	(101000,5492,'pageSummary','The Dubai Department of Economic Development (the “DDED”) has recently implemented an online system for registering IP complaints. This new online system allows brand owners and lawyers to pursue their complaints electronically.'),
	(101001,5492,'_pageSummary','field_59e59b307dec8'),
	(101002,5492,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/october-6/dubai-department-of-economic-development-launches-ip-gateway.html'),
	(101003,5492,'_currentURL','field_59d35123ab1e7'),
	(101004,5492,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','809'),
	(101005,5492,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(101006,5492,'lawUpdateArticleWriters','1'),
	(101007,5492,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(101008,5492,'_yoast_wpseo_metadesc','The Dubai Department of Economic Development (the “DDED”) has recently implemented an online system for registering IP complaints. This new online system allows brand owners and lawyers to pursue their complaints electronically.'),
	(101009,5493,'content','October 2016\r\n\r\n<hr />\r\n<p class=\"p1\"><strong>Aircraft Leasing –Premier Finance Structure </strong></p>\r\n<p class=\"p2\">Aircraft leasing is the most popular transaction structure in the aviation industry and it is important at the outset of any transaction to establish the rights and remedies available to aircraft lessors in the event of default. On an economic level, if there is certainty for aircraft lessors or creditors in being able to recover aircraft in the event of continued default on the part of a lessee operator, then there is a corresponding ability to predict and plan for the provision of finance. Lessors are able to reduce their costs to account for risk and are able to make greater amounts of financing available to airlines on more attractive terms. Lessees or operators benefit too as these reduced costs will be reflected in fleet leasing rates. Ultimately if a country is a sophisticated jurisdiction with rights and remedies clearly defined, and the country is a party to the relevant international treaties, the airline is in a better position to attract the provision of finance and has the ability to grow its aircraft fleet size. Also, the airline may qualify for other forms of finance. For instance, countries with a significant manufacturing base for aircraft may provide Export Credit Agency (ECA) backed financing, whereby a quasi-governmental or private nominated institution (the ECA) acts as an intermediary between state governments and exporters to provide finance to the airline to purchase aircraft.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Brief History and Reasons for the Cape Town Convention 2001</strong></span></p>\r\n<p class=\"p1\"><span class=\"s3\">Because aircraft are constantly flying between borders and landing in different jurisdictions, there has always been a requirement for an international system to codify the rights which the lessor and operator may have in the aircraft, and the Geneva Convention on the International Recognition of Rights in Aircraft 1948 (‘Geneva Convention’) went some way to developing an international system providing for the international recognition of rights in aircraft and for protecting property interests, defining orders of priority, and protection of consensual liens and mortgages. However, the Geneva Convention had a number of flaws which mainly centered on the fact that in many instances lessors were unable to repossess their aircraft after a consistent failure on the part of the lessee to pay lease rent because the laws of the relevant country in which the aircraft was based were inadequate, and relying on procedures regarding the exercise of rights for repossession of aircraft to domestic law of a state produced great uncertainty. As a general consensus , there was a need for a uniform system regarding protection of international interests in aircraft. As a result The Convention on International Interests in Mobile Equipment (2001) (‘Cape Town Convention’) and its Protocol to the Convention in Mobile Equipment on Matters Specific to Aircraft Equipment (2001) (‘Aircraft Protocol’) was concluded at a diplomatic conference organised and promoted by two sponsoring organisations, UNIDROIT, the UN Agency dealing with Private Law Conventions, and the International Civil Aviation Organisation (ICAO).</span></p>\r\n<p class=\"p3\"><span class=\"s4\"><strong>Brief Overview of Cape Town Convention 2001</strong></span></p>\r\n<p class=\"p1\"><span class=\"s5\">The Cape Town Convention supersedes the Geneva Convention with regards to aircraft and aircraft objects, and supersedes the Rome Convention for the Unification of Certain Rules Relating to the Precautionary Attachment of Aircraft 1933. The Cape Town Convention is designed as a multi-equipment treaty with protocols for aircraft equipment, railway rolling stock and space assets, but the only protocol to be adopted so far is the Aircraft Protocol and it applies to airframes, aircraft engines and helicopters: airframes which can carry at least eight persons or goods in excess of 2750 kg; all aircraft engines which have at least 1750 lbs of thrust (if jet powered) or 550 HP (if turbine powered); and helicopters carrying 5 or more passengers. At the time of writing, the Cape Town Convention has been ratified by 64 contracting states, including the UAE, as well as the European Union.</span></p>\r\n<p class=\"p1\">The main aim of the Cape Town Convention is to reduce the cost of raising finance for large high value mobile assets (such as aircraft ) which regularly cross borders, and the main mechanism is to provide for the creation of ‘international interests’ such as a mortgage or an aircraft finance lease which is capable of being recognised in all contracting states, and to provide for international remedies available to creditors should an airline or operator default on repayments relating to an international interest.Additionally the Cape Town Convention creates an electronic international register for the registration of ‘international interests’.</p>\r\n<p class=\"p1\">The Cape Town Convention provides standard remedies in the event of default by a debtor including the ability to:</p>\r\n\r\n<ul>\r\n 	<li>take possession or control of an object;</li>\r\n 	<li>sell or grant a lease of an object;</li>\r\n 	<li>collect or receive income or profits arising from the management or use of an object; and</li>\r\n 	<li>vest an object in satisfaction or redemption.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p6\">There are also remedies available for conditional sellers or lessors and interim relief pending final determination of a claim.</p>\r\n<p class=\"p1\">In addition the Aircraft Protocol provides remedies including :</p>\r\n\r\n<ul>\r\n 	<li>the ability to require the removal of an aircraft from the national civil aircraft register; and</li>\r\n 	<li>the ability to export the aircraft.</li>\r\n</ul>\r\n<p class=\"p1\">Chapter III, Articles 8 to 15 of the Cape Town Convention provide a lessor or financier with a set of remedies in the event of a debtor’s default, and these remedies include taking possession of the equipment.The Aircraft Protocol Article IX (1) expands those remedies to include deregistration, export and physical transfer of the aircraft from the territory in which it is situated, together with a subsequent re-registration of the aircraft. Article 13 of the Cape Town Convention (as modified by Article IX of the Aircraft Protocol) provides the mechanism to make an application to court, and the lessor’s entitlement to request court relief stems from the contractual agreement within the aviation finance lease documentation agreed between the lessor and lessee so that the provisions of the Cape Town Convention and Aircraft Protocol and its remedies will apply, and are agreed in accordance with Article IX of the Aircraft Protocol.</p>\r\n<p class=\"p2\"><strong>Cape Town Covention in the UAE</strong></p>\r\n<p class=\"p1\"><span class=\"s5\">The Cape Town Convention was ratified by the UAE and came into effect in the UAE on 1 August 2009. The benefits to the UAE have been that leasing and finance structures drafted in relation to the UAE have habitually incorporated the rights and remedies available under the Convention, and in turn lessors and financiers have been able to reduce risk and to reflect that in the cost of credit supply.</span></p>\r\n<p class=\"p1\"><span class=\"s2\">However, when ratifying the Cape Town Convention, the UAE made a number of Declarations under the convention, one of which is that where Cape Town Convention remedies are available to the lessor without the need for an application to court (so called self- help remedies); such remedy may only by be exercised by application to court. Thus in the UAE a court application will always be required in a contentious situation where a lessee is in default and is refusing to return the aircraft.</span></p>\r\n<p class=\"p1\">Other points to note specific to the Cape Town Convention in the UAE are that if interests are registered on the international register and create international interests (as defined in the Cape Town Convention) over the aircraft and engines, no other filing, registration, submission or governmental approval is necessary to perfect or protect the rights of the lessor and lessee to the aircraft, and such international interests will be effective against third parties in the UAE. Accordingly the lessor under an aviation finance lease will have the rights and remedies available to a holder of a registered international interest under the Cape Town Convention. The Gulf Civil Aviation Authority (GCAA) recognises the concept of the Irrevocable De-registration and Export Power of Attorney (or IDERA) which allows the person (usually the lessor) in whose favour the document is issued to exercise those rights and remedies contemplated by the Cape Town Convention, as adopted and implemented in the UAE.</p>\r\n<p class=\"p1\"><span class=\"s6\"> The GCAA maintains a national aircraft register in accordance with Article 28(2) of UAE Law regarding Civil Aviation Law (Federal Law no 20 of 1991) (the ‘Aviation Law’), and an aircraft is to be registered according to defined conditions and procedures. According to Article 5(2) of the Aviation Law, no aircraft registered on the aircraft register may be legally disposed of in any way without the prior written consent of the GCAA. Upon the cancellation or termination of an aviation finance lease and subject to the filing of the IDERA with the international register there will be a right, subject to an application to court, (i) to repossess the aircraft, (ii) to de-register the aircraft from the aircraft register and international register and (iii) to export the aircraft from Dubai and the UAE, all without requiring any further consents, approvals or licenses from the GCAA.</span></p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Retrieval Proceedings in the UAE-General Procedure</strong></span></p>\r\n<p class=\"p1\">Although the UAE is a party to the Cape Town Convention and a court application is required in respect of the remedies contained in the Cape Town Convention, it is fair to say that it is extremely rare to make an application for repossession of aircraft in the UAE. Although it is a common procedure in the UAE courts for a creditor to issue an ex parte application and to request the court to attach the assets of the defaulting debtors in contractual disputes, an application for an order for repossession of an aircraft has remained relatively untested.</p>\r\n<p class=\"p1\"><span class=\"s2\"> The UAE Law of Civil Procedures (Federal Law No 11 of 1992) (‘Civil Procedures Law’) allows a creditor, or an owner of an asset or a plaintiff with a valid claim against a defendant to attach an asset in possession of the other party. Therefore in the event of a dispute over the right to possession of the aircraft, in theory the lessor may pursue attachment of the aircraft by court proceedings in the UAE, and in any Emirate of the UAE where the aircraft is situated afterwards to physically retrieve the aircraft. The lessor will have to file the substantive action before the competent court within eight days as of the date of filing the attachment proceedings, and will then have to litigate the matter until a final and conclusive judgment is issued to the effect of returning possession of the aircraft to the lessor. Such proceedings against the aircraft are called retrieval proceedings, and from the lessor’s perspective are usually based on proving that it is the rightful owner claiming ownership of the aircraft from another party who is in actual possession.</span></p>\r\n<p class=\"p1\"><span class=\"s2\"> The basic procedure for an attachment application is to draw up an application and file it in the appropriate UAE court. This is an ex-parte application to a duty judge who makes a prompt decision on the merits of the proposed attachment. The grant of an attachment order is based solely on the documents provided as evidence. There is no scope for affidavits or witnesses. If the attachment application is successful, an attachment order is granted by the judge and sent by the court bailiff for attachment of the aircraft. Within eight days of any successful attachment application, a substantive action needs to be filed in support of the attachment proceedings. Failing this, the attachment order will be considered void. If the substantive action is successful, and all the appeal stages have been exhausted, the lessor can then proceed with the execution of the judgment through the relevant court execution department. In summary, it may be said that the retrieval proceedings based on the Civil Procedures Law is time consuming and it may take years before an executable judgment is rendered and subsequently enforced through the execution department.</span></p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Recent Case Grounding Repossession and Delivery Up in Sharjah Court</strong></span></p>\r\n<p class=\"p1\"><span class=\"s5\">In a recent client case a lessee operator of an aircraft had failed to pay substantial monies owing to the lessor, composed primarily of unpaid aircraft rental arrears and maintenance reserves, and this default had been ongoing for a considerable period of time. The aircraft was not registered in the UAE, but was registered in a foreign jurisdiction, but the lessee operator of the aircraft had a place of business and assets in the UAE. The aircraft was due to land in Sharjah on a certain date known to the lessors, primarily to undertake repair works and was due to enter a workshop for maintenance with a Maintenance Repair and Overhaul (MRO) provider.</span></p>\r\n<p class=\"p1\">Given the sustained and continuing default on the part of lessee, instructions were issued to attempt to ground and repossess the aircraft and secure deregistration and onward release of the aircraft to the lessor in accordance with the terms of the lease agreement between the parties, in addition to attaching the assets of the lessee towards securing the unpaid rent and maintenance charges.</p>\r\n<p class=\"p1\"><span class=\"s2\"> A draft application to the Sharjah Court was prepared on an ex parte basis. The application was firstly for the grounding and repossession of the aircraft, and secondly for the attachment of the UAE assets of the lessee. The application was premised on the provisions of the Cape Town Convention in addition to the provisional attachment provisions available under the Civil Procedures Law. In the first part of the application (grounding/repossession), the relevant provisions under the lease agreement which incorporated available remedies under the Convention were highlighted and exhibited. The several default notices issued by the lessor were explained and the court was taken through the remedies set out under Article 13 of the Cape Town Convention for delivery up, repossession, procurement of de-registration of the aircraft from its home jurisdiction, and the procurement of export of the aircraft once the order was perfected.</span></p>\r\n<p class=\"p1\">The second part of the application included a request to the Sharjah Court to issue a provisional attachment order against the UAE assets of the aircraft operator for the outstanding amounts in default in the payment of the applicable rent and maintenance arrears and exhibited and explained the several notices and demands issued in relation to the relevant aircraft.</p>\r\n<p class=\"p1\"><span class=\"s2\"> An order was granted by the Sharjah court and served on all relevant parties including the debtor, Sharjah Airport, the Sharjah Civil Aviation Department, the GCAA, the MRO provider, the banks and properties identified in the attachment application and the order was also served in relation to all identifiable assets subject to the application. The aircraft was secured and moved to a facility within Sharjah Airport pending finalisation of the deregistration of the aircraft from its home civil aircraft register and re-registration in a new national civil aircraft register arranged by the lessor of the aircraft.</span></p>\r\n<p class=\"p1\"><span class=\"s3\"> In this instance the order was successfully granted and the eventual outcome has been that the aircraft has been flown from the UAE and re-registered on another country’s civil aviation authority aircraft register and the aircraft has been repossessed by the lessor.</span></p>\r\n<p class=\"p1\"><span class=\"s3\"> Nevertheless, a number of factors combined to enable success: the lessee operator’s default in nonpayment of rental payments and maintenance reserves was abundantly clear and prolonged; the ex-parte application to the judge made full and frank disclosure and demonstrated the continuing default; the appended lease documentation was properly drafted so as to incorporate Cape Town Convention remedies; the Sharjah court was fully appraised and had competence in dealing with Cape Town Convention remedies; the lessor was in a position to offer a bond or guarantee if required (albeit this was not required); the application for de-registration of the aircraft from its home civil aircraft register and jurisdiction was made at the same time as the Sharjah court application; the assets for the attachment section of the application were properly researched and identified; the lessor client had made provision for the safe retention of the aircraft with a local MRO and had made provision for onward ferry flights and ultimate re-registration on another country’s register; the defaulting lessee to a certain extent did not contest the substance of the application and, again to a certain extent, entered into negotiation with the lessor.</span></p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Conclusion and Policy</strong></span></p>\r\n<p class=\"p1\">Policy-wise, UAE courts are not in the habit of regularly granting orders for repossession of aircraft, and UAE courts will deal with applications on a case by case basis. In this instance an order was successfully secured, and in practical terms made sure that the aircraft was re-possessed, de-registered from its own jurisdiction, re-registered in another jurisdiction and returned to the lessor.</p>\r\n<p class=\"p1\">However, there are very few recalcitrant lessees in the UAE region and it is important to note that the overwhelming intention of the Cape Town Convention is to provide certainty in protecting international interests, and to enable the reduction in cost of raising finance for large high value assets such as aircraft, and in turn to promote an environment where airline businesses can grow and increase fleet size. Gulf Carriers have demonstrated that growth in abundance and have utilised the aircraft finance market to achieve this, and such success is a superb example of the commercial benefits which may be obtained by signatory States to the Convention.</p>\r\n<p class=\"p1\">Correspondingly, on the rare occasion in which a lessor must enforce its remedies under the Convention, it is of comfort to note that the UAE jurisdiction will grant the necessary court order if the case is properly argued and the Cape Town</p>\r\n<p class=\"p1\">Convention remedy is appropriate in the circumstances.</p>'),
	(158777,5493,'core_values',''),
	(158778,5493,'_core_values','field_59b64ab071de4'),
	(158779,5493,'file',''),
	(158780,5493,'_file','field_59b64c10f6600'),
	(158781,5493,'orderValue4','4'),
	(100980,5491,'_content','field_59b649b5c8b2b'),
	(100981,5491,'lawUpdateArticleMonth','5479'),
	(100982,5491,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100983,5491,'content_description','Although the new Commercial Companies Law (Federal Law no. 2 of 2015 on Commercial Companies) (“CCL”) was highly anticipated, the changes were considered by many to be less sweeping than expected.'),
	(100984,5491,'_content_description','field_59b641c07f473'),
	(100985,5491,'pageSummary','Although the new Commercial Companies Law (Federal Law no. 2 of 2015 on Commercial Companies) (“CCL”) was highly anticipated, the changes were considered by many to be less sweeping than expected.'),
	(100986,5491,'_pageSummary','field_59e59b307dec8'),
	(100987,5491,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/october-6/uae-companies-law-ministry-of-economy-acts-to-clarify-its-scope.html'),
	(100988,5491,'_currentURL','field_59d35123ab1e7'),
	(100989,5491,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','818'),
	(100990,5491,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(100991,5491,'lawUpdateArticleWriters','1'),
	(100992,5491,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(100993,5491,'_yoast_wpseo_metadesc','Although the new Commercial Companies Law (Federal Law no. 2 of 2015 on Commercial Companies) (“CCL”) was highly anticipated, the changes were considered by many to be less sweeping than expected.'),
