the award is signed outside of the jurisdiction because the UAE courts may no longer treat the award as a domestic award, and would refuse any application to annul. The result is an award which cannot be annulled in any jurisdiction.\r\n\r\n<strong>Second Possibility: A Valid Domestic Arbitral Award Signed Outside the Jurisdiction</strong>\r\n\r\nIt can be argued that the agreement between the parties should take precedence, so that even if the award was signed outside of the UAE, it should still be considered a domestic award under UAE, notwithstanding article 212(4). Furthermore, the law only applies if the award is ‘issued’ abroad, it does not use the word ‘signed’, so it can be argued that where it is signed is immaterial.\r\n\r\n<strong>Third Possibility: A foreign award</strong>\r\n\r\nArticle 212(4) states that if an award is signed outside of the UAE, ‘the rules pertaining to foreign arbitral awards shall apply’. The recognition and enforcement of foreign arbitral awards in the UAE is governed by the New York Convention, whose rules are arguably easier to comply with than those that apply to domestic arbitral awards.\r\n\r\nThis third possibility would seem to be the most likely result given the way article 212(4) is drafted. Even though it would result it in the New York Convention being applied (which in some ways is preferable), the advice remains that in order to avoid any risks parties should ensure that domestic awards are signed in the UAE, even if that means the arbitrator or chairman must travel to specifically for this purpose.\r\n\r\n<strong>2. The Signing of Arbitral Awards by Arbitrators</strong>\r\n\r\nArticle 212(5) of the Federal Civil Procedure Law states:\r\n\r\n<em>“The arbitral award shall be made by a majority and shall be given in writing along with any dissenting opinion and shall, in particular, include a copy of the arbitration agreement, a summary of the arguments and documents presented by the parties, the grounds and context of the award, the date and place of issue of the award and the signatures of the arbitrators. Should one or more arbitrators refuse to sign the award, this must be noted in the award; the award shall be valid if signed by a majority of the arbitrators.”</em>\r\n\r\nA procedural issue that often arises in connection with this provision is whether arbitrators must sign all pages or only the last page of the arbitral award for it to be valid.\r\n\r\nAlthough Article 212(5) is generally worded and prescribes no specific rules as to the form or place of signatures on arbitral awards and, moreover, there is no requirement under the rules of arbitration institutions in the UAE  that all pages of an arbitral award be signed, varied views have been propounded on the matter by the UAE Courts of Cassation. The Dubai Court of Cassation has held, in Commercial Appeal No.156/2009 (dated 27 October 2009) that an arbitrator’s signature does not have to be on all the pages of the award as long as it appears on the page that contains the decision and part of the reasoning:\r\n\r\n<em>“It is well settled in line with Article 212(5) of the Civil Procedures Law that one of the essential requirements of an arbitral award is the signature, on the award, of the arbitrators who considered the arbitration matter given that, from a legal point of view, such signature is the only evidence of the existence of such award, without which it cannot be attributed to the arbitrators. An arbitral award covers both the reasoning and decision of the award. Therefore, the arbitrators should sign both the reasoning and decision of the award, failing which the award is invalid. However, an exception to the above rule is when the reasoning of the award, or parts thereof, is continued on the page where the decision and the signatures of the arbitrators appear in which case the signature shall be deemed to cover the reasoning of the award, thereby fulfilling the legislator’s objective of requiring the arbitrators’ signatures on the arbitral award. On the other hand, if the reasoning of the award appears on pages separate from the page on which the decision appears, all pages of the award, including the last page where the decision appears, should be signed by the arbitrators who issued the award; otherwise the award is invalid as a matter of public policy and may be contested as such for the first time before this Court.”</em>\r\n\r\nThe Abu Dhabi Court of Cassation however only requires arbitrators to sign the last page, irrespective of whether it contains the decision and part of the reasoning or only the decision.  In Abu Dhabi Court of Cassation, Commercial Appeal No. 834/2010 (dated 30 December 2010, it was held that:\r\n\r\n<em>“It is well settled and held by the Court of Cassation, that according to Article 212 of the Civil Procedures Law, an arbitrator is not bound by civil procedure followed in court cases and must follow the procedures set out in the part dealing with arbitration and any specific procedures that are agreed upon by the parties. The arbitrator must also respect rights of due process by allowing each side to present his requests and arguments, prove his claims, refute the other side’s claims, and bring proceedings against adversaries. The test for setting aside an arbitral award for breach of the rules of civil procedure is deviation from the basic rules of litigation procedure that uphold the principle of equality of arms, including the fundamental right to adversarial proceedings, and contravention of the procedure agreed upon by the parties in this regard. These procedures do not include a requirement to sign all pages of the arbitral award for the rules of civil procedure themselves only require the signature of the head of the circuit on the last page of the award and Article 131  of the Civil Procedure Law is devoid of any requirement that all pages have to be signed.”     </em>\r\n\r\n<strong>Conclusion</strong>\r\n\r\nWith different viewpoints existing on the issue of signing arbitral awards and the place of signature in relation to domestic arbitration, several considerations need to be taken into account to avoid arbitral awards being set aside for the procedural reasons described earlier, regardless of whether the arbitration in question is institutional or ad hoc. At the end of this brief analysis we recommend the following:\r\n<ul>\r\n 	<li>Parties should ensure that domestic arbitral awards are signed in the UAE to avoid having them set aside for being signed outside the jurisdiction;</li>\r\n 	<li>All pages of an arbitral award should be signed to safeguard against unexpected and inconsistent court rulings requiring signature on all pages or on pages where the reasoning or part of it appears.</li>\r\n</ul>'),
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	(92781,5042,'content','December 2014 - January 2015\r\n\r\n<hr />\r\n\r\nThe Jordan Football Association (“JFA”) is the official body governing football in Jordan, and consists of various committees that oversee all football tournaments and activities. Each committee has a specific function, which ensures the smooth running of all football related affairs. One such committee is the Jordan Football Association Disciplinary Committee (the “Disciplinary Committee”).\r\n\r\n<strong>The Disciplinary Committee</strong>\r\n\r\nAs its name suggests, the Disciplinary Committee is an independent quasi-judicial tribunal, composed of a body of officials responsible for regulating Jordanian football on the playing field, and investigating complaints referred to it in particular. The President and Vice-President must both be lawyers and the committee must also include experts specialized in football. All officials in the Disciplinary Committee work pro bono, and with a great deal of passion. In my role and capacity as President of the Disciplinary Committee, I have seen first-hand the incredible results of the Disciplinary Committee’s efforts, and how this has transformed not just the local teams, but the nature of Jordanian football into one of the most professionally regulated sports in the Middle East.\r\n\r\nAs an illustration of this point, I will provide the following example. The Disciplinary Committee relies on the Pubic Instructions for the 2015 Season (the “Instructions”), which is modelled after FIFA’s own regulations, in order to guide committee officials in every area relevant to their task. In the heat of the moment, if a player were to breach ethical conduct and act in an unsportsmanlike manner by swearing or spitting at his rival opponent, the Disciplinary Committee official would turn to the Instructions to administer the appropriate penalties. It should be mentioned, however, that the Disciplinary Committee bases its decision on the referee’s reports, after having thoroughly scrutinized them.  Furthermore, the penalties do not only concern offending other players; almost anyone, be it the club itself, the referee, club officials, the game audience, and so on may be subjected to penalties.\r\n\r\nIt is thus in such a manner that the Disciplinary Committee helped form the bedrock of Jordanian professionalism.\r\n\r\n<strong>CAS – Court of Arbitration for Sport</strong>\r\n\r\nAlthough the work undertaken by the Disciplinary Committee was an important and formative milestone in establishing professionalism in Jordanian football, it is clear that the journey is not over yet and there is still a long way to go. The next phase involves creating an official body specialized in dealing with all forms of judicial disputes related to football, which will essentially be an arbitration court modelled after the Court of Arbitration for Sport (“CAS”). Whilst the headquarters of CAS are located in Switzerland, its courts are located in New York, Sydney, Lausanne, and more recently Abu Dhabi, with temporary courts set up in current Olympic host cities.\r\n\r\nCAS is an institution independent of any sports organization, which provides for services in order to facilitate the settlement of sports-related disputes through arbitration or mediation by means of procedural rules adapted to the specific needs of the sports world. The kinds of disputes and conflicts referred to CAS are wide-ranging and not simply restricted to disciplinary problems: they include sponsorship disputes, the eligibility of a particular athlete in accordance with a sport’s constitution, as well as the resolution of disagreements concerning competition results. It should be noted that we are currently in the process of researching CAS, and looking into the possibility of using it as a foundation for establishing a similar court in Jordan. Such a task is not inconceivable, given that we have a joint committee already set up between the members of the JFA and the Olympic Committee.\r\n\r\nThe advantages of establishing such a court for Jordan would be numerous, including the above-mentioned wide range of issues that such a court would hear, given that the Disciplinary Committee cannot hear or investigate this broad range of conflicts. Unlike a traditional civil court, CAS acquires its jurisdiction in a particular case only through the mutual consent of the parties involved. This procedure, known as arbitration, is designed to create a resolution binding on all parties (there are very limited rights of appeal permitted from a CAS arbitration). The chief advantage of an arbitration conducted by the CAS is its expertise in sports-related disciplines (there are more than 300 arbitrators from 87 countries qualified to hear CAS disputes); a typical civil judge will not likely possess such sports-specific knowledge. CAS arbitration is also generally a much more expeditious proceeding, with the cases heard and determined within a few months, at a lower legal cost to the participants. If Jordan was to follow the above model, first starting with football, it would certainly be establishing a pioneering effort in creating the first specific sports court in the Levant region, alongside Abu Dhabi which has already set up its own CAS, the first of its kind in the Gulf. Abu Dhabi is also the second chamber for CAS outside of Switzerland. The UAE is further considering the establishment of another ‘Emirates Sports Arbitration Centre’. Other countries are sure to follow in such footsteps, progressively expanding the range of sports that are dealt with.\r\n\r\n<strong>Specific Features of CAS</strong>\r\n\r\nHaving given a preliminary outline of CAS, and a possible idea of what Jordan could potentially be pursuing in the near future, it is worth briefly investigating the nature of such an arbitration court. Although the subject matter of sports is as far away as anything from what a traditional corporate lawyer might conceive, the procedural and substantive characteristics of CAS very much resemble the arbitration courts as we know them. A good example of one such salient feature is the fact that, like the majority of arbitration cases, the CAS proceedings are confidential and the parties, arbitrators and CAS staff are obliged not to disclose any information connected with the dispute. Similarly, the parties are free to agree on the law applicable to the merits of the dispute. Failing such agreement, Swiss law will apply.\r\n\r\nThe procedure itself is quite straightforward. Once the arbitration request or statement of appeal is filed, the respondent submits a reply to the CAS. After any additional exchange of statements of case, the parties are summoned to a hearing to be heard, produce evidence and argue their case. The parties may choose to appear alone, or they may be represented or assisted at CAS hearings by a person of their choice, not necessarily a lawyer. The final award is communicated to the parties some weeks later, unless it is pronounced the same day (under the appeals procedure). The overall process might last somewhere between 6 – 12 months, depending on the complexity of the case and whether any appeals are submitted or not, and as mentioned in the previous section, the award pronounced by CAS is final and binding on the parties from the moment it is communicated. As can be seen, the reasonable level of flexibility offered by the CAS system, and its resemblance to norms and principles already well established within international arbitration law, is what makes it such a popular and commercially-attractive alternative to the normal litigation route.\r\n\r\n<em>Kais Zayadin is an Associate in the Banking &amp; Finance practice in the firm’s Jordan office and a member of Al Tamimi &amp; Company’s dedicated Sports Law practice.  Kais has experience in drafting various types of sports related sponsorship agreements and has recently reviewed the contract of the Head Coach of the Jordanian National A team on behalf of the Jordanian Football Federation.  Kais is currently Head of the Disciplinary Committee at the Jordanian Football Federation, as well as more recently, Head of the Disciplinary Committee at the West Asia Football Federation (Women).  Additionally, he is a member of the Committee tasked with the establishment of a sports arbitral court in Jordan.</em>'),
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	(92796,5043,'content','December 2014 - January 2015\r\n\r\n<hr />\r\n\r\nMajor companies and public officials, it seemed, were all within the reach of the prosecutor in a major drive by the Sultanate to eradicate what is seen as an ill of any developed society.  There is a strong suggestion that more prosecutions are forthcoming.\r\n\r\nIn this article we look at what is meant by bribery, the standards imposed by the international community on countries like Oman and how private sector companies can protect themselves in this area of their business.\r\n\r\n<strong>What is bribery?</strong>\r\n\r\nThe concept of a bribe is generally well understood.  In its basic form, bribery involves a payment made to a person in a position of authority to entice that person to behave in a way which will place the payer in a favourable position.\r\n\r\nHigh profile cases involving senior officials of private companies in Oman paying bribes of between OMR200,000 to OMR400,000 (approximately USD520,000 to USD1.03 million) to public officials are well covered in the media but it is the fines and jail terms which have attracted heightened attention.  Fines imposed have been around the OMR1 million (USD2.59 million) mark, with jail terms ranging from 3 to 23 years.  These are aggressive signs on the part of the Courts that corruption will not be tolerated in any form and will be punished severely.  While it may appear from the above figures that only substantial improper payments are likely to attract punishment, there is no minimum amount to classify a corrupt payment as a bribe.\r\n\r\nThe law on bribery and corruption in Oman rests with the Penal Code, which was drawn up in 1394 AH (1974 AD).  Bribery is covered by Chapter II, Book II of the Penal Code but deals only with the bribery of public officials.  Although the relevant Penal Code provisions focus on the crime from the perspective of the party being bribed, the person bribing a public official can be held criminally liable under the accomplice provisions in the Penal Code. The sentencing options for bribery under the Penal Code include imprisonment from three months to ten years, a fine equivalent to the amount of the bribe and dismissal from public office. Attempted bribery attracts imprisonment for a period of between one month and two years.\r\n\r\n<strong>The United Nations Convention against Corruption</strong>\r\n\r\nIn January 2014, Oman joined over 120 other countries by acceding to the United Nations Convention Against Corruption (“UNCAC”). UNCAC gives the following definitions of private and public sector bribery:\r\n\r\n“The promise, offering or giving, directly or indirectly, of an undue advantage to any person who directs or works, in any capacity, for a private sector entity, for the person…in order that he or she, in breach of his or her duties, act or refrain from acting.”\r\n\r\n“The promise, offering or giving, to a public official, directly or indirectly, of an undue advantage, for the official himself or herself or another person or entity, in order that the official act or refrain from acting in the exercise of his or her official duties.”\r\n\r\nUsing an agent to make the payment is also outlawed by the words “directly or indirectly” and it is therefore important for businesses that make use of agents to ensure that those agents are not involved in corrupt practices.\r\n\r\nAs with the Penal Code, there is no requirement under UNCAC for the bribe to be above a specific monetary level - a bribe is a bribe. It is the nature and consequences of corruption that are being targeted and countries that accede to UNCAC are required to criminalise such practices.\r\n\r\n<strong>What has Oman committed to do under UNCAC?</strong>\r\n\r\nUNCAC imposes obligations, on those countries that have ratified it, to take measures to prevent corruption involving the private and public sectors and to provide effective and proportionate penalties for failure to comply with those measures.  Oman must ensure that private enterprises have sufficient internal auditing controls to assist in “preventing and detecting” acts of corruption and that the accounts and financial statements of such private enterprises are subject to appropriate auditing and certification procedures.\r\n\r\nOther than through the recent criminal prosecutions, it is not clear how this obligation has been communicated to the private sector community in Oman.  Given the length of time since the bribery provisions in the Penal Code were enacted and the relatively recent requirements under UNCAC’s uncompromising stance on corruption, legislative changes in Oman on bribery and corruption are likely, particularly to criminalise corporate bribery.\r\n\r\n<strong>What are the obligations of a private sector business?</strong>\r\n\r\nBest practice, in addition to the threat of prosecution for acting as an accomplice in the bribery of a public official, requires businesses operating in Oman to have proportionate systems and processes in place to prevent and detect corruption.  Certain industry sectors are clearly more prone to bribery and corruption and may be exposed to any or all of the following:\r\n\r\ninflating the true cost of a contract value on an infrastructure project, with a portion of such contract value being diverted away from the project;\r\n\r\npayments made to “grease the wheels” (often referred to as facilitation payments);\r\n\r\npayments made to “level the playing field” in a competitive situation; and\r\n\r\na requirement to pay a certain sum to obtain the benefit of a contractual right e.g. an extension of time for delays not caused by that party or simply, upon achieving a contractual milestone.\r\n\r\nWhile any of the above may be commonplace or necessary in certain sectors or parts of the world, UNCAC imposes an obligation on Oman to eradicate these practices.  Businesses in these sectors are likely to encounter a dilemma of being uncompetitive if they want to prioritise compliance with the law.  Non-compliance however is likely to result in severe criminal sanctions coupled with catastrophic reputational damage.\r\n\r\n<strong>How can I minimise the risk to my business?</strong>\r\n\r\nAs part of any risk assessment for a private sector entity, it would be advisable to adopt proportionate systems and processes.  Proportionality is by reference to the size of the business, the sector and the countries in which it conducts business.\r\n\r\n<strong>Anti-bribery and corruption policy</strong>\r\n\r\nBusinesses should consider committing to a written anti-bribery and corruption policy.  Commitment to anti-corruption and bribery must start from board level and all employees should be required to adhere to it with appropriate disciplinary procedures for those who do not.  The policy does not need to be long but must convey the message that the board of directors does not tolerate bribery in any form.\r\n\r\n<strong>Ethics and compliance manager</strong>\r\n\r\nA senior executive, with direct access to the board, should be appointed to oversee compliance with the policy.  This person would be responsible for educating employees and senior members on the business’s obligations under local and relevant international laws.\r\n\r\n<strong>Compliance programmes</strong>\r\n\r\nA business may consider adopting policies on giving gifts and corporate hospitality.  Where such practice is not commonplace the policy could simply state that the practices are only acceptable with written permission from the board of directors.\r\n\r\n<strong>Due diligence on third parties and general risk assessment</strong>\r\n\r\nSufficient due diligence should be carried out on all counterparties, business partners, agents and suppliers to assess their likely risk to the business.  Due diligence could involve reinforcing existing “know your client” procedures, the use of third party research and intelligence services, obtaining references and requesting the counterparty’s anti-bribery policy.\r\n\r\n<strong>Risk assessment</strong>\r\n\r\nCertain countries are notorious for their relaxed approach to preventing corruption.  Enhanced procedures should be in place if a business conducts activities in those countries.  Certain types of high risk transactions, for example relating to public procurement, should be covered by appropriate procedures.\r\n\r\n<strong>Financial and accounting procedures</strong>\r\n\r\nBusinesses should have systems in place to ensure the maintenance of fair and accurate books, records and accounts to ensure that they cannot be used for the purpose of bribery or hiding bribery.  Accounts must be transparent and entries accurate.\r\n\r\n<strong>Reporting procedure and transparency</strong>\r\n\r\nBusinesses may wish to encourage the following:\r\n<ul>\r\n 	<li>reporting incidents of bribery;</li>\r\n 	<li>recording corporate hospitality and promotional expenditure;</li>\r\n 	<li>recording payments made to third parties; and</li>\r\n 	<li>management of all suspected incidents of bribery, including internal investigations and public disclosure.</li>\r\n</ul>\r\n<strong>Legal documentation with counterparties</strong>\r\n\r\nContracts with third parties should be capable of being stress tested.  For example, the proportionality of services rendered against fees paid, destination of fees paid and whether anti-corruption covenants were sought (especially from partners to a joint venture).  Termination should be an option if corruption is discovered.\r\n\r\n<strong>The future</strong>\r\n\r\nThe business community, governmental and non-governmental organisations have all worked together to bring anti-corruption measures into sharp focus and highlight the problems that corruption causes. UNCAC requires countries like Oman to reinforce legislation and implement measures to ensure that corruption is completely eradicated from society.  This is likely to lead to even more aggressive action by prosecutors around the world; the risk of criminal prosecution is likely to remain high for businesses which do not take action to mitigate this risk.'),
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	(92823,5044,'content','December 2014 - January 2015\r\n\r\n<hr />\r\n\r\nThe evolution of social media and communication has had a tremendous effect on all professions and industries, creating better performance, access to the market and better communication.  Productivity, efficiency and earnings have improved across the board. For the legal profession it has allowed law firms to perform better, to build a virtual library, to communicate with clients faster and deliver agreements and advices within an exceptional timeframe. The use of the internet, electronic communication and mobile phones have made communication between lawyers and clients easier, allowing lawyers to be available 18 hours a day and facilitating the delivery of documents to clients within seconds. Communication between courts, arbitrators and clerks has reached an unprecedented stage with electronic filing becoming the standard.\r\n\r\nMost of the changes relate to the tools used or the services provided. Law firms still operate in the same way, just with less faxes, more emails, and fewer physical libraries. All these changes seem to be the tip of the iceberg. The growth that companies such as Google, Apple, Samsung and Microsoft are experiencing keeps the momentum of change going, with more and more aspects of life become virtual and mobile handsets and tablets becoming more important than laptops and desktops. Voice recognition, dictation and video-conferencing will soon be dominating the style of doing business in the future and lawyers and law firms need to adapt to this quickly.\r\n\r\nSimply having an account on Twitter, Linkedin, Youtube, Facebook and Instagram is not good enough and will not provide the presence in social media that law firms are seeking. Ask the new generation and you will realise that these tools need to be the vehicle for communicating with clients, the industry and public. These tools need to be the everyday lifestyle of the new generation lawyers in providing services, communicating with the clients and marketing. To crystallize the idea just look around and see who were the big players in e-commerce, media and the internet ten years ago. Who are the players today? If they are the same it is because they have invested in technology, innovation, media and fast communication through mobile phones and technology. The same is likely to apply to the entire business community whether you are delivering packages, a retailer or providing legal services. If you don’t have the technology at least be part of it and adapt to it.\r\n\r\nQuality legal advice will always be needed, and the expertise of the professional will always count. However there are a number of good lawyers and what will matter in the future is how the expert reaches out to his clients and the style in which he will communicate with them. This not only matters for better service and faster communication, but because future generations will want to use more modern methods of communication. It could be in the style of holding a conference meeting, accepting payments via mobile or arranging for notarization of documents electronically. The biggest challenge that lawyers and other professionals will face is not only adapting but in keeping up. Those who will succeed and become leaders are those who will embrace and change and totally integrate into the system. It is therefore important to make technology, e-commerce, media and mobile communication part of your culture and daily activity blended with a lot of innovation to become one of the players, rather than someone who would like to be trained to play.\r\n\r\nLaw firms need to change, adjust and to benchmark their practice to other industries and the culture and habits of the younger generation. Today mobile and social media may be considered to be the fun game of the young generation but in the very near future it will be the habit of the future generation and the culture of the business environment. It is not surprising that major IT companies are investing billions of dollars in acquiring other IT companies who may not be the core of their business, as they are realising that it is the future to be able to not only provide IT service, but also to penetrate social media and mobile services. Law firms and lawyers need to be able to engage themselves with social media and communications at an early stage and be prepared to be part of this future. If they do not they risk losing clients. Services need to be provided at the push of a button without compromising on the quality, as one cannot be traded for the other.'),
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	(92317,5017,'content','November 2014\r\n\r\n<hr />\r\n\r\nTo the casual observer, such formalities may seem minor and insignificant, but they may have a serious impact on the enforceability of the contract.\r\n\r\nThis article discusses a recent judgment highlighting the importance of the parties’ signature to an arbitral agreement and the problems that may occur where the contract seeks to incorporate terms by reference to a separate document which has not been signed.\r\n\r\nCASE FACTS\r\n\r\nThe Claimant entered into a Sale and Purchase Agreement (“SPA”) with the Defendant to purchase a residential unit that was to be handed over in December 2012.\r\n\r\nThe SPA was composed of two parts: the first part was referred to as the “Signed Particulars” and the second part was referred to as “Standard Terms and Conditions”. The first part was signed by the parties, whereas the second part - which included the arbitration clause – was not signed.\r\n\r\nIn early 2012, the Claimant initiated proceedings against the Defendant before the Abu Dhabi Court of First Instance. The Claimant sought a refund on the basis that the Defendant had not commenced construction and would inevitably fail to deliver the unit by the end of the year.\r\n\r\nCOURT OF FIRST INSTANCE\r\n\r\nThe Defendant objected to the Court’s jurisdiction and requested that the dispute be referred to arbitration. The Defendant argued that:\r\n<ol>\r\n 	<li>In the first part of the SPA – that was signed by the parties – there is a clause stating that the Claimant has read and received the full Standard Terms and Conditions, which formed an integral part of the entire agreement. The arbitration clause had therefore been incorporated by reference.</li>\r\n 	<li>No objection was made by the Claimant nor did it deny the Defendant’s argument that there was an existing arbitration clause. In fact, the Claimant submitted a closing statement requesting the appointment of a sole arbitrator in line with the provisions of the SPA (although this was submitted after the Court had closed the hearing).</li>\r\n</ol>\r\nThe Court however did not accept this. The Court found that the second part of the SPA had no binding effect because it had not been signed, and consequently there was no proof that the parties had agreed to refer any disputes to arbitration.\r\n\r\nThe Defendant appealed the preliminary judgment to the Court of Appeal. However the Court of Appeal also rejected the Defendant’s arguments and upheld the judgment issued by the Court of First Instance. The Court of Appeal elaborated more in its reasoning as to why the arbitration clause was not valid. It further explained the effect of not having a document signed by the parties:\r\n\r\n1. Invalidity of the arbitration clause for lack of signatures, in line with article 203 of the CPL\r\n\r\nThe Court of Appeal found that:\r\n<ul>\r\n 	<li>Article 203 of the UAE Civil Procedure Law requires the arbitration agreement to be in writing, which includes a requirement that it be signed.</li>\r\n 	<li>There was no proof that the parties agreed to arbitration. Any acknowledgment made by the Claimant to the second part of the SPA was made with regards to a document that has no binding effect and so the acknowledgment has no effect as well. The rationale behind this view was the lack of signatures in the second part of the SPA.</li>\r\n</ul>\r\nIt is worth mentioning that a similar judgment was issued by the Dubai Cassation Court in February 2014, with the slight difference being that the second part of the SPA had been initialled by the parties. In that case the Court did not deem this as sufficient proof, stating that  full signatures of the parties are needed, and not only initials (please refer to Al Tamimi’s Law Update issue of July/August 2014 – Article by Mohammad Al Muhtaseb and Marwa Al Mahdy).\r\n\r\n2. The second part of the SPA  is not binding for lack of signature, in line with article 11 of the Federal Evidence Law\r\n\r\nThe Court of Appeal stated in its judgment that:\r\n\r\n<em>“…as it is a mutual agreement between the parties, it should have been signed… signature is its only condition to serve as full proof to evidence the agreement and make it binding... In this regard, article 11 of the Evidence Law states that a customary document shall be considered to originate from the person signing it provided he does not explicitly deny any handwriting, signature, seal or fingerprint pertaining to him.”</em>\r\n\r\nAlthough the judgment is not clear, the above quote suggests the Court found support for its decision from Article 11 of the Evidence Law . The second part had not been signed, and so cannot be said to originate from the Claimant, as per Article 11 of the Evidence Law.\r\n\r\nWe believe that the underlying issue is not the signature per se, but rather a question of evidence. The key issue is whether the parties agreed to the content of the second part or not, irrespective of having the document signed. There are other means to prove that that a party consented to an agreement. For example, an electronic signature would serve as a sufficient proof as per the UAE Electronic Transactions and Commerce Law. Another example is where the other party simply decides to acknowledge the truth before the court that he has previously agreed to the content of that agreement.\r\n\r\nThere are rulings in other cases that have upheld arbitration clauses incorporated by reference (please see Al Tamimi’s Law Update issue of June 2013 – Article by Ahmad Ghoneim and Omar Khodeir). For example, in Abu Dhabi Court of Cassation case 462/2002, the Court held that:\r\n\r\n<em>“It is sufficient in a construction contract to make a referral, so that in case a dispute arises between the client and the contractor in respect of the construction contract, it becomes resolved through the general conditions of construction (FIDIC). This means that the parties agreed to arbitration in respect of all the disputes arising out of the obligations stated in said contract without the need to refer to the details of such condition, where the referral to it is sufficient…” </em>\r\n\r\nCuriously, when the merits of the case were decided by the Court of Cassation it was held that  the Defendant had a right to extend the handover date for a period of 18 months as stated in the second part of the SPA  - the section which the Court had earlier found had no binding effect for lack of signatures.\r\n\r\nCONCLUSION\r\n\r\nWhilst the courts have previously held that in certain circumstances arbitration agreements can be incorporated by reference, in light of this recent case parties would be well advised to nonetheless sign the page containing the arbitration agreement in full to avoid any doubt that it has been agreed.'),