	(100994,5492,'content','October 2016\r\n\r\n<hr />\r\n<p class=\"p1\">Earlier this year, extensive meetings took place at the DDED to review strategy and discuss new ways of improving the current IP system in Dubai, including adopting best practice methods to enforce IP and trademark rights for both the DDED and brand owners.</p>\r\n<p class=\"p1\">The IP Gateway, which was implemented by the Commercial Compliance and Consumer Protection (“CCCP”) Department of the DDED, is the first of its kind in the world. It allows complaints relating to trademark infringement to be received via the department’s website.</p>\r\n<p class=\"p1\">The IP Gateway first started receiving complaints in September 2016 and its main function is to automate all procedures relating to IP issues, from receiving complaints and opening files, to receiving reports from field officers and submitting them to trademark owners. The IP Gateway also allows lawyers to track cases and complaints electronically on behalf of brand owners.</p>\r\n<p class=\"p1\"><span class=\"s1\"> The launch of the IP Gateway is a key objective and part of the DDED’s strategy to strengthen the business sector through: </span></p>\r\n\r\n<ul>\r\n 	<li>sustainable economic development;</li>\r\n 	<li>building trust between the public and private sectors; and</li>\r\n 	<li>protecting the economic interests of dealers, suppliers and trademark owners.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p1\">With the launch of the IP Gateway, the DDED is seeking to implement government guidance to transition from manual to electronic/smart procedures and to provide a platform to achieve sustainable economic development at the highest levels of global competitiveness.</p>\r\n<p class=\"p1\">Mohammed Ali Rashed Lootah, CEO of the CCCP Department, said that the:</p>\r\n<p class=\"p4\">‘<em>IP Gateway will help achieve the goal of reducing government auditors in Dubai by 80 per cent by the year 2018, as the smart system can completely eliminate the need for review visits from law firms and brand owners.</em>’</p>\r\n<p class=\"p1\"><span class=\"s2\">One of the positive new features of the IP Gateway is that brand owners’ legal representatives can be notified electronically of goods/products which have been seized by the DDED based on regular investigations conducted by its inspectors. Legal representatives will have the opportunity to enquire about the temporarily-seized goods/products and obtain further information from the DDED should the brand owner wish to pursue a case and file a complaint against the trader which was in possession of the infringing goods/products. </span></p>\r\n<p class=\"p1\">Adoption of the new IP Gateway is hoped will provide a reliable and efficient online service which reduces paperwork and provides a streamlined process for lodging and completing IP and trademark applications by brand owners and for policing their infringement.</p>\r\n<p class=\"p6\">A version of this article has been previously published in <em>World Trademark Review</em> on 15 September 2016.</p>'),
	(159025,5492,'core_values',''),
	(159026,5492,'_core_values','field_59b64ab071de4'),
	(100965,5490,'_content','field_59b649b5c8b2b'),
	(100966,5490,'lawUpdateArticleMonth','5479'),
	(100967,5490,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100968,5490,'content_description','The Chairman of the Securities and Commodities Authority of the United Arab Emirates (SCA) issued on 28 April 2016 the Resolution No. (7/R.M) of 2016 Concerning Corporate Discipline and Governance Standards of Public Joint Stock Companies (New Governance Rules) in order to:'),
	(100969,5490,'_content_description','field_59b641c07f473'),
	(100970,5490,'pageSummary','The Chairman of the Securities and Commodities Authority of the United Arab Emirates (SCA) issued on 28 April 2016 the Resolution No. (7/R.M) of 2016 Concerning Corporate Discipline and Governance Standards of Public Joint Stock Companies (New Governance Rules) in order to:'),
	(100971,5490,'_pageSummary','field_59e59b307dec8'),
	(100972,5490,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/october-6/an-overview-of-the-new-governance-rules-in-the-uae-part-i.html'),
	(100973,5490,'_currentURL','field_59d35123ab1e7'),
	(100974,5490,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','943'),
	(100975,5490,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(100976,5490,'lawUpdateArticleWriters','1'),
	(100977,5490,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(100978,5490,'_yoast_wpseo_metadesc','The Chairman of the Securities and Commodities Authority of the United Arab Emirates (SCA) issued on 28 April 2016 the Resolution No. (7/R.M) of 2016 Concerning Corporate Discipline and Governance Standards of Public Joint Stock Companies (New Governance Rules)'),
	(100979,5491,'content','October 2016\r\n\r\n<hr />\r\n<p class=\"p1\"><span class=\"s1\">In addition, some provisions of the law served to create uncertainty in the minds of lawyers. </span></p>\r\n<p class=\"p1\">One such provision was Article 104 which states: “<em>In respect of matters not specifically provided herein, the provisions concerning Joint Stock Companies shall apply to the Limited Liability Company; and the words “Competent Authority” shall replace the term “Authority” wherever it appears.</em>”</p>\r\n<p class=\"p1\"><span class=\"s2\"> The precise operation of this provision was not spelled out in the CCL. Therefore, confusion developed in determining which provisions concerning public joint stock companies (“PJSCs”) may or may not apply in respect of limited liability companies (“LLCs”). Even expert legal practitioners disagreed on the best and most feasible interpretations. </span></p>\r\n<p class=\"p1\">In order to assist the business and legal community the UAE Ministry of Economy recently issued Ministerial Resolution No. (272) of 2016 entitled ‘Application of Some Provisions of Public Shareholding Companies to Limited Liability Companies’ (“Resolution”). This Resolution serves to clarify the precise scope of operation of Article 104.</p>\r\n<p class=\"p1\">In this article, we have addressed key points the Resolution covers.</p>\r\n<p class=\"p2\"><span class=\"s3\"><strong>Which CCL provisions affecting PJSCs now apply to LLCs? </strong></span></p>\r\n<p class=\"p3\">The following PJSC provisions are now confirmed as applying to LLC’s:</p>\r\n\r\n<ul>\r\n 	<li>The Articles of Association shall: (i) appoint the company directors and the Board members; (ii) fill vacant positions in the Board; and (iii) set the number, powers and term of office of directors. The General Meeting shall be in charge of any of these matters, if the Articles of Association remain silent (Article 4).</li>\r\n 	<li>A majority of votes by the Board is needed for a resolution to be passed. Before calling a General Meeting, the Board must hold its meeting at least 30 days earlier and must send all shareholders a notice with all relevant information of the General Meeting. Details of the General Meeting shall be noted in meeting minutes, which shall be signed by members attending the meeting and the rapporteur (Article 5).</li>\r\n 	<li>The Board and all relevant directors must put the interest of the company first and must act in line with what is authorized to them. The functions of the Board and executive management must be set in the Articles of Association (Article 6).</li>\r\n 	<li>The company shall appoint one or more auditors who shall comply with the CCL. These auditors shall be appointed for one renewable year. The auditors have the right of access to all Company books, registers and documents etc. and if the company’s directors or management fail to enable the auditor to perform its duties, the auditor is required to send a copy of the report to the competent authority (Articles 7 &amp; 8).</li>\r\n 	<li>The auditors shall present an annual report to the General Meeting, and shall be responsible for the correctness of all information presented (Article 9).</li>\r\n 	<li>The company shall prepare regular accounts in accordance with the international accounting principles and standards (Article 10).</li>\r\n 	<li>A shareholder holding 50% or more of the capital of the company may submit an offer to acquire the remaining shares of the company, which may be accepted or rejected by the shareholders (Article 11).</li>\r\n 	<li>Any shareholder holding more than 20% of the company capital may submit an application for the calling of the General Meeting, which must be called within 5 days. Any shareholder holding 10% of the company shares may submit an application for the calling of the General Meeting to an urgent meeting and shall accompany the application by supporting documents (Article 12).</li>\r\n 	<li>The company must deposit the cash dividends of the shareholders within 30 days from the date of issuance of a resolution approving the profit distribution (Article 13).</li>\r\n 	<li>The inclusion of an issue during the General Meeting must be made through an inclusion application, which must be made in writing, signed by shareholders representing 10% of the company and submitted to the chairperson who shall approve or reject it. The inclusion of an issue before the General Meeting can be made by shareholders holding 5% of the company profit within 5 business days from the date they are notified about the General Meeting. The issuance must include relevant documents and must be approved by the competent authority (Article 14).</li>\r\n 	<li>Under certain cases, such as an increase or decrease of the company capital, the General Meeting must issue a special resolution (Article 15).</li>\r\n 	<li>Any breach of the provisions shall be subject to penalties (Article 16).</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p6\"><span class=\"s3\"><strong>Which provisions affecting PJSCs do not apply to LLC’s?</strong></span></p>\r\n<p class=\"p3\">The key provisions affecting PJSCs which do not operate in the running of LLCs are provisions concerning the election of Board members, the number of members (minimum and maximum), or nationalities of the Board Chairman and members and their annual remuneration (Articles 143, 144, 145, 147, 149, 151 and 169), provisions governing related party transactions (Article 152) and restrictions concerning financial assistance (Article 222).</p>\r\n<p class=\"p3\"><strong>How has the Resolution served stakeholders in the UAE?</strong></p>\r\n<p class=\"p3\">The Resolution has provided the legal and business community with some much needed clarity particularly in clarifying that the restriction on companies providing financial assistance connected to the purchase of their own shares applies only to PJSC’s and not to LLC’s. This major clarification alone is a welcome development in resolving a key question in construing Article 104 of the new Law.</p>'),
	(158745,5491,'core_values',''),
	(158746,5491,'_core_values','field_59b64ab071de4'),
	(158747,5491,'file',''),
	(48506,2649,'_wp_attached_file','uploads/media-2648.jpg'),
	(48507,2649,'_wp_attachment_metadata','a:5:{s:5:\"width\";i:100;s:6:\"height\";i:133;s:4:\"file\";s:22:\"uploads/media-2648.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:{}}}'),
	(93573,5083,'_content','field_59b649b5c8b2b'),
	(93574,5083,'lawUpdateArticleMonth','5067'),
	(93575,5083,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93576,5083,'content_description','Abu Dhabi Global Market (“ADGM”), the UAE’s latest financial free zone, unveiled its draft employment regulations (“Regulations”) in January.'),
	(93577,5083,'_content_description','field_59b641c07f473'),
	(93578,5083,'pageSummary','Abu Dhabi Global Market (“ADGM”), the UAE’s latest financial free zone, unveiled its draft employment regulations (“Regulations”) in January.'),
	(93579,5083,'_pageSummary','field_59e59b307dec8'),
	(93580,5083,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/february-7/abu-dhabi-global-market-the-new-employment-horizon.html'),
	(93581,5083,'_currentURL','field_59d35123ab1e7'),
	(93582,5083,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','535'),
	(93583,5083,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(93584,5083,'lawUpdateArticleWriters','1'),
	(93585,5083,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(93586,5083,'_yoast_wpseo_metadesc','Abu Dhabi Global Market (“ADGM”), the UAE’s latest financial free zone, unveiled its draft employment regulations (“Regulations”) in January.'),
	(93587,5084,'content','February 2015\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">The city offers a variety of exciting visions and cultural blends, ready to feature as a backdrop in international and local film and television productions.</p>\r\n<p class=\"MsoNormal\">The Dubai government is keen to establish Dubai as a leading production destination with landmark buildings and state-of-the-art production facilities.  The Dubai Film and TV Commission (<strong>DFTC</strong>) was established in recent times to facilitate shooting and production in the city, with a primary goal of the DFTC being to increase the number of film and television productions that are shot and produced in Dubai.</p>\r\n<p class=\"MsoNormal\">In December 2014, the Executive Council issued <em>Resolution No. 50 of 2014 Concerning the Dubai Film and TV Commission</em> (the “<strong>Resolution</strong>”) to substitute <em>Resolution No. 16 of 2012</em> (and its amendments) which set up the DFTC.  The Resolution defines the objectives of the DFTC, with a key objective to increase local and international film and television production in Dubai.</p>\r\n<p class=\"MsoNormal\">DFTC has always been the sole body authorised to issue all audio and visual media production permits and to obtain related approvals from all government departments, free zones and private sector entities in Dubai.  This still remains the position under the Resolution, however, it although the Resolution presents a new permit and fee structure, briefly summarised as follows:</p>\r\n\r\n<ul>\r\n 	<li>There are now nine types of permits available to production companies, which are categorised by production type (e.g. TV or film production for films and documentaries is one category; filming for advertisements is another).</li>\r\n 	<li>Most fees are now AED 3,000 (inclusive of a AED 500 application fee) and with some categories of permits now being valid for up to 30 days.  Compared to the previous permit fees which could be as high as AED 25,000 for a 24-hour period, this is a notable reduction in the fees payable under the Resolution.</li>\r\n 	<li>Ddepending on the location, additional daily fees may be payable to the location operator.  This is at the location operator’s discretion, noting that the Resolution clearly caps these fees at AED 25,000 per day.  Any overcharge is to be refunded to the production company.</li>\r\n 	<li>Failure to obtain the appropriate permit may result in a fine, which can range between AED 15,000 to AED 25,000 depending on the description of the penalty.</li>\r\n</ul>\r\n<p class=\"MsoNormal\">Ahead of filming in Dubai, production companies are required to liaise with the DFTC and submit an application for a permit.  Production companies should allow some time for this process, as they are also required to also submit scripts for film and television series for review by the DFTC (presumably, so that the DFTC can ensure that the cultural and social mores of Dubai are not compromised in the script).</p>\r\n<p class=\"MsoNormal\">The permit fees, and any additional location fees, are upfront costs that need to be factored in to the overall cost of production.  This may be a deterrent for some production companies and other entities wishing to film in Dubai with small production budgets.  DFTC is conscious of this, and one of the DFTC’s objectives in the new 2014 Resolution is to decrease the cost of media production in Dubai.</p>\r\nIn the absence of any tax or other rebates or incentives, the reduction in permit costs no doubt places the DFTC in good stead for achieving this objective.  In addition, the DFTC does remain available to discuss ways to reduce the cost of filming in Dubai and to provide financial incentives, whether through special arrangement with key industry partners, licensing and fee rebates, or negotiations with service providers.'),
	(175601,5084,'core_values',''),
	(175602,5084,'_core_values','field_59b64ab071de4'),
	(93588,5084,'_content','field_59b649b5c8b2b'),
	(93589,5084,'lawUpdateArticleMonth','5067'),
	(93590,5084,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93591,5084,'content_description','From the glittering night lights to the serene desert landscape, it is easy to see how Dubai can appeal to film and television producers.  '),
	(93592,5084,'_content_description','field_59b641c07f473'),
	(93593,5084,'pageSummary','From the glittering night lights to the serene desert landscape, it is easy to see how Dubai can appeal to film and television producers.'),
	(93594,5084,'_pageSummary','field_59e59b307dec8'),
	(93595,5084,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/february-7/lights-camera-action-things-to-know-about-filming-in-dubai.html'),
	(93596,5084,'_currentURL','field_59d35123ab1e7'),
	(93597,5084,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Anita Siassios'),
	(93598,5084,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(93599,5084,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','a.siassios@tamimi.com'),
	(93600,5084,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(93601,5084,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(93602,5084,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(93603,5084,'lawUpdateArticleNoWriters','1'),
	(93604,5084,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93605,5084,'_yoast_wpseo_metadesc','From the glittering night lights to the serene desert landscape, it is easy to see how Dubai can appeal to film and television producers.'),
	(93606,5085,'content','February 2015\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">With such activities on the increase, the Ministry of Commerce and Industry (“the Ministry”) has recently issued a new Foreign Property Marketing Licence and has set out the requirements to market foreign property off-the-plan in KSA.</p>\r\n<p class=\"MsoNormal\">The purpose of introducing the Foreign Property Marketing Licence is to put in place requirements that protect Saudi nationals concerning foreign real estate marketed to them within KSA.  It is also consistent with the consumer protection policies behind the requirement for the Licence for the Sale of Units On-the-Map, which applies to the sale of property off-the-plan <em>within</em> KSA.</p>\r\n<p class=\"MsoNormal\">The Ministry has recently issued a circular confirming that, without obtaining an approval for a Foreign Property Marketing Licence, it is prohibited within KSA to offer any foreign real estate units for sales off-the-plan or to publish advertisements or to market foreign real estate units through the media or by any exhibitions.</p>\r\n<p class=\"MsoNormal\"><strong>REQUIREMENTS &amp; CONDITIONS OF A FOREIGN PROPERTY MARKETING LICENCE</strong></p>\r\n<p class=\"MsoNormal\">Some of the requirements to obtain a Foreign Property Marketing Licence include:</p>\r\n\r\n<ul>\r\n 	<li>there must be a contract between the foreign developer and a licensed Saudi real estate broker;</li>\r\n 	<li>the Saudi broker must hold a valid commercial registration permitting “property marketing” and must have existing business premises in KSA;</li>\r\n 	<li>no sum of money may be received in KSA from the buyer;</li>\r\n 	<li>no contracts for the sale of foreign property units off-the-plan shall be concluded in KSA;</li>\r\n 	<li>the foreign developer must hold a valid licence in the jurisdiction where the property is located; and</li>\r\n 	<li>an official document from the relevant authorities in the foreign jurisdiction where the property is located must be provided to the Ministry allowing Saudi ownership of property units and must be attested by the relevant authorities in both jurisdictions.</li>\r\n</ul>\r\n<p class=\"MsoNormal\">To achieve a certain level of disclosure and transparency and to ‘level the playing field’ between buyers and marketers of foreign property, some of the conditions imposed on licence holders include:</p>\r\n\r\n<ul>\r\n 	<li>no verbal promises or assurances can be given to the buyer by the marketer;</li>\r\n 	<li>all conditions for the resale of the property and any other conditions or restrictions must be explained to the buyer;</li>\r\n 	<li>the process of property registration and the extent of available utilities and services to the property must be clarified; and</li>\r\n 	<li>the applicable laws, fees and taxes must be explained to the buyer before the contract is made.</li>\r\n</ul>\r\n<p class=\"MsoNormal\"></p>\r\n<p class=\"MsoNormal\"><strong>CARRYING OUT MARKETING AND ADVERTISING OF FOREIGN REAL ESTATE</strong></p>\r\n<p class=\"MsoNormal\">Unsurprisingly then, it is a requirement to first have a Foreign Property Marketing Licence before commencing marketing activities, advertisements, seminars or exhibitions to promote any foreign real estate.</p>\r\n<p class=\"MsoNormal\">Some of the Ministry’s stipulations include that any advertisement:</p>\r\n\r\n<ul>\r\n 	<li>cannot be published unless it has first been approved by the Ministry’s Off-Plan Property Sale Committee;</li>\r\n 	<li>must not be misleading or contrary to public morals and must be in Arabic;</li>\r\n 	<li>must include certain detailed information and specifics on the property that is to be marketed;</li>\r\n 	<li>must state: <em>“Payments are to be made and contracts signed in the jurisdiction where the property is located”</em>;</li>\r\n 	<li>can only be published through channels licensed by the relevant authorities;</li>\r\n 	<li>must include full details of the broker and his contact details; and</li>\r\n 	<li>must include the number under which the licence was issued by the Ministry’s Off-Plan Property Sales Committee.</li>\r\n</ul>\r\n<p class=\"MsoNormal\"></p>\r\n<p class=\"MsoNormal\"><strong>Conclusion</strong></p>\r\n<p class=\"MsoNormal\">The stability, growth and opportunities in the Kingdom of Saudi Arabia attract many, including property marketers.  The Foreign Property Marketing Licence applies directly to the sale off-the-plan of foreign property of any type to nationals within KSA.  A failure to obtain a Licence will leave both the developer and any promoter in KSA open to a range of penalties.</p>\r\n<p class=\"MsoNormal\">The contents of the agreement between the foreign developer and the KSA marketing agent needs to be drafted carefully to protect each party’s interests, to set out the necessary procedures for introducing Saudi buyers and to comply with the Foreign Property Marketing Licence requirements and other relevant laws that apply.</p>\r\n<p class=\"MsoNormal\"></p>\r\n<p class=\"MsoNormal\">With increased interest in the Kingdom of Saudi Arabia, it is prudent for the KSA authorities to issue regulations which clarify the requirements for the sale of foreign property for buyers, Saudi real estate brokers and for foreign developers, especially at a time when such sales in KSA are so strong.</p>'),
	(175567,5085,'core_values',''),
	(93607,5085,'_content','field_59b649b5c8b2b'),
	(93608,5085,'lawUpdateArticleMonth','5067'),
	(93609,5085,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93610,5085,'content_description','As the largest economy in the region and with year on year stable growth in GDP, the Kingdom of Saudi Arabia (“KSA”) is increasingly being seen as a fertile source of potential buyers of real estate located outside KSA.  '),
	(93611,5085,'_content_description','field_59b641c07f473'),
	(93612,5085,'pageSummary','As the largest economy in the region and with year on year stable growth in GDP, the Kingdom of Saudi Arabia (“KSA”) is increasingly being seen as a fertile source of potential buyers of real estate located outside KSA.'),
	(93613,5085,'_pageSummary','field_59e59b307dec8'),
	(93614,5085,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/february-7/marketing-foreign-property-in-the-kingdom-of-saudi-arabia.html'),
	(93615,5085,'_currentURL','field_59d35123ab1e7'),
	(93616,5085,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Daniel Goodwin'),
	(93617,5085,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(93618,5085,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','d.goodwin@tamimi.com'),
	(93619,5085,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(93620,5085,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(93621,5085,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(93622,5085,'lawUpdateArticleNoWriters','1'),
	(93623,5085,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93624,5085,'_yoast_wpseo_metadesc','As the largest economy in the region and with year on year stable growth in GDP, the Kingdom of Saudi Arabia (“KSA”) is increasingly being seen as a fertile source of potential buyers of real estate located outside KSA.'),
	(93625,5086,'content','February 2015\r\n\r\n<hr />\r\n<p class=\"MsoNormal\"><strong>Background and Market Practice</strong></p>\r\n<p class=\"MsoNormal\">Factoring is a financing technique that enables an exporter to collect the purchase price of the goods relating to an export transaction prior to the due date of payment. Typically, banks in Qatar act as factors and purchase receivables relating to the export transaction. The same technique is also used for financing contractors and sub-contractors, where works have been performed or goods and services have been supplied and payment under the corresponding invoice is payable after a period of time (e.g. 90 days). This latter technique is referred to as ‘invoice discounting’.</p>\r\n<p class=\"MsoNormal\"><strong>Balance Sheet Treatment</strong></p>\r\n<p class=\"MsoNormal\">One key commercial consideration for companies seeking to sell their receivables is for the receivables to be removed from their balance sheet as a debt and to appear as revenue that has been collected. This treatment is possible if the receivables are sold on a ‘without recourse’ basis. Auditors usually require a legal opinion to confirm that a ‘true sale’ of the receivables has been effected.</p>\r\n<p class=\"MsoNormal\">While under Qatari law factoring (in respect of invoices and contracts) can occur on a ‘with recourse’ or ‘without recourse’ basis, as a result of certain legal issues, banks typically opt to structure their invoice discounting product on a ‘limited recourse’ basis. Therefore, once the invoice or agreement has been validly assigned to the bank, the bank would have direct recourse to the debtor under the invoice or contract (the “<strong>Debtor</strong>”), however, in the event of a dispute over the performance of the invoice or contract the bank will have recourse to the exporter or contractor (the “<strong>Seller</strong>”). In other words, the only risk being assumed by the bank is that of the bankruptcy of the Debtor. The bank does not assume the risk of performance by the Seller under the discounted invoice or contract.</p>\r\n<p class=\"MsoNormal\">In Qatar, especially in the context of contractor receivables, the assignment perfection procedures are difficult to complete. Therefore, the Seller will also provide a representation relating to the assignment having been perfected and a breach of this representation is included as a recourse event. Our view is that the inclusion of certain representations as recourse events should not impact the ‘true sale’ nature of the transaction.</p>\r\n<p class=\"MsoNormal\"><strong>Assignment of Invoices and Contracts (Legal Considerations)</strong></p>\r\n<p class=\"MsoNormal\">Each invoice or contract that is subject to the factoring arrangement should be assigned to the bank.</p>\r\n<p class=\"MsoNormal\">The Civil Code (Law No. 22 of 2004) (the “<strong>Civil Code</strong>”) sets out specific provisions relating to the assignment of rights. Article 324 of the Civil Code states that a creditor may assign its rights except where a specific provision of law or contract restricts such assignment.</p>\r\n<p class=\"MsoNormal\">Article 326 of the Civil Code requires that the assignor should notify the debtor (i.e. the Government Authority) of the assignment in order for the assignment of receivables to take effect against the Government Authority. While the requirement for such a notification is not unusual, Article 326 goes on to state that the effectiveness of assignment vis-à-vis third parties shall only occur if the acknowledgement or acceptance of the notice of assignment from the debtor is “date certain”. Date certainty effectively gives priority to the assignee (bank) in respect of the assigned receivables. However, effecting date certainty is an administrative burden and requires the acknowledgement or consent received from the Debtor to be date certified by the Authentication Department at the Ministry of Justice.</p>\r\n<p class=\"MsoNormal\"><strong>Ministry of Economy and Finance Regulations</strong></p>\r\n<p class=\"MsoNormal\">In addition to the requirements under the Civil Code, the Ministry of Economy and Finance has also issued regulations relating to the assignment of receivables where the receivables emanate from a ‘government authority’ (the “Regulations”). It is understood that the Regulations would be applicable to various Ministries and other bodies such as Ashghal (Public Works Authority) and KAHRAMAA (Qatar General Electricity and Water Corporation)</p>\r\n<p class=\"MsoNormal\">The Regulations impose a higher standard of compliance. The significant additional requirements are:</p>\r\n\r\n<ol>\r\n 	<li>the Government Authority and the assignee bank are required to notify the Government Auditing Department at the Ministry of Economy and Finance of the assignment;</li>\r\n 	<li>the assignment agreement is required to be notarised at the Authentication Department (note that this is not a requirement under the Civil Code); and</li>\r\n 	<li>banks are required to verify that the Government Authority has not agreed to assign the proceeds to any other party including to a sub-contractor.</li>\r\n</ol>\r\n<p class=\"MsoNormal\"><em>This article first appeared in IFLR International Briefings – February 2015</em><strong><em> </em></strong></p>'),
	(175533,5086,'core_values',''),
	(175534,5086,'_core_values','field_59b64ab071de4'),
	(93626,5086,'_content','field_59b649b5c8b2b'),
	(93627,5086,'lawUpdateArticleMonth','5067'),
	(93628,5086,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93629,5086,'content_description',''),
	(93630,5086,'_content_description','field_59b641c07f473'),
	(93631,5086,'pageSummary',''),
	(93632,5086,'_pageSummary','field_59e59b307dec8'),
	(93633,5086,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/february-7/factoring-and-invoice-discounting-law-and-practice-in-qatar.html'),
	(93634,5086,'_currentURL','field_59d35123ab1e7'),
	(93635,5086,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','706'),
	(93636,5086,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(93637,5086,'lawUpdateArticleWriters','1'),
	(93638,5086,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(93639,5086,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','411'),
	(93640,5086,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(93641,5086,'lawUpdateArticlePractices','1'),
	(93642,5086,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(93643,5087,'content','February 2015\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">The National Innovation Strategy was first announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, on 19 October 2014.  Later on 30 November 2014, the UAE Federal Cabinet of Ministers met to approve the designation of 2015 as the Year of Innovation in a plan to make the UAE a world innovative leader.</p>\r\n<p class=\"MsoNormal\">“Announcing 2015 as the Year of Innovation comes to support federal government efforts, attract national skills, increase distinguished research, as well as boost efforts to build a national cadre who are able to lead our future in this field towards more progress, prosperity and innovation” said His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE.  “We live today in a world witnessing rapid changes and continuous developments, full of opportunities, discoveries and inventions” he added.</p>\r\n<p class=\"MsoNormal\"> “This innovation strategy is a national priority for our programme of development and progress.  It is a primary tool to achieve Vision 2021 and an engine for the growth of distinctive skills and capabilities across the nation.  We have always called for creativity in every field: this strategy is a concrete step to implement that vision.  These initiatives around innovation will enhance quality of life in the UAE and take our economy to new horizons… We want our public and private sectors to explore new horizons to develop our economy. Innovation is our only way to build a great history of the UAE… the future will be for those who adopt innovation” Sheikh Mohammed said.</p>\r\n<p class=\"MsoNormal\">The National Innovation Strategy will focus on fostering innovation in seven main sectors, renewable energy, transport, education, health, technology, water and space.  Thirty governmental initiatives are aimed to be taken within a three-year period in the optic of fostering innovations in these sectors, including new legislation, innovation incubators, investment in specialized skills, private-sector incentives, international research partnerships and an innovation drive within government.</p>\r\n<p class=\"MsoNormal\">The National Innovation Strategy sets out four tracks of action:</p>\r\n\r\n<ul>\r\n 	<li>Anchoring a simulating environment for innovation in the form of supportive institutions and laws;</li>\r\n 	<li>Developing government innovation by institutionalizing innovative practices with the support of an integrated system of modern tools, requiring all government entities to reduce spending by 1 percent and to dedicate the savings to research and innovation projects;</li>\r\n 	<li>Encouraging private sector innovation by stimulating companies to establish innovation and scientific research centres, to adopt new technologies and to develop innovative products and services;</li>\r\n 	<li>Qualifying individuals with highly innovative skills by concentrating on science, technology, engineering and mathematics, including the creation of educational material for schools and universities.</li>\r\n</ul>\r\n<p class=\"MsoNormal\"></p>\r\n<p class=\"MsoNormal\"><strong>Dubai Innovation Hub &amp; Creative Community </strong></p>\r\n<p class=\"MsoNormal\">As a concrete step towards the transformation towards an innovation and knowledge based ecosystem, Sheikh Mohammed bin Rashid issued Law No. 15 for the Year 2014 entitled the “Creative Community Law in the Emirate of Dubai” setting the legal basis for the establishment of two new projects, an “Innovation Hub” and a “Creative Community”, in the Dubai Technology and Media Free Zone (known as TECOM Free Zone).</p>\r\n<p class=\"MsoNormal\">The new law opens the door for innovation-based companies operating in certain activities defined under the law to benefit from the 100% ownership, tax free and other benefits regulated by the TECOM Free Zone.  In order to be eligible, the company’s activities “must include a degree of creation and innovation and must depend on intellectual property as a main source of revenue, including among others products and services in the field of media, technology, education, life sciences, energy, fashion &amp; design”<a class=\"msocomanchor\" href=\"#_msocom_1\">[a1]</a> . As started in Arabian Business http://www.arabianbusiness.com/uae-launches-plan-be-among-most-innovative-nations-in-world-within-7yrs-568451.html#.VNxRIFIcSic</p>\r\n<p class=\"MsoNormal\">The Innovation Hub is planned to be located in the Dubai Internet City focusing on sectors such as technology, new media, smart education and sciences, whereas the Creative Community is planned to be located in the new Dubai Design District and will aim to inspire creative flair among emerging designers and artists and encourage innovation within people more generally, acting as an incubator for emerging local designers, artists, house art galleries and studios.</p>\r\n<p class=\"MsoNormal\">The Innovation Hub is expected to house a workforce of around 15,000 companies of all sizes including start-ups, SMEs, multinationals and infrastructure services including innovation complexes, creative spaces, technology laboratories and smart buildings.</p>\r\n<p class=\"MsoNormal\">According to the TECOM authorities, the first phase of the Innovation Hub aims to establish around 1 million square feet of workspace by Q1 2017, whereas the first phase of the Creative Community aims establish around 1.6 million square feet of workspace by 2016.   A start-up fund and competition will be launched by Q2 2015 for attracting businesses in these industries.  More than AED4.5 billion have been allocated for these new projects.</p>\r\n<p class=\"MsoNormal\"><strong>UAE Vision 2021 National Agenda</strong></p>\r\n<p class=\"MsoNormal\">The 2021 Vision seeks to place the UAE among the top countries in the world through, <em>inter alia</em>, transitioning to a knowledge-based economy and promoting innovation and research &amp; development. The relevant key indicators set for 2021 Vision have placed targets for 2021 that include the following:</p>\r\n\r\n<ul>\r\n 	<li>Global Innovation Index to rank UAE among top 20 countries up from rank 35 in 2013;</li>\r\n 	<li>R&amp;D expenditures of 1.5% from GDP as opposed to its current rate of 0.5%; and</li>\r\n 	<li>Non-Oil Real GDP Growth of 5% up from 3.5%.</li>\r\n</ul>\r\n<p class=\"MsoNormal\"></p>\r\n<p class=\"MsoNormal\"><strong>The Way Forward</strong></p>\r\n<p class=\"MsoNormal\">Strengthening the IP system is a key starting point to pave the way for an IP Eco System that supports innovation. This includes improved administrative processes in the registration of patents and doing away with formalities that may impede the smoothness of a registration process. This also entails reviewing the legislation and improving the enforcement system to enable right holders enough strength to make patent protection and litigation worthwhile. Also, R&amp;D activities normally require long term investments which involve in some cases the implementation of plants and the recruitment and training of a large amount of human capital. The operation of R&amp;D activities can take a certain number of years before it starts to be profitable and generate revenues. Therefore, the legal system has to provide sufficient security and stability to the new players including knowledge creators, diffusers and investors to deploy their businesses and money inside the country.</p>\r\n<p class=\"MsoNormal\">The new initiatives taken by the UAE authorities are designed to accelerate the rate of innovation to move towards a sustainable knowledge-based economy. The UAE’s economy, so far dominated by Oil &amp; Gas, will require new sets of capabilities to function as a knowledge based economy, including physical, social and human capital.  An innovation based economy will need to have the right infrastructure to create knowledge in the first place and then to diffuse, exploit and absorb the knowledge.  In order to create knowledge, the UAE will have to focus on attracting new talents and innovation-based businesses inside the country, in addition to strengthening its existing local capabilities for producing knowledge.</p>\r\n<p class=\"MsoNormal\">The creation of free zones specially designed for innovation based companies, such as the Dubai Innovation Hub, is certainly an important step forward to achieve this goal.  However it is believed that this initiative will need to be supported by direct investments in order to achieve a rapid change. The UAE government will need to invest heavily in research &amp; development activities in both the public and private sectors and deploy accelerator and incubator bodies throughout the country for funding and supporting the creation of start-ups in the field of innovation.  As SMEs are the engine of any successful economy, it is believed that these businesses should be placed at the centre of the government’s attention.</p>\r\n<p class=\"MsoNormal\">Funding such activities will indeed be costly on the UAE government and adequate return on investment strategies will have to be put in place based on the socio-economical reality of the country. For example, the government can require the funded entities to reinvest a certain percentage of their revenues generated using the governmental funds for instance the creation of new lines of innovative products and services or for the commercialization of the generated products inside the country.</p>\r\n<p class=\"MsoNormal\">The creation of knowledge will then need to be followed by adequate measures for allowing the diffusion, absorption and exploitation of new technologies within the country.  The UAE market is considered to be a small market which generally does not provide sufficient incentives for large businesses for protecting their intellectual property and commercializing their innovations inside the country.  The UAE will have to work out new economical strategies to change this reality in order to attract not only knowledge creators but also to enhance knowledge diffusion and exploitation inside the country.  The UAE can for example work out new trade agreements with neighbouring countries, perhaps beginning with the GCC countries, for facilitating the free trade of innovations within these countries.  A recommended scheme would be to allow the free trade of innovative products developed and patented within one of the member countries.  It is believed that such an action would have a rapid impact in attracting technology players to the UAE.</p>'),
	(175501,5087,'core_values',''),
	(175502,5087,'_core_values','field_59b64ab071de4'),
	(175503,5087,'file',''),
	(93644,5087,'_content','field_59b649b5c8b2b'),
	(93645,5087,'lawUpdateArticleMonth','5067'),
	(93646,5087,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93647,5087,'content_description','The UAE Government declared 2015 “Year of Innovation” and announced a new National Innovation Strategy with the aim of becoming one among the most innovative nations in the world within a 7-year period.  '),
	(93648,5087,'_content_description','field_59b641c07f473'),
	(93649,5087,'pageSummary','The UAE Government declared 2015 “Year of Innovation” and announced a new National Innovation Strategy with the aim of becoming one among the most innovative nations in the world within a 7-year period.'),
	(93650,5087,'_pageSummary','field_59e59b307dec8'),
	(93651,5087,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/february-7/uae-officials-declare-2015-year-of-innovation.html'),
	(93652,5087,'_currentURL','field_59d35123ab1e7'),
	(93653,5087,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','897'),
	(93654,5087,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(93655,5087,'lawUpdateArticleWriters','2'),
	(93656,5087,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(175494,5087,'_timeline_header','field_59b63de5b74bf'),
	(175493,5087,'timeline_header',''),
	(175491,5087,'orderValue2','2'),
	(175492,5087,'_orderValue2','field_59d0c6f6175b8'),
	(175490,5087,'_stats_list','field_59b6372466bcc'),
	(175489,5087,'stats_list',''),
	(175487,5087,'orderValue1','1'),
	(175488,5087,'_orderValue1','field_59d0c6e5175b5'),
	(93663,5087,'lawUpdateArticleNoWriters',''),
	(93664,5087,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93665,5087,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','634'),
	(93666,5087,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(93667,5087,'lawUpdateArticlePractices','1'),
	(93668,5087,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(93669,5087,'_yoast_wpseo_metadesc','The UAE Government declared 2015 “Year of Innovation” and announced a new National Innovation Strategy with the aim of becoming one among the most innovative nations in the world within a 7-year period.'),