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	(92336,5018,'content','November 2014\r\n\r\n<hr />\r\n\r\n<strong>Introduction </strong>\r\n\r\nThis article is a review of a recent UAE court judgement where a lawsuit that was brought by a customer (“Plaintiff”), against a company that develops and operates the trade mark of a well known restaurant in the Middle East including the UAE (“First Defendant”). The company that owns the trade mark was also a party to the proceedings which is located in USA (“Second Defendant”), where the Plaintiff was served food contaminated with bugs and insects by the First Defendant. The judgment of the Court of First Instance was issued in favour of the First and Second Defendants (together “Defendants”). Al Tamimi &amp; Company represented the Second Defendant in these proceedings.\r\n\r\n<strong>Background</strong>\r\n\r\nIn 2009 the Second Defendant granted a license to the First Defendant to develop and operate its restaurants in the Middle East including the UAE, pursuant to a Master License Agreement.\r\n\r\nOn 10 June, 2013, the Plaintiff and his colleague visited one of the First Defendant’s restaurants to have their lunch. They ordered several food items from the menu, one of which contained lettuce and while eating the food, they found bugs and insects in the lettuce. The Plaintiff quickly filed a complaint to Dubai Municipality claiming that the restaurant served them with contaminated food. The Food Control Department of Dubai Municipality inspected the restaurant and issued a report, which confirmed that the lettuce contained bugs and insects due to not washing the same properly.\r\n\r\n<strong>The Nature of the Claim </strong>\r\n\r\nThe Plaintiff brought an action before Dubai Court of First Instance against the Defendants seeking damages in the sum of AED 250,000. The Plaintiff claimed that he suffered serious moral damages as well as diarrhoea and vomiting due to eating food contaminated with bugs and insects at the First Defendant’s restaurant (which is controlled and supervised by the Second Defendant). The Plaintiff claimed that the First Defendant is subordinate to the Second Defendant.\r\n\r\nThe Plaintiff provided the Court with copies of four photos that show the insects and bugs are in the food and a copy of an email that was sent by Dubai Municipality thanking the Plaintiff for filing his complaint to Dubai Municipality regarding the contaminated food.\r\n\r\nThe Plaintiff based his claim in tort and relied on the following Articles of the Civil Transactions Law:\r\n\r\nArticle 282 which provides:\r\n\r\n<em>“Any harm done to another shall render the actor, even though not a person of discretion, liable to make good the harm.”</em>\r\n\r\nArticle 292 which provides:\r\n\r\n<em>“In all cases the compensation shall be assessed on the basis of the amount of harm suffered by the victim, together with loss of profit, provided that that is a natural result of the harmful act”. </em>\r\n\r\nHowever, the Plaintiff relies on Article 313(b) to include the Second Defendant into the claim. This article provides:\r\n\r\n“(a) No person shall be liable for the act of another person, but nevertheless the judge may, upon the application of an injured party and in the event that in his opinion there is justification for taking that course, render any of the following persons liable as the case may be to satisfy any amount awarded against a person who has caused the harm:\r\n\r\n(b) any person who has actual control, by way of supervision and direction, over a person who has caused the damage, notwithstanding that he may not have had a free choice, if the act causing harm was committed by a person subordinate to him in or by reason of the execution of his duty.”\r\n\r\nThe Plaintiff asked the Court to bind the Defendants to jointly pay the sum of AED 250,000 for monetary and moral damages that he suffered due to eating contaminated food. In addition, the Plaintiff claimed interest on the claimed amount at a rate of 12% from the date of claim until a full payment is made, as well as all legal expenses and fees.\r\n\r\nThe Arguments of the Defendants:\r\n\r\nThe Second Defendant argued that since it does not operate in Dubai and it had granted a license to the First Defendant to develop and operate its trade mark restaurants in the Middle East including the UAE, the Second Defendant has no legal capacity to be sued in this claim. Moreover, the Second Defendant does not control or supervise the First Defendant and, the First Defendant is not subordinate to the Second Defendant. Furthermore, the Plaintiff did not submit any evidence proving that the First Defendant is controlled and supervised by the Second Defendant. Therefore, Article 313(b) of the Civil Procedures Law does not have any applicability in this case, so it should be dismissed for lack of legal personality against the Second Defendant. It is worth mentioning that the First Defendant confirmed to the Court that it has been using the trade mark of the Second Defendant.\r\n\r\nThe Defendants denied all the supporting documents that were submitted by the Plaintiff to the Court, on the basis that they were photocopies and not the originals and such documents do not have evidential value according to Article 45 of the Civil Procedures Law.\r\n\r\nThe Defendants argued substantively that, since the Plaintiff based his claim in tort and not a contractual relationship, he should prove to the Court that the Defendants committed a harmful act resulting in damages to him. However, the Plaintiff did not submit to the Court any evidence proving that he suffered any damages, diarrhoea and/or vomiting due to the food he ate at the restaurant. Furthermore, even if the Plaintiff submits to the Court evidence to prove that there were insects in the food, such evidence does not prove any harmful act committed by the Defendants. Also such evidence does not prove that the Plaintiff suffered damage. Therefore, the Defendants argued that the case should be dismissed for lack of evidence.\r\n\r\n<strong>The Court of First Instance </strong>\r\n\r\nThe Court of First Instance found that the Second Defendant has no capacity to be sued in this case, as the Plaintiff did not provide the Court with any evidence to prove that the First Defendant is the representative or agent of the Second Defendant. Therefore, the Court dismissed the case against the Second Defendant.\r\n\r\nAlso the Court ruled that according to Article 1 of the Civil Procedures Law and the legal precedents, the Plaintiff should prove his claim. However, the Plaintiff did not submit to the Court any evidence that proves that the food he ate at the First Defendant’s restaurant caused him to suffer damage. Also, all the documents that were submitted by the Plaintiff were photocopies and the Defendants denied them, thereby they have no weight of evidence.\r\n\r\nAccordingly, the Court decided to dismiss the case for lack of evidence.\r\n\r\n<strong>Comment</strong>\r\n\r\nIt can be said that even if a restaurant serves its customers contaminated food with bugs and insects, the restaurant will not be liable to compensate the customers for serving such food, unless the customer proves to the Court that they suffered from damages.\r\n\r\nIt is worth mentioning that the Plaintiff has filed an appeal to challenge the Court of First Instance’s judgement.'),
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	(92358,5018,'_yoast_wpseo_metadesc','This article is a review of a recent UAE court judgement where a lawsuit that was brought by a customer (“Plaintiff”), against a company that develops and operates the trade mark of a well known restaurant in the Middle East including the UAE (“First Defendant”).'),
	(92359,5019,'content','November 2014\r\n\r\n<hr />\r\n\r\nIn the UAE, victims of medical malpractice can pursue complaints against healthcare professionals and hospitals in three different ways:\r\n<ol>\r\n 	<li>Filing a medical complaint at the appropriate healthcare authority.</li>\r\n 	<li>Filing a civil case before the UAE court.</li>\r\n 	<li>Filing a criminal complaint before the police or public prosecution.</li>\r\n</ol>\r\nThese options can be pursued at the same time or sequentially, although proceedings before the criminal court will usually stay any civil case. Whichever option is chosen expert medical evidence will be needed, but filing a criminal complaint is the only option which is driven not by the victim, but by the state (i.e. the state prosecutor, who is responsible for deciding whether charges are laid). The purpose of this article is to provide an overview of the options available to victims, with a particular focus on the special role expert medical evidence has in criminal prosecutions.\r\n\r\nCOMPLAINTS BEFORE THE HEALTHCARE AUTHORITIES\r\n\r\nThe Dubai Health Authority, the Dubai Healthcare City Authority and Abu Dhabi Health Authority (the “Healthcare Authorities”) are the health regulators responsible for reviewing medical complaints against healthcare providers and medical practioners in Dubai and Abu Dhabi. The Dubai Health Authority deals with medical complaints against healthcare providers and medical practioners in the public and private sectors in Dubai, whilst the Dubai Healthcare City Authority is responsible for investigating medical complaints against healthcare professionals and hospitals within the healthcare city only. The Abu Dhabi Health Authority investigates medical complaints against healthcare providers and professionals in the Emirate of Abu Dhabi.\r\n\r\nMedical complaints before the Healthcare Authorities can be filed by patients, their families or someone acting on behalf of the patient (provided that the patient’s consent is obtained). The Healthcare Authorities will investigate the complaint and determine whether or not a healthcare professional committed any medical errors. The objective of the Healthcare Authorities’ investigation of medical complaints is to ensure patients receive the best quality of healthcare and deter physicians from committing the same medical errors in the care and treatment of patients.\r\n\r\nThe Healthcare Authorities will investigate complaints and assess whether or not the appropriate medical professional standards were met. If a physician is found to be negligent, the Healthcare Authorities are empowered to take the following disciplinary actions:\r\n<ol>\r\n 	<li>Reprimand the healthcare professional or institution.</li>\r\n 	<li>Impose further training for the physician and supervision by another licensed healthcare professional.</li>\r\n 	<li>Suspend the physician and hospital’s license (temporarily or permanently depending on the nature of the medical error/s).</li>\r\n 	<li>Fine the healthcare institution.</li>\r\n</ol>\r\nTHE HIGHER COMMITTEE FOR MEDICAL LIABILITY\r\n\r\nThe Higher Committee for Medical Liability, located at the Ministry of Health in Dubai is the supreme committee of medical experts in the UAE (the “Supreme Committee”). It was established under Cabinet Resolution No. 6 of 2012 to provide its technical opinion in medical malpractice cases. The Committee members indentified in the Resolution are consultant physicians from different medical specialties.\r\n<p class=\"MsoNormal\">The Supreme Committee is responsible for investigating medical malpractice cases upon the request of the public prosecutor and the UAE courts (the “Judicial Authorities”), or the health authorities.</p>\r\nHealthcare professionals and institutions that are subjected to legal proceedings for malpractice also have the right to request the Higher Committee to review and investigate medical claims filed by patients, provided that the permission of the court or public prosecution is obtained.\r\n\r\nCIVIL CLAIMS\r\n\r\nPatients approach the civil courts to claim monetary compensation against healthcare providers and professionals for material, moral and psychological damages. There are no precedents on the figures awarded by the courts in medical malpractice claims. The amounts vary from case to case and in the discretion of the judge, who assesses the level of damages suffered by a patient following a review of the evidence, which usually includes an expert medical report.\r\n\r\nCRIMINAL CASES\r\n\r\nUnlike the common practice in the West, doctors in the UAE can be subjected to criminal liability and convictions for professional negligence under the UAE Penal Code (Federal Law No. 3 of 1987).  This can result in a prison sentence of at least one year and/or a financial penalty not exceeding AED 10,000 depending on the extent of harm suffered by a patient. If the injury results in permanent disability a prison sentence of two years may be applied (see articles 342 and 343 of UAE Penal Code). If there are aggravating circumstances (such as the involvement of alcohol or narcotics) the maximum available prison term increases to five years.\r\n\r\nThe fines imposed by the criminal court are payable to the UAE government. They are not compensation for the victim, nor do they indicate the level of compensation to be afforded to the victim in any civil claim.\r\n\r\nLIABILITY OF HEALTHCARE PROFESSIONALS\r\n\r\nThe duty of a doctor under the UAE Medical Liability Law (Federal Law No. 10 of 2008) is not to achieve an end result (i.e. to cure or to guarantee a successful operation) but to use the degree of care and skill that is expected of the average qualified practitioner taking into account the customary standards of the profession and accepted scientific principles.\r\n\r\nThe Medical Liability Law (article 14) provides other instances where doctors will not be held liable for medical negligence:\r\n<ol>\r\n 	<li>If the damage was sustained due to the action of the patient (i.e. refusing to receive treatment, failing to follow the medical instructions provided by persons supervising the patient’s treatment or due to an external cause).</li>\r\n 	<li>If the physician followed a certain medical method which, although not the generally accepted method, a method which followed recognized medical principles.</li>\r\n 	<li>If the medical side effects and complications are known in the medical practice.</li>\r\n</ol>\r\nIn addition, article 53 of the Penal Code also provides that there is no crime if the act is committed in accordance with the scientific principles generally accepted and applied in licensed medical practice, provided they are performed with consent of the patient or in emergency cases.\r\n\r\nMEDICAL EXPERT EVIDENCE\r\n\r\nThe Judicial Authorities in the UAE rely heavily on medical expert evidence when assessing whether or not a patient is a victim of medical malpractice. Cases are normally referred to the Healthcare Authorities in the UAE or the Supreme Committee to determine whether or not a doctor committed medical errors in a surgical procedure, diagnosis or treatment of a patient and the causal link between the error and damage suffered due to the actions or inactions of a healthcare professional.\r\n\r\nPatient medical records are often of paramount importance because they detail the medical history of the patient and the care provided. It is essential and necessary for all healthcare institutions and professionals to document patients’ medical records (particularly consent forms for surgical procedures as this has been a common issue in most cases), not least because they will assist in defending medical malpractice claims before the Judicial Authorities. The Judicial Authorities have dismissed several malpractice claims for lack of evidence even though patients have supported their complaints with investigation reports from the Healthcare Authorities.\r\n\r\nEXPERT EVIDENCE IN PRACTICE\r\n\r\nAl Tamimi &amp; Company recently represented a healthcare professional in a case which demonstrates the importance of expert medical evidence and how they are used in criminal cases.\r\n\r\n<strong>Background</strong>\r\n\r\nThe patient visited a physician specializing in infectious diseases in October 2010 with minor cold symptoms. During this visit, the physician’s examination of the patient’s chest revealed mild wheezing only. No fever was present and the patient did not report any symptoms.\r\n\r\nThe patient’s temperature, heartbeat, blood pressure and all other vital signs were normal and stable.  The physician therefore prescribed medication to treat the patient’s cold symptoms.\r\n\r\nAbout 12 hours after the visit, the patient’s condition significantly deteriorated with increasing respiratory symptoms. She was admitted to the emergency department of the hospital where the physician was employed, and diagnosed with pneumonia following medical tests carried out in the emergency department.\r\n\r\nThe patient was subsequently admitted to the Intensive Care Unit (“ICU”) of the hospital and was treated by the medical staff in the ICU for one month. The patient was discharged from the hospital in November 2010 at her own request since she was recovering.\r\n\r\n<strong>Medical Complaint Before Health Authority</strong>\r\n\r\nA year following the patient’s discharge from the hospital, a medical complaint was filed before a health authority in Dubai (the \'\'Regulator\")  against the hospital and the treating physician for conducting a poor assessment of the patient’s condition in October 2010. The Regulator found the physician negligent for failing to perform an appropriate assessment of the patient’s clinical condition.\r\n\r\nThe physician filed an appeal against the decision issued by the Regulator and pleaded that the assessment of the patient’s condition at the time was appropriate and in accordance with international medical standards. The Regulator nonetheless sustained its previous decision against the physician.\r\n\r\n<strong>Criminal Complaint</strong>\r\n\r\nThe patient subsequently filed a criminal complaint before the Dubai police against the physician for professional negligence and the police transferred the case to the public prosecutor.\r\n\r\nSince the case contained technical aspects that require expert assessment, the Prosecutor decided to refer the case to a committee of specialised doctors (\"Panel of medical experts\").\r\n\r\nThe Panel reviewed the case and also found the physician negligent for failing to appropriately diagnose the patient’s condition.\r\n\r\n<strong>Defence Before the Public Prosecutor</strong>\r\n\r\nThe physician, represented by Al Tamimi &amp; Company filed a defence before the prosecutor supported by an opinion from an independent medical specialist which explained that pneumonia cannot be predicted as it can progress rapidly, and could not have been diagnosed at the time of patient’s visit. Evidence of the patient’s condition at the time of the visit and subsequently was set out in her medical file which was also attached to the defence memorandum.\r\n\r\nThe physician argued that the findings of negligence from both the Regulator and the Panel of medical experts with respect to the physician’s assessment of the patient’s condition were false and provided no clarification on the necessity or mandatory obligation on the physician to perform additional examinations and tests. The patient did not have a fever, any chest pains or any abnormality in her vital signs which required the physician to carry out additional tests or refer the patient for x-ray. The earlier admission to the hospital was unlikely to change the course of the illness or affect the eventual outcome due to the aggressive nature of the infection.\r\n\r\nIn addition, the findings of negligence on the part of the physician did not indicate how the physician’s management affected the outcome, which further demonstrated that the outcome of both the Regulator and Panel\'s investigations were not substantiated by any credible evidence.\r\n\r\n<strong>The Higher Committee</strong>\r\n\r\nThe physician requested that the matter be referred to the Higher Committee for Medical Liability to review the case and determine whether any medical negligence was committed by the physician. The Prosecution accordingly transferred the case to the Higher Committee.\r\n\r\nThe Higher Committee investigated the case and found that the patient did not suffer from any respiratory distress or fever at the time of the visit, and the physician gave the appropriate treatment according to the patient’s existing symptoms. The Higher Committee concluded that the physician treated the patient in accordance with generally recognized medical norms with no default or negligence.\r\n\r\nThe Prosecution rendered a decision based on the Higher Committee’s findings and dismissed the case for lack of evidence.\r\n\r\nCONCLUSION\r\n\r\nThe use of medical expert evidence is usually fundamental in the conduct of medical negligence claims in the UAE. Healthcare professionals and institutions will not necessarily be held liable for malpractice even if there are reports from Healthcare Authorities or medical specialists that prove the contrary, provided that the healthcare professional can demonstrate that he performed his duties in accordance with acceptable medical principles.'),
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	(92382,5020,'content','November 2014\r\n\r\n<hr />\r\n\r\n<strong>Introduction</strong>\r\n\r\nBribery is bad for legitimate business, tarnishing the names of companies that are known to be associated with it. Such reputational damage is an additional consideration to the legal consequences of permitting or failing to prevent corrupt practices, whether corporately or by rogue representatives acting against the company’s policies and procedures. Bribery also creates problems for governments that are trying to tackle corruption and to encourage foreign investment, as a level playing field is obviously desirable for the honest majority.\r\n\r\nIn addition to international legal provisions to combat corruption (for example, the United Nations Convention Against Corruption) that lead to domestic anti-bribery legislation, the international business community also recognises the need to do away with corruption, as opposed to well-intended and legitimate marketing practices. This has resulted in, for example, the recent publication by the International Chamber of Commerce (“ICC”), in June 2014, of Guidelines on Gifts and Hospitality, which make reference to various international legislative provisions.\r\n\r\nThe United Arab Emirates (“UAE”), along with most of the international community, is keen to minimise instances of bribery, to bring perpetrators to justice and to deter others from employing corrupt methods of doing business.\r\n\r\nThis article sets out brief summaries of the UAE and UK anti-bribery provisions and then underscores the importance, to persons and businesses in the UAE, of conducting themselves in compliance with the UK Bribery Act 2010 (“UKBA”)  in addition to the relevant UAE anti-bribery provisions.\r\n\r\n<strong>UAE Anti-Bribery Provisions</strong>\r\n\r\nA detailed analysis of the UAE anti-bribery provisions is beyond the scope of this article. In brief, however, bribery is primarily  criminalised and prohibited in the UAE by the UAE Federal Law no. 3 of 1987 as amended (“Penal Code”).\r\n\r\nThe Penal Code specifically prohibits passive bribery (receiving or requesting a bribe) in both the public and private sectors and active bribery (giving or offering a bribe) in the public sector. However, active bribery in the private sector is not specifically prohibited. A person who gives or offers a bribe to a person in the private sector would need to be prosecuted as an accomplice to the recipient of the offer or bribe.\r\n\r\n<strong>Summary of the United Kingdom Bribery Act</strong>\r\n\r\nThe UKBA came into force on 1 July 2011, replacing several legislative provisions that dealt with corruption and had been in place from as early as 1889. Offences under the UKBA are:\r\n<ol>\r\n 	<li>Bribing a person (active bribery) (s.1);</li>\r\n 	<li>Being bribed (passive bribery) (s.2);</li>\r\n 	<li>Bribing a foreign public official (s.6); and</li>\r\n 	<li>Failing to prevent bribery by associated persons (applicable to commercial organisations) (s.7).</li>\r\n</ol>\r\nThe first three offences are punishable by a maximum sentence of 10 years’ imprisonment, an unlimited fine, or both. The offence of failure to prevent bribery is punishable by an unlimited fine.\r\n\r\n<strong>Applicability of the UKBA outside the UK</strong>\r\n\r\nSection 12 of the UKBA details the provisions of the act that relate to territorial application. The UKBA expressly provides jurisdiction for criminal proceedings to be taken in the UK for the four offences listed above, although there is a distinction between the first three (‘personal’) offences and the fourth (‘corporate’) offence in this regard.\r\n\r\nIn respect of the first three offences, the effect of s.12 of the UKBA is that the offence is deemed to have taken place in the UK (and to therefore be subject to UK jurisdiction) if:\r\n<ol>\r\n 	<li>any act or omission which forms part of the offence took place in the UK; or</li>\r\n 	<li>a person acts or omits to act outside the UK in a way that would form part of an offence if performed in the UK and that person has a close connection to the UK.</li>\r\n</ol>\r\nAn exhaustive list of ways in which a person may have a close connection to the UK is set out in s.12(4). The person must have been, at the time of the act or omission, one of the following:\r\n<ol>\r\n 	<li>a British citizen,</li>\r\n 	<li>a British overseas territories citizen,</li>\r\n 	<li>a British National (Overseas),</li>\r\n 	<li>a British Overseas citizen,</li>\r\n 	<li>a person who under the British Nationality Act 1981 was a British subject,</li>\r\n 	<li>a British protected person within the meaning of that Act,</li>\r\n 	<li>an individual ordinarily resident in the UK,</li>\r\n 	<li>a body incorporated under the law of any part of the UK,</li>\r\n 	<li>a Scottish partnership.</li>\r\n</ol>\r\nIn respect of the fourth offence listed above (failure by a corporate body to prevent bribery), s.12(5) states that it does not matter whether the acts or omissions which form part of the offence took place in the UK or elsewhere. The company is subject to the UKBA if it is incorporated in the UK or, if not, if it carries on business in the UK. For the company to be guilty of failing to prevent bribery committed by a person, that person must have committed (i) bribery of a person or (ii) bribery of a foreign public official (but need not be actually prosecuted for either offence). In either case, the bribery may have taken place inside or outside the UK. Where it took place outside the UK, there is no need for the person committing bribery to have a close connection with the UK.\r\n\r\n<strong>Guidance on the UK Bribery Act</strong>\r\n\r\n<em><strong>Facilitation Payments</strong></em>\r\n\r\nUAE businesses may be particularly interested in the area of facilitation payments. Unlike the FCPA (in certain circumstances), the UKBA does not permit facilitation payments, which are unofficial payments made to public officials in order to secure or expedite the performance of a routine or necessary action. They are sometimes referred to as ‘speed’ or ‘grease’ payments. The payer of the facilitation payment usually already has a legal or other entitlement to the relevant action.\r\n\r\nIn an open letter dated 6 December 2012, the Director of the Serious Fraud Office (“SFO”) made it clear that the UK Government and the SFO are committed to stamping out bribery and upholding the rule of law, that facilitation payments are not permitted under the UKBA (and were not permitted under the previous UK anti-bribery laws), and encouraged UK individuals or companies who are asked to make a facilitation payment in the course of business overseas to report such requests to the local embassy, high commission or consulate.\r\n\r\n<em><strong>Hospitality and promotional expenditure</strong></em>\r\n\r\nThe joint prosecution guidance to the UKBA, published by the Director of the SFO and the Director of Public Prosecutions (“DPP”) in March 2011, makes it clear that hospitality or promotional expenditure which is reasonable, proportionate and made in good faith is an established and important part of doing business and the UKBA does not seek to penalise such activity.\r\n\r\nIn the right (or wrong) circumstances, however, hospitality and promotional expenditure could form the basis of the offences of bribing another person or bribing a foreign official and could be a bribe for the purposes of the failure to prevent bribery offence. Each case will depend on the facts, all of which will need to be considered by the prosecutor before making a decision to prosecute.\r\n\r\n<em><strong>Failure of commercial organisations to prevent bribery – Defence of Adequate Procedures</strong></em>\r\n\r\nA commercial organisation will have a defence to a charge under s.7 if it can show that it had adequate procedures in place to prevent persons associated with it from bribing. The standard of proof required is the balance of probabilities i.e. “is it more likely than not that the procedures were adequate?” This will be a matter for the courts to decide on a case by case basis and will be a factor to be considered by the prosecutor in deciding whether to prosecute. Prosecutors must also, when considering whether the procedures put in place are adequate, take into account the 43-page guidance document published by the Ministry of Justice on procedures that commercial organisations can put in place to prevent bribery by persons associated with them.\r\n\r\n<em><strong>Examples related to the UAE</strong></em>\r\n\r\nThere are recent examples (July and October 2014) of investigations by the UK SFO into allegations of corrupt practices conducted in the UAE by employees or representatives of UK entities. These investigations are in relatively early stages and, although their outcome cannot be predicted, they serve as a reminder that commercial operations in the UAE will not escape the attention of the UK authorities when there is reason to investigate.\r\n\r\n<strong>Conclusion</strong>\r\n\r\nFrom a legal perspective, persons in the UAE could be liable to prosecution under the UKBA in the UK if they (i) have the required connection to the UK (for example, by being a UK citizen, a UK-incorporated company, a company carrying on business in the UK or if they travel to the UK and commit a relevant act while there) or (ii) if they engage in a conspiracy with a person who is in the UK, to commit bribery, even if they have no connection to the UK.\r\n\r\nOf course, quite apart from the threat of prosecution under the UKBA is the distinct possibility of action by the UAE authorities under the anti-bribery provisions of the Penal Code (or other applicable legislation).\r\n\r\nIn the end, however, good business practice should be about making the right ethical decisions, not merely complying with the law for fear of prosecution. Compliance with the UKBA (and any other anti-corruption legislation) ought really to be taken by companies as an opportunity to focus on honing their due diligence to ensure the honest and profitable conduct of business, in an international market where high standards of anti-corruption practice are increasingly the desirable norm.'),
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	(92388,5020,'pageSummary','Bribery is bad for legitimate business, tarnishing the names of companies that are known to be associated with it.'),
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	(92392,5020,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Andrew Hudson'),
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	(92400,5020,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','631'),
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	(92404,5020,'_yoast_wpseo_metadesc','Bribery is bad for legitimate business, tarnishing the names of companies that are known to be associated with it.'),
	(92405,5021,'content','November 2014\r\n\r\n<hr />\r\n\r\nWe consider how far the UAE employment system not only protects but also advances the interests of employers within the Healthcare sector, whilst also recognising some limitations inherent in the current sponsorship system.  The intention to develop the UAE as a hub of medical tourism adds an extra dimension to this complex area.\r\n\r\n<strong>Restriction of activities during employment</strong>\r\n\r\nAn employer within the Healthcare sector can comfortably rely upon the UAE employment and immigration framework to guarantee that its staff will be dedicated to providing their services to that single employer. Unlike other legal systems which may recognise an individual’s freedom to contract with more than one “employer”, the employment framework within the UAE requires that an employee shall work only for the sponsoring entity.\r\n\r\nThe nature of the employment relationship in the UAE is essentially “static”. As addressed in a previous edition (Law Update February 2014), the UAE immigration process strictly controls the manner in which individuals can perform their “work” on a daily basis.\r\n\r\nAn individual must be directly engaged (i.e. “employed”) by a locally licensed and registered employing entity in order to work lawfully in the UAE. There is no recognised concept of self-employment or other atypical working status, which may be commonplace in other jurisdictions. As a general principle, a non-national seeking to live and work in the UAE must either enter into a Ministry of Labour (“MOL”) standard form contract (where employment is onshore) or a similar standard contract provided by the  applicable free zone. This applies equally to those employed in the Healthcare sector.\r\n\r\nFor example, as a general principle, a Hospital-Based Specialist working for hospital X in the Dubai Healthcare City (“DHCC”) free zone may not work for other entities. There may be a possibility for permission to be granted to work for another entity within that free zone and we are aware of such practices within DHCC. However, this would be subject to various conditions, not least the existing sponsor confirming that it did not object to such a situation and the arrangement would have to be carefully managed in order to preserve the employer’s business interests (i.e. its ability to provide specialist services to its patients).\r\n\r\nThe limitation on mobility of employees has some undoubted advantages for private sector hospitals/clinics in terms of ensuring that their Hospital-Based Specialists are restricted to only providing services to them and not to other employers. That preservation of a stable trained workforce within the single licensed entity is a key factor for any business, but particularly one which relies upon the consumer perception of high quality patient care.\r\n\r\n<strong>Restricting activities post-employment via restrictive covenants</strong>\r\n\r\nAn employer’s ability to protect its business interests during employment is largely uncomplicated. However, the position is less straightforward after termination of employment.\r\n\r\nIn addition to the restrictions which arise during employment in the UAE, an employer may also choose to impose contractual restraints upon its employees as a means of regulating their activities following termination of employment. Given the basic nature of both the MOL contract and standard form free zone contracts, most employers will include post termination restrictions within separate supplementary employment contracts or on a stand alone basis. Typical covenants include restrictions against competition, solicitation and dealing with customers/clients and the solicitation and employment of staff of the former employer.\r\n\r\n<strong>Legal Position</strong>\r\n\r\nArticle 127 of Federal Law No. 8 of 1980 (as amended) (the “Labour Law”) expressly states that where an employee performs a role which allows him to become acquainted with confidential information, the employer may require the employee to agree to a contractual provision preventing him from working with a competing business after termination.\r\n\r\nWhilst the Labour Law is silent as to the circumstances in which a restriction will be regarded as valid, guidance is provided in Articles 909 and 910 of the Civil Code. A non-competition provision must be reasonable. It must therefore be limited in its scope; specifically its duration, area/geographical scope and relevance to the ex-employer’s business interests. The former employer relying upon the covenant must demonstrate that any restrictions are reasonably necessary to protect a legitimate business interest (for example, a client connection or confidential information) and that the restrictions are not being used simply to prevent legitimate competition.\r\n\r\nWhilst a covenant may be regarded as “reasonable” when applying the standards referred to in the Civil Code (above), that only takes matters so far. That alone does not necessarily provide an employer with a meaningful remedy in the absence of clear consequential financial harm arising from the breach of the covenant.\r\n\r\n<strong>Effective enforcement of a restrictive covenant</strong>\r\n\r\nBy contrast with a number of other jurisdictions, the UAE (with the exception of the Dubai International Financial Centre) does not recognise the concept of an injunction to actually prevent the financial harm, but insists upon clear evidence of such harm which may then lead to an award of damages (provided that the other tests as to reasonableness etc have been satisfied). This alone does not provide a significant deterrent to a former employee intent on breaching his covenants and (for example) seeking to divert customers (or clinic patients) from the previous employer.\r\n\r\nTo mitigate the unavailability of injunctive relief, the commonly adopted approach is to bolster the restrictive covenants by including a “liquidated damages” clause in the supplemental contract of employment. This is a separate contractual undertaking between the employer and employee and the onus is on the former employee to demonstrate that the sums sought are not a genuine pre-estimate of loss suffered by the employer. This is important because it runs contrary to the more usual scenario where a party claiming damages has to prove actual loss.\r\n\r\n<strong>Relevance to the Healthcare sector</strong>\r\n\r\nGiven that post-termination restrictions must be focused on the protection of a legitimate business interest, it follows that non-competition covenants must be used carefully and target only those employees who are genuinely a potential risk to the business. A Hospital-Based Specialist in a patient-facing role who has a developed relationship with patients (including knowledge of sensitive patient information) is a key “asset” of the business. Providing at least some degree of deterrent against competition is likely to be an important consideration for the employing hospital.\r\n\r\nIt should be noted that the misuse of confidential information (such as patient records) to compete at a different establishment would potentially be susceptible to criminal sanction.\r\n\r\nHowever, the positive assistance in restricting employees’ activities to their immediate sponsoring entity also imposes certain practical restraints on the employer which may be more than a mere operational inconvenience. For an employer operating more than one site, potentially in different Emirates, the current constraint upon employee mobility does not readily facilitate free movement of employees between sites. The new unified approach to licensing (below) may be the first step towards recognising the practical benefits of greater mobility within the Healthcare sector.\r\n\r\n<strong>Unified Licensing</strong>\r\n\r\nIn line with its intention to become a hub of high quality medical care and a centre of medical tourism, on 12 October 2014, a new licensing regime for Healthcare professionals came into effect in the UAE.\r\n\r\nThis has introduced a pragmatic approach to licensing of healthcare professionals within the UAE.  The agreement between respective licensing bodies, the Ministry of Health (covering the northern Emirates), Dubai Health Authority (DHA) and the Health Authority of Abu Dhabi (HAAD) introduces a consistent approach to licensing. The new arrangement provides a single recognised licensing process as opposed to a process applied on an Emirate specific basis.\r\n\r\nDHA Director-General Essa Al Maidoor stated recently that, “The agreement paves way for medical professionals to work across the UAE and is important as it unifies as well as streamlines the professional medical licensure process.”\r\n\r\nAt first sight that might seem to open the door to a relaxation of the process for working between Emirates and also between facilities. However, at this stage, the unified approach to licensing appears to be more focused on streamlining the recognition of qualifications within the UAE rather than wholesale relaxation of employment and immigration framework within the Healthcare Sector.\r\n\r\nThe cooperation between Emirates to recognise respective licensing does not alter the fundamentally static nature of the employment relationship. Licensing (for example, via DNA or HAAD) is entirely separate from immigration and/or Labour Law requirements. The employee can still only work for the employer who provides sponsorship at the stated place of business subject to the exceptions mentioned above. As such, an employee who is licensed in Dubai may indeed have his registration recognised in Abu Dhabi or elsewhere; however, that does not thereby permit him to actively work for an entity other than his immediate sponsor.\r\n\r\n<strong>Conclusion</strong>\r\n\r\nIt remains to be seen how far the aim to development the UAE as a centre for medical tourism ultimately also leads to a greater freedom for medical professionals to be transferred more readily between facilities, whilst preserving the employer’s commercial interests. At this stage, the employer continues to benefit from certain restrictions upon the activities of its workforce, but is constrained by established sponsoring formalities from fully exploiting the rapidly developing marketplace.\r\n\r\nA Senior Associate in the Employment Department, John has experience of advising healthcare providers in the UK and UAE on all aspects of the employment relationship. His experience includes dealing with cases before professional conduct bodies in the medical and other regulated sectors. John is also a Judicial Officer for the UAE Rugby Federation.'),
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	(92406,5021,'_content','field_59b649b5c8b2b'),
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	(92409,5021,'content_description','The success of any patient care provider within the UAE Healthcare sector is dependent upon maintaining its reputation for employing skilled hospital-based specialists.   '),
	(92410,5021,'_content_description','field_59b641c07f473'),
	(92411,5021,'pageSummary','The success of any patient care provider within the UAE Healthcare sector is dependent upon maintaining its reputation for employing skilled hospital-based specialists.'),
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	(92414,5021,'_currentURL','field_59d35123ab1e7'),
	(92415,5021,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','John Stamper'),
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	(92417,5021,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','j.stamper@tamimi.com'),
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	(92423,5021,'_yoast_wpseo_metadesc','The success of any patient care provider within the UAE Healthcare sector is dependent upon maintaining its reputation for employing skilled hospital-based specialists.'),
	(92424,5022,'content','November 2014\r\n\r\n<hr />\r\n\r\nOne significant concern arising from recent events is which parties may be held liable for damages, injuries and casualties that may result from such accidents. More specifically, a considerable concern has arisen as to whether a manager of a place of business or retail outlet may bear liability for the consequences arising from accidents occurring on the premises of the business or retail outlet, which liability could include imprisonment, fines and/or the imposition of travel bans.\r\n\r\nIn determining the possible liability of a manager, several factors must be considered including the nature of the accident that has occurred, the type of company involved (shareholding company, limited liability company, partnership, etc.) and whether or not the manager’s name is listed on the company’s commercial registration (“CR”). While the liability of managers should be determined on a case-by-case basis and would be dependent on the structure of the company as well as factors related to the accident or incident such as the damage, injuries and/or casualties caused, some general considerations apply in all cases. Broadly speaking, two types of liabilities affecting the manager may arise from an accident or incident occurring in connection with a business or retail outlet: civil liability and criminal liability. The focus in this article is on the possibility or extent of criminal liability faced by the manager of a business or retail outlet arising from an accident that has occurred in connection with or on the premises of the business or retail outlet.\r\n\r\nA manager may feel insulated from criminal liability with regard to acts or omissions made on behalf of the company and undertaken in his or her capacity as manager. However, this assumption is not entirely correct. In accordance with the Qatar Law No. 11 of 2004 (“Qatar Penal Code”), managers may face criminal liability if their acts on behalf of the company would lead to consequences that would be considered criminal under the penal law. A manager may also face criminal liability for committing a private act that violates other laws in Qatar and results in the imposition of criminal penalties. Some relevant examples of laws under which criminal liability managers may arise include:\r\n\r\n<strong>Commercial and Industrial Outlets Law (No. 3 of 1975)</strong>\r\n\r\nUnder Article 17, managers/supervisors are held jointly liable with the employer for breaching the law. Article 20 goes on to provide that the manager/supervisor may be punished by imprisonment and fined for such violation.\r\n\r\n<strong>Consumer Protection Law (Law No. 8 of 2008)</strong>\r\n\r\nArticle 18 provides, “Without prejudice to any more severe sanctions provided for under any other law, the person who violates any of the provisions stipulated in the Articles of Chapter Three of the present law shall be sentenced to imprisonment for a period not exceeding two years and fined a sum . . . or sanctioned with one of the aforesaid sanctions.”\r\n\r\n<strong>Usage of Cameras and Security Surveillance Equipment Law (Law No. 9 of 2011)</strong>\r\n\r\nIn accordance with Article 2, “Owners of the facilities and those responsible for the management, must install cameras and monitor security equipment which is operated around the clock, from a control room”.   Article 11 further states, “. . .each person who violates the provisions of Articles 2, 3(1), 4(2), 5 and 6 of this law, shall be punished by imprisonment for a term not exceeding more than one year and a fine of not more than 10,000 Riyals, or either of these penalties.”\r\n\r\n<strong>Civil Defense Law (Law No. 13 of 1997)</strong>\r\n\r\nArticle 14 stipulates, “Persons in charge at the Public Utilities and Vital establishments, along with the owners of properties and owners of commercial and industrial activities shall carry out the measures of Civil Defense which are determined by the Directorate of Civil Defense on the respective expense and on the dates defined by the directorate.”  Article 20 further provides, “Whoever violates any of the provisions of this Law or the Resolutions issued in execution thereof, shall be punished by imprisonment for a period not exceeding three years and shall be fined … or shall be punished by either of these two punishments”.\r\n\r\nWith respect to corporate criminal liability, Article 37 of the Qatar Penal Code, is the general “catch-all” provision giving rise to the criminal liability of commercial entities. Under Article 37, with the exception of Ministries, governmental bodies, organisations and institutions, a Company is liable for the crimes committed by its representatives, managers and agents acting on its behalf. Therefore, the company will also be subject to the imposition of fines and other appropriate sub-penalties under the law. If the original penalty for the crime as determined by law differs from the imposition of fines, then the penalty will be limited to a fine not exceeding 500,000 Riyals.  However, Article 37 goes on to provide, “This does not prevent punishment of the perpetrator by the penalty decided by law.”  Under this general provision, managers may potentially be found criminally liable in addition to the company.\r\n\r\nNo clear standards or parameters establish when Article 37 will be applicable. In addition, no definition of “managers” has been provided in the said law. However, amongst other considerations, a manager would likely be implicated if his or her name appears on the company’s CR as an authorised signatory of the company. Managers may take certain steps to potentially mitigate the risk of liability:\r\n<ol>\r\n 	<li>The employment contract of the manager must precisely list the manager’s responsibilities and extent of liability.</li>\r\n 	<li>The listing of the manager’s name on the CR must be seriously considered as such listing may lead to the imposition of criminal liability, which could include the imposition of a travel ban on the manager in the event of an accident.</li>\r\n 	<li>Where an accident has occurred, a manager should consider contacting the company’s legal department or a lawyer prior to giving any statements or other evidence to public authorities.</li>\r\n 	<li>Ignorance of the law is not a defence. Managers must take all steps necessary to understand and adhere to the applicable laws.</li>\r\n</ol>\r\nWhile this list provides some general guidelines, the criminal liability of a manager in a given situation can be comprehensively determined only on a case-by-case basis after consideration of all relevant factors. Accordingly, obtaining advice from legal professionals is highly recommended following, or ideally before, the occurrence of an accident.'),
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	(92428,5022,'content_description','Recently, accidents such as fires, building collapses and gas tank explosions occurring in places of business and retail outlets, have made headlines in the local news in Qatar.'),
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	(92430,5022,'pageSummary','Recently, accidents such as fires, building collapses and gas tank explosions occurring in places of business and retail outlets, have made headlines in the local news in Qatar.'),
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	(92438,5022,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Zehra Manni'),
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	(92440,5022,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','z.manni@tamimi.com'),
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	(92446,5022,'_yoast_wpseo_metadesc','Recently, accidents such as fires, building collapses and gas tank explosions occurring in places of business and retail outlets, have made headlines in the local news in Qatar.'),
	(92447,5023,'content','November 2014\r\n\r\n<hr />\r\n<p class=\"MsoNormal\"><strong>DHA and HAAD</strong><strong> </strong></p>\r\n<p class=\"MsoNormal\">While hospitals and healthcare centres outside free zones are governed by different authorities in Dubai and Abu Dhabi (the Dubai Health Authority (“<strong>DHA</strong>”) and the Health Authority–Abu Dhabi (“<strong>HAAD</strong>”) respectively), the regulations in relation to the location and building type for a hospital or healthcare centre are quite similar in both Emirates.</p>\r\n<p class=\"MsoNormal\">By way of background, the difference between a hospital and a healthcare centre, in both Dubai and Abu Dhabi, is determined on the services that will be provided.  Generally, if inpatient services are provided, the operator must apply for a hospital licence; if not, then the operator must apply for a licence in their specialist area or areas.</p>\r\n<p class=\"MsoNormal\"><strong>DUBAI</strong></p>\r\n<p class=\"MsoNormal\">The DHA Regulations stipulate the types of buildings that must be used for hospitals and healthcare centres, and lay down the location for these buildings.</p>\r\n<p class=\"MsoNormal\"><strong><em>Hospitals</em></strong></p>\r\n<p class=\"MsoNormal\">The DHA Regulations specifically provide that a hospital must be located in an independent, standalone building, located on a main road with easy and convenient access for people using both public and private transport. As part of the licencing process the DHA will consider the plans for the premises and will also inspect the premises. If the premises do not meet the criteria set out in the DHA Regulations then the licence to operate will not be granted. A healthcare operator that is licensed as a hospital cannot use a villa for its premises regardless of whether the villa has been designated for commercial use. In practice the DHA will expect the building to have been created specifically for the purpose of being a hospital.</p>\r\n<p class=\"MsoNormal\"><strong><em>Healthcare Centres</em></strong></p>\r\n<p class=\"MsoNormal\">Unlike a hospital, a healthcare centre can have its premises at either an independent facility (such as a villa if it has been designated for commercial use), or in a mixed-use commercial building.</p>\r\n<p class=\"MsoNormal\"><strong>ABU DHABI</strong></p>\r\n<p class=\"MsoNormal\">Guidelines issued by HAAD (the “<strong>HAAD Guidelines</strong>”) provide detailed information as to how different healthcare facilities are to be licenced. The HAAD Guidelines also provide information as to how the hospital or healthcare centre should be designed and fitted-out. When applying to HAAD for a healthcare licence part of the application process involves an examination by HAAD inspectors of the plans and drawings for the hospital or healthcare centre. The HAAD inspectors will assess the building and consider the fit-out design. Finally the HAAD inspectors will inspect the premises to ensure that the premises meets all the standards set out in the HAAD Guidelines.</p>\r\n<p class=\"MsoNormal\"><strong><em>Hospitals</em></strong></p>\r\n<p class=\"MsoNormal\">Similarly to the position in Dubai, a hospital in Abu Dhabi must have its premises in an independent building.  Previously in Abu Dhabi it was possible for a hospital to be located in a mixed-use building. Frequently such mixed-use buildings contained residential apartments or commercial offices in addition to hospitals. HAAD has now prohibited this.</p>\r\n<p class=\"MsoNormal\"><strong><em>Healthcare Centres</em></strong></p>\r\n<p class=\"MsoNormal\">Similar to the position in Dubai, a healthcare centre may use a villa as its premises, provided the villa has been granted permission to be converted from a residential villa to a villa allocated for commercial use. For such conversion to commercial use, it is necessary to obtain approval from the relevant local Municipality (there are three operating in Abu Dhabi: Abu Dhabi Municipality, Al Ain Municipality and the Western Region Municipality (the “<strong>Municipalities</strong>”)). Following the implementation in Abu Dhabi of Administrative Resolution No.32 of 2011 (which deals with privacy protection in residential areas), the Municipalities generally do not allow conversion of residential villas to commercial uses.  Exceptions are however sometimes permitted if the villa is to be used as a healthcare centre, rehabilitation centre for those with special needs, or a care centre for the elderly.</p>\r\n<p class=\"MsoNormal\"><strong>NAMING A HEALTHCARE COMPANY</strong></p>\r\n<p class=\"MsoNormal\">HAAD will not allow a company with the word ‘hospital’ in its name to apply to use a villa as its premises, irrespective of the fact that the company will not be using the premises as a hospital. This may mean that before applying a company may need to change its name. As the Department of Economic Development in both Abu Dhabi and Dubai have regulations in place which state that the name of the company should reflect the activity it is undertaking, it would be prudent for companies is Dubai to consider this as well.</p>\r\n<p class=\"MsoNormal\"><strong>CONCLUSION</strong></p>\r\n<p class=\"MsoNormal\">In both Dubai and Abu Dhabi, if a healthcare company wishes to establish a hospital, it must ensure that its premises are in an independent building. A healthcare centre however can be located in either an independent building or a villa; however, if a villa is to be used it must be converted from residential to commercial use.</p>'),
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	(92455,5023,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-8/november-5/choosing-suitable-premises-for-your-hospital-or-healthcare-centre-in-dubai-and-abu-dhabi.html'),
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	(92463,5024,'content','November 2014\r\n\r\n<hr />\r\n\r\n<strong>Introduction</strong>\r\n\r\nBahrain recently enacted a long awaited and much debated new real estate development law, the Real Estate Development Law No. 28 of 2014 (the “New Law”). It is widely hoped that the New Law will help to strengthen the real estate sector and promote investor confidence in a market which has recently suffered with the indefinite stalling of several major development projects such as the Marina West project. The sudden stalling of such projects in the middle of the development cycle may be partially attributable to an insufficient legal and regulatory framework which left both developers and buyers exposed when funds simply ran out and development stopped.\r\n\r\nThis article analyses the implications of the New Law for developers and its significance in protecting buyers. The New Law attempts to regulate the activities of developers which were generally seen to be a major contributing factor to the lack of confidence in Bahrain’s real estate sector and which often left buyers with no money, real estate or investment returns.\r\n\r\n<strong>Scope of application</strong>\r\n\r\nThe New Law defines “Real Estate Development Project” in Article 1(5) as any work or real estate development project in any nature (infrastructure or construction) for any purpose (commercial, residential, industrial or public) whatever finance method adopted (sale of off-plan units, Musataha, etc.) by any legal entity. This definition widens the scope of the New Law’s application to arguably include most development projects in Bahrain. In practical terms the wide definition may protect buyers by encouraging them to invest in all types of real estate development which would most likely fall within the parameters of the New Law. “Developers” are defined as any legal person licensed to practice Real Estate Development Projects such as construction or off-plan unit sales.\r\n\r\nMoreover, the New Law is applied retrospectively to all Real Estate Development Projects that commenced before its enactment.  Furthermore, although the New Law came into effect on 7 August 2014, developers of existing projects have a six-month period within which to comply with it, i.e.: until 7 February 2015.\r\n\r\n<strong>New concepts introduced</strong>\r\n\r\nThe New Law introduces several concepts to regulate the market and protect buyers throughout the life cycle of a development, and provides for the establishment of a regulatory authority to regulate both Developers and buyers (the “Concerned Authority” or “Authority”). The “Concerned Authority” has not yet been nominated, but is expected to be established by Royal Decree pursuant to the enactment of the New Law’s implementing regulations.\r\n\r\nOne such concept guards buyers’ interests by regulating the sale of off-plan units - a sales method which gained significant popularity across the region during the real estate boom years - whereby units may be sold before their completion (Article 1(9)). Buyers who traditionally bought off-plan from Developers exposed themselves to the risk of unregistered sale transactions - often paying a percentage of the total cost of the unit upfront - without actually gaining any legal title to or interest in the unit. The sale of units off-plan has, for the first time been introduced as  a legal concept in Bahrain to address this issue.\r\n\r\nThe New Law prohibits any attempted sales off-plan without prior authorisation and licensing. A real estate record to register all off-plan sales (an “Off-Plan Register”) shall be established and maintained by the Survey and Land Registration Bureau ‘SLRB’. Under Article 11, the Off-Plan Register shall contain the following information:\r\n<ol>\r\n 	<li>the real estate Development Licence;</li>\r\n 	<li>the units which the Development Licence relates to;</li>\r\n 	<li>the units’ sale agreements and all disposals affecting them;</li>\r\n 	<li>details of any entry which is required to be included in the SLRB Property newsletter by Law; and</li>\r\n 	<li>any other information which may be determined by a resolution from the SLRB.</li>\r\n</ol>\r\nIt is the Developer’s responsibility to provide the SLRB with the above information. Significantly, any sale agreement which has not been submitted to the SLRB in accordance with the above will be deemed null and void.\r\n\r\nUnder the New Law, Developers must obtain a Development License from the Concerned Authority before commencing a project and submit details of the relevant units in the Off-Plan Register including prior to undertaking any promotional or marketing activities in relation to the project either inside or outside Bahrain. This provision protects buyers from misleading or fraudulent advertisements and ensures that publications in the media represent credible Real Estate Development Projects.\r\n\r\nArticle 6 of the New Law introduces a further significant concept in requiring Developers to open an escrow account (the “Escrow Account”) to hold any buyers’ contributions and all other related development funds with a Bank or financial institution licensed by the CBB (the “Escrow Bank”). The purpose of the Escrow Account is to manage the financial, administrative and legal aspects of the Development. The Developer shall provide the Concerned Authority a copy of its escrow agreement with the Escrow Bank. The Escrow Bank must provide the Concerned Authority with financial statements related to the Development, and the Authority may request further information or appoint an auditor to assist it if required.\r\n\r\nFurther, to ensure greater protection for buyers in case of a Developer’s bankruptcy or insolvency, the New Law ring-fences buyers’ deposits in the Escrow Account from the funds of creditors or other depositors. Buyers’ deposits cannot be the subject of any freezing orders under the New Law (Article 7). The Escrow Bank is entitled to maintain 5% of the value of the Development which may only be released a year after buyers receive their properties. This measure is intended to act as a guarantee and provides a window for buyers to file any complaints or take actions against Developers, as well as ensuring the continued availability of funds.\r\n\r\nThe New Law (Article 26) establishes a committee to resolve any Real Estate Development Project disputes (“Real Estate Development Disputes Committee”). The Real Estate Development Disputes Committee shall be made up of two High Court judges and an expert in real estate affairs (who shall be nominated by the Minister), and is empowered to adjudge on all disputes arising from or related to Real Estate Development Projects. Under Article 28, an aggrieved party may appeal a decision of the Committee to the High Civil Court within 15 days of the date the judgment is made, The establishment of this Disputes Committee is an attempt to shift the responsibility from the courts to a specialised panel of experts with the specific knowledge of the real estate sector in the hope that this will result in disputes being resolved faster and more consistently.\r\n\r\n<strong>The main obligations imposed on Developers</strong>\r\n\r\nDevelopers can no longer start work on a development project unless they hold a licence from the Authority (the “Licence”). The granting of the Licence is subject to the Developer submitting the completed master plan to the Authority together with a list of documents as mentioned in Article 4(A) establishing that it has:\r\n<ul>\r\n 	<li>either ownership of the Development or a right to develop it by way of approval from the title owner;</li>\r\n 	<li>approval of the master plan and building permits;</li>\r\n 	<li>a draft of the template sale agreement drafted in accordance with the provisions of the New Law;</li>\r\n 	<li>written confirmation from a consultant engineer providing an estimate value of the Development must be approved by the Committee of Professional Engineering Practice in Bahrain (COEPP);</li>\r\n 	<li>written confirmation from the Development’s escrow agent that a deposit of 20% of the Development’s estimated value has been made in the Escrow Account (the value of the land may be included in the calculation of the deposit);</li>\r\n 	<li>an undertaking from both the Developer and sub-developer that development works will commence within the time stated in the building permit;</li>\r\n 	<li>an undertaking from the Developer to maintain ownership of the common areas;</li>\r\n 	<li>if reclamation of land is relevant - the prior approval to reclaim the area on which the proposed Development will be built; and</li>\r\n 	<li>other requirements as may be stipulated by the implementing regulations so as to verify the requisite experience of both the Developer and sub-developer.</li>\r\n</ul>\r\nTo ensure effective monitoring of Developers’ activities and their compliance, the Licence granted by the Authority shall not exceed three years, and the form of the legal entity of Developers may not be altered unless and until the Real Estate Development Project is complete (Article 9).\r\n\r\nAdditionally, Developers are prohibited from varying the Real Estate Development Project except in cases of emergency and only with the prior approval of the Authority. If the Developer is late in handing over units beyond the period agreed in the contract without reasonable justification, the contract may be voidable after ninety days from the date that the delay commenced. Thus, the New Law provides buyers with a period to get their properties back on time and aims to prevent any unnecessary delays. For Developers, the New Law encourages them to have a structured well-organised plan for completion that was seen to be lacking in the previous unregulated regime. Furthermore, to ensure certainty in completion, the Authority may order specific performance from Developers to complete projects if they suspend work either temporarily or permanently. To ensure the highest standard  if work from Developers, the New Law (Article 19) requires them to undertake maintenance services for the Real Estate Development Projects for two consecutive years after the completion date.\r\n\r\nThe New Law seeks to create a balance between all concerned parties by granting Developers reciprocal termination rights in relation to terminating a sale contract in cases where buyers do not perform their obligations. Article 17 (a) stipulates that in the event a buyer breaches his obligations without justifiable cause, the Developer may serve a notice on the buyer giving him ninety days within which to rectify the position. In the event that upon the lapse of the notice period, the buyer remains in breach, the Developer may then apply to the Disputes Committee to terminate the sale agreement, after which it may sell the unit to another buyer. Upon termination of the sale agreement, without prejudice to the Developer’s right to claim compensation for any damages suffered, the Developer may retain up to 10% of the purchase price of the unit and refund the remainder of what may have been paid to the buyer.\r\n\r\n<strong>The consequences of breaches in the New Law</strong>\r\n\r\nHeavy penalties are imposed on Developers depending on the type of breach. They may be subject to a custodial sentence of one year or a fine not exceeding BD 10,000 or both for selling off-plan units without a Licence or delaying handing over completed units beyond the period agreed in the contract. Other offences under the New Law are punishable by a custodial sentence of one to five years, and a fine of BD 10,000 to BD 30,000 for providing false information to the Authority. The New Law addresses the entire lifecycle of Real Estate Development Projects from beginning to end. It outlines the consequences of not executing work within six months of the date of the Licence and extends criminal liability (including vicarious liability) to all legal entities that may be defined as Developers.\r\n\r\n<strong>Conclusion</strong>\r\n\r\nBefore we may asses the practical impact that the New Law has on the Kingdom’s development projects specifically, and the real estate sector generally, there are a number of related laws and regulations that need to be implemented (including the Implementing Regulations) and the Concerned Authority will need to be established to act as the sector’s regulator.\r\n\r\nMany have criticised the New Law as inadequate in addressing the issue of existing stalled projects. Whilst this may be so, the Cabinet has recently approved a draft law on the settlement of stalled real estate development projects, which aims to address the issue. Despite any criticism or ambiguities surrounding this legislation, the New Law must be considered as an important and positive step towards delineating the interests and responsibilities of both developers and buyers. As a response to the demand for a structured and regulated real estate sector in the Kingdom of Bahrain, the New Law introduces the framework for a sophisticated regulated regime which seeks to balance the interests of all concerned parties and attract further investment in the Kingdom’s real estate development projects.\r\n<div></div>'),