	(93670,5088,'content','February 2015\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">The economies in the Arabian Gulf continue to grow rapidly, despite instability and unrest afflicting their neighbouring countries in the Middle East. The Arabian Gulf countries are the members of the Gulf Cooperation Council (“the GCC”) namely Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman. These GCC countries are collectively important for any business with global aspirations and ambitions.</p>\r\n<p class=\"MsoNormal\">According to the International Monetary Fund (“IMF”), in the five year period following the financial crisis of 2008, the real gross domestic product of the GCC countries grew by 24 per cent – a stark contrast to negative growth experienced over the same period in the UK and in the Eurozone countries.</p>\r\n<p class=\"MsoNormal\"><strong>Growth Drivers in the Arabian Gulf</strong></p>\r\n<p class=\"MsoNormal\">This impressive growth in the Gulf was made possible by high oil and gas reserves and prices over most of the period since 2008, coupled with a willingness on the part of governments in the region to increase spending and to move aggressively to diversify their economies away from energy production. High rates of government expenditure continue in most GCC countries, as governments invest these significant oil and gas reserves to boost social services and infrastructure. At the time of writing the outlook for oil prices was uncertain, but the major producers have built significant reserves from big surpluses over recent years, so in the short-term public spending should not be affected.</p>\r\n<p class=\"MsoNormal\">Aside from these advantages, all GCC countries have rapidly increasing populations. The IMF also reported that between 2008 and 2013 the population of the GCC countries grew by a staggering 18.9 per cent, emphasising the youthful demographic.</p>\r\n<p class=\"MsoNormal\">Importantly, most of the Gulf countries are zero tax or low tax jurisdictions. Labour markets are flexible, and local businesses import and deploy expatriate workers across a wide spectrum of skilled and unskilled occupations (literally from labourers to rocket scientists). Under the GCC legal systems, residency visas are linked to employment contacts and are generally weighted in favour of employers.</p>\r\n<p class=\"MsoNormal\">Despite the political unrest across the wider Middle East, all the GCC countries seem politically stable at present, with only Bahrain having a recent history of civil disorder and sectarian political issues.</p>\r\n<p class=\"MsoNormal\"><strong>What are the Critical Issues for Foreign Investors in the GCC?</strong></p>\r\n<p class=\"MsoNormal\">All GCC countries impose restrictions on the level of foreign ownership and control in local businesses. These restrictive rules often pose a challenge for foreign investors when setting up companies or businesses in the GCC; or when investing in established GCC companies.</p>\r\n<p class=\"MsoNormal\">The foreign investment rules are intended to protect national entrepreneurs and to limit foreigners to minority ownership positions. Foreign investors usually have two options.</p>\r\n\r\n<ul>\r\n 	<li>pursue the path of joint venture – the investor identifies a local company which will contribute to the business, share any financial risk and facilitate business development and operations on the ground; or</li>\r\n 	<li>conclude arrangements with a local businessman (or company) who will become a partner in name only; even where such a local partner owns 51% of the company, the foreign investor will put in place side agreements which allow the foreign partner to retain almost all the profit, carry all the risk and exercise full control over the business.</li>\r\n</ul>\r\n<p class=\"MsoNormal\"></p>\r\n<p class=\"MsoNormal\">Both types of arrangements are extremely common throughout the region.</p>\r\n<p class=\"MsoNormal\">The restrictions on foreign ownership go hand in hand with a prescriptive business licensing regime which prevails in all the GCC countries. Any business must obtain a “<em>gateway</em>” licence to carry on business from the government authorities. This is a substantive approval process and applicants must demonstrate that they have employed staff with appropriate skills and experience and track record to operate the business. Highly regulated types of business (e.g. healthcare and education) also require further regulatory approvals and licences to be obtained, in addition to basic “<em>gateway</em>” licences.</p>\r\n<p class=\"MsoNormal\"><strong>What is the best way to conduct due diligence on potential investment targets?</strong></p>\r\n<p class=\"MsoNormal\">Foreign investors find it difficult to identify targets for acquisition or partnership in the Middle East, let alone conduct detailed due diligence on their targets. In Western countries it is normal to elicit considerable background information about target companies from corporate registers, real estate registers, court registers, credit checks and other public sources. However, in the GCC countries, not much information is recorded on public registers, there is no accessible credit reporting system (except in Bahrain) and most of the information maintained is not available is not available to the public or to any third party.</p>\r\n<p class=\"MsoNormal\">This lack of publicly available records makes it difficult to source or corroborate reliable information from public sources to verify basic facts about the target. It is usually necessary to rely wholly on information and documents furnished by the prospective seller.</p>\r\n<p class=\"ET1Bodytext\"><strong>SAUDI ARABIA</strong></p>\r\n<p class=\"MsoNormal\"><strong>Deals in Saudi Arabia – Mixed Messages</strong></p>\r\n<p class=\"MsoNormal\">Saudi Arabia is the biggest economy and market in the GCC. So it offers the greatest rewards but also presents significant challenges in making investments. Politically, Saudi Arabia is stable at present and business activity is strong, although a major crackdown on expatriate workers without proper visas has led to labour shortages in some sectors, particularly in the building industry.</p>\r\n<p class=\"MsoNormal\">The gateway to foreign investments is the Saudi Arabian General Investment Authority (“<strong>SAGIA</strong>”), a regulatory body which must approve any foreign investment application from outside the GCC countries.</p>\r\n<p class=\"MsoNormal\">SAGIA was established in 2000.  It administers a foreign investment regime dependent on the issue of foreign investment licences by SAGIA.</p>\r\n<p class=\"MsoNormal\">For those foreign businesses wanting to carry on a business activity in Saudi Arabia, they can only do so if they have a legal presence in Saudi Arabia and they have a foreign investment licence which authorises that activity to be conducted.</p>\r\n<p class=\"MsoNormal\">Foreign investors may acquire ownership of business in all sectors of the economy subject to two broad qualifications:</p>\r\n\r\n<ul>\r\n 	<li>Foreign investment is not allowed in oil exploration, drilling and production (although there is no prohibition on foreign investment in refining and petrochemical development).</li>\r\n 	<li>The Foreign Investment Law identifies a number of business activities reserved for Saudi owners. This is referred to as the “Negative List”.</li>\r\n</ul>\r\n<p class=\"MsoNormal\">After a liberal beginning to the SAGIA administration about three years ago there was a change in leadership at SAGIA which led to a tightening of foreign investment rules. SAGIA is now selective about the applications it approves. Nevertheless, for many business activities it is feasible to achieve foreign ownership up to 75%. Foreign investors may be allowed to own up to 100% of the capital of the enterprise.  However, there are some business activities where at least some level of Saudi ownership would be required.</p>\r\n<p class=\"MsoListParagraph\">But it is easier to secure approval if your investment is large; or is viewed as bringing new technology or significant job creation to Saudi Arabia.</p>\r\n<p class=\"MsoNormal\">Foreign players can often gain access to the Saudi market without carrying on a business in Saudi Arabia.  In many cases, the restrictions on foreign ownership encourage companies to enter into distribution, commercial agency and franchise arrangements with parties allowed to carry on those businesses in Saudi Arabia.  The foreign company will not need a foreign investment licence to enter into these arrangements and won’t need to establish a legal presence in Saudi Arabia.</p>\r\n<p class=\"ET1Bodytext\"><strong>THE UNITED ARAB EMIRATES</strong></p>\r\n<p class=\"MsoNormal\"><strong>Deals in the United Arab Emirates (Dubai and Abu Dhabi) – Business is Brisk</strong></p>\r\n<p class=\"MsoNormal\">Business in the UAE is extremely positive. Dubai in particular has reinforced its position as the leading financial centre in the region as a result of its superior lifestyle and infrastructure, coupled with its unequalled air transport connections with the region and the rest of the world. Dubai is a major beneficiary of the difficulties elsewhere in the Middle East. It is now the major tourist destination and focus for property investment in the region.</p>\r\n<p class=\"MsoNormal\">Abu Dhabi is likewise constructing the first offshoot of the iconic Louvre Museum and a new Guggenheim Museum, has built theme parks and significantly upgraded its hospitality and transport infrastructure (including the beginning of a trans-Arabian railway network). There is also a major port and industrial zone being developed in Abu Dhabi near the main freeway between Abu Dhabi and Dubai.</p>\r\n<p class=\"MsoNormal\">The UAE has pioneered the development of economic free zones, which are designated areas within urban or industrial precincts where foreign investors are permitted to set up 100 per cent owned companies and businesses. UAE free zones, particularly those in Dubai and Ras Al Khaimah, have been very successful and a staggering array of businesses operates from the free zones, ranging from manufacturers to banks and consulting firms. However, there are strict limitations on the types of business activities which can be conducted from free zones. Also, to set up in a free zone, it is necessary to buy or lease premises in the free zone areas.</p>\r\n<p class=\"MsoNormal\">One sector that is currently seeing exceptional growth in the UAE, particularly in Abu Dhabi, is the healthcare industry.  It is forecast that over the next few years, due to factors such as the rapidly expanding population, greater public awareness of medical conditions and treatment available, higher incidence of lifestyle diseases and deeper insurance penetration, this sector will continue to grow exponentially (becoming a $12bn industry by 2015 according to the Dubai Chamber of Commerce &amp; Industry).</p>\r\n<p class=\"MsoNormal\">The UAE seeks to promote itself through the development of healthcare tourism, attracting patients to its premium facilities from around the region.  The Government and the government-subsidized insurance schemes also recognize the opportunity to save costs by treating the national population at home, rather than paying for expensive treatment abroad as has been common previously.  This forecast growth has fuelled a significant increase in both public and private sector investment in healthcare facilities with high-profile names, such as Cleveland Clinic, John Hopkins and Mayo Clinic now operating in the UAE.</p>\r\n<p class=\"MsoNormal\">The UAE’s non-oil sectors expect continued growth in 2015, driven by strong real estate development activity, tourism, leisure and retailing buoyancy and a continuation of major infrastructure projects.</p>\r\n<p class=\"ET1Bodytext\"><strong>KUWAIT</strong></p>\r\n<p class=\"ET1Bodytext\"><strong>Deals in Kuwait – Building Infrastructure is the Key</strong></p>\r\n<p class=\"ET1Bodytext\">Of all the GCC countries, Kuwait is closest geographically to the serious ongoing violence in the region, as it has a long land border with Iraq. However, the GCC’s only parliamentary democracy remains relatively stable and prosperous. It retains significant oil reserves.</p>\r\n<p class=\"ET1Bodytext\">The government of Kuwait has vast foreign assets, but much of the local infrastructure is overdue for overhaul and enhancement. However, it continues to take time for the political processes to work through how Kuwaiti’s plentiful sovereign resources will be spent. This long-delayed “<em>makeover</em>” of Kuwait and its infrastructure will act as a major stimulus as it emerges over time.</p>\r\n<p class=\"ET1Bodytext\">In response to its growing need for robust local infrastructure projects, the Kuwait government passed the country’s first PPP (Public Private Partnership) and IWPP (Independent Water Power Plant) laws in 2008 and 2010 respectively.  On the heels of the passing these laws, Kuwait embarked on a mission to procure numerous midsize and large infrastructure projects under a PPP regime.  The PPP projects anticipated by the issuance of these laws cross a business areas that include (but are not limited to) electricity and power, waste water management, transportation, communications, hospitality, healthcare and land development within the State of Kuwait.</p>\r\n<p class=\"ET1Bodytext\">The aim of the PPP Law is to create wider ownership in larger projects (i.e. to shift the development cost burden away from the government and toward private investors), while giving the investor management control of the joint stock company and the project. Since the PPP Law was passed in 2008, over $25 billion worth of projects have been announced and significantly more are expected to be announced over the next few years as Kuwait sets out to expand and diversify its economy.</p>\r\n<p class=\"ET1Bodytext\">In January 2014, Kuwait reached financial close on the Az Zour North Independent Water &amp; Power Project, Kuwait’s groundbreaking PPP/IWPP project.  Considered as Kuwait’s flagship infrastructure project under the PPP and IWPP laws, the $1.8 billion project will result in the construction of combined cycle power plant and associated water desalination plant.</p>\r\n<p class=\"ET1Bodytext\">To improve upon gaps in the PPP regime and lessons learned following the success of the Az Zour North project, Kuwait recently passed a new PPP law, which is more flexible and conducive to attracting foreign private investment.  As such, Kuwait believes large infrastructure projects to gain momentum, including projects such as the Umm Al Hayman Wastewater Treatment Plant, Az Zour North Phase 2 IWPP, Al Abdaliyah Integrated Solar Combined Cycle Plant and Al Khiran IWPP amongst many others in the pipeline.</p>\r\n<p class=\"ET1Bodytext\"><strong>QATAR</strong></p>\r\n<p class=\"ET1Bodytext\"><strong>Deals in Qatar – Countdown to the World Cup</strong></p>\r\n<p class=\"MsoNormal\">Qatar is the wealthiest country in the GCC per capita and enjoys vast gas reserves. There have been major new developments in Doha and important cultural attractions established (such as the magnificent Islamic Art Museum). However the real stimulus to activity in Qatar is expected to be the major infrastructure which must be built to permit the staging of the 2022 World Cup.</p>\r\n<p class=\"MsoNormal\">The country’s economic progress has slowed following a change in leadership in 2013 (the old Emir stepped down in favour of his son) as the government and the publicly owned businesses continue to digest the implications of the change.  However, the World Cup infrastructure has an implacable deadline for completion, so significantly increased activity is expected in the near future.</p>\r\n<p class=\"MsoNormal\">The Qatar railway project is also underway with contracts now filtering downstream.  The Msheireb “Heart of Doha” project re-vamping the old central business district is making significant progress; and development of the new Doha satellite city of Lusail is expected to move up a gear during the next 12 months.</p>\r\n<p class=\"MsoNormal\">Whilst infrastructure works are proceeding, the policy of attracting industrial activity to the country has not achieved significant success.  Difficulties with registration of businesses with over 49% foreign-ownership and slow paced industrial licensing are proving to be significant hurdles and the under-developed state of Qatar’s industrial zones are hampering efforts to attract the larger players in the manufacturing industry.</p>\r\n<p class=\"MsoNormal\">Significant mergers and joint ventures in Qatar are still largely driven by governmental initiatives.  The Qatar Exchange is now wholly-owned by the sovereign wealth fund entity - Qatar Holding. There are still proposed mergers and strategic consolidations being considered by government entities and Qatar Petroleum and its subsidiary organisations are involved in joint ventures with a number of global companies.  Despite encouragement from various sources, new listings on the Qatar Exchange are few and far between and the capital markets lag behind largely more buoyant regional financial markets such as the UAE and Saudi Arabia.</p>\r\n<p class=\"ET1Bodytext\"><strong>BAHRAIN</strong></p>\r\n<p class=\"ET1Bodytext\"><strong>Deals in Bahrain – All Investors Welcome</strong></p>\r\n<p class=\"MsoNormal\">Bahrain has long established roots in international trade and in 1932 it was the first GCC country to discover significant oil reserves. Over the past 40 years Bahrain has put in the place foundations for a modern economy. As Bahrain no longer has significant oil reserves like some of its GCC neighbours, is has moved away from dependence on oil, diversifying into other sectors. During the 1980s and 90s, it was seen as the banking hub of the GCC.</p>\r\n<p class=\"MsoNormal\">Bahrain has close ties with the US and is the first and only GCC state to have a bilateral Free Trade Agreement with the US, which came into force in 2006. As a result, there are few restrictions for US individuals and companies wanting to do business in Bahrain. Bahrain is also home to the US Navy’s Fifth Fleet.</p>\r\n<p class=\"MsoNormal\">There are many advantages to doing business in Bahrain. It has a relatively liberal lifestyle compared to some other countries in the GCC, e.g. Saudi Arabia and Kuwait. It is strategically positioned between Saudi Arabia (to which it is connected to by a causeway), Qatar and Kuwait. It has a well developed legal system with relatively advanced companies law, financial services laws and even a trust law. It has well developed sectors in financial services, manufacturing, professional services, logistics and ICT. It has a relatively liberal foreign investment ownership regime with no restrictions on foreign investors in certain sectors and no restrictions on US investors at all. Bahrain also has an educated and diversified work force comprising both expatriates and Bahrainis. Like all other GCC states, Bahrain is tax free in most sectors of industry.</p>\r\n<p class=\"MsoNormal\">Bahrain’s Economic Development Board is responsible for attracting inward investment into Bahrain and is charged with leading implementation of the Government’s 2030 Economic Vision.</p>\r\n<p class=\"MsoNormal\">Bahrain was affected adversely by the Arab Spring and in 2011 an attempted uprising took place as a result of a latent sectarian divide between the Shia majority and the Sunni monarchy. The uprising expressed in some civil disorder and a degree of political violence. The situation has however stabilised in recent months. Bahrain is acutely aware of the loss of business and investor interest which has been a side effect of the recent disorder and as a result it has become increasingly investor and business friendly, whilst also trying to address its political issues.</p>\r\n<p class=\"MsoNormal\"><strong>OMAN</strong></p>\r\n<p class=\"ET1Bodytext\"><strong>Deals in Oman – An Oasis of Stability</strong></p>\r\n<p class=\"MsoNormal\">The Sultanate of Oman has a long record of political stability under the dynasty of Sultan Qaboos and continues to be on good terms with all its neighbours. Major industrial development is occurring at Sohar, whilst near the capital Muscat there is outstanding hospitality infrastructure on the coast, catering to travellers who prefer five star resorts.</p>\r\n<p class=\"MsoNormal\">The legal infrastructure is likewise good and the Government has made a comprehensive assessment of the investment sector to define the obstacles and challenges faced by the existing legal framework.  Oman offers attractive investment concessions to US nationals and US companies under treaty arrangements designed to create a more market friendly environment for US investors.</p>\r\n<p class=\"MsoNormal\">Oman was ranked above Saudi Arabia, Bahrain and the United States of America in the 2014 Global Peace Index put together by the Institute of Economics and Peace, ranking 59th out of a total of 162 countries.  The Index of Economic Freedom 2014, an indicator of ease of doing business, ranked Oman 48th out of 178 countries.  Moody’s and Standard and Poor’s both view Oman’s investment outlook as stable and have reaffirmed Oman’s A1 and A/A1 sovereign credit rating respectively.</p>\r\n<p class=\"MsoNormal\">Oil exports remain the major source of foreign earnings and significant revenue earnersfor the Sultanate; the impact of depressed oil prices towards the end of 2014 on the economic health of the Sultanate is yet to be seen.  It is likely that marginal infrastructure projects will re-evaluate or postponed whilst the oil price continues to fluctuate.</p>\r\n<p class=\"MsoNormal\">The Sultanate’s finite oil resources have propelled the Government of Oman to embark on a strategy of economic diversification to lead the Sultanate away from an economy driven by oil to one more reliant on tourism, real estate and trade (through better utilisation of its geographic positioning as the gateway to Asia).  World Bank projections indicate growth in GDP of 5% during 2015, making the Sultanate an attractive market for investment.</p>\r\n<p class=\"MsoNormal\"><em>This article was originally published in The American Lawyer’s Global M&amp;A Guide, 2015</em></p>');

INSERT INTO `tm_postmeta` (`meta_id`, `post_id`, `meta_key`, `meta_value`)
VALUES
	(175469,5088,'core_values',''),
	(175470,5088,'_core_values','field_59b64ab071de4'),
	(175471,5088,'file',''),
	(175472,5088,'_file','field_59b64c10f6600'),
	(175473,5088,'orderValue4','4'),
	(93671,5088,'_content','field_59b649b5c8b2b'),
	(93672,5088,'lawUpdateArticleMonth','5067'),
	(93673,5088,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93674,5088,'content_description','Economic growth and favourable demographics are driving M&A'),
	(93675,5088,'_content_description','field_59b641c07f473'),
	(93676,5088,'pageSummary','Economic growth and favourable demographics are driving M&amp;A'),
	(93677,5088,'_pageSummary','field_59e59b307dec8'),
	(93678,5088,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/february-7/business-conditions-in-the-arabian-gulf.html'),
	(93679,5088,'_currentURL','field_59d35123ab1e7'),
	(93680,5088,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','717'),
	(93681,5088,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(93682,5088,'lawUpdateArticleWriters','3'),
	(93683,5088,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(175462,5088,'_timeline_header','field_59b63de5b74bf'),
	(175461,5088,'timeline_header',''),
	(175459,5088,'orderValue2','2'),
	(175460,5088,'_orderValue2','field_59d0c6f6175b8'),
	(175458,5088,'_stats_list','field_59b6372466bcc'),
	(175457,5088,'stats_list',''),
	(175455,5088,'orderValue1','1'),
	(175456,5088,'_orderValue1','field_59d0c6e5175b5'),
	(93690,5088,'lawUpdateArticleNoWriters',''),
	(93691,5088,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93692,5088,'_yoast_wpseo_metadesc','Economic growth and favourable demographics are driving M&A'),
	(93693,5090,'_wp_attached_file','uploads2/media-5089.jpg'),
	(93694,5090,'_wp_attachment_metadata','a:5:{s:5:\"width\";i:100;s:6:\"height\";i:133;s:4:\"file\";s:23:\"uploads2/media-5089.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:{}}}'),
	(93695,5089,'lawUpdateImageURL','5926'),
	(93696,5089,'_lawUpdateImageURL','field_59c8deca117cd'),
	(93697,5089,'lawUpdateDesc',''),
	(93698,5089,'_lawUpdateDesc','field_59da24cd91f17'),
	(93699,5089,'lawUpdateYear','2015'),
	(93700,5089,'_lawUpdateYear','field_59da245091f13'),
	(93701,5089,'pageSummary',''),
	(93702,5089,'_pageSummary','field_59e59b307dec8'),
	(93703,5089,'lawUpdateStartMonth','March'),