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	(92467,5024,'content_description','Bahrain recently enacted a long awaited and much debated new real estate development law, the Real Estate Development Law No. 28 of 2014 (the “New Law”).'),
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	(92469,5024,'pageSummary','Bahrain recently enacted a long awaited and much debated new real estate development law, the Real Estate Development Law No. 28 of 2014 (the “New Law”).'),
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	(92472,5024,'_currentURL','field_59d35123ab1e7'),
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	(92477,5024,'_yoast_wpseo_metadesc','Bahrain recently enacted a long awaited and much debated new real estate development law, the Real Estate Development Law No. 28 of 2014 (the “New Law”).'),
	(92478,5025,'content','November 2014\r\n\r\n<hr />\r\n\r\nIn 1971, when the country was founded, few people would have believed that the UAE would look the way it now does. Oil had only just begun contributing to the UAE economy, which had previously been dependent on fishing and the pearl industry. At this time the UAE had hardly any economic strength, however it did have determination and strong leadership. Since then, the UAE has emerged as the most stable and secure country in the Middle Eastern region, attracting foreign investment and human talent.\r\n\r\nThe UAE government has long recognized the importance of investing and having a firm strategy for improving its citizen’s welfare through education, healthcare, security and training.  This, together with the UAE leadership’s determination to make the UAE an active member of the international community, has enabled the UAE to enjoy prosperity, growth and friendly relationships with almost the entire world.\r\n\r\nA simple review of the progress of the UAE over the past 43 years, including the huge investment currently taking place, shows how much attention the UAE has given to improving the quality of life in the country, and the fact that the government recognises the need to constantly improve and progress public services to create a better UAE. The UAE has made tremendous efforts in establishing and investing in schools, hospitals, transport, training of the judicial system, separation of powers, training across public and private sectors, and zero tolerance on corruption, crime, and terrorism. This has not only improved the quality of life in the UAE and created a new well-educated, well-trained generation, but it has also made the UAE one of the safest and most desirable countries to live in amongst the region and internationally. Most importantly perhaps, the trust and stability that the UAE has within its government and leadership provides the local and international community with confidence in the country’s long-term future and its ability to deliver on its ever more ambitious plans. The UAE’s current leadership provides a wonderful formula for future growth.\r\n\r\nThe UAE has succeeded where unfortunately others have failed, in investing in the creation and the existence of a well-rounded and functioning human society. It has done this by recognizing that it is important to invest in the basics to establish the fundamentals of any society. Having recognized the importance of investing in its people from day one, the UAE has consistently and gradually increased investment throughout its 43 years, creating the UAE we know today.  These principles are not new or alien to other peoples. They are principles that contributed to the success and growth of old or modern societies, and formed a fundamental part of the Islamic religion. However wherever in the world you look, it is recognised that security, education, health, training, rule of law, are needs of any society. Fortunately the UAE, through its inspired leaders, has been able to implement these principles and achieve more than anyone could have imagined 43 years ago. The determination of the current government will allow the UAE to continue advancing and leading the region for many more years to come.\r\n<div></div>'),
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	(92482,5025,'content_description','On 2 December 2014 the United Arab Emirates will be celebrating its 43rd National Day.'),
	(92483,5025,'_content_description','field_59b641c07f473'),
	(92484,5025,'pageSummary','On 2 December 2014 the United Arab Emirates will be celebrating its 43rd National Day.'),
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	(92486,5025,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-8/november-5/improving-the-quality-of-life-the-future-of-united-arab-emirates.html'),
	(92487,5025,'_currentURL','field_59d35123ab1e7'),
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	(92496,5025,'_yoast_wpseo_metadesc','On 2 December 2014 the United Arab Emirates will be celebrating its 43rd National Day.'),
	(92497,5026,'content','November 2014\r\n\r\n<hr />\r\n\r\nThe new regulation is an attempt to control the content of tobacco products in the GCC market.\r\n\r\nIn the past, given that specific legislation on the topic was lacking, tobacco manufacturers had the option of using a wide range of additives in tobacco products. In recent times, the GSO board of directors has decided to take the initiative to regulate the market in order to address this issue. In this regard, the GOS approved technical standard number GSO 2390/2014 in their meeting no. 19 on 14 May, 2014. The technical regulation was initially drafted by the State of Qatar and is largely based on national and international standards and references.\r\n\r\nThe objective of this new technical regulation is to maintain quality of tobacco product, consumer protection and safety. The new technical regulation contains a list of permissible tobacco additives and a list of impermissible tobacco additives. The permissible list includesadditives such as:\r\n<ol>\r\n 	<li>Fruits, and dried fruits</li>\r\n 	<li>Spices</li>\r\n 	<li>Liquorice extract</li>\r\n 	<li>Coffee extract</li>\r\n 	<li>Tea and tea-like products</li>\r\n 	<li>Cocoa, and cocoa products</li>\r\n 	<li>Honey</li>\r\n 	<li>Maple syrup</li>\r\n 	<li>Sugars suitable for human consumption</li>\r\n 	<li>Menthol</li>\r\n 	<li>Molasses</li>\r\n 	<li>Water</li>\r\n 	<li>Cellulose</li>\r\n 	<li>Arabic Gum</li>\r\n 	<li>Citric acid</li>\r\n 	<li>Caramel</li>\r\n</ol>\r\nThe impermissible additives list includes:\r\n<ol>\r\n 	<li>Camphor</li>\r\n 	<li>Camphor oil</li>\r\n 	<li>Camphor wood</li>\r\n 	<li>Vanilla roots</li>\r\n 	<li>Poley mint (HerbaPulegii).</li>\r\n</ol>\r\nThe permissible tobacco additives are allowed to be used for specific purposes. For example, Glycerol is permissible as humectants for loose tobacco, cigar, cigarettes and reconstituted tobacco. Arabic Gum is permissible for use as glues, adhesives, and thickening agents and binders for cigars, cigarettes and loose tobacco including black tobacco. On the other hand, the impermissible tobacco additives are prohibited from use for some specific purposes. For example, the use of Camphor is prohibited in odorants or flavorings. Similarly, odorants or flavorings produced from Vanilla Roots are also prohibited.\r\n\r\nDespite the GSO’s initiatives to maintain good quality tobacco products, there are questions as to the additives that have not been mentioned in the regulation. The debate over this issue is whether the unnamed additives are permissible or impermissible. This is a grey area in the absence of clear answers from the GSO and requires further consideration from the GSO or the local standardization authorities such as Saudi Standards, Metrology and Quality Organization (SASO) or Emirate Standardization and Metrology Authority (ESMA). The GCC states have yet to implement this technical regulation; it is expected to be implemented by the each individual State within the coming months as it needs to pass the legislation process of each country.'),
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	(92501,5026,'content_description','The Gulf Standardization Organization (“GSO”) has recently published a technical regulation that regulates the permissible tobacco additives.'),
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	(92503,5026,'pageSummary','The Gulf Standardization Organization (“GSO”) has recently published a technical regulation that regulates the permissible tobacco additives.'),
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	(92507,5026,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Bassam Al Azzeh'),
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	(92519,5026,'_yoast_wpseo_metadesc','The Gulf Standardization Organization (“GSO”) has recently published a technical regulation that regulates the permissible tobacco additives.'),
	(92520,5027,'content','November 2014\r\n\r\n<hr />\r\n\r\nOn 11 May 2014, two new laws nos. 35 &amp; 36 for the year 2014 were published in the official gazette no. 1183 ratifying the joining of the State of Kuwait to the Berne Convention for the Protection of Literary and Artistic Works, and to the Paris Convention for the Protection of Industrial Property, respectively.\r\n\r\nThe Berne Convention requires its signatories to recognize the copyright of works of authors from other signatory countries (members of the Berne Union) in the same way as it recognizes the copyright of its own nationals. Article 3 of the Convention covers the criteria of eligibility for protection which stipulates:\r\n\r\n1. The protection of this Convention shall apply to:\r\n<ul>\r\n 	<li>authors who are nationals of one of the countries of the Union, for their works, whether published or not;</li>\r\n 	<li>authors who are not nationals of one of the countries of the Union, for their works first published in one of those countries, or simultaneously in a country outside the Union and in a country of the Union.</li>\r\n</ul>\r\n2. Authors who are not nationals of one of the countries of the Union but who have their habitual residence in one of them shall, for the purposes of this Convention, be assimilated to nationals of that country.\r\n\r\n3. The expression “published works” means works published with the consent of their authors, whatever may be the means of manufacture of the copies, provided that the availability of such copies has been such as to satisfy the reasonable requirements of the public, having regard to the nature of the work. The performance of a dramatic, dramatico-musical, cinematographic or musical work, the public recitation of a literary work, the communication by wire or the broadcasting of literary or artistic works, the exhibition of a work of art and the construction of a work of architecture shall not constitute publication.\r\n\r\n4. A work shall be considered as having been published simultaneously in several countries if it has been published in two or more countries within thirty days of its first publication.\r\n\r\n5. The key points of the Paris Convention are: National treatment which is tackled by Articles 2 &amp; 3, and Priority right which is tackled by Article 4 to this treaty.\r\n\r\nArticles 2 &amp; 3 of the treaty stipulate:\r\n<ol>\r\n 	<li>National treatment means that juristic and natural persons who are either nationals of or domiciled in a state that is a party to the Convention shall, as regards the protection of industrial property, enjoy in all the other countries of the Union, the advantages that their respective laws grant to nationals.</li>\r\n 	<li>Nationals of any country of the Union shall, as regards the protection of industrial property, enjoy in all the other countries of the Union the advantages that their respective laws now grant, or may hereafter grant, to nationals; all without prejudice to the rights specially provided for by this Convention.</li>\r\n 	<li>Consequently, they shall have the same protection as the latter, and the same legal remedy against any infringement of their rights, provided that the conditions and formalities imposed upon nationals are complied with.</li>\r\n</ol>\r\nHowever, no requirement as to domicile or establishment in the country where protection is claimed may be imposed upon nationals of countries of the Union for the enjoyment of any industrial property rights.\r\n\r\nThe provisions of the laws of each of the countries of the Union relating to judicial and administrative procedure and to jurisdiction, and to the designation of an address for service or the appointment of an agent, which may be required by the laws on industrial property are expressly reserved.\r\n\r\nWhereby Article 3 stipulates:\r\n\r\nNationals of countries outside the Union who are domiciled or who have real and effective industrial or commercial establishments in the territory of one of the countries of the Union shall be treated in the same manner as nationals of the countries of the Union.\r\n\r\nPriority right means that an applicant from one contracting State shall be able to use its first filing date (in one of the contracting States) as the effective filing date in another contracting State, provided that the applicant files a subsequent application within 6 months (for industrial designs and trademarks) or 12 months (for patents and utility models) from the first filing.\r\n\r\nAs of September 2013, the Paris Convention had 175 contracting member countries, which makes it one of the most widely adopted treaties worldwide, and making the State of Kuwait the 176th member.'),
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	(92524,5027,'content_description','On 11 May 2014, two new laws nos. 35 & 36 for the year 2014 were published in the official gazette no. 1183...'),
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	(92526,5027,'pageSummary','On 11 May 2014, two new laws nos. 35 &amp; 36 for the year 2014 were published in the official gazette no. 1183...'),
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	(92528,5027,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-8/november-5/kuwait-has-recently-ratified-the-joining-of-berne-paris-conventions.html'),
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	(92538,5027,'_yoast_wpseo_metadesc','On 11 May 2014, two new laws nos. 35 & 36 for the year 2014 were published in the official gazette no. 1183...'),
	(92539,5028,'content','November 2014\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">This article looks at a key part of the strategy, the National Health Insurance Scheme and examines what the regime means for participants and employees alike.</p>\r\n<p class=\"MsoNormal\"><em>Background </em></p>\r\n<p class=\"MsoNormal\">Launched in July 2013, Qatar’s health insurance scheme, Seha, is an integral part of the National Health Strategy.  The health insurance scheme is being rolled out in five stages with coverage initially applying to Qatari females aged 12 and above for gynecology, obstetrics, maternity and related women’s health conditions. The second and third stages allow for the roll out of comprehensive insurance coverage to all Qatari nationals for their basic health care needs.  Finally, stages four and five will provide cover for all white and blue collar expatriates as well as visitors to Qatar.</p>\r\n<p class=\"MsoNormal\"><em>Legal basis</em></p>\r\n<p class=\"MsoNormal\">The health insurance scheme was put in place pursuant to <em>Law No. 7 of 2013 on the Social Health Insurance System</em> (<strong>Law</strong>) which was followed by the release of the <em>Resolution of Minister of Public Health No. 22 of 2013 Regarding Issuing Executive Regulations of Law No. (7) of 2013 </em>(<strong>Regulations</strong>).  The Law and Regulations set out the role of the Supreme Council of Health, the concepts of basic and additional health services, the licensing of participants, the responsibilities for premium payment, the establishment of the National Company for Health Insurance (<strong>NCHI</strong>) and the applicable penalties regime for non-compliance.</p>\r\n<p class=\"MsoNormal\"><em>Bodies responsible for oversight and management of the Scheme</em></p>\r\n<p class=\"MsoNormal\">The health insurance scheme is to be implemented and managed by several bodies.  The Supreme Council of Health is the Qatari government body with overall responsibility for the rollout of the scheme.  It will also be responsible for the supervision and licensing of all regulated participants.  As part of this role, the Supreme Council of Health will act as a repository of all health-related information, including patients’ medical records (Article 4 of the Law).</p>\r\n<p class=\"MsoNormal\">The Government has established the NCHI to be responsible for the actual management of the health insurance scheme including contracting with and supervising health care providers, promulgating patient care standards, managing the collection of premium and payment of fees for service providers and ensuring adequate data protection regulations are in place in respect of health information (Articles 19 and 20 of the Law).</p>\r\n<p class=\"MsoNormal\">Importantly, the NCHI is solely responsible for issuing the basic health insurance benefits in Qatar with private insurers only being allowed to participate by offering prescribed additional benefits (Article 28 of the Regulations).</p>\r\n<p class=\"MsoNormal\">To act as its third party administrator for the health insurance scheme, the NCHI has appointed Qatari insurance company, Al Khaleej Takaful.  Al Khaleej will be responsible for all essential administrative functions of the NCHI and in turn has appointed two sub-contractors, Aetna and GlobeMed. Aetna will provide health management services and GlobeMed will undertake enrolment, claims administration and call center capabilities.</p>\r\n<p class=\"MsoNormal\"><em>Licensing and requirements of scheme participants</em></p>\r\n<p class=\"MsoNormal\">The Regulations prescribe the licensing requirements for health care providers wishing to contract with the NCHI.  In particular, healthcare providers need to have an existing licence authorising them to operate a medical facility and/or offer health care services in Qatar.</p>\r\n<p class=\"MsoNormal\">Providers also need to evidence that their information systems will meet the standards of the Supreme Council of Health so as to allow the transmission of health information to the Supreme Council of Health and the NCHI.  The Regulations also prescribe a range of terms that must be included in the agreement between the healthcare provider and the NCHI (Chapter III of the Regulations).</p>\r\n<p class=\"MsoNormal\">Insurers wishing to offer the prescribed additional insurance benefits must also apply for and receive a licence before they can participate in the health insurance scheme.  Insurers must again already be licensed to practice health insurance in Qatar and cannot own or manage any health care provider.  As insurers can only be licensed to provide <em>‘additional health care benefits’ </em>they must cease offering any other benefits by 30 April 2015.  This requirement is pursuant to Supreme Council of Health Circular MA/5/2014 which allowed for a one year grace period from the original 1 April 2014 deadline.  The Regulations prescribe a number of terms that must be included in the insurer’s policy for provision of the additional benefits, including details of the limitations of the additional benefits, the claims and complaints processes, the applicable healthcare providers and the use and protection of policy holder information (Chapter IV of the Regulations).</p>\r\n<p class=\"MsoNormal\"><em>Coverage and payment of premium</em></p>\r\n<p class=\"MsoNormal\">The health insurance scheme distinguishes between basic health benefits and additional health benefits.  The Regulations itemise the basic health benefits that apply for Qatari nationals and non-Qataris under the scheme as set out in Table 1 below.</p>\r\n<p class=\"MsoNormal\">There is compulsory coverage for Qatari nationals, GCC nationals, residents and visitors (Article 2 of the Law).  Visitors are defined under the Law and Regulations as ‘<em>each non-citizen who enters the State or resides in the same, on a temporary basis, for purposes other than residence or work</em>.’</p>\r\n<p class=\"MsoNormal\">The Minister of Health of Public Health, following the approval of the Supreme Council of Health, will set the premium amount for the basic health benefits based on generally accepted actuarial rules (Article 12 of the Law and Article 2 of the Regulations).</p>\r\n<p class=\"MsoNormal\">Employers will be liable for the payment of premiums for their non-Qatari employees and employees’ families (Article 4 of the Regulations).  Sponsors will then be responsible for payment of premiums for non-Qatari residents to the extent any employer is not required to pay their premium in accordance with the Regulations (Article 5 of the Regulations).  Visitors to Qatar are responsible for payment of their own premium with the issue of temporary visas being subject to proof of payment of premiums (Article 7 of the Regulations).  Finally, the Qatari Government will be responsible for the payment of premium for all Qatari nationals under the scheme (Article 13 of the Law).</p>\r\n<p class=\"MsoNormal\"><em>Conclusion</em></p>\r\n<p class=\"MsoNormal\">Qatar’s health insurance scheme is arguably the most fully formed of the recently arrived compulsory health insurance regimes in the GCC.  The five stage roll out has allowed an incremental on-boarding of information systems and has provided that the capability build-up was able to take place without undue pressure.  However, given the population of Qatar is heavily weighted towards its ex-pat community, the real test of the scheme is still to come with stages four and five yet to be implemented.</p>\r\n<p class=\"MsoNormal\"><strong>Table 1</strong></p>\r\n\r\n<table class=\"MsoTableGrid\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td colspan=\"2\" valign=\"top\" width=\"387\">\r\n<p class=\"MsoNormal\"><strong>Basic Health Services covered by the Health Insurance Scheme</strong><strong> </strong></p>\r\n</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"211\">\r\n<p class=\"MsoNormal\">Qatari Nationals</p>\r\n</td>\r\n<td valign=\"top\" width=\"176\">\r\n<p class=\"MsoNormal\">Non-Qatari Nationals</p>\r\n</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"211\">\r\n<ol>\r\n 	<li>General Medicine Services</li>\r\n 	<li>Preventive Care Services</li>\r\n 	<li>Emergency and Accidents Services</li>\r\n 	<li>Inpatient and Outpatient Hospital Services</li>\r\n 	<li>Lab, Radiology and Medical Analysis Services</li>\r\n 	<li>Maternity and Gynecology Services</li>\r\n 	<li>Pharmaceutical Services</li>\r\n 	<li>Basic Dental Services and Eye Services</li>\r\n 	<li>Neurological Diseases Treatment</li>\r\n 	<li>Home Heath and Home Nursing.</li>\r\n 	<li>Speech Therapy and Treatment of Vocational Diseases and Palliative Treatment</li>\r\n 	<li>Organs Transplantation</li>\r\n 	<li>End of Life Care</li>\r\n 	<li>Durable Medical Equipment</li>\r\n 	<li>Infertility Treatment and Family Planning</li>\r\n</ol>\r\n</td>\r\n<td valign=\"top\" width=\"176\">\r\n<ol>\r\n 	<li>General Medicine Services</li>\r\n 	<li>Preventive Care Services</li>\r\n 	<li>Emergency and Accidents Services</li>\r\n 	<li>Inpatient and Outpatient Hospital Services</li>\r\n 	<li>Lab, Radiology and Medical Analysis Services</li>\r\n 	<li>Maternity and Gynecology Services</li>\r\n</ol>\r\n<p class=\"MsoNormal\"></p>\r\n</td>\r\n</tr>\r\n</tbody>\r\n</table>'),
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	(100248,5449,'_yoast_wpseo_metadesc','Al Tamimi & Company looks at the process of opposing trademark applications in Bahrain, which is a process governed by GCC Law No.6 of 2014.'),
	(100249,5450,'content','August 2016\r\n\r\n<hr />\r\n<p class=\"p1\">Implementing Regulations clarifying the operation and effect of a number of the provisions of the new law have recently been through a consultation phase and are due to be issued in the coming months.</p>\r\n<p class=\"p1\">The renamed Ministry of Commerce and Investment (“MoCI”) and the Saudi Arabian General Investment Authority (“SAGIA”) are having to get to grips with the significant changes under the new law affecting how entities in Saudi Arabia are formed and regulated, against a background where Saudi Arabia is seeking to encourage more foreign investment in line with the National Transformation Plan 2020 and the Saudi Vision 2030, which are Saudi Arabia’s roadmap to diversify its economy and address the challenges brought by low global energy prices.</p>\r\n<p class=\"p1\">As with many new pieces of legislation it may take a while for the regulators and others to understand fully the new law and for it to be fully implemented in practice.</p>\r\n<p class=\"p1\">This article highlights some key issues relating to the implementation of the new law, signposts some new and impending regulations that Saudi, GCC and foreign investors need to be aware of and some of the steps that existing companies and managers now need to be considering.</p>\r\n<p class=\"p3\"><strong>The New Law</strong></p>\r\n<p class=\"MsoNormal\">The important changes in the new law from the position under the old Saudi Companies Law are listed in the tables below.</p>\r\n<p class=\"p3\"><strong>Interim Period</strong></p>\r\n<p class=\"p1\">Article 224 of the new law gives existing companies 12 months from the Effective Date to bring their affairs into compliance with the new law. However, this does not mean that existing entities do not have to comply with the new law until the end of the 12 months because penalties can be applied from the Effective Date. MoCI and the Capital Markets Authority (“CMA”) can also determine certain provisions of the new law which are effective during this interim period.</p>\r\n<p class=\"p3\"><strong>Template Constitutional Documents</strong></p>\r\n<p class=\"p4\">MoCI has recently published template articles of association (“AoA”) and bylaws for the different forms of entity including LLCs and joint stock companies (“JSCs”).</p>\r\n<p class=\"p1\">Whilst it is not mandatory for a company to have constitutional documents in this format, it is likely to be easier, certainly for any companies formed after the publication of these templates, to obtain MoCI approval using constitutional documents based on this format and they should also be considered when existing companies are considering changes to their constitutional documents.</p>\r\n<p class=\"p1\">The new template AoA for LLCs reflect , for example, the following changes under the new law:</p>\r\n\r\n<ul>\r\n 	<li>Financial statements to be prepared within 3 months of year end and filed within a further 1 month (previously 4 months and 2 months);</li>\r\n 	<li>Suspension of set aside of statutory reserve when it reaches 30% of capital (previously 50%);</li>\r\n 	<li>Changes to statutory pre-emption process including added flexibility on valuation;</li>\r\n 	<li>New procedures and effects where losses reach 50% of capital.</li>\r\n</ul>\r\n<p class=\"p3\"><strong>JSCs-MoCI and Capital Markets Authority Statements</strong></p>\r\n<p class=\"p1\">In April and May 2016 MoCI and the CMA issued two joint statements dealing with the implementation of the new law in relation to JSCs (and holding companies) and specifying certain provisions of the new law that must be implemented immediately and others which fall within the 12 month grace period.</p>\r\n<p class=\"p1\">Examples of provisions to be complied with are:</p>\r\n\r\n<ul>\r\n 	<li>Article 90 - regulating shareholders meetings;</li>\r\n 	<li>Article 95 - cumulative voting for board elections and certain situations where directors are prohibited from voting.</li>\r\n</ul>\r\n<p class=\"p7\">Examples of provisions where an extension can be granted are:</p>\r\n\r\n<ul>\r\n 	<li>Article 68.1 - the number of directors;</li>\r\n 	<li>Article 76 - directors’ remuneration;</li>\r\n 	<li>Article 81.1 - the functions of the Chairman, Deputy Chairman and Managing Director;</li>\r\n 	<li>Articles 101 - 104-certain provisions relating to Audit Committees;</li>\r\n 	<li>Article 150 - dealing with losses of JSCs (although listed companies have to make a monthly announcement of their plans and actions to comply if losses incurred equal or exceed 50% of capital in the interim period);</li>\r\n 	<li>Articles 182 - 186-dealing with holding companies.</li>\r\n</ul>\r\n<p class=\"p7\">However the MoCI/CMA statements make clear that any new action intended by a JSC must comply with the new law eg on appointing a new director Article 68.1 must be complied with.</p>\r\n<p class=\"p1\">Accordingly as well as bringing their procedures and affairs into line with the new law, all existing Saudi companies will need to review their existing constitutional documents and consider the changes required to be consistent with the New Law.</p>\r\n<p class=\"p3\"><strong>Foreign Investment</strong></p>\r\n<p class=\"p1\">The Saudi Arabian General Investment Authority (“SAGIA”) announced in 2015 that international companies were being encouraged to establish 100% foreign owned trading companies. Shortly after the announcement of the Saudi Vision 2030, the Saudi Council of Ministers approved rules to implement this change in June 2016. Initial indications suggest that only very large international companies (who amongst other things will employ significant numbers of Saudi nationals) will qualify for 100% foreign ownership</p>\r\n<p class=\"p1\">On implementation of the new law, SAGIA has yet to clarify if, when and on what basis it will license foreign owned holding companies and foreign owned single shareholder LLCs.</p>\r\n<p class=\"p1\">These clarifications are likely to have a significant impact on foreign investors structuring their investments in Saudi Arabia.<strong> </strong></p>\r\n<p class=\"p3\"><strong>New Implementing Regulations</strong></p>\r\n<p class=\"p1\">The draft implementing regulations (“Implementing Regulations”) for the new law have also been through a consultation phase which was completed in May 2016. The final version is expected in the next few months.</p>\r\n<p class=\"p1\">The draft Implementing Regulations cover areas such as:</p>\r\n\r\n<ul>\r\n 	<li>Use of technology at JSC meetings;</li>\r\n 	<li>Buy-back of JSC shares;</li>\r\n 	<li>Pledge of JSC shares;</li>\r\n 	<li>Preference shares<strong> </strong></li>\r\n</ul>\r\n<p class=\"p3\"><strong>Corporate Governance</strong></p>\r\n<p class=\"p1\">In April 2016 MoCI and the CMA issued a draft of proposed new Corporate Governance Regulations (“the CG Regulations”) which again have just been through a consultation phase. The CG Regulations will apply to both Saudi listed companies and on a best practice voluntary basis to closed JSCs (favoured by many Saudi Family owned groups). Once approved the CG Regulations will replace the existing CMA Corporate Governance regulations which apply to Saudi listed companies. Saudi family-owned groups will want to consider the CG Regulations and to adopt some or all of their provisions to reflect best practice, which as well as for family governance purposes may also be important in dealings with third parties.</p>\r\n<p class=\"p1\">We will comment further on the CG Regulations and the new Implementing Regulations when they have been finally approved.</p>\r\n<p class=\"p3\"><strong>Conclusion</strong></p>\r\n<p class=\"p1\">With the numerous new and impending regulatory and procedural changes affecting Saudi companies it is vital that both existing companies and new investors make themselves fully aware of the changes made, review how they are conducting their procedures and affairs to bring them into line with the new law and review and make any changes required to their existing constitutional documents to be consistent with the new law.</p>\r\n<p class=\"p1\">Al Tamimi &amp; Co’s offices in Saudi Arabia are currently assisting many clients with these matters.</p>\r\n<p class=\"p9\"><em>If you wish to discuss any aspect of these changes please contact Hesham Al Homoud, Partner and Head of Corporate Structuring, Riyadh, h.hamoud@tamimi.com; Matthew Kelleher, Senior Associate, Corporate Structuring, Riyadh, m.kelleher@tamimi.com; Grahame Nelson, Partner and Head of Riyadh Office, g.nelson@tamimi.com; or Jonathan Reardon, Head of Al Khobar Office,,  j.reardon@tamimi.com.</em></p>\r\n<p class=\"p3\"><strong>Table</strong></p>\r\n<p class=\"MsoNormal\"><em>JSCs-General Provisions</em></p>\r\n\r\n<table border=\"0\" align=\"left\">\r\n<tbody>\r\n<tr>\r\n<td><strong>Article</strong></td>\r\n<td><strong>Topic</strong></td>\r\n<td><strong>New</strong></td>\r\n<td><strong>Old</strong></td>\r\n</tr>\r\n<tr>\r\n<td>1</td>\r\n<td>Competent Authority</td>\r\n<td>MOCI, except for listed JSCs where it is CMA</td>\r\n<td>MOCI</td>\r\n</tr>\r\n<tr>\r\n<td>13</td>\r\n<td>Electronic Publication</td>\r\n<td>Requirement to publish documents in Official Gazette replaced by electronic publication on MoCI website.</td>\r\n<td>Publication of AOA and changes to AoA etc. in Official Gazette</td>\r\n</tr>\r\n<tr>\r\n<td>54</td>\r\n<td>Capital</td>\r\n<td>The capital of a JSC shall be sufficient to achieve its purpose and not less than SAR 500,000. The paid-in capital upon incorporation shall not be less than a quarter of the capital</td>\r\n<td>Used to be SAR 2m for closed JSC or SAR 10m for Public and paid in capital was minimum of one half</td>\r\n</tr>\r\n<tr>\r\n<td>55</td>\r\n<td>Ownership</td>\r\n<td>A single shareholder closed-JSC can be established or owned by:\r\n<ul>\r\n 	<li>Saudi Government;</li>\r\n 	<li>Saudi Government establishments;</li>\r\n 	<li>entities wholly owned by the Saudi Government;</li>\r\n 	<li>Any company with a minimum SAR5m capital.</li>\r\n</ul>\r\nAll JSCs can now be formed with a minimum of 2 shareholders.</td>\r\n<td>A closed JSC had to have at least 5 members.</td>\r\n</tr>\r\n<tr>\r\n<td>-</td>\r\n<td>No feasibility study required</td>\r\n<td>No feasibility study required for incorporation. MoCI resolution still required.</td>\r\n<td>MoCI resolution and feasibility study required</td>\r\n</tr>\r\n<tr>\r\n<td>-</td>\r\n<td>Guarantee  shares</td>\r\n<td>Guarantee shares no longer required from directors.</td>\r\n<td>Shares to value of SAR 10,000 must be deposited with Saudi bank as a guarantee of director’s liability.</td>\r\n</tr>\r\n<tr>\r\n<td>86-2</td>\r\n<td>Shareholder attendance</td>\r\n<td>Every shareholder can now attend shareholder meetings.</td>\r\n<td>Shareholders with less than 20 shares did not have right to attend shareholder meetings.</td>\r\n</tr>\r\n<tr>\r\n<td>91 to 94</td>\r\n<td>Shareholder meetings</td>\r\n<td>Minimum notice period for OGMs reduced to 10 days. New meeting can be held 1 hour after inquorate meeting. New quorum requirements for OGM of 25% of capital, or higher percentage provided by AoA (capped at 50% of capital) Quorum for EGM remains at 50% unless AoA prescribe a higher percentage but capped at two thirds of capital.</td>\r\n<td>25 days. Reconvened meeting within 30 days. Minimum quorum of 50% of capital or higher percentage (not capped) prescribed in AoA.</td>\r\n</tr>\r\n<tr>\r\n<td> 108</td>\r\n<td>Founder Lock-up</td>\r\n<td>Founder lock-up period remains at publication of 2 sets of financial statements but can be reduced by the CMA for listed or prospective listed companies</td>\r\n<td>2 sets of financial statements.</td>\r\n</tr>\r\n<tr>\r\n<td>112</td>\r\n<td>Purchase/pledge of own shares</td>\r\n<td>JSC may purchase or pledge its own shares</td>\r\n<td>Only limited and restricted rights to purchase own shares and pledge of own shares by JSC generally prohibited.</td>\r\n</tr>\r\n<tr>\r\n<td>114</td>\r\n<td>Preference shares</td>\r\n<td> Additional provisions around issue of preference shares.</td>\r\n<td>Limited clarity resulted in no use of preference shares.</td>\r\n</tr>\r\n<tr>\r\n<td>121-125</td>\r\n<td>Debt  and sukuk instruments</td>\r\n<td>Confirms that all issues must observe Sharia principles. Additional clarification around issues of convertible debt instruments.</td>\r\n<td>New law amplifies existing law.</td>\r\n</tr>\r\n<tr>\r\n<td> 129</td>\r\n<td>Statutory reserve</td>\r\n<td>The general assembly may suspend the assignment of 10% of net profits to statutory reserves once the reserve  reaches 30% of paid capital.</td>\r\n<td>Statutory reserves used to be 50% of paid capital.</td>\r\n</tr>\r\n<tr>\r\n<td> 133-1</td>\r\n<td>External Auditor</td>\r\n<td>The external auditors may not be appointed for more than 5 continuous years with minimum 2 years before re-appointment.</td>\r\n<td>No restriction on length of appointment or on re-appointment.</td>\r\n</tr>\r\n<tr>\r\n<td> 150</td>\r\n<td>Dissolution by operation of law.</td>\r\n<td>if a JSC’s losses are 50% or more of capital and prescribed requirements (as specified) not followed deemed dissolution occurs by operation of law if EGM is not held within 45 days or EGM fails to pass resolution or re-capitalisation not implemented within 90 days of resolution.</td>\r\n<td>75% of capital. No automatic dissolution by operation of law. Less procedural requirements. No provisions on failure to complete a re-capitalisation.</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n&nbsp;\r\n<p class=\"MsoNormal\"><em>JSCs-Board of Directors “(BoD”)</em></p>\r\n\r\n<table border=\"0\" align=\"left\">\r\n<tbody>\r\n<tr>\r\n<td><strong>Article</strong></td>\r\n<td><strong>Topic</strong></td>\r\n<td><strong>New</strong></td>\r\n<td><strong>Old</strong></td>\r\n</tr>\r\n<tr>\r\n<td>68-1</td>\r\n<td>BoD size</td>\r\n<td>Size of the Board is a maximum of 11 members (3-11).</td>\r\n<td>Only minimum size was mentioned.</td>\r\n</tr>\r\n<tr>\r\n<td>68-2</td>\r\n<td>BoD nomination</td>\r\n<td>Every shareholder may nominate himself or any other person(s) within the percentage of his ownership</td>\r\n<td>No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td>70-1</td>\r\n<td>BoD succession planning</td>\r\n<td>Specifies how succession to BoD membership will take place in the event that a position is vacant. Allows BoD to temporarily appoint another member as per the order of the number of obtained votes subject to such member having the experience and efficiency and subsequent OGM ratification.</td>\r\n<td>If the position of a member becomes vacant, the BoD may appoint a temporary member to fill the vacancy, provided that such appointment shall be laid before the first meeting of the Ordinary General Assembly.</td>\r\n</tr>\r\n<tr>\r\n<td>71-2</td>\r\n<td>Conflict of Interest</td>\r\n<td>If the director fails to disclose his interest, the JSC or any interested party may request the competent judicial authority to invalidate the contract and oblige the director to refund any profit or benefits earned as a result of such interest.</td>\r\n<td>This liability was not specifically mentioned in Old Law.</td>\r\n</tr>\r\n<tr>\r\n<td>76-2</td>\r\n<td>Remuneration</td>\r\n<td>Board remuneration should be commensurate to the number of meetings attended by the BoD members.</td>\r\n<td>No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td>95-1</td>\r\n<td>Cumulative voting</td>\r\n<td>Cumulative voting shall be used by shareholders in BoD elections</td>\r\n<td>No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td>76-3</td>\r\n<td>Remuneration cap</td>\r\n<td>The maximum remuneration for BoD members is SAR 500,000.</td>\r\n<td>A circular had capped it at SAR 200,000.</td>\r\n</tr>\r\n<tr>\r\n<td>81-1</td>\r\n<td>Non-exec chairman</td>\r\n<td>Chairman must be non-executive and cannot hold an executive role with the JSC.</td>\r\n<td>No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td>83-1</td>\r\n<td>Board Meetings</td>\r\n<td>Minimum number of Board meetings is 2 per year.</td>\r\n<td>There was no minimum.</td>\r\n</tr>\r\n<tr>\r\n<td>83-3</td>\r\n<td>Minutes</td>\r\n<td>The minutes of board meetings shall be signed by the chairman, the board members, and the secretary of the board.</td>\r\n<td>The minutes of board meetings shall be signed by the chairman and the secretary of the board.</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n&nbsp;\r\n<p class=\"MsoNormal\"><em>JSCs-Audit Committee</em></p>\r\n\r\n<table class=\"MsoNormalTable\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td valign=\"top\" width=\"42\"><strong>Article</strong></td>\r\n<td valign=\"top\" width=\"73\"><strong>Topic</strong></td>\r\n<td valign=\"top\" width=\"254\"><strong>New</strong></td>\r\n<td valign=\"top\" width=\"96\"><strong>Old</strong></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">101</td>\r\n<td valign=\"top\" width=\"73\">Composition</td>\r\n<td valign=\"top\" width=\"254\">\r\n<ul>\r\n 	<li>Audit committee members shall be non-executives</li>\r\n 	<li>The size of the Audit Committee shall be 3-5 members</li>\r\n</ul>\r\n</td>\r\n<td valign=\"top\" width=\"96\">No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">102</td>\r\n<td valign=\"top\" width=\"73\">Quorum</td>\r\n<td valign=\"top\" width=\"254\">\r\n<ul>\r\n 	<li>Majority attendance constitutes a quorum</li>\r\n 	<li>Resolutions are made by majority vote, and chairman has casting vote in case of a tie.</li>\r\n</ul>\r\n</td>\r\n<td valign=\"top\" width=\"96\">No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">103-104</td>\r\n<td valign=\"top\" width=\"73\">Authorities</td>\r\n<td valign=\"top\" width=\"254\">Set out authorities and internal control duties of the Audit Committee.</td>\r\n<td valign=\"top\" width=\"96\">No equivalent provision</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<p class=\"MsoNormal\"><em>JSCs– Accounts and other filings</em></p>\r\n\r\n<table class=\"MsoNormalTable\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td valign=\"top\" width=\"42\"><strong>Article</strong></td>\r\n<td valign=\"top\" width=\"114\"><strong>Topic</strong></td>\r\n<td valign=\"top\" width=\"114\"><strong>New</strong></td>\r\n<td valign=\"top\" width=\"195\"><strong>Old</strong></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">122-3</td>\r\n<td valign=\"top\" width=\"114\">Increase in capital</td>\r\n<td valign=\"top\" width=\"114\">The BoD must publish any increase in capital.</td>\r\n<td valign=\"top\" width=\"195\">No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">126-2</td>\r\n<td valign=\"top\" width=\"114\">Financial Statements and annual report</td>\r\n<td valign=\"top\" width=\"114\">The BoD shall prepare financial statements, a report on its business and financial position, and suggestion for dividends and make this available to auditors at least 45 days prior to general assembly.</td>\r\n<td valign=\"top\" width=\"195\">Same as under ‘New’ but with 55 day period.</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">126-3</td>\r\n<td valign=\"top\" width=\"114\">Signature on Financial Statements etc.</td>\r\n<td valign=\"top\" width=\"114\">Detailed signature requirements.</td>\r\n<td valign=\"top\" width=\"195\">No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">126-4</td>\r\n<td valign=\"top\" width=\"114\">Disclosure to Shareholders</td>\r\n<td valign=\"top\" width=\"114\">The chairman must provide the company shareholders with financial statements, Board report, and auditors’ report unless they are published in a daily newspaper and a  copy must be sent to MOCI and other authorities at least 15 days before the  general assembly</td>\r\n<td valign=\"top\" width=\"195\">Same as under ‘New’ but with 25 day period and with less detail.</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">128</td>\r\n<td valign=\"top\" width=\"114\">Details of what to disclose</td>\r\n<td valign=\"top\" width=\"114\">Within thirty days from the date of the general assembly filing with MOCI, and CMA in case of listed companies, of the financial statements, board report, auditor’s report and the  audit committee report.</td>\r\n<td valign=\"top\" width=\"195\">No equivalent provision</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<p class=\"MsoNormal\"><em>Single Shareholder LLCs</em></p>\r\n\r\n<table class=\"MsoNormalTable\" border=\"1\" width=\"100%\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td valign=\"top\" width=\"9%\"><strong>Article</strong></td>\r\n<td valign=\"top\" width=\"16%\"><strong>Topic</strong></td>\r\n<td valign=\"top\" width=\"38%\"><strong>New</strong></td>\r\n<td valign=\"top\" width=\"35%\"><strong>Old</strong></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"9%\">154-1</td>\r\n<td valign=\"top\" width=\"16%\">Ownership</td>\r\n<td valign=\"top\" width=\"38%\">LLCs can be owned by a single shareholder.</td>\r\n<td valign=\"top\" width=\"35%\">Minimum of two shareholders.</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"9%\">154-1</td>\r\n<td valign=\"top\" width=\"16%\">Management</td>\r\n<td valign=\"top\" width=\"38%\">\r\n<ul>\r\n 	<li>Single shareholder has all powers of the General Assembly and the Board of Managers.</li>\r\n 	<li>Single shareholder can appoint directors/managers.</li>\r\n</ul>\r\n</td>\r\n<td valign=\"top\" width=\"35%\">N/A</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"9%\">154-2</td>\r\n<td valign=\"top\" width=\"16%\">Limitations</td>\r\n<td valign=\"top\" width=\"38%\">\r\n<ul>\r\n 	<li>Individuals can only establish or own one single shareholder LLC.</li>\r\n 	<li>A single shareholder LLC  ( whether owned by an individual or a company ) may not  establish or own another  single shareholder LLC</li>\r\n</ul>\r\n</td>\r\n<td valign=\"top\" width=\"35%\">N/A</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<p class=\"MsoNormal\"><em>LLCs-Shareholder Liability</em></p>\r\n\r\n<table class=\"MsoNormalTable\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td valign=\"top\" width=\"44\"><strong>Article</strong></td>\r\n<td valign=\"top\" width=\"69\"><strong>Topic</strong></td>\r\n<td valign=\"top\" width=\"185\"><strong>New</strong></td>\r\n<td valign=\"top\" width=\"168\"><strong>Old</strong></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"44\">155</td>\r\n<td valign=\"top\" width=\"69\">Shareholder liability</td>\r\n<td valign=\"top\" width=\"185\">A  Shareholder is personally liable for LLC liabilities to third parties if in bad faith he liquidates the LLC or suspends its business before expiry of its term or achievement of its purpose; or\r\n<ul>\r\n 	<li>If he doesn’t separate his own business from LLC business; or</li>\r\n 	<li>If he conducts business in the LLC name before it is established.</li>\r\n</ul>\r\n</td>\r\n<td valign=\"top\" width=\"168\">N/A</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"44\">181</td>\r\n<td valign=\"top\" width=\"69\">Shareholder liability</td>\r\n<td valign=\"top\" width=\"185\">Potential personal liability for LLC shareholders where losses reach 50% or more of capital abolished.</td>\r\n<td valign=\"top\" width=\"168\">Shareholders were jointly liable under old Article 180 if the company continued in operation where losses were 50% or more of capital without re-capitalization.</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"44\">181</td>\r\n<td valign=\"top\" width=\"69\">Shareholder liability</td>\r\n<td valign=\"top\" width=\"185\">If losses reach 50% or more of capital then within 90 days:\r\n<ul>\r\n 	<li>Directors must publish in commercial register at MoCI;</li>\r\n 	<li>Convene a shareholders’ meeting to decide whether to continue or liquidate the LLC.</li>\r\n</ul>\r\nThe shareholders resolution must be published on the MoCI website. Automatic dissolution by operation of law if the directors do not convene shareholder meeting or shareholders fail to pass resolution.</td>\r\n<td valign=\"top\" width=\"168\">Managers must convene shareholder meeting within 30 days; no provision for publication of position on losses (only publication in Official Gazette of passing of shareholder resolution). Shareholder/interested party could apply to court to liquidate company.</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<em>General LLC Provisions</em>\r\n<table class=\"MsoNormalTable\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td valign=\"top\" width=\"42\"><strong>Article</strong></td>\r\n<td valign=\"top\" width=\"84\"><strong>Topic</strong></td>\r\n<td valign=\"top\" width=\"202\"><strong>New</strong></td>\r\n<td valign=\"top\" width=\"138\"><strong>Old</strong></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">157-2</td>\r\n<td valign=\"top\" width=\"84\">Contribution in kind</td>\r\n<td valign=\"top\" width=\"202\">All in kind contributions must be valued by an independent valuer ( like JSCs)</td>\r\n<td valign=\"top\" width=\"138\">No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">158</td>\r\n<td valign=\"top\" width=\"84\">Electronic publication</td>\r\n<td valign=\"top\" width=\"202\">Requirement to publish documents in the Official Gazette replaced by electronic publication on MOCI website.</td>\r\n<td valign=\"top\" width=\"138\">Publication of changes to AoA etc. in Official Gazette.</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">160</td>\r\n<td valign=\"top\" width=\"84\">Capital</td>\r\n<td valign=\"top\" width=\"202\">No minimum requirement) but capital must be sufficient to achieve the LLC’s purpose.</td>\r\n<td valign=\"top\" width=\"138\">No minimum requirement. No statutory capital sufficiency requirement.</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">161</td>\r\n<td valign=\"top\" width=\"84\">Pre-emption</td>\r\n<td valign=\"top\" width=\"202\">Statutory pre-emption retained on share transfer with fair value and 30 day time period but AoA may provide for different method of valuation and time period.</td>\r\n<td valign=\"top\" width=\"138\">Statutory pre-emption on transfer with fair value basis with stipulated 30 day time period.</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">173-4</td>\r\n<td valign=\"top\" width=\"84\">Confidentiality</td>\r\n<td valign=\"top\" width=\"202\">LLC shareholders are subject to a duty of confidentiality on information received as shareholders.</td>\r\n<td valign=\"top\" width=\"138\">No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">175</td>\r\n<td valign=\"top\" width=\"84\">Financial statements</td>\r\n<td valign=\"top\" width=\"202\">Financial statements must be prepared within 3 months of year end and filed within 1 month of preparation.</td>\r\n<td valign=\"top\" width=\"138\">4 months to prepare and filing within further 2 months of preparation.</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">176</td>\r\n<td valign=\"top\" width=\"84\">Statutory reserve</td>\r\n<td valign=\"top\" width=\"202\">The general assembly may suspend the assignment of 10% of net profits to statutory reserves once the latter reach 30% of paid capital.</td>\r\n<td valign=\"top\" width=\"138\">Statutory reserves used to be 50% of paid capital.</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<p class=\"MsoNormal\"><em>Holding Companies</em></p>\r\n\r\n<table class=\"MsoNormalTable\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td valign=\"top\" width=\"42\"><strong>Article</strong></td>\r\n<td valign=\"top\" width=\"66\"><strong>Topic</strong></td>\r\n<td valign=\"top\" width=\"275\"><strong>New</strong></td>\r\n<td valign=\"top\" width=\"83\"><strong>Old</strong></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">182-1</td>\r\n<td valign=\"top\" width=\"66\">Holding Company</td>\r\n<td valign=\"top\" width=\"275\">The concept of a holding company is recognised for the first time. Defined as a JSC or an LLC controlling other JSCs or LLCs by holding a majority of their shares or controlling the formation of their boards of directors.</td>\r\n<td valign=\"top\" width=\"83\">No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">182-2</td>\r\n<td valign=\"top\" width=\"66\">Holding Company</td>\r\n<td valign=\"top\" width=\"275\">Must include word “holding” in its name.</td>\r\n<td valign=\"top\" width=\"83\">No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">183</td>\r\n<td valign=\"top\" width=\"66\">Holding Company</td>\r\n<td valign=\"top\" width=\"275\">Prescribed objects are to manage affiliates; invest in stocks/securities; provide loans/guarantees/ finance to affiliates; own/ hold IP and other property and licence to affiliates /third parties; and anything else relevant to a holding company.</td>\r\n<td valign=\"top\" width=\"83\">No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">184</td>\r\n<td valign=\"top\" width=\"66\">Holding Company</td>\r\n<td valign=\"top\" width=\"275\">Subsidiary cannot hold shares in holding company.</td>\r\n<td valign=\"top\" width=\"83\">No equivalent provision</td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"42\">185</td>\r\n<td valign=\"top\" width=\"66\">Holding Company</td>\r\n<td valign=\"top\" width=\"275\">Required to prepare annual consolidated financial statements.</td>\r\n<td valign=\"top\" width=\"83\">No equivalent provision</td>\r\n</tr>\r\n</tbody>\r\n</table>'),
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	(100236,5449,'pageSummary','Opposing a trademark application is one of the most important and effective actions that can be taken to prevent the registration of an identical or a confusingly similar trademark, and it has particular importance in Bahrain. Opposing a trademark application is much cheaper and less time consuming than trying to remove a trademark once registered in the name of another party. This article looks at the process of opposing trademark applications in Bahrain, which is a process governed by GCC Law No.6 of 2014.'),
	(100235,5449,'_content_description','field_59b641c07f473'),
	(100224,5448,'_currentURL','field_59d35123ab1e7'),
	(100225,5448,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','607'),
	(100226,5448,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
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	(100229,5448,'_yoast_wpseo_metadesc','Bahrain is currently undertaking changes in relation to its companies law framework. Al Tamimi & Company provides a general overview of some of the key changes.'),
	(100230,5449,'content','August 2016\r\n\r\n<hr />\r\n<p class=\"p1\">An opposition action may be filed against a trademark application by any third party within a period of 60 days from the date of publication in the online Trademarks Special Publications Gazette. The 60 days deadline is not extendable, and once it has expired no opposition action can be taken. The opposition action must be submitted in two copies on the official form, in addition to any supporting evidence such as prior registration certificates in Bahrain and worldwide; evidence of prior use; evidence proving fame; and evidence of any prior relationship between the applicant and the opposing party to prove bad faith. The 2014 law significantly increased the fees of filing such an application to BHD 200 from BHD 20, in addition to BHD 100 for requesting a hearing session if needed (see below).</p>\r\n<p class=\"p1\"><span class=\"s1\"> A legalized and notarized Power of Attorney should be presented with the opposition action if the opposing party is not a resident in Bahrain, and a notarized Power of Attorney if the opposing party is a resident in Bahrain. The law does not provide the possibility of presenting the original Power of Attorney after the 60 day period, however the common practice of the trademark office is to accept the opposition based on soft copies, and to request the original within a specific period. Furthermore, the decisions of the Court of Cassation confirm that the relationship between a party and its attorney cannot be discussed by either party or by the court unless denied by the party alleged to have instructed the attorney. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> The applicant must be notified with the opposition action within 30 days, and must respond within 60 days. If no counter opposition is submitted the application will be considered abandoned. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> If the trademark is contested, either party can request a hearing session to take place to allow an opportunity for the parties to provide more clarification in relation to the submitted arguments before a decision is made. However it is for the trademark office at its sole discretion to allow such a hearing to take place. The decision must be issued within 90 days from the date of the hearing session. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> If the trademark is published without any third party opposition, the trademark passes to registration. Once registered, the only possible action to invalidate the registration of a trademark is filing a cancelation action before the court within five years of the registration date, unless the basis of the cancelation action is nonuse for a period not less than five years. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> The cost and time it takes to cancel a trademark once registered is not the only problem avoided when the trademark is challenged prior to registration. Any canceled trademark can only be registered in the name of another party after three years from the cancelation date, unless the court which made the cancelation decision determines a shorter period.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> It is worth mentioning that the three years period also applies to trade names. If a trade name identical or confusingly similar to a registered or a well-known trademark is unlawfully registered, a cancelation action may be filed before the court. However, in this case, the relevant law (Law No. 18 of 2012) does not provide the option of enforcing a period shorter than three years for the trade name to be registered in the name of another party based on the court’s decision. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Filing an application and obtaining a registration, preventing others from registering an identical or a  confusingly similar trademark through opposition actions, and enforcing intellectual property rights as a whole should not be determined only based on the cost and the official fees, as taking the right decision in the right time can save a lot.</span></p>');

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	(100234,5449,'content_description','Opposing a trademark application is one of the most important and effective actions that can be taken to prevent the registration of an identical or a confusingly similar trademark, and it has particular importance in Bahrain. Opposing a trademark application is much cheaper and less time consuming than trying to remove a trademark once registered in the name of another party. This article looks at the process of opposing trademark applications in Bahrain, which is a process governed by GCC Law No.6 of 2014. '),
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	(100223,5448,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/august-2/bahrain-adopts-new-measures-for-businesses-encouraging-enterprise-and-investment.html'),
	(100221,5448,'pageSummary','Bahrain is currently undertaking changes in relation to its companies law framework. A series of new laws and amendments to existing laws have been implemented over the last 12 months or so with the principle aim to promote enterprise in Bahrain and encourage investors to choose Bahrain as its destination of choice when doing business in the Middle East. This article provides a general overview of some of the key changes.'),
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	(100219,5448,'content_description','Bahrain is currently undertaking changes in relation to its companies law framework. A series of new laws and amendments to existing laws have been implemented over the last 12 months or so with the principle aim to promote enterprise in Bahrain and encourage investors to choose Bahrain as its destination of choice when doing business in the Middle East. This article provides a general overview of some of the key changes.    '),
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	(100208,5447,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','d.aladel@tamimi.com'),
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	(100214,5447,'_yoast_wpseo_metadesc','In an ongoing bid to promote a shift from an oil to a knowledge based economy, it is not surprising that education was targeted as a key area of importance within the Bahraini Vision 2030. The Kingdom is working to raise standards and performance in its schools, vocational institutions and universities through casting a lens on the regions education system, and measuring its relative successes against the backdrop of an increasingly competitive global market. This has been translated into the legislative system, including establishing the National Authority for Qualifications and Quality Assurance of Education and Training in 2008, monitoring and evaluating the performance of schools and universities in Bahrain, and setting the National Exams for all students in both public and private schools in the third, sixth , ninth and twelfth grades.'),