	(93704,5089,'_lawUpdateStartMonth','field_59da247791f14'),
	(93705,5089,'currentURL','http://localhost:8888/tamimi/en/section/law-update/section-11/march-8'),
	(93706,5089,'_currentURL','field_59d35123ab1e7'),
	(93707,5091,'content','March 2015\r\n\r\n<hr />\r\n\r\nThe Plaintiff insured a cargo of pipes, which were shipped by the First Defendant. However, 238 pipes of the cargo were damaged when they arrived at their destination. The judgment of Abu Dhabi Court of First Instance was issued in favour of the Plaintiff and against the Third Defendant only, but it was then reversed by Abu Dhabi Court of Appeal in December 2014. Al Tamimi &amp; Company represented the Appellant (the Third Defendant) in the successful appeal.\r\n\r\n<strong>Background: </strong>\r\n\r\nOn 26 September 2013 the Plaintiff brought an action against the Defendants seeking damages in the sum of USD 191,330 for the damaged pipes, AED 31,484 for the costs and fees of loss adjusters and 12% as legal interest from the date of the claim until the full payment is made.\r\n\r\n<strong>The Nature of the Claim: </strong>\r\n\r\nThe Plaintiff insured a cargo of pipes which were shipped from China to Zayed Port in Abu Dhabi by the Defendants. When the cargo arrived at Zayed Port, 238 pipes were damaged.  Moreover, the Plaintiff, as the insurer of the cargo, compensated and paid the insured (the consignee) for the damaged pipes. Therefore, the insured provided the Plaintiff with a subrogation letter which gives the Plaintiff the right to file a claim against the responsible parties for the damaged pipes and recover the compensation amount. The Plaintiff estimated its loss at USD 237,788; however, it managed to mitigate its losses by selling the damaged pipes in the amount of USD 46,458.\r\n\r\nAccordingly, the Plaintiff filed an action with Abu Dhabi Court against the Defendants seeking compensation and asking the Court to order the Defendants to pay the sum of USD 191,330 in additional to 12% interest from the date of the claim until the full payment is made, as well as AED 31,484 as the loss adjusters’ fees.\r\n\r\n<strong>The Plaintiff based its claim on the following Articles:</strong>\r\n\r\n<strong>Article (275/1) of the UAE Maritime Commercial Law 198 which provides:</strong>\r\n\r\n“The carrier shall be responsible for loss or damage sustained by the goods during the period from the time he takes delivery of the goods at the port of loading to the time he delivers the same to the person having the right to them at the port of discharge…”\r\n\r\n<strong>Article (1030) of the Civil Transactions Law which provides:</strong>\r\n\r\n“It shall be permissible for the insurer to take the place of the assured in respect of any indemnity paid to him for loss, in bringing the claim of the assured against the person who caused the loss out of which the liability of the insurer arose, unless the person who caused the loss was an ascendant or descendant of the assured, or his spouse, or somebody living in one household with him, or a person for whose acts the assured is responsible.”\r\n\r\n<strong>Article (398) of the UAE Maritime Commercial Law 198 which provides:</strong>\r\n\r\n“The insurer shall be subrogated up to the extent of the payment of compensation that he has made to rights and claims which the insured may have arising out of losses included in the insurance.”\r\n\r\n<strong>Abu Dhabi Court of First Instance:</strong>\r\n\r\nAbu Dhabi Court of First Instance found the Third Defendants to be responsible for compensating the Plaintiff for the damaged pipes, and the Court reached its decision on the following grounds:\r\n<ul>\r\n 	<li>The carrier shall be responsible for loss or damage sustained by the goods during the period from the time he takes delivery of the goods at the port of loading to the time he delivers the same to the person having the right to them at the port of discharge, unless it is proven that the said damage or destruction is not attributable to default of the carrier or those working under him or his representative (Article 275 of the UAE Maritime Commercial Law);</li>\r\n 	<li>It is established that the carrier by sea might be the owner, the charter or the operator of the vessel that signs, issues, stamps the bill of lading and undertakes to carry the goods from one port to another in consideration of freight. (Article 256 of the UAE Maritime Commercial Law);</li>\r\n 	<li>The bill of lading shall be the evidence of the contact of carriage, as it contains all the terms that determine the obligations of the parties, including the obligations of the carrier.  Moreover, the bill of lading shall be deemed to be evidence of the particulars contained therein (including the name of the carrier) as between the carrier and the shipper and with regard to third parties. Also, it shall not be permissible to the carrier to prove the contrary of what is stated in the bill of lading against third parties including the consignee of the goods who is acting in good faith. (Articles 257 and 266 of the Maritime Commercial Law); and</li>\r\n 	<li>The bill of lading shows that the Third Defendant is the carrier that undertook to deliver the pipes to the consignee, as the said bill of lading was issued on the Third Defendant’s papers. (It is worth nothing that the bill of lading in this case was a clean bill of lading and there were no reservations endorsed by the carrier).</li>\r\n</ul>\r\nAccordingly, Abu Dhabi Court of First Instance rendered its judgment in favour of the Plaintiff and ordered the Third Defendant to pay damage to the Plaintiff in the amount of AED 702,181, in addition to a legal interest at the rate of 5% from the date the judgment becomes final and until the full payment is made including all expenses and fees.\r\n\r\nA<strong>bu Dhabi Court of Appeal:</strong>\r\n\r\nThe Third Defendant filed an appeal to challenge the Court of First Instance’s judgment. The Third Defendant argued that the case of the Plaintiff shall be dismissed, as the Plaintiff filed his claim with the Court after the expiry of a period of one year from the date of delivery of the goods by virtue of Article (287) of the UAE Maritime Commercial Law.\r\n\r\nAlternatively, the Plaintiff did not provide the Court with any evidence to prove that the pipes were damaged during the shipment of the goods.\r\n\r\nAdditionally, the pre-shipment survey report and the consultancy survey report that were submitted by the Plaintiff did not prove that the pipes were damaged during the shipment of the goods by the carrier.\r\n\r\nAlso, such reports confirmed that some of pipes were rusty, scratched, bent and some parts of the pipes were missing and broken before the shipment.\r\n\r\nMoreover, although the presumption under Article (275) of UAE Maritime Commercial Law is that the carrier shall be responsible for loss or damage sustained by the goods during the period from the time he takes delivery of the goods at the port of loading to the time he delivers the same to the person having the right to them at the port of discharge, Article 281 of the said Law requires the recipient of the damaged goods to give a written notice to the carrier or his representative at the port of discharge before or during delivery of the damaged goods. Otherwise, it will be presumed that the goods have been delivered to him in the condition as set out in the bill of lading, unless evidence to the contrary is presented.  Since the bill of lading was clean and did not contain any reservations, as well as the Plaintiff didn’t submit to the Court any evidence that some pipes in the cargo were damaged at the port of delivery, the case should be dismissed for lack of evidence.\r\n\r\nAbu Dhabi Court of Appeal accepted the Third Defendant’s appeal, cancelled the Court of First Instance’s judgment and dismissed the Plaintiff’s case.\r\n\r\nAbu Dhabi Court of Appeal ruled that it is established by Article (281) of the UAE Maritime Commercial Law that in the event that part of the goods is lost or damaged the recipient of the same must give written notice to the carrier or his representative at the port of discharge before or during delivery of the destruction or loss of the goods, otherwise it will be presumed that they have been delivered to him in the condition set out in the bill of lading until evidence to the contrary is given.\r\n\r\nFurthermore, Abu Dhabi Court of Appeal pointed out that the pre-shipment survey report shows that some pipes were rusty, scratched, bent and some parts of the pipes were missing and broken before the shipment. The consultancy report that was submitted by the Plaintiff before Abu Dhabi  Court of First Instance also does not confirm that the cause of the damage to the pipes was attributable to the Third Defendant (“Carrier”) rather that it mentions the value of the damaged pipes.\r\n\r\nAccordingly, the Third Defendant is not liable for the damage to the pipes.\r\n\r\n<strong>Comment:</strong>\r\n\r\nThe presumption under the UAE Maritime Law is that the carrier shall be responsible for loss or damage sustained by the goods during the period from the time he takes delivery of the goods at the port of loading to the time he delivers the same to the person having the right to them at the port of discharge, unless it is evidenced that the said damage is attributable to force majeure factors or not attributable to default of the carrier or his workers and/or representatives.\r\n\r\nAdditionally, if the recipient of the damaged goods does not give written notice of the damage sustained to the goods to the carrier or his/her representative at the unloading port before or during delivery of the damaged goods, the presumption will be that the goods have been delivered to him in the conditions set out in the bill of lading, unless evidence to the contrary is presented or if the damaged goods have been inspected at the time of delivery in presence of the acrrier or his representitive and the person taking delivery of the good.\r\n\r\nTherefore, if a clean bill of lading is issued by a carrier and the shipped goods by the carrier arrive at the port of discharge damaged, and yet the recipient of the damaged goods does not give written notice to the carrier or his/her representative at the unloading port confirming that the goods are damaged and/or lost, the assumption shall be that the goods arrived at the port of discharge in the conditions set out in the bill of lading (undamaged). Furthermore, the assumption that the carrier is responsible for the damage sustained to the goods under Article (275) of UAE Maritime Commercial Law, shall be vulnerable and rejected. Unless the recipient of the goods proves that the damage sustained to the goods is attributable to the carrier.\r\n\r\nNotwithstanding the above, it is worth mentioning that the judgment of the Court of Appeal has been appealed by the Plaintiff before the Cassation Court.'),
	(175433,5091,'core_values',''),
	(175434,5091,'_core_values','field_59b64ab071de4'),
	(175435,5091,'file',''),
	(175436,5091,'_file','field_59b64c10f6600'),
	(175437,5091,'orderValue4','4'),
	(175438,5091,'_orderValue4','field_59d2096a8ff34'),
	(175439,5091,'related_pages_header',''),
	(93708,5091,'_content','field_59b649b5c8b2b'),
	(93709,5091,'lawUpdateArticleMonth','5089'),
	(93710,5091,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93711,5091,'content_description','This article gives an overview of a recent lawsuit that was brought by an insurer (“Plaintiff”) against a vessel (“First Defendant”), the owners of the vessel (the “Second and the Third Defendants”) and the shipping agent (“the Fourth Defendant”) as carriers. '),
	(93712,5091,'_content_description','field_59b641c07f473'),
	(93713,5091,'pageSummary','This article gives an overview of a recent lawsuit that was brought by an insurer (“Plaintiff”) against a vessel (“First Defendant”), the owners of the vessel (the “Second and the Third Defendants”) and the shipping agent (“the Fourth Defendant”) as carriers.'),
	(93714,5091,'_pageSummary','field_59e59b307dec8'),
	(93715,5091,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/abu-dhabi-judgment-on-damaged-shipped-goods.html'),
	(93716,5091,'_currentURL','field_59d35123ab1e7'),
	(175426,5091,'_timeline_header','field_59b63de5b74bf'),
	(175425,5091,'timeline_header',''),
	(175423,5091,'orderValue2','2'),
	(175424,5091,'_orderValue2','field_59d0c6f6175b8'),
	(175422,5091,'_stats_list','field_59b6372466bcc'),
	(175421,5091,'stats_list',''),
	(175419,5091,'orderValue1','1'),
	(175420,5091,'_orderValue1','field_59d0c6e5175b5'),
	(93723,5091,'lawUpdateArticleNoWriters',''),
	(93724,5091,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93725,5091,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','632'),
	(93726,5091,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(93727,5091,'lawUpdateArticlePractices','1'),
	(93728,5091,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(93729,5091,'_yoast_wpseo_metadesc','This article gives an overview of a recent lawsuit that was brought by an insurer (“Plaintiff”) against a vessel (“First Defendant”), the owners of the vessel (the “Second and the Third Defendants”) and the shipping agent (“the Fourth Defendant”) as carriers.'),
	(93730,5092,'content','March 2015\r\n\r\n<hr />\r\n\r\nThe Dubai Courts have dealt with thousands of cases of off plan purchasers suing developers about the delays and either seeking to get their money back or to get compensation for those delays.\r\n\r\nBut how long of delay must there be before a purchaser has the right to terminate? In Dubai Court 41/2012 Cassation court the court discussed the time at which the right for the purchaser to seek termination is acquired and the materiality of the breach by the developer in not handing over the unit in the agreed date.\r\n\r\n<strong>Background</strong>\r\n\r\nThe Claimant bought a villa from the Defendant (a developer) on in 2006 for AED 4 million to be paid in installments. It was agreed in the contract that the villa would be delivered in December 2007.\r\n\r\nIn September 2007, the Defendant asked the Claimant to delay the next installment because the project’s delivery date was delayed to June 2008. The Claimant sent a notice to the Defendant stating that if they did not honor the new delivery date, he would terminate the contract and claim reimbursement.\r\n\r\nThe Defendant did not deliver the villa by June 2008, and the Claimant filed a claim in the Court of First Instance. The Claimant relied on Articles 246(1) of the Civil Code which states:\r\n\r\n<em>(1) The contract must be performed in accordance with its contents, and in a manner consistent with the requirements of good faith.</em>\r\n\r\nThe Court of First Instance ruled in favor of the Claimant, citing that the Defendant failed to deliver the villa on the date that was agreed upon, and ordered the termination of the contract and for the Defendant to pay the Claimant AED 3,477,701 plus 9% interest from the time the claim was filed until the Claimant is fully reimbursed.\r\n\r\nThe Defendant then appealed the decision in the Court of Appeal. The Court appointed an expert to the case. After receiving the expert’s report, the Court of Appeal issued its judgment overturning the Court of First Instance’s decision. The Court of Appeal cited the following reasons for its decision:\r\n<ul>\r\n 	<li>The expert’s report concluded that the Villa would be completed in 2012</li>\r\n 	<li>After the Defendant concluded its disputes with the governmental entities, it completed 70% of the villa, which the Court did not regard as a delay worthy of annulling the contract; and</li>\r\n 	<li>The Defendant’s failure to handover the villa on the agreed delivery date did not amount to a material breach of the contract</li>\r\n</ul>\r\n<strong>Cassation Ruling</strong>\r\n\r\nThe Claimant appealed the decision to the Court of Cassation. The Court of Cassation overturned the Court of Appeal judgment and issued the same ruling as the Court of First Instance.\r\n\r\nThe Court stated that grounds that the Court of Appeal relied upon were invalid as the court contradicted itself in its judgment. The Court of Appeal stated in its reasoning that the developer failed to deliver and handover the unit in June 2008, which meant that the developer breached his obligations in the contract. This should not be affected by the fact that the expert concluded that the project would be completed by 2012 in breach of the completion date that the parties agreed upon in the agreement.\r\n\r\nThe Court found that a default by the developer in the handover of the unit would entitle the purchaser to terminate the contract. In response to the developer’s argument that the purchaser did not pay the whole purchase price, the Court stated  that the purchaser may withhold payment of the balance of the purchase price even if the payment is due if there is good reason to suspect that the seller will not perform his obligation to deliver the thing sold. The Court relied on Article 247 of the Civil Code which states:\r\n\r\nIn contracts which are binding on the parties, the performance of reciprocal obligations is tied to mutual commitments. Either party may withhold performance of an obligation if the other party fails to perform his own reciprocal obligation on time\r\n\r\nThe Court also stated that a developer’s dispute with governmental entities does not excuse the developer from fulfilling its contractual duties. The right of a purchaser to withhold any payment and seek termination of the contract is established on the next day following the handover date. As such, the Court found it to be the Claimant’s right to claim reimbursement and annulment of the contract the day after the Defendant failed to deliver the villa in June 2008.\r\n\r\n<strong>Conclusion </strong>\r\n\r\nThe decision issued by the Court of Cassation has significant implications for developers who fail to deliver projects on an agreed delivery date. Proving that the project will be completed in the future may not be enough to prevent termination, and purchasers may have the right to withhold payments whilst the delay continues. Disputes with local authorities may also not be sufficient to excuse the delay in handover.\r\n\r\n<em>This article has been co authored by Khalifa Al Ansari, trainee lawyer at Al Tamimi &amp; Company.</em>'),
	(175399,5092,'core_values',''),
	(175400,5092,'_core_values','field_59b64ab071de4'),
	(93731,5092,'_content','field_59b649b5c8b2b'),
	(93732,5092,'lawUpdateArticleMonth','5089'),
	(93733,5092,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93734,5092,'content_description','Many off plan development projects have faced serious delays as a result of problems arising from the global financial crisis. '),
	(93735,5092,'_content_description','field_59b641c07f473'),
	(93736,5092,'pageSummary','Many off plan development projects have faced serious delays as a result of problems arising from the global financial crisis.'),
	(93737,5092,'_pageSummary','field_59e59b307dec8'),
	(93738,5092,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/dubai-courts-hold-that-delay-in-handover-can-trigger-termination.html'),
	(93739,5092,'_currentURL','field_59d35123ab1e7'),
	(93740,5092,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Rami Abdellatif'),
	(93741,5092,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(93742,5092,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','r.abdellatif@tamimi.com'),
	(93743,5092,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(93744,5092,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(93745,5092,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(93746,5092,'lawUpdateArticleNoWriters','1'),
	(93747,5092,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93748,5092,'_yoast_wpseo_metadesc','Many off plan development projects have faced serious delays as a result of problems arising from the global financial crisis.'),