	(100215,5448,'content','August 2016\r\n\r\n<hr />\r\n<p class=\"p1\"><strong>Business Licensing Integrated System (‘BLIS’)</strong></p>\r\n<p class=\"p1\"><span class=\"s2\">A few years ago, the Ministry of Industry and Commerce (‘MOIC’) embarked on implementing BLIS. The aims of BLIS are to simplify the process of business registration, streamline licensing requirements, and ensure full transparency of procedures and coordination between relevant organisations. The BLIS project is now fully operational and accessible through an online portal in coordination with the e-government. As a result, all applications for commercial registrations and licences are required to be submitted online through an automated process. </span></p>\r\n<p class=\"p1\">When looking to incorporate an entity in Bahrain with the MOIC, relevant commercial activities need to be selected. Depending on the types of activities chosen, certain conditions may apply or approvals may be required. In conjunction with implementing BLIS, Bahrain has recently streamlined the list of commercial activities from over 600 to approximately 400 by consolidating various activities.  The changes are a result of Bahrain adopting the International Standard Industrial Classification of All Economic Activities (‘ISIC’) Rev. 4. These standards have been developed by the Department of Economic and Social Affairs of the United Nations Secretariat. On the face of it, various foreign ownership restrictions have now been lifted allowing for greater investment and competition.<strong> </strong></p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>The Commercial Register Law, Decree No.27 of 2015 (‘CR Law’)  </strong></span></p>\r\n<p class=\"p1\">The CR Law generally applies to all businesses carrying out commercial activities in Bahrain including those branches of foreign companies and most businesses governed by the Commercial Companies Law. The definition of commercial activities relates to the definition contained in the Law of Commerce (Decree no. 7 of 1987) which is generally very broad and all encompassing. All such businesses are required to be registered with the MOIC and appropriately licensed by the relevant regulated body in relation to carrying out particular activities. The CR Law states that relevant details of a business will be kept on the Commercial Register which is available online.</p>\r\n<p class=\"p1\">Of particular note in relation to the CR Law is that the practice of carrying out any commercial activity in Bahrain without obtaining a license and being registered is now a criminal offence. Without prejudice to any severer penalty set out in any other law, an offender can expect to face imprisonment of up to five years and or a fine of between BHD 1,000 to 5,000. Careful consideration therefore now needs to be given when carrying out business in Bahrain.</p>\r\n<p class=\"p1\">Under Article 13 of the CR Law, the ‘Competent Department’, being the MOIC, can cancel the registration of a business from the Commercial Register if the registration is not renewed or if the business suspends its commercial activity for more than a year. Like the registration process for registering a business, the renewal process is also provided through BLIS. We have recently witnessed many examples of companies being removed from the register for being inactive or dormant. The authorities appear to be attempting to ‘clean up’ the register of companies in order to allow for an efficient and transparent system.</p>\r\n<p class=\"p1\">In addition, the CR Law also gives powers to the MOIC to conduct administrative investigations of any violation of the CR Law upon any serious complaint or notification. The CR Law provides wide reaching powers to the MOIC to deal with violations of the CR Law and provides for cooperation between the MOIC, the courts and law enforcement.</p>\r\n<p class=\"p1\">The CR Law sets out a mechanism for dealing with violators and grants powers to competent authorities to impose fines or close down businesses upon a court order. The CR Law therefore gives powers to the authorities to deal with violations of the CR Law but appropriate safeguards requiring due process are also included. The authorities may allow businesses to rectify any violations before taking more serious steps. We have not seen how the authorities are dealing with violations of the CR Law in practice but we expect that the authorities will start to use their powers in relation to illegal traders, especially if they pose a risk to the public.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Amendments to the Commercial Companies Law</strong></span></p>\r\n<p class=\"p4\">As part of the recent corporate reforms, the Commercial Companies Law was amended by Law No. 50 of 2014 and Law No. 28 of 2015 (‘Revised Law’).</p>\r\n<p class=\"p1\">In effect, the Commercial Companies Law has been amended to bring it into line with modern day principles and to also clarify areas which were previously a source of confusion and debate. A few key considerations are discussed below.</p>\r\n<p class=\"p1\"><em>Liability of Shareholders and Directors</em></p>\r\n<p class=\"p1\">Article 18 (as Amended by Law No. 50 of 2014) of the Revised Law introduces a new provision whereby founders, partners, shareholders and directors of all forms of companies will be held liable for the full capital of a company for any damages affecting the company, its partners, shareholders or third parties in any of the following cases:</p>\r\n\r\n<ul>\r\n 	<li>\r\n<div class=\"p5\">Submission of incorrect data or information about the company’s capital in its articles or memorandum of association, transactions with third parties, or in any documents that are likely to influence the financial confidence of those documents.</div></li>\r\n</ul>\r\n<ul>\r\n 	<li>If they use the company for fraudulent purposes or illegal acts.</li>\r\n 	<li>If they use the company’s funds as their own personal money.</li>\r\n 	<li>If they do not separate between their personal interests and the interests of the company.</li>\r\n 	<li>If they encumber the company with further obligations despite knowing that the company cannot perform the same as they fall due or if the company fails to fulfil those obligations as a result of gross negligence or wrongdoing.</li>\r\n 	<li>If they cause the company to fall short in meeting their tax or fee payment obligations to government departments or if the company fails to pay those taxes due to gross negligence or wrongdoing.</li>\r\n 	<li>If they violate the provisions of the company’s articles or memorandum of association.</li>\r\n</ul>\r\nArticle 18(b) states that the liability will not be eliminated if the violation occurs as a result of a resolution taken at a meeting of the Board or at a shareholders meeting, unless an objection is raised to the resolution resulting in such liability and that objection is minuted.\r\n<p class=\"p1\">The Revised Law also potentially extends the application of the Corporate Governance Code to all types of companies where previously it related to only listed companies or closed joint stock companies. Article 358(a) of the Revised Law (as amended) states that the Minister of Commerce shall promulgate a corporate governance charter in accordance with best international practices of management and governance, applicable to all companies. There is currently a corporate governance code issued by the MOIC which relates to public and closed joint stock companies however, further guidance has not been forthcoming in relation to its applicability to other types of companies. Companies that are regulated by the Central Bank of Bahrain (“CBB”) however, fall under the jurisdiction of the CBB in terms of corporate governance. In fact, the Revised Law provides increased authority to the CBB in relation to administering and regulating financial institutions licensed by it and activities relating to financial services generally.</p>\r\n<p class=\"p1\">It is clear that attempts are being taken to hold those key individuals who are responsible for running a company to be more accountable and bring Bahrain laws in line with international practices.</p>\r\n<p class=\"p1\"><em>Minimum Capital Requirements</em></p>\r\n<p class=\"p1\">The Revised Law combined with the issuance of various resolutions has also resulted in reducing the minimum capital requirements for companies in accordance with the following, depending upon the form of corporate vehicle:</p>\r\n\r\n<table class=\"t1\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td class=\"td1\" valign=\"middle\"><span class=\"s1\"><strong>Corporate Forms</strong></span></td>\r\n<td class=\"td1\" valign=\"middle\"><span class=\"s1\"><strong>Structure of Partners/Shareholders</strong></span></td>\r\n<td class=\"td1\" valign=\"middle\"><span class=\"s1\"><strong>Minimum Issued Share Capital</strong></span></td>\r\n</tr>\r\n<tr>\r\n<td class=\"td2\" valign=\"middle\">Single Person Company (“SPC”)</td>\r\n<td class=\"td2\" valign=\"middle\">A single shareholding company where the liability of the shareholder is limited to the extent of the capital of the company.</td>\r\n<td class=\"td2\" valign=\"middle\">BHD 50</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td3\" valign=\"middle\">General Partnership</td>\r\n<td class=\"td3\" valign=\"middle\">2 or more partners who assume joint responsibility in the partnership to the extent of their entire personal assets for the partnership’s debts and liabilities.</td>\r\n<td class=\"td3\" valign=\"middle\">Nil</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td3\" valign=\"middle\">Bahrain Shareholding Company (“BSC”)</td>\r\n<td class=\"td3\" valign=\"middle\">A public listed company comprising of 2 or more shareholders where their respective liabilities for the company’s debts and obligations are limited to the extent of the value of their respective shareholding.</td>\r\n<td class=\"td3\" valign=\"middle\">BHD 1 Million</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td3\" valign=\"middle\">Closed Joint Stock Company (“BSC(c)”)</td>\r\n<td class=\"td3\" valign=\"middle\">Comprising of 2 or more shareholders where their respective liabilities for the company’s debts and obligations are limited to the extent of the value of their respective shareholding.</td>\r\n<td class=\"td3\" valign=\"middle\">A BSC(c) company undertaking financial related activities must have a minimum issued share capital of BHD 1,000 although the Central Bank of Bahrain may require a higher amount depending on the financial activities being carried out. A BSC (c) undertaking non-financial related activities has a minimum issued share capital of BHD 250,000.</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td3\" valign=\"middle\">Holding Company</td>\r\n<td class=\"td3\" valign=\"middle\">May take the form of a BSC/ BSC (c), a WLL or an SPC. Please see relevant forms for shareholder structure.</td>\r\n<td class=\"td3\" valign=\"middle\">BHD 50</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td3\" valign=\"middle\">With Limited Liability Company (“WLL”)</td>\r\n<td class=\"td3\" valign=\"middle\">Comprising of 2 to 50 shareholders where their respective liabilities for the company’s debts and obligations are limited to the extent of the value of their respective shareholding.</td>\r\n<td class=\"td3\" valign=\"middle\">BHD 100</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td3\" valign=\"middle\">Foreign Company Branch</td>\r\n<td class=\"td3\" valign=\"middle\">The parent company must guarantee the liability of its branch in Bahrain.</td>\r\n<td class=\"td3\" valign=\"middle\">Nil</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td4\" valign=\"middle\">Shelf Companies</td>\r\n<td class=\"td4\" valign=\"middle\">A shelf company may take any corporate form. The validity of a shelf company is 1 year during which all approvals and licenses must to obtained. A shelf company is not considered active unless all approvals are obtained.</td>\r\n<td class=\"td4\" valign=\"middle\">Depends on the form of company selected.</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<p class=\"p1\"><em>Public Companies</em></p>\r\n<p class=\"p1\">The Revised Law has made some changes relating specifically to public companies listed on the Bahrain Bourse. Article 64 which previously stated that all shareholders in a public company must be Bahraini has been deleted and Article 65 has been amended (Law No. 50 of 2014) to state that public companies may be incorporated with participation of foreign capital or expertise. This has clarified the practice that was previously being adopted.</p>\r\n<p class=\"p1\"><span class=\"s2\"> The Revised Law also amends Article 234 (Law No. 50 of 2014) which previously contained a three year restriction on closed joint stock companies from being able to convert and publicly trade its shares. The revision now states that the shares of closed joint stock companies shall not become traded before the payment of the full value of the shares. There is therefore scope for a closed joint stock company to convert to a public company within three years of being founded. The Revised Law has also repealed Article 245 which contained certain conditions that a closed joint stock company had to fulfil before it could convert to a public company.</span></p>\r\n<p class=\"p4\"><em>Shelf Companies </em></p>\r\n<p class=\"p1\">The Revised Law has also introduced and approved the setting up of a new form of company, named as a shelf company (amended by Decree Law No.28 of 2015), which is touched on above. A shelf company may be created and registered in Bahrain with no activity listed under its function. This company may then be sold, however the activity of such company must be approved by the competent authority.</p>\r\n<p class=\"p1\">A shelf company may take any corporate form. The validity of a shelf company is one year during which all approvals and licenses must be obtained. A shelf company is not considered active unless all approvals are obtained.</p>\r\n<p class=\"p1\"><em>Foreign Ownership Restrictions</em></p>\r\n<p class=\"p1\">Generally, Bahrain has been liberal in terms of foreign ownership requirements and allows for corporate vehicles carrying out certain activities to be fully owned by foreign companies or nationals.</p>\r\n<p class=\"p1\"><span class=\"s2\"> Article 345 of the Revised Law (as amended by Decree Law No.28 of 2015) goes a little further and states that it is permissible to license companies which are owned, in whole or in part, by non Bahraini partners, in order to practice activities that are licensed exclusively for Bahraini nationals or that are not allowed to be practised without a majority Bahraini partner. The Article goes on to say that the Council of Ministers shall determine those activities that can be carried out by companies with foreign ownership by way of a resolution. Further, Article 345 gives special powers to the Minister concerned with Commerce Affairs, upon approval of the Council of Ministers, to issue a decision to license the establishment of a company with foreign capital to practice certain activities if they deem that the establishment of that company may have strategic economic significance or reward for the Bahrain economy. There has previously been discretion vested in the Minister of Industry and Commerce to provide special exemptions from foreign ownership restrictions but Article 345 has now clarified the position.  </span></p>\r\n<p class=\"p1\">In relation to the above, the Bahrain government has very recently announced that it will be allowing 100 percent ownership in residency, real estate, administrative services, health and social work, information and communications, manufacturing and other technical activities. It is anticipated that these changes will be implemented in the near future.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Conclusion </strong></span></p>\r\n<p class=\"p1\">The changes to the corporate laws and procedures in Bahrain are welcomed as they potentially allow for easier company incorporations, streamlining the company administration process and easing restrictions on foreign ownership. As a consequence, it appears that the authorities are sending a message that because it is easier to now set up and carry out business in Bahrain, there should be no excuse in failing to be properly licensed and registered to effectively do business in Bahrain.</p>\r\n<p class=\"p1\">It is likely that we will see a series of further changes introduced over the years by the authorities as there appears to be real momentum in Bahrain to make it a well regulated, business friendly destination of choice.</p>'),
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	(100196,5447,'content_description','In an ongoing bid to promote a shift from an oil to a knowledge based economy, it is not surprising that education was targeted as a key area of importance within the Bahraini Vision 2030. The Kingdom is working to raise standards and performance in its schools, vocational institutions and universities through casting a lens on the regions education system, and measuring its relative successes against the backdrop of an increasingly competitive global market. This has been translated into the legislative system, including establishing the National Authority for Qualifications and Quality Assurance of Education and Training in 2008, monitoring and evaluating the performance of schools and universities in Bahrain, and setting the National Exams for all students in both public and private schools in the third, sixth , ninth and twelfth grades.'),
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	(100198,5447,'pageSummary','In an ongoing bid to promote a shift from an oil to a knowledge based economy, it is not surprising that education was targeted as a key area of importance within the Bahraini Vision 2030. The Kingdom is working to raise standards and performance in its schools, vocational institutions and universities through casting a lens on the regions education system, and measuring its relative successes against the backdrop of an increasingly competitive global market. This has been translated into the legislative system, including establishing the National Authority for Qualifications and Quality Assurance of Education and Training in 2008, monitoring and evaluating the performance of schools and universities in Bahrain, and setting the National Exams for all students in both public and private schools in the third, sixth , ninth and twelfth grades.'),
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	(100179,5446,'pageSummary','Iran sits at the cross roads of civilisations. Once the seat of the great Persian Empire with its rich, ancient and enchanting historical narrative, the country still retains a lasting allure. With a large, well educated and young population, a relatively high GDP per capita, and a strategic location, Iran has strong potential to become once again a leading economic force globally. The recent major lifting of the crippling sanctions imposed on Iran’s economy has already shifted the attention of global business leaders to the largest closed market to open for decades. The Iranian economy is characterized largely by the hydrocarbon sector, small scale agriculture and services sector and a large state presence in manufacturing and financial services. It ranks second in the world in natural gas reserves and forth in proven crude oil reserves.'),
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	(100191,5446,'_yoast_wpseo_metadesc','With a large, well educated and young population, a relatively high GDP per capita, and a strategic location, Iran has strong potential to become once again a leading economic force globally.'),
	(212669,5374,'_yoast_wpseo_metadesc','For 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. Read more to learn.'),
	(100192,5447,'content','August 2016\r\n\r\n<hr />\r\n<p class=\"p1\">Bahrain is often recognized as the arbiter of modernization and liberalism within the GCC. The Kingdom boasts the oldest public education system in the Gulf and literacy rates are cited to be among the highest in the Arab world. As per the latest figures published by UNESCO, Bahrain’s literacy rate was a staggering 99.77% in 2015. The basis of this high literacy rate is that Bahrain’s laws make education compulsory between ages 6 to 15, and parents who do not admit their eligible children to school may be referred to the general prosecutor and even face criminal punishment.</p>\r\n<p class=\"p1\">The Ministry of Education (MoE) maintains four key tenets at the core of its over-arching role in regulating and overseeing all education-related activities in Bahrain. It lists these as “learning to be, learning to know, learning to work and learning to live with others”. In order to help facilitate these principles, the MoE has taken several steps to shape the Kingdom’s young minds into worldly and active members of society. Technology, in particular, is increasingly revolutionizing the education system in a vast array of ways. For example, the convenience of carrying laptops, smart-phones and iPads has enabled students of the present day to be further engaged with creating their own knowledge, whilst making academic research far more accessible than ever before. The principle to learn to “live with others” is no longer merely applicable to a person’s immediate surroundings. To ensure that students in Bahrain’s public schools are familiar with electronic education, public schools have been provided with computers through projects like the 2004 “King Hamad Schools of the Future”. The MoE has also implemented a large scale project to train thousands of teachers, administrators and specialists on the use of IT. Some of its potential measure of success include independent quality reviews, national examinations and scores in international tests of school performance (i.e. TIMSS, PISA and PIRLS).</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>A Brief History of Education in Bahrain</strong></span></p>\r\n<p class=\"p1\"><span class=\"s2\">The first public school for boys was established in 1919 “Alhedayah AlKhaleefeyyah School”. Following in 1928 the first public school for girls “Khaddeejah AlKobra School” was established. In a 2015/16 report issued by the MoE shows that there are currently a total of 208 government schools, 75 private schools and 14 universities within the Kingdom. </span></p>\r\n<p class=\"p1\">As a testament to the country’s rich diversity, the MoE provides free education for both Bahraini and non-Bahraini students in public schools. Education has always been compulsory in Bahrain, and so as a means of encouraging people to take advantage of the public schools presented to them, the MoE has also provided textbooks in all subjects free of charge at the beginning of each academic year.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>The Growth of National and International Private Schools and Education Institutions </strong></span></p>\r\n<p class=\"p1\">The first international school to open in the Kingdom was the ‘American Dutch Reformed Church’, in 1892. As evidence of the country’s long-standing acceptance of multiculturalism and respect for freedom of religion, the school’s syllabus was primarily shaped around English, Mathematics and the study of Christianity.</p>\r\n<p class=\"p1\">Initiated as an immediate response to educate the children of a growing expatriate community in Bahrain, St Christopher’s school tells an interesting narrative of how a small Church School of 39 pupils has developed into an internationally acclaimed institution; considered to be one of the top 10 international schools in the world (according to English newspaper The Guardian in 2008) - the only school in the region to make it on the list.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Setting Up</strong></span></p>\r\n<p class=\"p1\">Of the 75 private schools in Bahrain, 35 are international. In order to set up a private institution there are certain requirements that must be met including a prior approval and a final site inspection from the Private Education Directorate within the MoE, examining set building specifications which include site approval from the Municipality, Civil Defence approval in relation to fire safety, and Traffic Directorate approval for parking and road accessibility to the premises. The investors themselves must also meet a range of personal requirements, such as being a minimum of 25 years of age, having a General Secondary School Certificate or its equivalent and not being civil servants or employees of any private institutions or public organizations. Additionally, there is a minimum capital requirement of BHD50,000. Unlike the rest of the GCC, educational and higher educational institutions (HEI’s) in Bahrain can be 100% foreign owned, which may be a key factor in the success and growth of the Kingdom’s many international institutions. There are various forms of activities that a school or institution may choose to conduct under the umbrella of ‘education.’ For instance, within the private education sphere, founders may choose to establish a National Private School (which teaches up to secondary school) or a National Educational institute.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Private Higher Education Institution</strong></span></p>\r\n<p class=\"p1\">Bahrain’s first university, the Gulf Polytechnic, opened to both national and international students in 1968 as a public Gulf Technical College. Alongside the four main public universities in which international students can study, there are several private institutions for them to enrol in. The Application Procedures and General Conditions for setting up a private higher Educational Institution (‘HEI’) in Bahrain is identical to that of any national private school or national educational institute.</p>\r\n<p class=\"p1\"><span class=\"s2\">The Kingdom’s track record of being a leading financial hub of the region for the last 40 years gives it outstanding potential to attract students from the GCC. Its attractive quality of life and key geographical location are some of the factors being considered by the MoE in an effort to introduce new quality assurance and accreditation mechanisms, which are likely to significantly reduce concerns from neighbouring countries over the quality of private HEI’s. This was addressed in the National Higher Education’s Strategy of 2014 – 2024, and the implementation was reflected in the Ministerial Decree no. 38 of 2015 defining the framework of the institutional review of higher education institutions by the National Authority for Qualifications and Quality Assurance of Education and Training, setting eight standards for the review; mission and governance, quality assurance, information technology and infrastructure, teaching and learning quality, students supporting services, human resources, research and community participation. </span></p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Conclusion</strong></span></p>\r\n<p class=\"p1\">From the wave of new universities that marked the beginning of the millennium, to the clear efforts made in public and private institutions to incorporate technology in ways that create a far more interactive and engaging learning experience for students, Bahrain’s successes in the development of the education system hint at a very promising future for the sector.</p>'),
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	(100172,5445,'_yoast_wpseo_metadesc','For the acceleration of the development of educational sector in Oman and in order to raise the quality of the level of education in Oman, there has been a need for the participation of private educational institutions in the Sultanate in this process.'),
	(100173,5446,'content','August 2016\r\n\r\n<hr />\r\n<p class=\"p1\">Bordering the former CIS states and the Caspian Sea to meet Russia in the north and embracing the turquoise waters of the Gulf to the south, Iran is the second largest economy in the Middle East and the MENA region after Saudi Arabia, and the 18th largest in the world.  Iran’s 2015 GDP is estimated at US $393.7 billion with a population of close to 80 million, making second to Egypt.  Accordingly to studies published in the Economist, As of September 2015, 93% of the Iranian adult population were literate.  In 2008, 85% of the Iranian adult population were literate, well ahead of the regional average of 62%. This rate increases to 97% among young adults (aged between 15 and 24) without any discrepancy among male and female Iranians.  By 2007, Iran had a student to workforce population ratio of 10.2%, standing among the countries with highest ratio in the world.</p>\r\n<p class=\"p1\">With the 1979 Iranian revolution that ushered the establishment of an Islamic Republic and the overthrew of a progressive monarchy, Iran experienced abrupt metamorphoses towards “Islamicization” in all spheres, and most importantly perhaps in the education sector. Whereas much of the focus of the regime prior to the revolution was to modernize Iran modelled after the west, with an emphasis on higher education, and in particular the liberalizing policies aimed to advance the standing of women within that sector, the Islamic revolution and the characteristically zealous fervour that followed, led to a “cultural revolution’ where universities and higher institutions of learning where closed, academics purged, and the entire curriculum overturned. The new regime under a tight theocratic rule was quick to condemn the western models in the education sector of the country. In 1980, the Cultural Revolution Committee was formed to oversee the institution of Islamic values in education. An arm of the committee, the Centre for Textbooks (composed mainly of clerics), produced 3,000 new college-level textbooks reflecting Islamic views. Teaching materials based on Islam were introduced into the primary grades within six months of the revolution.</p>\r\n<p class=\"p1\">However, since the revolution of 1979, successive Iranian governments have expanded the higher education sector in the country, albeit under a strict new mandate. According to the latest statistics, Iran has approximately 4.5 million students, of which 60 per cent are now women.</p>\r\n<p class=\"p1\">Data from the United Nations Educational, Scientific and Cultural Organization (UNESCO) suggests that enrolment at Iranian universities has more than doubled in a decade and accordingly to the Economist, in 2013, 58 per cent of Iranians aged 18 to 24 were studying at Iranian universities. The government has set an ambitious target at 60 per cent for 2025 which it aims to achieve. The lifting of the sanctions and the potential for foreign direct investment or other forms of cooperative efforts in the development and expansion of the sector may in fact make this target more tenable. Today, Iranian parents spend more than £2.1 billion on the higher education of their children and with the lifting of sanctions, this financial commitment is likely to increase significantly, given the importance that Iranians ascribe to education in general and the sciences in particular. This emphasis on higher education has deep roots in the Iranian culture and is rooted in the country’s historical standing for pioneering advancements in almost all spheres of life from architecture, art, literature, science and government.  Such advancements would not have been possible without the educational discipline inherent to ancient Persian civilisation and traced to today’s collective disposition of Iranians in and out of government.</p>\r\n<p class=\"p1\">The first Western-style Iranian public schools were established in 1886.  Amir Kabir (the Grand Minister) facilitated the establishment of the first modern Iranian college in the mid-nineteenth century, and subsequently the first Iranian University modelled after the European Universities was established during the reign of Reza Shah, the first Pahlavi period.  During the early 1970s, efforts were made to develop and expand the educational system by modernising the school curriculum, introducing contemporary textbooks, and training more resourceful teachers.</p>\r\n<p class=\"p1\">Education in Iran is highly centralized. The Ministry of Education is primarily responsible for educational planning, financing, administration, and the expansion and revisions of the curriculum, with The Ministry of Science and Technology and Ministry of Health and Medical Education in Iran supervising higher education.  Teacher training, grading, and examinations are also the responsibility of the Ministry. Whereas Iran’s undergraduates are well accommodated in the country’s higher education institutions, the postgraduate infrastructure is much less developed and is an area within the sector where International cooperation or a form of direct foreign investment via non-Iranian institutions could be most successful. Iran’s higher education institutions, together with the support of the Iranian government have already set up an array of education agreements over the last months following the January 2016 nuclear agreement.</p>\r\n<p class=\"p1\">By way of an example, France’s ‘École Polytechnique’, a leading institution has recently signed agreements with the University of Tehran, the University of Isfahan, and Sharif University of Technology.  Earlier in the year a high-level Swiss delegation to Iran ratified a 2005 trade accord between the two countries, and also confirmed several agreements between Swiss and Iranian institutions.   More recent developments include a bilateral agreement with Slovakia that introduced partnership between the two countries’ universities of science and technology, and agreements with Armenia’s National Academy of Sciences. There have also been developments for joint research and exchange programmes with Sweden, Cyprus, and the Kurdish Region. Most of these are expected to initiate exchange programmes, allowing undergraduate students to engage in a year of studies abroad or to complete a portion of master’s or doctoral programmes abroad. These initiatives will however pave the way for an incremental and measured cooperation between Iranian and foreign stakeholders in the higher education sector including future possible direct or joint investment in institutions. The sorts of initiatives that have become common in the United Arab Emirates and Dubai in particular which has attracted talent and investment in its education sector, notwithstanding the fact that unlike Iran, Dubai has successfully managed to foster a proper and sophisticated FDI culture in a cross section of industries, a model that Iran can take inspiration from.</p>\r\n<p class=\"p1\"><span class=\"s1\">In addition to this latter apparent opportunity, given that there is also a marked discrepancy between demand for places and the ability of Iranian universities to absorb master’s and doctoral students, further expansion of post graduate institutions will present opportunities provided that the foreign counter part is ready to work within a highly regulated environment where the relevant governmental institutions and ministries, including the Iranian parliament and arguably  even the office of the Iran’s Supreme leader will have a stake in the form and manner of the non-Iranian direct / indirect engagement in the country’s education sector. </span></p>\r\n<p class=\"p1\">It comes as no surprise that the Iranian policy makers are keen to keep a tight control over the route that the country’s educational system takes. The post Islamic revolution cultural identity of the nation which has been fostered and in many ways “engineered’ by a top down imposition of Islamic character in public and institutional education, for what it’s worth, cannot be eroded. However, the Iranians do recognize that this top down imposition, coupled with the inability of the domestic institutions to accommodate the sheer number of students, has meant a steady “Brain Drain” from Iran.  Historically Iranians have had a long tradition of pursuing higher education outside of the country and renowned institutions such as Sorbonne and Oxford have long been hosting Iranian students. More recently, restrictions and censorship in the fields of humanities and the social sciences have made foreign universities more attractive still. Hence, developing these fields of study domestically within a less restrictive environment will mean greater opportunities for investment in that sector. The realities of the Iranian brain drain has pressed upon the Iranian policy makers the urgency to address the need for expansion and a  strong desire to internationalize Iran’s universities and to foster cooperation with other institutions both in the region and beyond.</p>\r\n<p class=\"p1\">While the new changing dynamic and the easing or lifting of the sanctions will surely make these efforts easier, as the country slowly re engages with the international community, Iran will still prove to be a difficult market in this sector since any effort to introduce foreign direct engagement in the country’s education sector will need to be counter balanced with a real and imagined fear of “cultural infiltration” and the “hijacking” of the minds of the Iranians- a mantra that once fueled the revolution more than three decades ago and still feeds the fear of the “Other” in the minds of the Iranian policy makers and the political elite.</p>'),
	(160761,5446,'core_values',''),
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	(100166,5445,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/august-2/educational-developments-in-oman.html'),
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	(100157,5444,'_yoast_wpseo_metadesc','The belief that comprehensive reform cannot be achieved without significant focus being directed educational reform was the driving force for the Egyptian government to divert its attention to major education developmental and reform plans.'),
	(100158,5445,'content','August 2016\r\n\r\n<hr />\r\n<p class=\"p1\">Before highlighting the regulatory framework aspects of the education in private sector in Oman, below is a brief about three main levels of education in public and private sectors in Oman beside international schools:</p>\r\n\r\n<ul>\r\n 	<li><strong>Public Education</strong>: Ministry of Education is in charge of formulating the policies of education, administration and management of the education system in Sultanate of Oman;</li>\r\n 	<li><strong>Private School Education</strong>: This is delivered by private schools licensed by the Ministry of Education which approves its syllabus ; and</li>\r\n 	<li><strong>Higher Education</strong>: Ministry of Higher Education is the responsible body for regulating the higher education in the Sultanate in public and private universities and colleges as well as recognition of certificates issued by educational institutions abroad.</li>\r\n</ul>\r\n<p class=\"p1\"><span class=\"s1\">In addition to the administrative and regulatory bodies mentioned above the Education Council, plays an important role in formulating the policies and provision of legislative proposals to both Ministry of Education and Ministry of Higher Education as well as observing the performance of the educational institutions in the country and issuing reports in this regard to the relevant authorities. </span></p>\r\n<p class=\"p5\"><span class=\"s2\"><strong>Regulatory Framework in Oman</strong></span><strong> </strong></p>\r\n\r\n<ul>\r\n 	<li>Public schools are established by Ministry of Education in different governorates in Oman which offers three levels of education, elementary, primary and secondary.</li>\r\n 	<li>Private schools are subject to foreign investment rules and cannot be established without the issuance of a trade license by Ministry of Commerce and Industry and an approval from Ministry of Education. An Omani local partner is required to establish a private school and cannot be wholly owned by a foreign investor with the exception of GCC nationals who are accorded similar treatment to Omanis.</li>\r\n 	<li>Most of private schools take the form of limited liability companies in Oman. Limited liability companies are run and managed by managers compared to private universities that are run through a board to be appointed by the council of trustees.</li>\r\n 	<li>Private universities can be established in the Sultanate given that the majority of the funds in the share capital of the universities are owned by Omanis and the main objective of the university is not realization of profits.</li>\r\n 	<li>The establishment of private universities and approval of its articles of association are made by way of issuance of a decision by the Minister of Higher Education upon a request made by the founders of the private university.</li>\r\n 	<li>The Council of Higher Education determines the number of private universities that may be permitted to be established pursuant to the provisions of the relevant laws and regulations.</li>\r\n 	<li>It is not permitted for a founder to withdraw from the project of incorporation of a private university before the lapse of five years from the date of commencement of education. Withdrawal before this period shall be invalid.</li>\r\n 	<li>The private university shall have a board of trustees structured by a decision of the founders. The boards of trustees’ responsibilities are to appoint the head of the university, his deputies and the members of the university board.</li>\r\n 	<li>The board of the university, among other functions, is responsible for:</li>\r\n</ul>\r\n<p class=\"p7\">o   Determination of the conditions of admission to the college;</p>\r\n<p class=\"p7\">o   Determination of the conditions of appointment of the deans and the board of colleges, research and    scientific centers.</p>\r\n<p class=\"p8\"><span class=\"s1\">In addition to the public and private universities in Oman there are Applied Science Colleges in most of the governorates in Oman that include Sur, Sohar, Nizwa, Ibri, Salalah and Rustaq. Applied Science Colleges are mainly regulated and administered by the Directorate General of Applied Sciences The programs offered in these colleges include information technology, design, communication studies, international business administration and engineering.</span></p>\r\n<p class=\"p5\"><span class=\"s2\"><strong>Conclusion</strong></span></p>\r\n<p class=\"p4\">As outlined above the regulatory framework is clear in terms of the legal and administrative structures of private schools and universities to be adopted in order to run educational activities in the Sultanate. Albeit the fact that the number of students in Oman is relatively low compared to other countries the interest of private educational institutions is on the rise due mainly to the availability of the infrastructure and the financial support granted by the government for building the universities’ campuses and sponsoring students to study in these universities.</p>\r\n<p class=\"p1\"><span class=\"s1\">The Education and Higher Education Councils have been continuously proposing and formulating new policies which ensure development of education sector in Oman since their formation. The main projects that are being undertaken by the education councils include the formulation of national education strategy 2040, restructuring of education system and school education law. Like these types of projects will ensure transformation of education in Oman in the near future which will open Oman market for more players in the educational sector. The recent issuance of the Protection of Competition and Prevention of Monopoly Law in Oman will further ensure that opportunities for investment in educational sector are offered equally to all types of investors either locals or foreigners as well as  there will be no monopoly in this sector in Oman market. </span></p>'),
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	(100162,5445,'content_description','For the acceleration of the development of educational sector in Oman and in order to raise the quality of the level of education in Oman, there has been a need for the participation of private educational institutions in the Sultanate in this process. A regulatory legal framework was created by the government of Oman to achieve this objective that safeguards the interests of the foreign and local investors. '),
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	(100149,5444,'pageSummary','The belief that comprehensive reform cannot be achieved without significant focus being directed educational reform was the driving force for the Egyptian government to divert its attention to major education developmental and reform plans.'),
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	(100129,5443,'_content','field_59b649b5c8b2b'),
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	(100132,5443,'content_description','Saudi Arabia’s Vision 2030 (the “Vision”) and the National Transformation Program (“NTP”) which flows from it set out an ambitious road-map for education reform in the Kingdom of Saudi Arabia. The success of the Vision depends in large measure on reforms in the education system generating a better basis for employment of young Saudis.'),
	(100133,5443,'_content_description','field_59b641c07f473'),
	(100134,5443,'pageSummary','Saudi Arabia’s Vision 2030 (the “Vision”) and the National Transformation Program (“NTP”) which flows from it set out an ambitious road-map for education reform in the Kingdom of Saudi Arabia. The success of the Vision depends in large measure on reforms in the education system generating a better basis for employment of young Saudis.'),
	(100135,5443,'_pageSummary','field_59e59b307dec8'),
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	(100137,5443,'_currentURL','field_59d35123ab1e7'),
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	(100142,5443,'_yoast_wpseo_metadesc','Al Tamimi & Company looks at how those high-level goals cascade down through the recently published National Transformation Program and what opportunities and challenges there will be for foreign participants in an education sector which is by some margin the most significant in the GCC.'),
	(100143,5444,'content','August 2016\r\n\r\n<hr />\r\n<p class=\"p1\">The recent spread of private education concepts in Egypt has been due to the unsatisfactory performance of the public educational system. Originating from the evident importance of public education development and reform, an education developmental strategy was introduced in 2014 targeting comprehensive reform that covers all educational levels (i.e. child education, basic education, mid level and higher education, as well as technical education), curricula, institutions and education tools, as well as applied learning methods. The strategy is set to be implemented during the period from 2014 to 2030 and equally focuses on students, advancement of teaching methods, as well as teachers and their corresponding work circumstances.</p>\r\n<p class=\"p1\"><span class=\"s1\"> The strategy encompasses an initial comprehensive substitution of 30 per cent of educational curricula followed by gradual improvement of the remaining 70 per cent over a three year plan. Interactive learning methods, supported by technology based curricula, are anticipated to be implemented in all public schools and education institutions across the country. The cooperation between the Ministry of Education and the UAE in the project known as “The One Million Students Project” has set, together with other various education and vocational training projects, the first milestones in the roadmap of education development. </span></p>\r\n<p class=\"p1\">Further, establishment of new schools and education institutions, as well as renovating existing ones to increase the capacity of the same, are a major part of the strategy.</p>\r\n<p class=\"p1\">On another hand, technical education, given its significance, is also a part of the development plan. The government aims to well-equip and prepare around 50,000 to 60,000 graduates from technical education institutions to have the necessary skills and expertise to serve the demanding Gulf market.</p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>The Egypt – Japan Education Partnership</strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">As a major step forward in the education reform plan, an education partnership between Egypt and Japan was created with the aim to combat terrorism and extremism and to enhance peace, stability, development, and prosperity of the Egyptian nation. The Egyptian Japanese Education Partnership (the “EJEP”), announced during the official visit of Egypt’s President, Al-Sisi, to Japan during February 2016, was realised on the basis of the interest and commitment of both governments as well as their endeavours to empower Egyptian youth. The EJEP focuses on diverse aspects of education in implementing the measures laid out by the partnership. The EJEP captures not only the development of child, basic and higher education but also scientific research, technology and innovation. </span></p>\r\n<p class=\"p1\">The EJEP focuses on, amongst other things:</p>\r\n\r\n<ul>\r\n 	<li>\r\n<div class=\"p5\">Increasing the number of students, trainees, researchers, teachers and government officials to be dispatched to Japan to reach at least 2,500 Egyptians.</div></li>\r\n 	<li>Introducing then generalising the implementation of the Japanese “Tokubetsu Katsudo (Tokkatsu)” method of learning together with other Japanese concepts in all schools in Egypt. This method is said to be one of the essential education curriculum components that enhance interactive balanced learning among children that achieves whole-child education. The method is planned to be initially applied to ten schools and then generalised to all schools across Egypt.</li>\r\n 	<li>Providing training and development opportunities to teachers, trainers, and instructors, considering their significant contribution to the education process.</li>\r\n 	<li>Cooperating in providing practical and effective technical education based on Japanese methods, which have proven effective, applied in collaboration with Japanese companies.</li>\r\n</ul>\r\nShortly after the adoption of the EJEP, a Presidential Decree was issued in May 2016, under No. 207 of 2016, nominating Egypt’s representatives in the steering committee established by Egypt and Japan to supervise and facilitate the implementation of the EJEP and provide the necessary advisory assistance to the Egyptian government.\r\n<p class=\"p1\">In respect of higher education, on the basis of the bilateral agreement signed between Egypt and Japan in 2009, a Presidential Decree was issued approving the establishment of a university under the name “Egypt – Japan University for Science and Technology (E-JUST)” by virtue of which the Egyptian government has allocated a land near Alexandria of an approximate area of 840,000 square meters. The E JUST is bring established to be an active example for the implementation of Japanese higher education advanced learning methods in relation to engineering and science and technology related fields. <strong> </strong></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Conclusion</strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">The government’s strategy, together with the EJEP initiate, is seen as a significant milestone that improves the quality of public education in Egypt to be comparably competitive with the private education. During recent years, investment in private education has significantly increased as driven by the rising demand and growing aspiration of the population keen to invest in higher quality education for their children. The latter was the driving force for several foreign investments being directed to private education institutions, the recent of which is the undisclosed investment of Abraj Capital in CIRA and Tiba group of education institutions.  </span></p>\r\n<p class=\"p1\">Although the aforementioned initiatives are believed to build a solid reform basis for public education in Egypt, more effective implementation measures are still expected. This arises from the fact that laws and regulations related to monitoring of education quality are primitive standards that have not undergone sufficient revisions commensurate with the reform plans. Introduction of new enforcement mechanisms in said laws, in relation to advancement of educational institutions and supervision on same, is a necessity.</p>'),
	(160693,5444,'core_values',''),
	(160694,5444,'_core_values','field_59b64ab071de4'),
	(160695,5444,'file',''),
	(160696,5444,'_file','field_59b64c10f6600'),
	(100144,5444,'_content','field_59b649b5c8b2b'),
	(100145,5444,'lawUpdateArticleMonth','5431'),
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	(100127,5442,'_yoast_wpseo_metadesc','Depressed economic conditions resulting from low oil prices have highlighted the need for the Middle East to make an active effort to further diversify away from oil and into the technology, media and telecommunications (“TMT”) sector.'),
	(100128,5443,'content','August 2016\r\n\r\n<hr />\r\n<p class=\"p1\">This article looks at how those high-level goals cascade down through the recently published National Transformation Program and what opportunities and challenges there will be for foreign participants in an education sector which is by some margin the most significant in the GCC.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>The Vision</strong></span></p>\r\n<p class=\"p1\"><span class=\"s2\">The Vision is about transitioning the Saudi economy away from an over-reliance on oil revenues to a more balanced, investment based model. It states:</span></p>\r\n<p class=\"p4\"><em>Our goal is to attract and retain the finest Saudi and foreign minds, and provide them with all they need. Their presence in the Kingdom will contribute to economic development and attract additional foreign investment.</em></p>\r\n<p class=\"p1\"><em><span class=\"s2\"> To this end, we will prepare a modern curriculum focused on rigorous standards in literacy, numeracy, skills and character development. We will track progress and publish a sophisticated range of education outcomes, showing year-on-year improvements. We will work closely with the private sector to ensure higher education outcomes are in line with the requirements of the job market [….].</span></em></p>\r\n<p class=\"p1\"><em> We will continue to improve and reform our regulations, paving the way for investors and the private sector to acquire and deliver services – such as…education – that are currently provided by the public sector. We will seek to shift the government’s role from providing services to one that focuses on regulating and monitoring them and we will build the capability to monitor this transition.</em></p>\r\n<p class=\"p4\">This outward looking perspective sets the tone for much of the Vision. It is reflected in the strategic objectives of the NTP which include:</p>\r\n\r\n<ul>\r\n 	<li>Improving recruitment, training and development of teachers</li>\r\n 	<li>Improving the learning environment to stimulate creativity and innovation</li>\r\n 	<li>Improving curricula and teaching methods</li>\r\n 	<li>Improving students’ values and core skills</li>\r\n 	<li>Development of financing methods and improvements in financial efficiency</li>\r\n 	<li>Educating students to address national development requirements and labour market demands</li>\r\n 	<li>Increasing Private Sector Participation in the Education Sector.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p4\"><span class=\"s2\">The last two points are perhaps the key strategic objectives, but what form this private sector participation may take and how it may be targeted to achieve national development goals remains to be seen, especially in the context of the recently updated Companies Law promulgated by the Ministry of Commerce and Investment which has broadened the potential for foreign ownership in Saudi corporates but does not address the education sector. That said, there are current Saudi Arabian General Investment Authority policies which: </span></p>\r\n\r\n<ul>\r\n 	<li>based on a decision by the Council of Ministers, have suspended foreign investment (for the time being) in the construction, management and operation of elementary, intermediate and secondary schools; and</li>\r\n 	<li>permit foreign investment (with prior approval from the relevant Ministries)in the construction, management and operation of institutes, colleges or universities for education and granting graduation degrees.</li>\r\n</ul>\r\n<p class=\"p4\">In the short term the NTP sets out thirty-six specific initiatives with projected costs on a five year basis which are intended to be launched in 2016. Interestingly, the costs stated are expressed not to include the contribution of the private sector in a particular initiative – which is certainly consistent with the strategic objective relating to finance indicated above. It also indicates that some form of PPP structure is contemplated in a number of cases. Unlike some other GCC states, there is no specific PPP law in the Kingdom (although ministries can and do promulgate their own regulatory systems in this regard and similar projects of various types have been undertaken).</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Accountability</strong></span></p>\r\n<p class=\"p1\">It is also clear that there is a high premium being placed on accountability within the Ministry of Education in terms of securing delivery of the plan. Education is a fundamental building block of the Vision as a whole and its progress is likely to be scrutinized carefully. Highlights include:</p>\r\n\r\n<ul>\r\n 	<li>A comprehensive framework for the professional development of teachers and educational leaders</li>\r\n 	<li>Developing a national strategy to upgrade the teaching profession by raising the professional level of teachers, improving the profession’s ecosystem and raising the quality of services provided to teachers</li>\r\n 	<li>Development KPIs at Ministry level</li>\r\n 	<li>Establishment of a Transformation Office and an office of strategy management at Ministry level to implement the relevant sections of the NTP</li>\r\n 	<li>Shifting to digital education to support teacher and student progress</li>\r\n 	<li>Encouraging the private sector to invest in public education including at kindergarten level</li>\r\n 	<li>Attracting private investments to finance school’s construction</li>\r\n 	<li>Develop the Independent Schools model to reach 2000 public schools run by small establishments</li>\r\n 	<li>Establishment of the King Salman University for Technical and Vocational education</li>\r\n 	<li>Establish a practical framework to align university graduates with labour market needs</li>\r\n 	<li>Life-long Learning (Sustainability).</li>\r\n 	<li>Taken together these measures represent a sea-change in the education sector in the Kingdom, and one which must be delivered at a critical period economically.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p3\"><span class=\"s1\"><strong>Conclusion</strong></span></p>\r\n<p class=\"p1\"><span class=\"s2\">The scope of private sector involvement in the financing and construction of education infrastructure is clear; whether the same access will be given to the actual delivery of educational services is less so. However, the potential for joint ventures around items such as technical curriculum development and teacher training is significant. The franchise model, adjusted as necessary to accommodate the specific traditions of the Kingdom, also has potential to play a role.</span></p>\r\n<p class=\"p1\"><span class=\"s2\"> The precise mix of measures adopted by the Ministry of Education remains to be seen, however we anticipate that the last quarter of 2016 should see a flurry of activity in the sector as initiatives are launched.</span></p>'),
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	(100115,5442,'pageSummary','Depressed economic conditions resulting from low oil prices have highlighted the need for the Middle East to make an active effort to further diversify away from oil and into the technology, media and telecommunications (“TMT”) sector. An integral part of achieving such diversification will be improving TMT-related education and supporting local TMT.'),
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	(100098,5441,'content_description','The price of oil has challenged governments across the GCC to find new ways of balancing their budgets. Having the private sector involved in providing “public” type services such as education is one strategy which may assist with this challenge. Private sector school operators already have a strong foothold in the region. In this article we look at some of the issues surrounding the private sector school industry and in particular their real estate requirements. \r\n'),
	(100099,5441,'_content_description','field_59b641c07f473'),
	(100100,5441,'pageSummary','The price of oil has challenged governments across the GCC to find new ways of balancing their budgets. Having the private sector involved in providing “public” type services such as education is one strategy which may assist with this challenge. Private sector school operators already have a strong foothold in the region. In this article we look at some of the issues surrounding the private sector school industry and in particular their real estate requirements.'),
	(100101,5441,'_pageSummary','field_59e59b307dec8'),
	(100102,5441,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/august-2/the-development-ownership-and-operation-models-for-private-sector-schools-in-the-gcc.html'),
	(100103,5441,'_currentURL','field_59d35123ab1e7'),
	(100104,5441,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','860'),
	(100105,5441,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(100106,5441,'lawUpdateArticleWriters','1'),
	(100107,5441,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(100108,5441,'_yoast_wpseo_metadesc','Al Tamimi & Company looks at some of the issues surrounding the private sector school industry and in particular their real estate requirements in GCC.'),
	(100109,5442,'content','August 2016\r\n\r\n<hr />\r\n<p class=\"p1\">The UAE Vision 2021 National Agenda aims to make the UAE an economic, touristic and commercial capital, in part by transitioning to a knowledge-based economy, and by promoting innovation and research and development. To achieve a knowledge based economy, the UAE needs to educate, nurture and retain its talent with appropriate skills and experience, whilst at the same time developing the TMT sectors to house innovation and productivity.</p>\r\n<p class=\"p1\"><span class=\"s1\"> Currently, there is a wide gap between the education and talent available and the TMT sector roles needed to diversify the UAE.  The UAE, however, already has some significant advantages in meeting these challenges; for example, the UAE already has a 90% literacy rate, amongst the highest in the world. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> In general, the Middle East is already positioned to gain considerably from the expanding TMT sector. Deloitte estimates that the market for cloud services in the Middle East will exceed $1 billion in 2016. There has been some confusion within the GCC about the legality of use of Voice Over LTE or Voice Over Wifi.  This, to some extent,  has been due to the security concerns surrounding these technologies. As technological advances lead to enhanced security, the UAE could be able to tap into the 300 million customers already using voice over LTE or voice over WIFI. To give some scale to growth in TMT, this figure is five times higher than at the beginning of 2015. There are few other industries that are continuously growing at the rate of TMT.  </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Another related aim set out in the UAE Vision 2021 National Agenda is for the UAE to be a world leader in entrepreneurship, leading to unlocking the potential of UAE nationals and enabling them to be a driving force in the UAE’s economic development through small and medium enterprises in the private sector.</span></p>\r\n<p class=\"p1\">Three key areas that will enable the UAE to to achieve the knowledge-based economy set out in Vision 2021 are:</p>\r\n\r\n<ul>\r\n 	<li>\r\n<div class=\"p2\">Diversifying investment into TMT: the economic conditions which impact how companies interact and their decisions to hire, educate and expand;</div></li>\r\n 	<li>\r\n<div class=\"p1\"><span class=\"s1\">Education for TMT roles: how to achieve modern-day skills which are suitable for an innovative and technologically advanced workforce; and </span></div></li>\r\n</ul>\r\n<ul>\r\n 	<li>\r\n<div class=\"p1\">Gender diversity: taking advantage of inconsistencies between the EU and the Middle East legal norms.</div></li>\r\n</ul>\r\n<p class=\"p4\"><span class=\"s2\"><strong>Diversifying Investment </strong></span></p>\r\n<p class=\"p1\">The shift in current economic conditions has pushed investment authorities to diversify their asset allocation.  Abu Dhabi has the second largest sovereign wealth fund globally (approximately US$792 assets under management) known as the Abu Dhabi Investment Authority (“ADIA”). The ADIA has traditionally invested heavily in property, stocks and financial institutions. The ADIA’s size and expertise has meant that it has started to invest into non traditional areas such as aerospace, green technologies, renewable energies and mobile government. Examples of these are the investment into Greenko Energy Holdings and Evolvence Knowledge Investments.</p>\r\n<p class=\"p1\">The Indian renewable energy company Greenko Energy Holdings received a US$230 million investment and the ADIA invested US$30 million into Evolvence Knowledge Investments (Repton School and Foremarke Hall in Dubai, and Repton School Abu Dhabi and Dubai Humpty Dumpty).</p>\r\n<p class=\"p4\"><span class=\"s2\"><strong>Education</strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">Expanding and developing the education system is key in achieving long lasting effects in innovation, creativity and ambition. The UAE needs to ensure that young graduates have a skill set that is equipped to service the TMT sectors. These evolving sectors are driven by a curriculum that is based on coding, software, data, algorithms and using innovative designs and theories to shape products. Such topics are not necessarily provided for in standard education. By upgrading the UAE curriculum to support growing the TMT industry, it is hoped that the need for outsourcing to a skilled immigrant workforce will no longer be necessary and local talent will be start to be sufficient to match the skills needed. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> The UAE is already starting to incorporate these modern skills into the education system. Computer Science First was an initiative that was launched on 22 November 2015 as part of the UAE Innovation Week by the Abu Dhabi Education Council. This initiative enables nearly 250,000 public and private school pupils in the Emirate of Abu Dhabi to learn the basics of computer coding within the next two years.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Europe and the United States provide examples of such achievements. Most of the top coding programs are based in the United States, which has already build a track record for creating hubs dedicated to TMT. Palo Alto is synonymous with creating TMT giants such as Facebook, Google, Hewlett Packard and VMware and this is why San Francisco and California has become a hub offering bespoke software coding and other computer science courses which now attract students all over the world. </span></p>\r\n<p class=\"p1\">Europe too offers alternative examples. Sweden has undoubtedly grown to be the front runner for tech start ups. This is a direct result of having a strong legal core, an outstanding educational platform, and government agencies such as Almi which help fund and give valuable expertise to start-ups to get them up and running. This has resulted in big names such as Skype, Spotify and Soundcloud and has also enabled Sweden to break into the gaming industry (valued around US$100 billion in 2015) and to capitalise upon the profitability of this.</p>\r\n<p class=\"p4\"><span class=\"s2\"><strong>Gender diversity </strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">Worldwide TMT is a mainly male dominated industry with few women rising to key positions within the industry. It has even been suggested that women are discouraged from science and math courses at stages as early as primary school. Graduate figures show that only 18 percent of US university computer science graduates were women in 2013, which is down from 37 percent in 1985. The UK statistics are similar with only 17.1 percent of computer science students being women (2013/14) which make up a very small percentage of women who undertake higher education which is currently at 56 percent. </span></p>\r\n<p class=\"p1\">Increasing gender diversity in the UAE is paramount to getting an active TMT workforce and to realising the UAE Vision 2021. One way to approach this is to take advantage of the lack of discrimination laws which are currently within the UAE in relation to targeting “females only” or “males only”.  For example, companies in the European Union, due to strict discrimination laws, are restricted from creating services that only target one sex.  This is not the case in the UAE, and there is potential to create a focus on women, paying particular attention to their needs and skill set. There are currently a few start ups, Amalkum, mumsatwork.ae and hopscotch.ae, to name a few, that are taking advantage of this. Start-ups such as Amalkum are dedicated to targeting both the local and expat community through merging women, education and technology, offering roles that cater to their particular needs and skill sets. This can certainly help in increasing the specialised workforce which can cater to the TMT industry.</p>\r\n<p class=\"p4\"><span class=\"s2\"><strong>Conclusion</strong></span></p>\r\n<p class=\"p1\">As companies increasingly seek lower prices and more flexible markets, the UAE is well-placed to improve its educational environment’s ability to provide a sustainable proficient workforce tailored towards TMT.  The educational system’s place in the fostering of talent is a necessity in order to gain traction to build a clear foundation for any industry, but is especially so for TMT.</p>'),
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	(100077,5440,'lawUpdateArticleMonth','5431'),
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	(100079,5440,'content_description','Academic research is primarily aimed at the advancement of knowledge, but significant and regular breakthroughs with an industrial or commercial dimension may present opportunities for researchers and academic institutions to be handsomely rewarded.'),
	(100080,5440,'_content_description','field_59b641c07f473'),
	(100081,5440,'pageSummary','Academic research is primarily aimed at the advancement of knowledge, but significant and regular breakthroughs with an industrial or commercial dimension may present opportunities for researchers and academic institutions to be handsomely rewarded.'),
	(100082,5440,'_pageSummary','field_59e59b307dec8'),
	(100083,5440,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/august-2/eureka-monetising-research-in-the-education-sector.html'),
	(100084,5440,'_currentURL','field_59d35123ab1e7'),
	(100085,5440,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Ahmad Saleh'),
	(100086,5440,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(100087,5440,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','ah.saleh@tamimi.com'),
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	(100089,5440,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','Dubai, UAE'),
	(100090,5440,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
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	(100092,5440,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(100093,5440,'_yoast_wpseo_metadesc','Academic research is primarily aimed at the advancement of knowledge, but significant and regular breakthroughs with an industrial or commercial dimension may present opportunities for researchers and academic institutions to be handsomely rewarded.'),