	(93749,5093,'content','March 2015\r\n\r\n<hr />\r\n\r\n<strong>Introduction to the UAE Federal Nuclear Regulatory Regime </strong>\r\n\r\nThis article provides an introduction to the current UAE federal regulatory framework established in preparation of the first nuclear power plant project in the Middle East.\r\n\r\n<strong>Building a nuclear power plant in the Oil-Rich UAE: Why?</strong>\r\n\r\nIn 2008, the UAE government projected its national electricity demand to grow from 15,000 MW’s in 2008 to exceed 40,000 MW’s by 2020.  Although the UAE was still counted as the 8th largest oil producing country in the world in 2014, energy sources such as oil, gas and coal are no longer viewed as viable options from a commercial and environmental perspective.  The UAE’s energy sector is viewed insufficient to meet future demand for electricity, providing adequate fuel for only 20,000-25,000 MW’s of power generation capacity by 2020.  While burning crude oil was found to be viable, the projected cost was deemed extremely high from an environmental perspective. The UAE government concluded in 2008 that nuclear power would be an acceptable alternative to meet growing domestic demand and released a policy white paper on the “Evaluation and Potential Development of Peaceful Nuclear Energy” (the “White Paper”). The UAE government currently projects that a successful nuclear scheme would reduce CO2 emissions by 12 million tonnes by 2020.\r\n\r\nIn 2009, the UAE government awarded the Korea Electric Power Corporation (“KEPCO”) led by a consortium of four KEPCO subsidiaries the project to construct and operate four nuclear power plant units in Barakah, Abu Dhabi.  The construction contract to build the four nuclear reactors was commissioned to Hyundai Engineering and Construction and Samsung C&amp;T Joint Venture.\r\n\r\nFor the past six years the UAE government has been setting up a new regulatory regime in preparation of the anticipated operation of the nuclear power plants by 2017.\r\n\r\n<strong>International Agreements for Nuclear Non Proliferation, Safety and Liability</strong>\r\n\r\nBy 2008 the UAE was already part of major international nuclear treaties related to nuclear accidents and safety, non-proliferation of nuclear weapons, test bans and suppression of acts of nuclear terrorism.  As set out in the White Paper,the UAE’s new peaceful nuclear program involved its commitment to several additional international treaties to provide assurances that the implementation of the nuclear power plant project would not pose a concern or risk to the international community.\r\n\r\nIn July 2009, the UAE signed its acceptance of the IAEA Amendment to the Convention on the Physical Protection (the “Convention”) making it legally binding for states parties to 1) protect its nuclear facilities and material for peaceful domestic use, storage as well as transport; and 2) allow expanded cooperation and rapid measures to locate and recover stolen or smuggled nuclear material, mitigate any radiological consequences of sabotage, and prevent any combat related offences.  The amendments will take effect once they have been ratified by two-thirds of the states parties of the Convention.\r\n\r\nFor the commitment to the safety of nuclear facilities and nuclear waste, the UAE acceded to the two remaining major IAEA agreements in October 2009, the IAEA Convention on Nuclear Safety and the IAEA Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management.  The UAE also ratified the IAEA Additional Protocol to Safeguards Agreement in 2010 covering the IAEA inspections of nuclear plants, facilities and operations in the UAE.\r\n\r\nIn 2012, with respect to the nuclear liability regime, the UAE ratified the Protocol to Amend the Vienna Convention on Civil Liability for Nuclear Damage of 1997 and the Joint Protocol Relating to the Application of the Vienna Convention and the Paris Convention of 1988.   The Protocol to Amend the Vienna Convention on Civil Liability for Nuclear Damage of 1997  expands the scope of nuclear damage to include environmental damage and preventive measures, extends the geographical scope and extends the period during which claims may be brought for loss of life and personal injury.\r\n\r\nIn July 2014, the UAE ratified the IAEA Convention on Supplementary Compensation for Nuclear Damage which is coming into force in 15 April 2015.\r\n\r\nFor the nuclear export control regime, the UAE plans to participate in the Nuclear Suppliers Group (NSG) and implement import and export control rules for nuclear equipment and technology.\r\n\r\n<strong>Establishment of the federal authority on nuclear regulations (the “Authority”)</strong>\r\n\r\nUnder the Federal Law by Decree No. (6) of 2009 Concerning the Peaceful Use of Nuclear Energy (the “Decree”), Article (4), the Federal Authority on Nuclear Regulations was established on 4 October 2009. The Authority guarantees the implementation of the responsibilities imposed on the UAE by virtues of its standing as a party to the nuclear conventions and agreements connected to the duties of the Authority by regulating the UAE nuclear sector through establishing proper security and operational conditions, accident prevention and mitigation of accidental consequences.\r\n\r\nIn addition, the Authority regulates the safe disposal and transportation of radioactive materials and oversees safety procedures for the protection of the public and the environment from unnecessary radiation risks.\r\n\r\n<strong>FANR Regulations</strong>\r\n\r\nThe Authority has so far published 21 regulations focusing on the operational needs of the Barakah nuclear facilities and continues to review and amend the regulations over a 5-year review period.  All published regulations can be accessed through the FANR official website. (www.fanr.gov.ae)\r\n\r\nThe Authority is still developing regulations for radioactive waste management and decommissioning process and is making further amendments to existing regulations to address Fukushima accident findings.  The specific regulations in development are as follows:\r\n<ul>\r\n 	<li>Decommissioning and Decommissioning Trust Fund</li>\r\n 	<li>Amendments to Design of Nuclear Power Plants</li>\r\n 	<li>Application for Operating License Extension for a Nuclear Facility</li>\r\n 	<li>Emergency Preparedness at a Nuclear Facility</li>\r\n 	<li>Regulated Material Waste Disposal and Spent Nuclear Fuel Disposal</li>\r\n</ul>\r\n<strong>Transparency: Article (9) of the Decree</strong>\r\n\r\nThe authority is required to observe the highest standards of transparency under Article (9) of the Decree and to make available to the public all information related to its work including:\r\n<ul>\r\n 	<li>all licenses and amendments, suspensions or cancellations;</li>\r\n 	<li>all valid regulations and amendments that may occur in their regard and all guidelines issued by the Authority in accordance with the Decree; and</li>\r\n 	<li>results of any investigation or inspection processes carried out by the Authority in respect to testing of materials.</li>\r\n</ul>\r\n<strong>FANR Licenses</strong>\r\n\r\nThe Authority has issued licenses for the construction of the Barakah nuclear facilities as follows:\r\n<ul>\r\n 	<li>License for Selection of a Site for the Construction of a Nuclear Facility</li>\r\n 	<li>License for preparation for a site for the Construction of a Nuclear Facility (Rev. 1)</li>\r\n 	<li>License for the Construction of Units One and Two of the Barakah Nuclear Facility and Related Regulated Activities (Rev. 1)</li>\r\n 	<li>License for the Construction of Units Three and Four of the Barakah Nuclear Facility and Related Regulated Activities</li>\r\n</ul>\r\nAs mentioned under Article (9) of the Decree as part of the transparency requirement, the Authority has issued Safety Evaluation Reports which provide review of the applications for the construction of all four reactors.\r\n\r\n<strong>Establishment of the emirates Nuclear Energy Corporation (“ENEC”)</strong>\r\n\r\nLaw No. (21) of 2009 Establishing Emirates Nuclear Energy Corporation.\r\n\r\nAs stated in Article (4) of the Decree, the Emirates Nuclear Energy Corporation (“ENEC”) was established in December 2009 with a capital of AED 370 million.  Its mandate is to develop, build, finance, operate, maintain, manage and possess nuclear reactors to be used for the peaceful purpose of energy generation, water desalination and all other relevant necessary activities including the establishment of companies for practicing such activities and commercial and industrial activities inside and outside the UAE within the scope of legally determined objectives of the Corporation subject to theDecree.\r\n\r\nAt the end of 2014, ENEC grew into an organization with over 1,300 employees, up from 64 in 2009 and is currently in cooperation with over 1,000 companies in the UAE, with the first reactor over 60% complete and on track to begin supply in 2017.\r\n\r\nIn the State of Energy Report UAE 2015, UAE’s plan is to generate 24% of its power supply needed through clean energy by 2020.   The commercial operation of Unit One is planned to commence in 2017, Unit Two in 2018, Unit Three in 2019 and Unit Four in 2020.  Once all four reactors become operative, ENEC will provide 25% of the UAE’s then anticipated electricity demand.\r\n\r\n<strong>Conclusion</strong>\r\n\r\nWith the ratification of these major international treaties, the UAE continues to develop its domestic legal framework in compliance with its commitment to nuclear security and the physical protection of materials and facilities for its nuclear power supply commencing in 2017.  The Integrated Regulatory Review Service (“IRRS”) mission of the IAEA conducted a review of the UAE regulatory system in February 2015 concluding that FANR continues to improve the regulatory system for providing nuclear and radiation safety to the general public. Further recommendations by the IRRS included developing a national policy and strategy for the management and disposal of spent nuclear fuel and radioactive waste, and to further implement regulations for the safe transport of radioactive materials.  FANR is also developing regulations regarding administrative liabilities, decommissioning, import and export controls and operational testing surveillance and reporting procedures.\r\n\r\nThe successful establishment of a sound legal framework will prove vital to the UAE’s emerging nuclear power sector and bolster the country’s energy plan for long-term sustainable growth.'),
	(175347,5093,'core_values',''),
	(175348,5093,'_core_values','field_59b64ab071de4'),
	(175349,5093,'file',''),
	(175350,5093,'_file','field_59b64c10f6600'),
	(175351,5093,'orderValue4','4'),
	(175352,5093,'_orderValue4','field_59d2096a8ff34'),
	(175353,5093,'related_pages_header',''),
	(175354,5093,'_related_pages_header','field_59b6441e3cc94'),
	(93750,5093,'_content','field_59b649b5c8b2b'),
	(93751,5093,'lawUpdateArticleMonth','5089'),
	(93752,5093,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93753,5093,'content_description','UAE prepares for Nuclear Power Supply by 2017 '),
	(93754,5093,'_content_description','field_59b641c07f473'),
	(93755,5093,'pageSummary','UAE prepares for Nuclear Power Supply by 2017'),
	(93756,5093,'_pageSummary','field_59e59b307dec8'),
	(93757,5093,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/uae-preparing-for-the-era-of-nuclear-power-supply-introduction-to-the-uae-federal-nuclear-regulatory.html'),
	(93758,5093,'_currentURL','field_59d35123ab1e7'),
	(175340,5093,'_timeline_header','field_59b63de5b74bf'),
	(175339,5093,'timeline_header',''),
	(175337,5093,'orderValue2','2'),
	(175338,5093,'_orderValue2','field_59d0c6f6175b8'),
	(175336,5093,'_stats_list','field_59b6372466bcc'),
	(175335,5093,'stats_list',''),
	(175333,5093,'orderValue1','1'),
	(175334,5093,'_orderValue1','field_59d0c6e5175b5'),
	(93765,5093,'lawUpdateArticleNoWriters',''),
	(93766,5093,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93767,5093,'_yoast_wpseo_metadesc','UAE prepares for Nuclear Power Supply by 2017'),
	(93768,5094,'content','March 2015\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">Dubai has created a number of options to encourage innovation-based companies to set up entities in Dubai in an environment that is both supportive and dynamic.</p>\r\n<p class=\"MsoNormal\">This article sets out how and why you may wish to set up an innovation-based company in Dubai.</p>\r\n<p class=\"MsoNormal\"><strong>Introduction to setting up an entity in Dubai </strong></p>\r\n<p class=\"MsoNormal\">Dubai offers multi-jurisdictional corporate setting-up opportunities. Subject to business objectives and preferred shareholding structure, businesses proposing to set up in Dubai can register in the Dubai mainland under the UAE Commercial Companies Law 1984 (“<strong>the Companies Law</strong>”), or in one of the numerous free zones available which operate under self-regulated legal regimes. If a business proposes to set up an office in mainline Dubai, it needs to comply with provisions of the Companies Law and the procedures set by the Dubai Department of Economic Development (“<strong>DED</strong>”).</p>\r\n<p class=\"MsoNormal\"><strong>Forms of corporate entities that can be set up in Dubai</strong></p>\r\n<p class=\"MsoNormal\">Generally speaking, a corporate presence can be established in Dubai (UAE mainland or a free zone) through either setting up a limited liability company (“<strong>LLC</strong>”) or a branch office. The following table sets out the differences between these two corporate entities:</p>\r\n\r\n<table class=\"MsoTableGrid\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\r\n<tbody>\r\n<tr>\r\n<td valign=\"top\" width=\"226\"><address class=\"MsoNormal\"><strong>Limited Liability Company</strong></address></td>\r\n<td valign=\"top\" width=\"242\"><address class=\"MsoNormal\"><strong>Branch </strong></address></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"226\"><address class=\"MsoNormal\">Provides the comfort of limited liability</address></td>\r\n<td valign=\"top\" width=\"242\"><address class=\"MsoNormal\">A branch office is an extension of its parent and is not an independent corporate entity. The liabilities of the branch are that of its parent.</address></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"226\"><address class=\"MsoNormal\">Can set up branches</address></td>\r\n<td valign=\"top\" width=\"242\"><address class=\"MsoNormal\">A branch office cannot set up its branches</address></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"226\"><address class=\"MsoNormal\">Can be a vehicle for directly introducing investment</address></td>\r\n<td valign=\"top\" width=\"242\"><address class=\"MsoNormal\">A branch has no share capital has cannot be a vehicle for direct investment</address></td>\r\n</tr>\r\n<tr>\r\n<td valign=\"top\" width=\"226\"><address class=\"MsoNormal\">Can have its own balance sheet and retain profits</address></td>\r\n<td valign=\"top\" width=\"242\"><address class=\"MsoNormal\">Profits made by the branch business are normally considered as the profits of its parent, and can be taxable in the jurisdiction where the parent is set up. This however is an issue you may wish to discuss with your tax advisors in the parent company’s jurisdiction.</address></td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<p class=\"MsoNormal\"><strong>Free zone versus company set up under the Companies Law in Dubai mainland</strong></p>\r\n<p class=\"MsoNormal\">The most commonly known advantage of having an entity in a free zone is the ability of foreigners to own 100 percent shares the company. This is in contrast to companies formed under the UAE Companies Law which limits foreign investments in LLCs in Dubai mainland (and also in the entire UAE) to 49 percent, where 51 percent of the shares in the company should be owned by UAE nationals (individuals) or a corporate entity wholly owned by UAE nationals.</p>\r\n<p class=\"MsoNormal\">Although there are contractual arrangements by which 100 percent beneficial ownership in shares of the subsidiary can be retained by the foreigner, the foreign entity remains shareholder of 49 percent of the LLC.</p>\r\n<p class=\"MsoNormal\">Other advantages of setting up in a free zone are as follows:</p>\r\n\r\n<ul>\r\n 	<li>No local sponsor or partner required</li>\r\n 	<li>Permitted corporate structure includes branch of a foreign company and free zone incorporated companies, with one or more than one shareholder;</li>\r\n 	<li>A simple employee sponsorship system</li>\r\n 	<li>The option to lease land and to develop it according to one’s own needs</li>\r\n 	<li>Modern and updated communication and infrastructure and facilities</li>\r\n</ul>\r\n<p class=\"MsoNormal\">Please note that strictly speaking, a free zone company cannot “carry on” activities outside the free zone. All licenses issued by a free zone authority are only valid for activities in the free zone. However, this restriction would arguably not apply where the entity in the free zone is providing services that do not involve any movement of material goods transporting out of the geographical territory of the free zone.</p>\r\n<p class=\"MsoNormal\"><strong>Establishing an entity in the innovation sector </strong></p>\r\n<p class=\"MsoNormal\"><em>Phase 1 – Research and Development </em></p>\r\n<p class=\"MsoNormal\"><em>R&amp;D activities in the mainland</em></p>\r\n<p class=\"MsoNormal\">It is possible to set up a business conducting Research &amp;Development (<strong>R&amp;D</strong>) activities in Dubai mainland. For example, the DED, which is the licensing authority in Dubai mainland, offers the opportunity to set up entities with R&amp;D activities in the life sciences sector, such as “<em>Research and Experimental Development of Natural Science</em>” which includes firms, centers or institutes specialized in elaborating studies and experimental and development research in social sciences (economics, psychology, sociology, legal sciences etc.) and human sciences (languages, arts, etc.).</p>\r\n<p class=\"MsoNormal\">As another example, the DED also offers the opportunity to set up entities with R&amp;D activities in the education sector, such as “<em>Education Technologies Research and Development</em>” which includes centers or institutes specialized in elaborating studies and experimental and development research on learning technologies.</p>\r\n<p class=\"MsoNormal\"><em>R&amp;D activities in the free zone</em></p>\r\n<p class=\"MsoNormal\">There are multiple free zones, each one being suited for specific types of businesses depending on the nature of their activities.</p>\r\n<p class=\"MsoNormal\">For example, the Dubai Biotechnology and Research Park (“<strong>Dubiotech</strong>”) is a free zone that attracts innovative activities in the life sciences sector. The park is divided into zones dedicated to various initiatives, including R&amp;D and manufacturing. The R&amp;D activities offered by DuBiotech includes entities involved with the investigation or experimentation and/or the process of transforming a scientific discovery into a commercial product, and companies that undertake methodical investigations in improving and developing scientific technologies in the relevant fields in the following sectors:</p>\r\n\r\n<ul>\r\n 	<li>Therapeutics</li>\r\n 	<li>Food</li>\r\n 	<li>Agricultural, Forestry, Horticulture</li>\r\n 	<li>Environment</li>\r\n 	<li>Medical/Scientific Devices or Equipment</li>\r\n 	<li>Specialty Supplies</li>\r\n 	<li>Diagnostics and Analysis</li>\r\n 	<li>Life Sciences Services</li>\r\n 	<li>Renewable Energy</li>\r\n 	<li>Energy Generation</li>\r\n 	<li>Energy Transmission and Distribution</li>\r\n 	<li>Energy Efficiency Equipments</li>\r\n 	<li>Air and Environment</li>\r\n 	<li>Water and Waste Water</li>\r\n 	<li>Recycling and Solid Waste</li>\r\n 	<li>Transportation</li>\r\n 	<li>Green Building</li>\r\n 	<li>Organic Products</li>\r\n</ul>\r\n<p class=\"MsoNormal\">As another example, Dubai Internet City (“<strong>DIC</strong>”) hosts approximately 1,400 companies in media and telecommunications many of which are key players in the technology industry, such as IBM, Google, Microsoft, Facebook, MasterCard and LinkedIn. Their R&amp;D activities in the telecommunications and network sector are aimed at companies that create, customize or modify networks and/or operate networks or provide relevant services designed for operating network based applications or services for themselves or third parties. Another R&amp;D activity in the Internet and Media and IT Service sector is catered to companies that create or customize discrete content, components, applications or programs for themselves or third parties.</p>\r\n<p class=\"MsoNormal\">Dubai Design District (“<strong>D3</strong>”) is a free zone catered to R&amp;D activities in the design, fashion, art and luxury sector. It is located in the heart of Dubai, adjacent to downtown Dubai<a class=\"msocomanchor\" href=\"#_msocom_1\">[r1]</a> . An interesting feature about D3 is that entities intending to set up in this free zone can apply for two licenses enabling them to operate within D3 as well as in the mainland; however the requirements for acquiring each license will remain the same.</p>\r\n<p class=\"MsoNormal\">Though there may be some similarities, there are no set standard requirements to set up a corporate entity in the R&amp;D field. The legal requirements for setting up a corporate entity for R&amp;D in Dubai would normally depend on:</p>\r\n\r\n<ul>\r\n 	<li>the type of R&amp;D activity proposed to be conducted by the corporate entity in Dubai;</li>\r\n</ul>\r\n<ul>\r\n 	<li>the jurisdiction in which the foreign innovator decides to set up the entity; either, in Dubai mainland or free zone and whether or not this activity requires any external approvals; and</li>\r\n</ul>\r\n<ul>\r\n 	<li>if the entity can be set up in one of the free zones, which free zone is chosen by the parent to set up the corporate entity. Costs associated with each set up would differ also depending on the jurisdiction.</li>\r\n</ul>\r\n<p class=\"MsoNormal\"><em>Phase 2 – Commercialization of products</em></p>\r\n<p class=\"MsoNormal\">In order to transform innovative ideas into tangible products, innovators will need to develop their new product by acquiring a license to manufacture. Depending on the subject field in question, innovators can establish their manufacturing entity in the mainland or in certain free zones which facilitate the issuance of manufacturing licenses and provide the appropriate facilities, such as a warehouse etc. The Jebel Ali Free Zone offers an industrial license, which allows innovators to import raw materials, carry out the manufacture of specified products and export the finished product outside of the free zone.</p>\r\n<p class=\"MsoNormal\">Due to the legal restrictions of doing business outside of the free zone, in order to export the finished product into mainland Dubai, the free zone entity will need to engage a distributor which is licensed in the mainland in order to distribute the product on behalf of the free zone entity.</p>\r\n<p class=\"MsoNormal\"><em>Phase 3 – Incorporation of a holding company to hold Intellectual Property (“IP”) rights</em></p>\r\n<p class=\"MsoNormal\">Intellectual property assets are generally the most valuable assets of innovation based entities.  These can include patents, trade marks, copyright, industrial designs and trade secrets.  It is fundamental for a innovation based entity to seek intellectual property protection for its assets so as to prevent competitors  exploiting or misappropriating them without its authorization.</p>\r\n<p class=\"MsoNormal\">The legal protection of intellectual property also provides their owners with a range of commercial options enabling them to license or sell these rights.  The incorporation of a holding company is a popular vehicle for owning and maintaining intellectual property. The most cost-efficient corporate vehicle for this purpose is a limited liability company in an offshore jurisdiction. However this option would only be suitable in a situation whereby the IP rights would be licensed to entities outside the UAE, since offshore companies are not issued with a license at the time of incorporation, and are not permitted to conduct any commercial activity within the UAE.</p>\r\n<p class=\"MsoNormal\">The most common free zones which offer the incorporation of offshore companies in the UAE is the Jebel Ali Free Zone (“JAFZ”) and the Ras Al Khaimah Free Zone (“RAKFZ”). An offshore company cannot maintain an office or sponsor employees. There is also no paid up capital requirement, which makes it a cost and time efficient structure to establish. Such companies are also permitted to open local bank accounts onshore in the UAE.</p>\r\n<p class=\"MsoNormal\">Offshore companies must also appoint a registered agent in the UAE, to act as the company’s registered office.  Such appointment is a statutory requirement<a href=\"#_ftn2\">[2]</a> and the registered agent is required to maintain a copy of the constitutional documents and the corporate registers of the company, which the offshore company’s registry may require to inspect from time to time.  The agent will also liaise with the registry to pay the annual maintenance fee.</p>\r\n<p class=\"MsoNormal\">This is an ideal structure for a quick and easy set up with minimum costs, for a particular purpose such as owning IP rights and licensing those rights outside of the UAE. If the intention is to license the IP rights to entities within the UAE, the proposed entity will need to acquire the relevant holding company license, either within the mainland or a free zone.</p>\r\n<p class=\"MsoNormal\"><strong>Future expectations</strong></p>\r\n<p class=\"MsoNormal\">With the UAE’s new initiative of accelerating innovation in the region, we expect a rise in investors wishing to set up their innovative business within the Emirates. For any comments or queries regarding the establishment of a corporate vehicle in the UAE, please contact Mr. Samer Qudah, Partner and Regional Head of Corporate Structuring (s.qudah@tamimi.com).   For any comments or queries regarding research &amp; development, innovations and intellectual property rights management and protection, please contact Mr. Ahmad Saleh, Regional Head of Patents &amp; Designs (ah.saleh@tamimi.com).</p>'),
	(175311,5094,'core_values',''),
	(175312,5094,'_core_values','field_59b64ab071de4'),
	(175313,5094,'file',''),
	(175314,5094,'_file','field_59b64c10f6600'),
	(93769,5094,'_content','field_59b649b5c8b2b'),
	(93770,5094,'lawUpdateArticleMonth','5089'),
	(93771,5094,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93772,5094,'content_description','Innovation is the catalyst for economic growth and development. '),
	(93773,5094,'_content_description','field_59b641c07f473'),
	(93774,5094,'pageSummary','Innovation is the catalyst for economic growth and development.'),
	(93775,5094,'_pageSummary','field_59e59b307dec8'),
	(93776,5094,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/establishing-innovation-based-commercial-entities-in-dubai.html'),
	(93777,5094,'_currentURL','field_59d35123ab1e7'),
	(93778,5094,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','915'),
	(93779,5094,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(93780,5094,'lawUpdateArticleWriters','3'),
	(93781,5094,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(175316,5094,'_orderValue4','field_59d2096a8ff34'),
	(175315,5094,'orderValue4','4'),
	(175309,5094,'content_header',''),
	(175310,5094,'_content_header','field_59b641b57f472'),
	(175308,5094,'_orderValue3','field_59d2094f8ff33'),
	(175307,5094,'orderValue3','3'),
	(175305,5094,'timeline',''),
	(175306,5094,'_timeline','field_59b63b29266de'),
	(175304,5094,'_timeline_header','field_59b63de5b74bf'),
	(175303,5094,'timeline_header',''),
	(175301,5094,'orderValue2','2'),
	(175302,5094,'_orderValue2','field_59d0c6f6175b8'),
	(175300,5094,'_stats_list','field_59b6372466bcc'),
	(175299,5094,'stats_list',''),
	(175297,5094,'orderValue1','1'),
	(175298,5094,'_orderValue1','field_59d0c6e5175b5'),
	(93794,5094,'lawUpdateArticleNoWriters',''),
	(93795,5094,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93796,5094,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','542'),
	(93797,5094,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(93798,5094,'lawUpdateArticlePractices','1'),
	(93799,5094,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(93800,5094,'_yoast_wpseo_metadesc','Innovation is the catalyst for economic growth and development.'),
	(93801,5095,'content','March 2015\r\n\r\n<hr />\r\n\r\nWhether you like it or not, if you have a brand worth protecting, it is worth hijacking and nowhere is it easier to misappropriate than in cyberspace.\r\n\r\nThe fact is that the entire world has gone digital.  Even if you have not established a strong internet presence in branding for whatever reason, it is very likely that the first thing potential consumers do upon learning of your brand is to jump on a search engine to conduct research on your brand. Your brand reputation will precede you in cyberspace. Peer review publications, industry publication, blogs, news and popular media channels. All of these media outlets are hungry for content and more likely than not, they will discover you on the internet whether you have established an active online presence or not.\r\n\r\nWith a brand reputation existing in cyberspace, enter the cybersquatter or competitor eager to misappropriate your brand wholesale or devise brands close to yours via “me – too” brands in a bid to usurp the vault of goodwill and reputation inherent in your brand.\r\n\r\nWith the proliferation of generic Top Level domains (“gLTDS”) such as .money, .party, .wtf, .fund, .legal, .poker, .dad, .cash etc. , the threat of your brand being misappropriated and appearing as a domain name of another is apparent.\r\n\r\n<strong>Strategies</strong>\r\n\r\nWe have set out a proposed two pronged strategy to combat such possible misappropriation namely:-\r\n<ul>\r\n 	<li>Registering trade marks at the Trademark Clearinghouse</li>\r\n 	<li>Maintain a watching service</li>\r\n</ul>\r\n<strong>TMCH Registration </strong>\r\n\r\nBrand owners are advised to attempt to reduce the misappropriation of their trademarks in new domains as they are released by taking advantage of the Trademark Clearinghouse (TMCH).\r\n\r\nThe TMCH is a centralized database devised by the Internet Corporation for Assigned Names and Numbers (ICANN) as part of a regime to protect brands and intellectual property rights. Basically, it comprises a central repository, which is managed by Deloitte wherein brand owners may submit their trademarks for validation. As of 22 January 2015, the TMCH has received trademarks from over 104 countries and covering 118 jurisdictions.\r\n\r\nThe trademarks that are eligible for registration include:-\r\n<ul>\r\n 	<li>Nationally or regionally registered trademarks</li>\r\n 	<li>Court validated trademarks</li>\r\n 	<li>Statute or treaty protected trademarks</li>\r\n</ul>\r\nThus, unregistered trademarks, which might be protected under the common law can only be filed at the TMCH if there is a court decision validating such trademark rights.\r\n\r\nTrademark registrations with the TMCH will be valid for one, three or five years and may be re-validated once per year or registered for multiple years in advance.\r\n\r\nThe principal advantages of this service for brand owners are twofold:\r\n\r\n<strong>Sunrise Period</strong>\r\n\r\nEach new gTLD will have a Sunrise period usually about 30 days before the actual launch i.e. a pre-launch phase during which a holder of a mark registered at the TMCH will have priority to register domain names corresponding exactly to their marks in the new gTLDs. The domain name sought to be registered must match identically to the trademark registered at the TMCH. Thus, the owner of the trademark APPLE has priority to register apple.solutions before others. Once a trademark is registered with the TMCH, trademark holders should monitor the various Sunrise periods of the different gLTDs entering into operation and use their active registrations for all new gTLD Sunrise periods to register their trademarks as domain names.\r\n\r\nBrand owners who have not registered their trademarks at the TMCH will not be able to register domain names during this Sunrise period and will need to wait until the opening of the general registration period and compete with the masses on a first come first serve basis.\r\n\r\n<strong>Claims Notification</strong>\r\n\r\nTrademark holders who have registered their trademarks with the TMCH will be provided a trademark claim notification service where the TMCH will notify a registered right holder about any new domain registration that is identical to their registered trademark(s) in the TMCH. The TMCH will also notify a potential registrant when its proposed domain name conflicts with a registered right.\r\n\r\nSuch warning notices will only be issued during the first 90 days following the launch of the gLTD to the general public.\r\n\r\nIt must be noted that the warning notices are only triggered by an identical match between the proposed domain name registration and the trademark registered at the TMCH. This means that applications by others for variants or merely similar domain names will not be notified to the brand owner.\r\n\r\n<strong>Watching</strong>\r\n\r\nThus, these TMCH services will allow brand owners preliminary monitoring advantages. However, the TMCH will not detect if someone applies for a domain name that is confusingly similar but not identical to a deposited trademark.\r\n\r\nConsequently, such a strategy needs to be complemented by a watching service for variants or merely similar domain names applied for by third parties. By engaging such a watching service, you would then be notified by the watch service provider of domain names, which may be considered to be confusingly similar to your trademarks. Such watching services are highly expert services drawing upon the skills of trademark specialists proficient in the nuances of trademark comparison rules and methodologies.\r\n\r\nBrand owners are advised to employ this two pronged strategy in combating potential misappropriation in the high seas of cyberspace as cyberspace continues to be ever increasingly populated with gLTDs. The registration of your trademarks with the TMCH will provide brand owners with benefits. Coupling this strategy with a robust watching service will bode well for brand owners as they brave cyberspace.'),
	(175277,5095,'core_values',''),
	(175278,5095,'_core_values','field_59b64ab071de4'),
	(175279,5095,'file',''),
	(175280,5095,'_file','field_59b64c10f6600'),
	(93802,5095,'_content','field_59b649b5c8b2b'),
	(93803,5095,'lawUpdateArticleMonth','5089'),
	(93804,5095,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93805,5095,'content_description','Brand owners need to protect themselves in cyberspace. '),
	(93806,5095,'_content_description','field_59b641c07f473'),
	(93807,5095,'pageSummary','Brand owners need to protect themselves in cyberspace.'),
	(93808,5095,'_pageSummary','field_59e59b307dec8'),
	(93809,5095,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/strategies-for-brand-owners-in-cyberspace.html'),
	(93810,5095,'_currentURL','field_59d35123ab1e7'),
	(93811,5095,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','926'),
	(93812,5095,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(93813,5095,'lawUpdateArticleWriters','1'),
	(93814,5095,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(93815,5095,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','634'),
	(93816,5095,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(93817,5095,'lawUpdateArticlePractices','1'),
	(93818,5095,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(93819,5095,'_yoast_wpseo_metadesc','Brand owners need to protect themselves in cyberspace.'),
	(93820,5096,'content','March 2015\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">This article considers the legal framework and some of the challenges associated with acquisitions/disposals within the pharmaceutical sector.</p>\r\n<p class=\"MsoNormal\">It is important to note that acquisitions of retail pharmacies in the United Arab Emirates (“<strong>UAE</strong>”) are subject to onerous legal licensing restrictions.  Information on pharmacy ownership structures in the UAE is not publically available and there are no published policies and practices adopted in this regard by the various local authorities.</p>\r\n<p class=\"MsoNormal\">Historically, the Ministry of Economy was the primary health/pharmaceutical authority in the UAE responsible for approving change to the ownership of all pharmacies in all the Emirates, with the exception of Abu Dhabi which is under the authority of the Health Authority Abu Dhabi.  Recently, Dubai is also no longer under the authority of Ministry of Economy, but rather the Dubai Health Authority.  The Department of Economic Development (“<strong>DED</strong>”) in each Emirate, the authority which issues the general business registration license of pharmacies, is also involved in the transfer process for pharmacies.  In the event of an acquisition or disposal, an application to transfer the license from the existing owner to the new owner must be completed and ownership may only be transferred with the consent of the relevant DED.</p>\r\n<p class=\"MsoNormal\">Each authority has its own set of policies and practices, and such policies and practices are not always publically available and change from time to time without public pronouncement. Investors should always seek to obtain updated information from the local and federal authorities at the time they envisage investing, or acquiring an entity or business in the pharmaceutical sector.</p>\r\n<p class=\"MsoNormal\">UAE Commercial Companies Law no. 8 of 1984 applies to any company established in the UAE (“<strong>Companies Law</strong>”) and UAE Federal Law no. 4 of 1983 is the primary law governing the pharmaceutical professions and institutions in the UAE (“<strong>Pharmacy Law</strong>”).  These two laws contain the primary rules and regulations that are applicable to the pharmaceutical industry and include several statutory ownership restrictions.</p>\r\n<p class=\"MsoNormal\">There are generally two types of ownership restrictions that apply to the pharmaceutical industry and are relevant to any acquisition or disposal, (1) those related to general UAE foreign ownership restrictions; and (2) those that are particular to such industry.  The local authorities permit investors to structure their investments in this sector within the limits of these ownership restrictions.</p>\r\n<p class=\"MsoNormal\"><strong>1. General Foreign Ownership Restrictions</strong></p>\r\n<p class=\"MsoNormal\">Under Article 22 of the Companies Law, foreign investors cannot own more than 49% of the share capital of a UAE company (other than in a free zone).  This is commonly referred to as the “UAE Ownership Requirement”. As a result, foreign investors usually enter into an arrangement (usually referred to as nominee arrangement) with a UAE national individual(s) or a wholly owned UAE corporate entity, whereby such UAE partner (referred to as nominee) holds 51% of a company for and on behalf of the foreign investor in a trust-like arrangement.</p>\r\n<p class=\"MsoNormal\">Such nominee arrangements are commonly used in the UAE; in fact more than half of limited liability companies in the UAE are held by foreigners in this way to comply with the mandatory UAE Ownership Requirement.  It is highly unlikely that such nominee arrangements are brought into question except in the event of a dispute between the shareholders.  Case law to date has, in most instances, enforced nominee agreements as between its parties by acknowledging the beneficial ownership of the foreign shareholder.  That said, there is also a risk that the Anti-Concealment Law no. 17 for 2004) in force is implemented strictly by the UAE authorities to prohibit nominee agreements in this sector, albeit we consider this unlikely.</p>\r\n<p class=\"MsoNormal\">As a result, a foreign investor cannot be the registered owner of more than 49% of the shares of a company that owns retail pharmacies in the UAE and will have to hold 51% of the shares through a nominee arrangement if it wishes to own more than 49%, even through a merger or acquisition.</p>\r\n<p class=\"MsoNormal\"><strong>2. Restrictions Under the Pharmacy Law</strong></p>\r\n<p class=\"MsoNormal\">When anticipating an acquisition or disposal of an entity engaged in pharmaceutical activity, investors must carefully consider the restrictions under the Pharmacy Law for (1) non-UAE nationals and (2) the number of pharmacies an individual may own.</p>\r\n<p class=\"L2\"><strong>2.1.    Foreign Ownership Restrictions</strong></p>\r\n<p class=\"Le1\">Article 19 of the Pharmacy Law explicitly states that “[…] the applicant for the [pharmacy] license should be a UAE national […]”.  The use of the term ‘applicant’ has led the various health authorities to distinguish between the “applicant of the license” (i.e. the license holder, owner of the license) from the shareholders/owners of the concerned company operating the pharmacy.  The ownership of the health license was hence separated from the shareholding in the company operating the business.  Moreover, the term “national\" has been generally interpreted by the health authorities to mean natural persons rather than corporate entities.</p>\r\n<p class=\"Le1\">Consequently, in practice, generally UAE health authorities issue the health license of a pharmacy in the name of the individual(s) local partner(s) in the concerned company or to list the said partner(s) as “owner” or “holder” of the license.  In other words, the local partner(s) is listed as the “owner” and the legal ownership of the other foreign partner(s) in the concerned company is disregarded for the purposes of the health license.  However, this practice is not applied across the board consistently by the various health authorities.  We have come across health licenses listing the concerned company as the “owner” or “holder” of the license with the local partner as its representative.  That said, the above mentioned practice remains the most common one in use.</p>\r\n<p class=\"Le1\">The risks with the approach of listing a natural person holding a UAE nationality as the “owner” on the health license, in practical terms, arise from the fact that an entity is operating under a health license they do not technically own, even if they are listed as a beneficiary or covered under the “establishment name” on the said health license. Further, the holder of the health license being a natural person enhances the risk of business operations being interrupted in the event of his incapacity or demise.</p>\r\n<p class=\"Le1\">As a result, when purchasing or disposing of any company carrying out pharmaceutical activities, whether the foreign investor enters into a real partnership with the existing UAE national partner or engages a new UAE national as its nominee, the health licenses of any of the pharmacies it operates must mention the name of the UAE national who is a direct or indirect partner in the business.</p>\r\n<p class=\"L2\"><strong>2.2.    Restrictions on the Number of Pharmacies</strong></p>\r\n<p class=\"MsoNormal\">Article 26 of the Pharmacy Law explicitly states that a UAE national is permitted to operate no more than two pharmacies in the UAE.  From a strict legal perspective, a person cannot hold more than two health licenses to operate a pharmacy.</p>\r\n<p class=\"MsoNormal\">The Abu Dhabi Health Authority, strictly enforce this provision. However, the health authorities in other Emirates are more flexible on this issue, and grant more than two health licenses to the same person. In some instances, an exemption is sought and a “chain” approval is obtained to facilitate the conduct of merged pharmacy business. We have encountered multiple instances where more than two health licenses have been issued to the same individual.</p>\r\n<p class=\"ET4\">Even though having more than two health licenses issued in the name of the same person is not in strict compliance with Pharmacy Law, the Pharmacy Law does not provide for any explicit sanction for the breach of the above provision. The sanction for a general violation of the said law is limited to a fine of a maximum of AED 5,000.  The fact that the health authorities are granting multiple licenses to the same person reduces the risk of such health authorities cancelling the multiple licenses they have granted or applying sanctions.  However, there is no guarantee that these authorities will continue to authorize such practice.<strong><em> </em></strong></p>\r\n<p class=\"MsoNormal\">Hence, when considering the acquisition of or merging with a company carrying out pharmacy activities, an investor must consider the restrictions set out in the Pharmacy Law concerning the ownership of the health license and the number of health licenses which may be issued to a UAE national.</p>\r\nIn conclusion, whilst it is possible for an investor to acquire a retail pharmacy business in the UAE, there are intricate regulatory and legal steps which require careful consideration and planning.'),
	(175245,5096,'core_values',''),
	(175246,5096,'_core_values','field_59b64ab071de4'),
	(175247,5096,'file',''),
	(175248,5096,'_file','field_59b64c10f6600'),
	(175249,5096,'orderValue4','4'),
	(175250,5096,'_orderValue4','field_59d2096a8ff34'),
	(93821,5096,'_content','field_59b649b5c8b2b'),
	(93822,5096,'lawUpdateArticleMonth','5089'),
	(93823,5096,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93824,5096,'content_description','Healthcare is a hot industry in the M&A market and there is considerable interest in pharmacy businesses generally and specifically in the establishment of regional chains through acquisition and merger. '),
	(93825,5096,'_content_description','field_59b641c07f473'),
	(93826,5096,'pageSummary','Healthcare is a hot industry in the M&amp;A market and there is considerable interest in pharmacy businesses generally and specifically in the establishment of regional chains through acquisition and merger.'),
	(93827,5096,'_pageSummary','field_59e59b307dec8'),
	(93828,5096,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/acquiring-and-merging-retail-pharmacies-in-the-uae-legal-issues.html'),
	(93829,5096,'_currentURL','field_59d35123ab1e7'),
	(204099,5096,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(204098,5096,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Malack El Masry'),
	(93832,5096,'lawUpdateArticleWriters',''),
	(93833,5096,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(93834,5096,'_yoast_wpseo_metadesc','Healthcare is a hot industry in the M&A market and there is considerable interest in pharmacy businesses generally and specifically in the establishment of regional chains through acquisition and merger.'),