	(100094,5441,'content','August 2016\r\n\r\n<hr />\r\n<p class=\"p1\"><strong>The Stakeholders</strong></p>\r\n<p class=\"p1\">A private sector school operation is generally made up of the following stakeholders:</p>\r\n\r\n<ul>\r\n 	<li>the Operator;</li>\r\n 	<li>the School Owner (either freehold or leasehold);</li>\r\n 	<li>in the case of leasehold a Land Owner;</li>\r\n 	<li>the Financiers;</li>\r\n 	<li>the Master Developer or other planning entity;</li>\r\n 	<li>the Regulators; and</li>\r\n 	<li>the Consultants.</li>\r\n</ul>\r\n<p class=\"p1\">We consider the role of each stakeholder briefly below:</p>\r\n<p class=\"p1\"><em>The Operator</em></p>\r\n<p class=\"p1\">The Operator is the entity that is specialised in providing the range of services necessary for a school including the curriculum, resourcing, licensing and often consultative services such as financial modelling and design.</p>\r\n<p class=\"p1\">Typically such Operators will specialise in a particular type of curriculum (ie: International Baccalaureate, British or Indian curriculum) though there are examples of Operators providing a variety of curricula.</p>\r\n<p class=\"p1\">Generally Operators would prefer to take an occupational lease of the school (not to be confused with a ground development lease or ‘musataha’ discussed later) rather than commit large amounts of capital to such infrastructure.</p>\r\n<p class=\"p1\">Often however they want to be involved in the design process in order to ensure that the school meets their specifications. In order to achieve their objectives there may be joint venture elements with a School Owner who wants to hold the school asset as an investment.</p>\r\n<p class=\"p1\"><em>The School Owner</em></p>\r\n<p class=\"p1\"><span class=\"s1\">The School Owner is the party who undertakes the planning and development of the school. School Owners tend to be attracted by the diverse nature of a school from an investment perspective. For this reason Real Estate Investment Trusts (or “REITs” as they are commonly referred to) are showing an interest in school properties as a means of balancing their portfolios. Ownership may be freehold but is often pursuant to a long-term ground-development lease or musataha. </span></p>\r\n<p class=\"p1\"><em>The Land Owner</em></p>\r\n<p class=\"p1\">Schools are a low-density land use and the land is often in a strategic location set aside by the Master Developer or planning entity to meet that specific community’s needs. Other land uses may be more profitable and in order to keep control of the land, the land is often leased by the Land Owner (often a Master Developer or public authority) to the School Owner on a long-term ground-development lease basis or musataha.</p>\r\n<p class=\"p1\"><em>The Financiers</em></p>\r\n<p class=\"p1\">Financing may be through equity contributions often involving incorporated joint ventures. Participants in such joint ventures may include the Operators and Master Developers. It is becoming more common however for funds or specialist investors to provide such equity funding. In addition to the equity funding, school projects may also require debt funding. Debt funders require adequate security and accordingly the ability to register any leasehold interest and grant a mortgage may assist.</p>\r\n<p class=\"p1\"><em>The Master Developer or other planning entity</em></p>\r\n<p class=\"p1\">As referred to above, many Master Developers now recognise the value a school can bring to their master planned communities and will specifically set aside land for such schools and advertise this as part of their Master Plan. If such Master Developers are able to sell freehold land then they would have the option of selling the freehold interest (subject to land use restrictions) though for the reasons set out above, it is more likely that the Master Developer would sell the land on a leasehold basis.</p>\r\n<p class=\"p1\"><em>The Regulators</em></p>\r\n<p class=\"p1\">The applicable regulators will be the relevant ministry or government authority in charge of education and also the relevant municipal or planning authority in charge of construction and planning matters.</p>\r\n<p class=\"p1\"><em>The Consultants</em></p>\r\n<p class=\"p1\">Many Operators have built up knowledge on the design, planning, regulatory and financial aspects of putting together a school project. In addition however there are specialist consultants who can assist with such projects.</p>\r\n<p class=\"p2\"><span class=\"s2\"><strong>A Favourable Private Sector Regulatory Environment</strong></span></p>\r\n<p class=\"p1\"><em>Planning Regimes</em></p>\r\n<p class=\"p1\">Fundamental to establishing a private sector school will be having suitable land set aside for such developments. If designations are set out in master plans or the urban plans of the planning entities, the value of such land may adjust to that reasonable for a school development rather than a more profitable land use. In addition, Master Developers and the planning entities may want to retain such land and make it available through long term lease for development as a school.</p>\r\n<p class=\"p1\"><em>Land Ownership Regimes</em></p>\r\n<p class=\"p1\">For the private sector to involve itself in schools and educational initiatives, they require profit and also certainty that any funds invested are secure. In this regard, having a land titles regime that allows foreign ownership or investment and the registration of long-term leases and mortgages over such interests will support private sector involvement.</p>\r\n<p class=\"p1\"><em>Regulatory Regimes </em></p>\r\n<p class=\"p1\">The regulatory requirements for private sector schools need to be clear and reasonable. Such requirements include: foreign ownership rules (whether in land or the equity in the business), planning and construction requirements and operational requirements such as licensing and curriculum content. In addition, schools face international competition for teachers. Having an environment that facilitates the recruitment of foreign teachers and makes it attractive for them to move to the region will benefit this industry.</p>\r\n<p class=\"p2\"><span class=\"s2\"><strong>Typical Private Sector School Models</strong></span><strong> </strong></p>\r\n<p class=\"p1\">A private sector school investment model will usually involve variations on the following:</p>\r\n\r\n<ul>\r\n 	<li>the relevant land may be identified by the Master Developer or planning entity as suitable for a school;</li>\r\n 	<li>the Operator may themselves or in conjunction with their Consultants assess the viability of the school on the land and assess an appropriate development and investment model;</li>\r\n 	<li>the Operator or their Consultants may approach Financiers with their development and investment model; and</li>\r\n</ul>\r\n&nbsp;\r\n<ul>\r\n 	<li>the Operator and Financiers will agree the form of the investment which will usually comprise:</li>\r\n</ul>\r\n(a)   investigating the underlying title to the land or the terms of the long term lease or musataha;\r\n\r\n(b)   the establishment of a Special Purpose Vehicle (‘SPV’) as a School Owner to hold the land or long  term lease and complete the construction;\r\n\r\n(c)   if the School Owner is an incorporated JV then agreement as to the terms of the shareholders  agreement and equity contributions;\r\n\r\n(d)   generally debt arrangements will be arranged with a Bank and mortgage or conditional assignment put in place;\r\n\r\n(e)   the terms of the occupational lease between the Operator (or its SPV) and the School Owner thereby giving security to the School Owner as to its return; or\r\n\r\n(f)   as an alternative to the occupational lease, the Operator may prefer to grant a franchise to or have an operating agreement with the School Owner (‘Management Agreement’). Such an arrangement may have advantages where there are foreign ownership or other regulatory restrictions in the relevant jurisdiction; and\r\n\r\n(g)   once the investment model is agreed, the arrangements would be closed and the design consultants and contractors appointed.\r\n\r\n&nbsp;\r\n<p class=\"p9\">Variations on the above may include the Operator completing the project then transferring this to an investor or fund or the Master Developer or other partner completing the development through a consultancy then entering into an occupational lease or Management Agreement with the Operator.</p>\r\n<p class=\"p2\"><span class=\"s2\"><strong>Conclusion</strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">Many private sector schools operators already have operations in certain regions of the GCC and Middle East. Governments seeking to move more services from the public sector to the private sector may wish to specifically target these private sector school operators. This industry can be further facilitated by building a favourable regulatory environment. Operators and other private sector stakeholders may need to be flexible with their investment models having regard to the regulatory environments of each GCC or Middle East jurisdiction.</span></p>'),
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	(100062,5439,'lawUpdateArticleMonth','5431'),
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	(100064,5439,'content_description','There is a certain degree of predictability in relation to the human resources (“HR”) challenges facing education providers the world over. In the UAE, these challenges must be considered in the context of an employment law landscape that is multi-faceted and can appear complex. '),
	(100065,5439,'_content_description','field_59b641c07f473'),
	(100066,5439,'pageSummary','There is a certain degree of predictability in relation to the human resources (“HR”) challenges facing education providers the world over. In the UAE, these challenges must be considered in the context of an employment law landscape that is multi-faceted and can appear complex.'),
	(100067,5439,'_pageSummary','field_59e59b307dec8'),
	(100068,5439,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/august-2/employment-law-considerations-for-education-providers-in-the-uae.html'),
	(100069,5439,'_currentURL','field_59d35123ab1e7'),
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	(100074,5439,'_yoast_wpseo_metadesc','Al Tamimi & Company takes a high level view of the key employment considerations for both schools and higher education institutions in the UAE.'),
	(100075,5440,'content','August 2016\r\n\r\n<hr />\r\n<p class=\"p1\"><strong>Technology Transfer</strong></p>\r\n<p class=\"p2\">The process through which an academic idea is transferred to industry and commercialised is known as “technology transfer.”  In order to ensure those that come up with the big ideas are properly rewarded, the rights to the research or technology should be appropriately protected. To this end, patent protection is what is generally required to protect creations of a technical nature. In certain countries, this protection may extend to processes executable on computer devices, such as through computer software and programs. For example, the precursor to the Microsoft Excel spreadsheet was famously not patent protected (for a number of legal reasons), resulting in the rapid exploitation of the software.</p>\r\n<p class=\"p1\">Patent protection can be sought early in the creation process, even when the academic research has not yet matured into a prototype or final commercial product.</p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Publish and Perish</strong></span></p>\r\n<p class=\"p1\">In science and engineering faculties, academics primarily get recognised through research activities. The recognition and accreditation of a faculty normally requires the publication of research results in specialised journals. It is very tempting for academic staff to publish their research results as quickly as possible, and is sometimes done without regard to the consequences of patent protection.</p>\r\n<p class=\"p1\">However, patent protection should be considered very early on in the process, and especially before any publication of the academic research; otherwise, the novelty of the underlying invention may be destroyed, and the possibility of obtaining patent protection compromised.</p>\r\n<p class=\"p1\">Some countries, such as the United States, provide a grace period for applying for patent protection after publication by the inventor. Such a post-disclosure grace period is not available in the six-nation Gulf Cooperation Council, and it is therefore essential to apply for patent protection before any disclosure of the invention – and only the owner of patent rights can apply for this.</p>\r\n<p class=\"p1\">The time period between filing a patent application and getting the patent examined and granted could take a couple of years, depending on the country. During this period, however, the right to the invention is secured under a “patent pending” status, and publication of the invention can be made without risk, so the key step is to file.</p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>GCC position </strong></span></p>\r\n<p class=\"p1\">The rules of patent ownership vary from one country to another. Within educational institutions in the United Arab Emirates, the default rule in patent ownership is that the patent rights belong to the university. Otherwise, if the invention has an economic value ‘beyond the expectations’ of the parties when they signed the employment contract, then the employee inventor shall be entitled to additional compensation (to be decided by the court).</p>\r\n<p class=\"p1\">It therefore goes without saying that careful consideration by the employer is crucial in drafting employment contracts for research staff; the scope of employment should be sufficiently defined, so that any invention arising from that work falls clearly within the scope, and is not ‘beyond the expectations’ of the parties such as to jeopardise the academic institution’s ownership rights.</p>'),
	(160557,5440,'core_values',''),
	(160558,5440,'_core_values','field_59b64ab071de4'),
	(160559,5440,'file',''),
	(160560,5440,'_file','field_59b64c10f6600'),
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	(100060,5439,'content','August 2016\r\n\r\n<hr />\r\n<p class=\"p1\">In this article, we will take a high level view of the key employment considerations for both schools and higher education institutions in the UAE.</p>\r\n<p class=\"p1\">Private sector employers, including education providers, are subject to the Federal Law No. 8 of 1980 (“Labour Law”). Publically owned education providers may be subject to other laws, which would need to be considered prior to formulating an HR response. For the purpose of this article, we will consider some of the recurring HR issues for private providers but the topics covered are of general interest to the entire education sector.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Schools</strong></span></p>\r\n<p class=\"p1\">Some schools are required to issue a standard form Ministry of Education (“MOE”) employment contract (“MOE Contract”) which contains a number of provisions that are at variance with the Labour Law. In addition, a decree issued by the Minister of Labour, Decree 765 of 2015, which came into effect on 1st January 2016 (“Decree”), imposes further constraints on employers under the remit of the Ministry of Human Resources and Emiratisation (formerly the Ministry of Labour) (which may include some education providers). The overall position can be ambiguous, which is why it is important for schools to be aware of the key issues as well as have clear contracts and HR policies in place to help navigate a sensible course through it.</p>\r\n<p class=\"p1\"><em>Contractual fundamentals </em></p>\r\n<p class=\"p1\">The default position for private schools is to issue a limited term contract. The Labour Law provides that there is no requirement for a notice period prior to termination in a limited term contract, however, the MOE Contract contains a two month notice period, whilst, the Decree stipulates that notice should be no less than one month in respect of a renewed fixed term contract (i.e. after the first term has expired). In the school sector, this disparity is not such an issue as schools want a notice period to avoid staff leaving suddenly, midway through the academic year.</p>\r\n<p class=\"p1\">The following table illustrates the disparity in relation to notice, compensation and annual leave.</p>\r\n\r\n<table class=\"t1\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td class=\"td1\" valign=\"middle\"><span class=\"s1\"><strong>Heading</strong></span></td>\r\n<td class=\"td1\" valign=\"middle\"><span class=\"s1\"><strong>Labour</strong></span> <span class=\"s1\"><strong>Law</strong></span></td>\r\n<td class=\"td1\" valign=\"middle\"><span class=\"s1\"><strong>MOE Contract</strong></span></td>\r\n<td class=\"td1\" valign=\"middle\"><span class=\"s1\"><strong>Decree<sup>1</sup></strong></span></td>\r\n</tr>\r\n<tr>\r\n<td class=\"td2\" valign=\"middle\">Probation (maximum)</td>\r\n<td class=\"td2\" valign=\"middle\">6 months</td>\r\n<td class=\"td2\" valign=\"middle\">1 month</td>\r\n<td class=\"td2\" valign=\"middle\">N/A</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td3\" valign=\"middle\">Minimum notice (fixed term contract)</td>\r\n<td class=\"td3\" valign=\"middle\">0</td>\r\n<td class=\"td3\" valign=\"middle\">2 months</td>\r\n<td class=\"td3\" valign=\"middle\">1 month</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td3\" valign=\"middle\">Maximum notice</td>\r\n<td class=\"td3\" valign=\"middle\">No maximum</td>\r\n<td class=\"td3\" valign=\"middle\">2 months</td>\r\n<td class=\"td3\" valign=\"middle\">3 months</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td3\" valign=\"middle\">Compensation payable by employer to employee terminated before expiry of  fixed term contract</td>\r\n<td class=\"td3\" valign=\"middle\">3 months<sup>2</sup></td>\r\n<td class=\"td3\" valign=\"middle\">1 month</td>\r\n<td class=\"td3\" valign=\"middle\">1-3 months</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td3\" valign=\"middle\">Compensation payable by employee to employer where he resigns with effect before expiry of  fixed term contract</td>\r\n<td class=\"td3\" valign=\"middle\">1.5 months<sup>3</sup></td>\r\n<td class=\"td3\" valign=\"middle\">1 month</td>\r\n<td class=\"td3\" valign=\"middle\">1-3 months</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td4\" valign=\"middle\">Annual leave</td>\r\n<td class=\"td4\" valign=\"middle\">30 calendar days</td>\r\n<td class=\"td4\" valign=\"middle\">74 calendar days</td>\r\n<td class=\"td4\" valign=\"middle\">N/A</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\nTable 1: Employment law comparison\r\n<ul>\r\n 	<li>As applicable to renewed contracts.</li>\r\n 	<li>The employer is liable to pay compensation to the employee equal to three months salary or for the remaining period of contract whichever is shorter; the employee is liable to pay half the amount that the employer would have to pay.</li>\r\n 	<li>The employer is liable to pay half the compensation, as per footnote 2.</li>\r\n</ul>\r\n<p class=\"p1\"><em>Termination</em></p>\r\n<p class=\"p1\"><span class=\"s2\">As can be seen from Table 1 above, a school which terminates a teacher during the school year could face a claim of two months notice, one month compensation (both as per MOE Contract), plus three months early termination compensation (Labour Law). If there is no MOE Contract, then it would be notice as per the school contract plus three months early termination compensation (Labour Law).</span></p>\r\n<p class=\"p1\"><span class=\"s2\">Given the room for confusion, it is important that the employer formulates a view, ideally in conjunction with an employment lawyer, on how to address these conflicting provisions (before they crystallise into an actual legal case) and manage risk whilst observing best practice and being appropriately benchmarked with other schools. Ultimately, risk can be managed but not eliminated.</span></p>\r\n<p class=\"p1\"><em>Annual Leave</em></p>\r\n<p class=\"p1\">The area surroundinlg annual leave allows for some creativity on behalf of the school. The vacation, as per the school calendar, is greater than the statutory and contractual amount, meaning that an employer can treat the differential in a way that limits its liability for pay in lieu of leave and serves as an added disincentive for a teacher to leave before expiry of the term. This brings us to the topic of retention, another key consideration for schools.</p>\r\n<p class=\"p1\"><em>Retention</em></p>\r\n<p class=\"p1\">The Middle East has the second most acute teacher shortage in the world. Retention of talent is probably the number one HR issue within education, recognising the cost (financial and non-financial) of replacing a good teacher and the importance of retaining institutional memory and continuity.</p>\r\n<p class=\"p1\">Accordingly, some schools have decided to pay elevated end of service gratuity payments depending on length of service. There are other tools available for the resourceful employer including specific retention plans, which can even be cost neutral if they absolutely need to be.</p>\r\n<p class=\"p1\"><em>Housing</em></p>\r\n<p class=\"p1\">It is quite common for schools to provide accommodation to teachers. Problems can emerge with such a benefit on two fronts:</p>\r\n\r\n<ul>\r\n 	<li><strong>Termination</strong>. When a teacher is terminated, the usual issues surrounding vacating the accommodation arise. A well drafted accommodation policy and employment contract will be effective in this situation.</li>\r\n 	<li><strong>Hire</strong>. It is common in the education space to assign a status to new employees, be it single, married, not sponsored by school, etc. There are a number of pragmatic reasons for this. The housing arrangements for the teacher are generally linked to this status. Substantive HR issues can arise in relation to pay in lieu of leave or overtime where two teachers doing the same job get paid different amounts, one teacher gets paid on basic plus housing allowance; whilst the other gets paid on basic only (as housing is provided).</li>\r\n</ul>\r\n<p class=\"p6\">Again, if HR can pre-empt these issues it will lead to a smoother outcome.</p>\r\n<p class=\"p1\"><em>Additional contractual terms</em></p>\r\n<p class=\"p1\">There are a number of important areas which the school’s own contract/HR policy should address:</p>\r\n\r\n<ul>\r\n 	<li>In service training/professional development;</li>\r\n 	<li>hild protection;</li>\r\n 	<li>Working outside the school (tutorials, etc.);</li>\r\n 	<li>Data protection and monitoring of emails; and</li>\r\n 	<li>Social media usage.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p3\"><span class=\"s1\"><strong>Universities and Colleges </strong></span></p>\r\n<p class=\"p1\">Many of the HR issues within the higher education space are similar to those that schools face.</p>\r\n<p class=\"p1\"><em>Notice</em></p>\r\n<p class=\"p1\">Higher educational institutions typically have lengthy notice periods, often six months or more, in order to discourage staff turnover during the academic year. The Decree presents a real issue for those employers subject to it in that the maximum notice period is purported to be only three months.</p>\r\n<p class=\"p1\">Accordingly, there is an incentive for higher educational institutions to develop imaginative HR solutions, including staff retention policies, in order to discourage midyear disruptive resignations.</p>\r\n<p class=\"p1\"><em>Ownership of intellectual property</em></p>\r\n<p class=\"p1\">Elsewhere in this issue of Law Update my colleague Ahmad Saleh (Intellectual Property department) discusses the monetisation of research in the education sector and the issues surrounding faculty/employee inventors.</p>\r\n<p class=\"p1\">Suffice to say, very careful consideration is required in relation to the drafting of an employment contract for academic staff who are involved in research and development so as to ensure that the scope of employment is adequately defined; otherwise, the institution may not benefit financially from the fruits of the research.</p>\r\n<p class=\"p1\"><em>Academic Freedom</em></p>\r\n<p class=\"p1\"><span class=\"s2\">The concept of academic freedom - defined as the right of a teacher or student to discuss or investigate any issue, or to express opinions on any topic without interference from the college or government - is enshrined in many international university charters (and frequently in the case-law and legislation of those countries). It is not an absolute right and, for example, the freedom to “investigate any issue” faces practical obstacles as regards availability of funding. </span></p>\r\n<p class=\"p1\">Academic freedom is not an expressly recognised concept in the UAE thus, whilst a university’s policies may refer to it, guidance should be provided to staff (particularly at the on-boarding stage) in relation to the practical limits of it.</p>\r\n<p class=\"p1\"><em>Tenure</em></p>\r\n<p class=\"p1\"><span class=\"s2\">Tenure has been defined as the right to remain permanently in a job. Tenure and academic freedom are seen as two pillars of the western university system.</span></p>\r\n<p class=\"p1\"><span class=\"s2\">Tenure, however, is not expressly recognised in the UAE. This can present a major challenge in trying to attract tenured faculty from international colleges. In some cases, the candidate will ask for a pre-agreed compensation payment (perhaps one or more year’s salary) to be included in the contract in the event that he/she is terminated for reasons other than stated misconduct.</span></p>\r\n<p class=\"p1\"><span class=\"s2\"> Where faculty are seconded to the UAE, they generally retain tenure in their home country. A secondment agreement would be recommended in cases like this to deal with issues like dual employment rights arising in the home country and UAE.</span></p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Conclusion</strong></span></p>\r\n<p class=\"p1\">Internationally, the education space has its fair share of HR complexity. Many of the same issues arise in the UAE. With some forward planning, the prudent education provider is well placed to address most of these issues. Consideration as to the legal landscape (including internal polices) and the reasonably predictable issues likely to arise, can help equip HR with the tools to deal with them in an effective, consistent, and efficient manner.</p>'),
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	(47263,2527,'_wp_attachment_metadata','a:5:{s:5:\"width\";i:100;s:6:\"height\";i:133;s:4:\"file\";s:22:\"uploads/media-2526.jpg\";s:5:\"sizes\";a:0:{}s:10:\"image_meta\";a:12:{s:8:\"aperture\";s:1:\"0\";s:6:\"credit\";s:0:\"\";s:6:\"camera\";s:0:\"\";s:7:\"caption\";s:0:\"\";s:17:\"created_timestamp\";s:1:\"0\";s:9:\"copyright\";s:0:\"\";s:12:\"focal_length\";s:1:\"0\";s:3:\"iso\";s:1:\"0\";s:13:\"shutter_speed\";s:1:\"0\";s:5:\"title\";s:0:\"\";s:11:\"orientation\";s:1:\"0\";s:8:\"keywords\";a:0:{}}}'),
	(100045,5438,'content','August 2016\r\n\r\n<hr />\r\n<p class=\"p1\">The decision on the owner of the trademark may be easy, but it could become more complicated when the owner is a group company with a complicated structure of affiliated companies and subsidiaries or in the case of a joint venture or partnership of any kind. In this article we will highlight the different perspectives of trademark ownership structures and common issues related to the same.</p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Who can own a trademark?</strong></span></p>\r\n<p class=\"p1\">Pursuant to Article 6 of the UAE Federal Trademarks Law, Law No. 37 of 1992 and its amendments, the owner of a trademark can include: (i) national natural or juridical persons carrying out any commercial, industrial, handicraft or services activity; (ii) foreign natural or juridical persons carrying out any commercial, industrial, handicraft or services activity in the State, (iii) foreign natural or juridical persons carrying out any commercial, industrial, handicraft or services activity in any country which treats the State according to the reciprocity principle and (v) public juridical persons.</p>\r\n<p class=\"p1\">Accordingly, a trademark owner can include individuals, companies in all legal forms (eh. sole establishment, limited liability, public joint stock) and public judicial persons such as government entities.</p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Why it is important to decide on the owner of the trademark?</strong></span></p>\r\n<p class=\"p1\">The advantages of owning a trademark can be summarised as follows:</p>\r\n\r\n<ul>\r\n 	<li>The trademark is an asset and a valuable one, for example Apple is the world’s most valuable trademark with a value of USD 154.1 billion (According to Forbes’ list of the World’s Most Valuable Brands 2016);</li>\r\n 	<li>Only the owner of trademark will financially benefit from such trademark. The owner only can exploit the trademark through commercialisation, licence and assignment and can be used in business negotiations.</li>\r\n 	<li>Only the legal owner of a trademark has standing to enforce the trademark rights and prevent any infringement upon the same.</li>\r\n</ul>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Deciding on who is the owner of the trademark</strong></span></p>\r\n<p class=\"p1\">The owner of the trademark will depend on the nature of the business, its structure and the strategies and goals adopted by the business.</p>\r\n<p class=\"p1\"><span class=\"s1\"> The straightforward scenario is that when a company is established, the trademark shall be registered under its name and it will be the owner of the trademark. A common mistake made is to have an executive of the company file for a trademark in their own personal name. This can restrain the company from enforcing its trademark rights against competitors, and will hurt the company financially as it may deprive the company of one of its most valuable assets.</span></p>\r\n<p class=\"p1\">Nevertheless this is not always the rule, as in some cases an individual creates a trademark and concept, and when he wants to commercialise this trademark and concept, he would enter into partnership with some investors. In such cases and when such partnership is still new, the individual may consider keeping the trademark under his personal name and grant the partnership entity a licence to use the trademark, to ensure his rights over the trademark.</p>\r\n<p class=\"p1\">When the trademark is very personal, such as the name of person, the owner of the trademark would normally be that person. For example, a fashion designer may retain the ownership of their trademark, which is his/her personal name, even though they have huge corporate entities operating and manufacturing under the trademark. Although this will protect the name of the designer, the risk in such case is that in the event of the death of the owner, the trademark will become part of the inheritance, which may affect the business using the brand.</p>\r\n<p class=\"p1\">In joint ventures, attention should be given to who owns the trademark that will be used by the joint venture. The trademark to be used may actually be owned by one of the partners. However if not, the partners should agree clearly on who will own the trademark or whether they jointly own it. The Joint Venture Agreement should clearly state the rights of each party and what will happen to the trademark when the joint venture is dissolved.</p>\r\n<p class=\"p1\">In case of a group of affiliated companies using the same trademark, usually the owner of the trademark will be the group company (holding company), who would grant internal licences to each of its affiliates to use the trademark. This structure will help the group company to maintain the protection of the trademark portfolio.</p>\r\n<p class=\"p1\">When the affiliated/subsidiaries use different trademarks, there are two options for the ownership structure of the trademarks; either the ownership of all trademarks be vested at the group company level (with a licence to each subsidiary to use the relevant trademark), or at the subsidiary level, each subsidiary owns the trademarks relevant to its business. Each structure has its own advantages and disadvantages, for instance having all the trademarks owned by the group company will ensure the central management of the trademark portfolio and ensure the trademarks are being used to the same level of quality within the entire group companies. It may also strengthen and enhance the assets of the group company making it more attractive to investors and increasing its negotiation weight in any business transaction. However, this means the involvement of the group company in the prosecution of all legal actions related to its trademarks. Having the ownership vested with each subsidiary, may seem an easier structure with less paperwork (internal licences). When each subsidiary owns its own trademark, this will increase its assets. But each subsidiary being responsible for its trademarks and their maintenance may entail having a dedicated team to do that.</p>\r\n<p class=\"p1\">For businesses with a substantial amount of intellectual property (“IP”), it may be reasonable to establish an IP holding company to become the owner of such assets. Having an IP holding company as the owner of the trademarks may improve the business’ ability to manage its intellectual property. In such a structure, the parent company, the original owner of the trademark, establishes a wholly-owned subsidiary and then transfers ownership of its IP to the newly-created subsidiary. The right to use the trademark is then licensed back to the parent company or other group companies.</p>\r\n<p class=\"p1\">The structure and position of the IP holding company should, of course, be subject to careful consideration, taking into consideration the nature of trademarks and the governing laws in the jurisdiction where the IP holding company is to be established. The UAE has recently recognised and allowed the establishment of IP holding companies. The new Commercial Companies Law, Law No. 2 of 2015, has allowed for the establishment of IP holding companies in the form of limited liability or joint stock companies, While it is still unclear how such companies will be governed under this new law, it is now an option to be considered in the UAE.</p>\r\n<p class=\"p1\">In conclusion, different aspects should be taken into consideration when determining the proper trademark owner. The trademark ownership structure may also change throughout the life of the business and with changes of its business strategies, its growth and its trademark assets. Clear legal advice on the ownership structure is always recommended together with a regular review of such structure to ensure it serves the present business needs and strategies.</p>'),