	(93835,5097,'content','March 2015\r\n\r\n<hr />\r\n\r\nThe annual Arab Health Conference, which takes place each January in Dubai, is undoubtedly the most well attended healthcare sector conference in the GCC.\r\n\r\nFollowing the DHA announcement that ‘Smart Clinics’ would be at the center of healthcare strategy for 2015,  the legal aspects of e-health and telemedicine were again at the center of the discussion.   Many practitioners welcomed the progress in this space which enables quality of care to be improved by the use of technology.  However, concerns were raised  around determining where clinical responsibility for the patient lay, and to what extent malpractice liability would attach to  doctors who perform telemedicine services from outside the UAE as well as for visiting doctors inside the UAE working on the new ‘visiting doctor’ licenses.  Also discussed was the need for a better understanding of the telemedicine business model, and how the services would be reimbursed by insurance companies.  As ever, the differences in the approaches taken by Dubai Health Authority and by the Health Authority-Abu Dhabi, revealed a large measure of uncertainty as to how a telemedicine provider trying to implement a business strategy UAE-wide would easily be able to do so, particularly bearing in mind the difference in both emirates with regard to arrangements for data security, the transmitting of encrypted patient data.\r\n\r\nThe progress being made towards a unified licensing scheme for healthcare practitioners was a key topic of conversation, following a Dubai Healthcare City (DHCC) announcement that they would start putting place a process for unified licensing scheme and add 34 countries to the list of pre-approved countries that meet DHCC’s licensing qualifications.  It remains unclear as to how the unified approach fits into the existing immigration and visa structure, so as to enable practitioners to move freely between emirates and employers.  We are pressing the regulator for more clarity on this important issue.\r\n\r\nA surprise new development which will be welcomed by many healthcare practitioners, is the progress made towards new regulations which will permit ‘Do Not Resuscitate’ orders in the UAE.  Our sources reveal that the Ministry of Health (MOH) may give approval to withdrawing treatment options for some patients, which is likely to follow the approach taken in the Kingdom of Saudi Arabia, but with some additional restrictions, which we predict will including the requirement to discuss such matters with the patient’s family.  We will dedicate an article to this topic in a forthcoming edition of Law Update once formal announcements by the MOH have been made.'),
	(175211,5097,'core_values',''),
	(93836,5097,'_content','field_59b649b5c8b2b'),
	(93837,5097,'lawUpdateArticleMonth','5089'),
	(93838,5097,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93839,5097,'content_description','A post-Arab Health Conference update '),
	(93840,5097,'_content_description','field_59b641c07f473'),
	(93841,5097,'pageSummary','A post-Arab Health Conference update'),
	(93842,5097,'_pageSummary','field_59e59b307dec8'),
	(93843,5097,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/what-next-for-the-healthcare-sector.html'),
	(93844,5097,'_currentURL','field_59d35123ab1e7'),
	(93845,5097,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','507'),
	(93846,5097,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(93847,5097,'lawUpdateArticleWriters','1'),
	(93848,5097,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(93849,5097,'_yoast_wpseo_metadesc','A post-Arab Health Conference update'),
	(93850,5098,'content','March 2015\r\n\r\n<hr />\r\n<p class=\"MsoNormal\"><strong>I. INTRODUCTION</strong></p>\r\n<p class=\"MsoNormal\">Qatar has witnessed very significant accomplishments within the last ten years in the direction of updating and modifying its national laws in the field of international commercial arbitration. On 30 December 2002<strong>, </strong>Qatar acceded to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards and has since applied the unified rules contained in the Convention to foreign arbitral awards being enforced in Qatar.  However, some legislative and judicial obstacles hindered the development of international commercial arbitration in Qatar.  The courts in Qatar held a hostile attitude towards international commercial arbitration and erroneously interpreted the scope of the New York Convention<em>.</em></p>\r\n<p class=\"MsoNormal\">Recently, an important new development has taken place with respect to international commercial arbitration in Qatar, which is the preparation of a new law on arbitration based on the UNCITRAL Model Law (“Model Law”). This new draft law will likely abolish the current arbitration law contained in articles 190 to 210 of the Code of the Civil and Commercial Procedures (Law No. 13 of 1990).</p>\r\n<p class=\"MsoNormal\">This article sets out some of the key provision in the draft law. Please note that I am not addressing QFC arbitration in this article as it has its own arbitration rules and is essentially a separate jurisdiction to the rest of Qatar.</p>\r\n<p class=\"MsoNormal\"><strong>II. SCOPE OF APPLICATION</strong></p>\r\n<p class=\"MsoNormal\"><strong><em>(a) Date of Coming into Force</em></strong></p>\r\n<p class=\"MsoNormal\">Pursuant to Article 1 of the draft Law on Arbitration in Civil and Commercial Matters (“Draft Law”), the Draft Law is to apply to the following cases:</p>\r\n\r\n<ul>\r\n 	<li>Any ongoing or pending arbitration on the date of the draft law coming into force.</li>\r\n 	<li>All arbitrations commenced after the draft law comes into force, even if based upon an arbitration agreement made before that date.</li>\r\n</ul>\r\n<p class=\"MsoNormal\">It is currently unclear when the Draft Law will be issued and come into force, but it is expected to be issued by the end of this year.</p>\r\n<p class=\"MsoNormal\"><strong><em>(b) </em><em>Scope of Applicability to the Parties</em></strong></p>\r\n<p class=\"MsoNormal\">The scope of application of the draft law includes arbitrations held between public or private legal entities irrespective of the nature of the legal relationship between the contesting parties. This broad scope provides new breakthrough possibilities as to settling disputes arising from administrative contracts by arbitration. Accordingly, administrative authorities may now submit to arbitration proceedings subject to the approval of the prime minister or the person delegated with his authorities.</p>\r\n<p class=\"MsoNormal\"><strong><em>(c) Territorial Scope of Applicability</em></strong></p>\r\n<p class=\"MsoNormal\">The Draft Law applies to all the arbitration disputes having their seat in Qatar (but not the QFC) as well as to arbitrations having venues outside Qatar so long as the parties agree to submit themselves to the rules and provisions of the Draft Law. It is noteworthy that the provisions of the Draft Law may not be mandatorily applied to all the arbitrations conducted in Qatar. Hence, the parties may agree to the application of a procedural foreign law to an arbitration seated in Qatar.</p>\r\n<p class=\"MsoNormal\"><strong><em>(d) </em><em>Arbitrability</em></strong></p>\r\n<p class=\"MsoNormal\">The Draft Law has adopted a definition for \"commercial arbitration\" which resembles the definition set out in the Model Law. Article 1(2) of the Draft Law provides that “an arbitration shall be considered “commercial” pursuant to the provisions of this Draft Law if the dispute arises out of a legal relationship having an economic nature.”</p>\r\n<p class=\"MsoNormal\"><strong><em>(e) The applicability of Draft Law on International and Domestic Arbitrations</em></strong></p>\r\n<p class=\"MsoNormal\">The provisions of the Draft law will apply to international and domestic arbitrations. The Draft Law prescribes the cases where an arbitration shall be considered as ‘international’:</p>\r\n\r\n<ul>\r\n 	<li>Where the parties agree to submit their dispute to an arbitration center either in Qatar or outside.</li>\r\n 	<li>If the subject matter of the dispute is linked to more than one country.</li>\r\n 	<li>If the principal places of business of the two parties to the arbitration are located in two different states at the time of the conclusion of the arbitration agreement.</li>\r\n 	<li>If one of the following places is located outside Qatar where the principal places of business of the parties are located: a) the place of arbitration as determined in the arbitration agreement; b) the place where a substantial part of the obligations emerging from the commercial relationship between the parties are to be performed; or (c) the place with which the subject matter of the dispute is most closely connected.</li>\r\n</ul>\r\n<p class=\"MsoNormal\">Whether an arbitration is international or domestic is important for how the arbitral award will be enforced, as explained further below.</p>\r\n<p class=\"MsoNormal\"><strong>III. THE ARBITRATION AGREEMENT</strong></p>\r\n<p class=\"MsoNormal\">The Draft Law expressly places emphasis on the significance of the desire of the parties to submit to arbitration. The parties may agree to submit to arbitration to settle any potential dispute between them arising from their legal relationship as long as the dispute is arbitrable in a number of ways. The parties may agree to proceed with arbitration either before the occurrence of the dispute or after, even if the dispute is under adjudication before a national court. The arbitration agreement may exist in the same contractual instrument or in an independent document.</p>\r\n<p class=\"MsoNormal\">Moreover, recourse to arbitration may be made by means of reference to a contract including an arbitration agreement if the reference explicitly provides that the arbitration agreement must be considered part of that contract.</p>\r\n<p class=\"MsoNormal\">The arbitration agreement must be in writing, and this condition may be satisfied by any written means such as electronic emails or letters.</p>\r\n<p class=\"MsoNormal\">As a result of the parties\' agreement to arbitration, the national courts may not hear a case subject to a valid arbitration agreement. Article 8 of the Draft Law provides that if a party files a law suit before the court with regard to a dispute which must be settled by arbitration, then the court, based on the objection of the other party to the arbitration agreement, shall consider the case inadmissible on the grounds of a valid arbitration agreement.</p>\r\n<p class=\"MsoNormal\">Nevertheless, the Draft Law grants the national courts a controlling power to determine the legitimacy and enforceability of the arbitration clause. But this authority does not extend to give the courts the right to review the arbitration clause unless the arbitration clause is prima facie null and void or ineffective.</p>\r\n<p class=\"MsoNormal\"><strong>IV. THE FORMATION OF THE ARBITRAL TRIBUNAL</strong></p>\r\n<p class=\"MsoNormal\">Pursuant to the Draft Law, the parties are free to determine the procedures by which the Tribunal may be appointed. The parties may elect to authorize an arbitration institution or a third party to appoint an arbitrator or the chairman in case the patties fail to reach an agreement.</p>\r\n<p class=\"MsoNormal\">The Draft Law stipulates certain requirements that must be met in in appointing the Tribunal such as that the number of the arbitrators must be an odd number and the arbitrator must have the capacity to act as an arbitrator.</p>\r\n<p class=\"MsoNormal\">The Draft Law also enables the parties to challenge the selection of an arbitrator and apply for the recusal of such arbitrator.  However, Article 13(6) provides that a challenge is inadmissible if made by a party who has challenged that same arbitrator during the same arbitration proceedings unless that party discovers a new ground for challenging the arbitrator provided that such new ground is different from the ground of previous challenge or that such new ground was unknown by that party after applying the first challenge. The Draft Law also notably stipulates that the challenge must be submitted to the arbitral tribunal. If the challenged arbitrator decides to continue to serve as an arbitrator despite the recusal request against him, the arbitral tribunal will decide on the recusal request.</p>\r\n<p class=\"MsoNormal\">The party applying for the recusal request may appeal the decision rendered by arbitral tribunal before the court in accordance with Article 5 within 30 days from the date the party is notified of the refusal of the recusal request. The decision rendered by court is final and if the court or the arbitral tribunal uphold the recusal request, all the arbitration procedures (including the arbitral award if issued) are deemed not to have existed. Consequently, all the arbitral procedures must be repeated again before the newly constituted arbitral tribunal after the removal of the challenged arbitrator.</p>\r\n<p class=\"MsoNormal\"><strong>V. THE ARBITRAL PROCEDURE</strong></p>\r\n<p class=\"MsoNormal\">One very significant doctrine adopted by the Draft Law is that of “competence- competence”<em>, </em>whereby the tribunal is entitled to decide its own jurisdiction. The adoption of this doctrine indicates an attitude that seeks to limit  the intervention of national courts in the arbitral proceedings and support the fast resolution of disputes settled by arbitration.<strong><em> </em></strong></p>\r\n<p class=\"MsoNormal\">Another doctrine recognized by the Draft Law is the severability of the arbitral agreement. Therefore, if any one of the parties to an arbitration agreement challenges the legality and integrity of the contract of which the arbitration agreement forms part, the challenge will not affect the arbitration agreement.</p>\r\n<p class=\"MsoNormal\">Article 16(3) of the Draft Law does not allow the party who challenges the jurisdiction of the arbitral tribunal to appeal the interlocutory decision, but instead requires the party to wait until the final decision of the tribunal is rendered before challenging the decision.</p>\r\n<p class=\"MsoNormal\">The Draft Law also authorizes the parties to empower the arbitral tribunal to render interim measures. If the party, against whom the interim decision is rendered, refuses to voluntarily comply with it, the other party may request the president of the court of competent jurisdiction to issue an injunction to comply with the interim award.</p>\r\n<p class=\"MsoNormal\">However, this authority bestowed to the arbitral tribunal by the parties does not prevent the courts from ordering such interim measures if one of the parties so requests the court.  Prior to the formation of the arbitration tribunal, the parties have no recourse to obtain the interim measures unless by resorting for the national courts. Conversely, after the formation of the arbitral tribunal, the parties may freely elect whether to request the competent court or the arbitral tribunal to decide such interim measures.</p>\r\n<p class=\"MsoNormal\"><strong>VI. THE AWARD</strong></p>\r\n<p class=\"MsoNormal\">Unless agreed otherwise between the parties, the decision issued by an arbitral tribunal comprising more than one arbitrator must be rendered by the majority of the arbitrators.</p>\r\n<p class=\"MsoNormal\">In case parties reach an amicable settlement before the arbitral tribunal renders its final award, then the arbitral tribunal may terminate the arbitration proceedings based on the request of the parties. In such eventuality, the arbitral tribunal must include the terms of settlement in its award terminating the proceedings. This award will be executed and enforced in the same manner as any other arbitral award.</p>\r\n<p class=\"MsoNormal\">The Draft Law stipulates that the award must include the following information:</p>\r\n<p class=\"MsoListParagraphCxSpFirst\">(a)   the names and addresses of the parties</p>\r\n<p class=\"MsoListParagraphCxSpMiddle\">(b)  the names, addresses and nationalities of the arbitrators</p>\r\n<p class=\"MsoListParagraphCxSpMiddle\">(c)   a copy of the arbitration agreement</p>\r\n<p class=\"MsoListParagraphCxSpMiddle\">(d)  a summary of the parties\' claims, statements and supporting documents#</p>\r\n<p class=\"MsoListParagraphCxSpMiddle\">(e)   the date of the award</p>\r\n<p class=\"MsoListParagraphCxSpMiddle\">(f)   the place of  issuance of the award</p>\r\n<p class=\"MsoListParagraphCxSpLast\">(g)   the reasoning for the award.</p>\r\n<p class=\"MsoNormal\">In addition, the Draft Law expressly precludes the publication of the arbitral award partially or wholly, unless both parties have agreed otherwise.</p>\r\n<p class=\"MsoNormal\">Pursuant to Article 32(3) of the Draft Law, in the absence of any agreement to the contrary between the parties, the arbitral tribunal is under an obligation to render its final award on the merits of the dispute within 12 months from the commencement of the arbitration proceedings. However, the tribunal is authorized to extend this deadline a further six months unless agreed between the parties otherwise. If the arbitral award is not rendered within the agreed upon timeframe, then each party may request from the president of the court having jurisdiction an order for an extension of the timeframe or the termination of the arbitral proceedings. If terminated, each party may resort to the national court having the ultimate jurisdiction over the dispute to settle the dispute.</p>\r\n<p class=\"MsoNormal\">The Draft Law also contemplates the finality of the arbitral awards. All the arbitral awards rendered under the rules of this Draft Law are final and are not susceptible to challenges pursuant to the Code of Civil &amp; Commercial Procedures<strong>. </strong>The only available means for challenging the arbitral award would be to file an application for annulment, which is generally based on the principles of procedural integrity of the award rather than a substantive review of it. Applications for annulment are permitted under limited circumstances which have been specifically enumerated in Article 34 of the Draft Law. The application of annulment must be submitted within 90 days after the date of notification of the arbitral award to the challenging party.</p>\r\n<p class=\"MsoNormal\">The arbitral award may not be enforceable until the time limit for requesting an annulment has lapsed or the request for annulment has been denied by the competent court. This means that the winning party will have to wait at least 3 months before starting the enforcement process, unless the losing party seeks annulment. No publication of the award or parts thereof shall be authorized except with the approval of both parties to the arbitration</p>\r\n<p class=\"MsoNormal\"><strong>CONCLUSION</strong></p>\r\n<p class=\"MsoNormal\">These pivotal alterations to the rules governing arbitration procedures proposed by the Draft Law will dispel the drawbacks which undermine arbitration practice in Qatar (but not the QFC). The promulgation of this Draft Law will significantly impact international commerce and investment on Qatar. One may expect a remarkable development in the volume of investments involving Qatar in the near future. Moreover, the promulgation of the Draft Law will benefit the Qatar International Centre for Conciliation and Arbitration by increasing its exposure as a credible venue for international commercial arbitration among the GCC countries.</p>'),
	(150074,5098,'core_values',''),
	(150075,5098,'_core_values','field_59b64ab071de4'),
	(150076,5098,'file',''),
	(150077,5098,'_file','field_59b64c10f6600'),
	(150078,5098,'orderValue4','4'),
	(150079,5098,'_orderValue4','field_59d2096a8ff34'),
	(150080,5098,'related_pages_header',''),
	(150081,5098,'_related_pages_header','field_59b6441e3cc94'),
	(93851,5098,'_content','field_59b649b5c8b2b'),
	(93852,5098,'lawUpdateArticleMonth','5089'),
	(93853,5098,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93854,5098,'content_description','Qatar has witnessed very significant accomplishments within the last ten years in the direction of updating and modifying its national laws in the field of international commercial arbitration. '),
	(93855,5098,'_content_description','field_59b641c07f473'),
	(93856,5098,'pageSummary','Qatar has witnessed very significant accomplishments within the last ten years in the direction of updating and modifying its national laws in the field of international commercial arbitration.'),
	(93857,5098,'_pageSummary','field_59e59b307dec8'),
	(93858,5098,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/an-overview-of-the-draft-arbitration-law-in-qatar.html'),
	(93859,5098,'_currentURL','field_59d35123ab1e7'),
	(150058,5098,'lawUpdateArticleNoWriters',''),
	(150059,5098,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93862,5098,'lawUpdateArticleWriters','1'),
	(93863,5098,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(93864,5098,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','410'),
	(93865,5098,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(93866,5098,'lawUpdateArticlePractices','1'),
	(93867,5098,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(93868,5098,'_yoast_wpseo_metadesc','Qatar has witnessed very significant accomplishments within the last ten years in the direction of updating and modifying its national laws in the field of international commercial arbitration.'),
	(93869,5099,'content','March 2015\r\n\r\n<hr />\r\n\r\nTherefore, you find yourself with little option other than to commence arbitration proceedings, but you are not really sure what this will entail.\r\n\r\nThis article provides an overview of arbitrating a construction dispute. It is not intended to be exhaustive of the whole process, and clients should take advice from specialist construction arbitration practitioners when making or facing such a claim.\r\n\r\n<strong>Introduction</strong>\r\n\r\nWhilst arbitration may have its critics due to its duration and cost, commercial clients should not overlook the clear benefits, e.g. the flexibility of the process, option to choose the place (seat), confidential nature of the proceedings, detailed analysis of claims and defences, recoverability of legal costs (as a general rule), the perception that the parties will have their dispute heard in a neutral arena by specially selected arbitrators who have the appropriate level of experience and knowledge to handle complex construction disputes and that arbitral awards will be more readily enforced around the world than court judgments.\r\n\r\n<strong>Starting the arbitration</strong>\r\n\r\nTo avoid a jurisdictional challenge at the very outset that arbitration proceedings have been commenced prematurely it is imperative that the initiating party ensures that: (i) the claim has crystalised into a dispute; and (ii) the dispute has met with all the pre-conditions to arbitrate (e.g. consider Clause 67 of FIDIC 1987 and Clause 20 of FIDIC 1999).\r\n\r\nAll too often we come across situations whereby an arbitration has been commenced but, upon investigation, the claim is either a new one which has not yet been disputed or has not yet run through the tiered dispute resolution process. This latter issue can become extremely complex when interim claims have been previously made and are then supplemented or superseded by ‘new’ claims, which may be said to be an embellishment of the previous claims, or are inextricably linked to them.\r\n\r\nIf the above criteria are met then careful regard must be had to the wording of the contract to see how arbitration should be commenced.\r\n\r\nThe agreement to arbitrate should be checked to ensure it is binding (for example, was it signed by persons who had express authority to bind the respective contracting parties to arbitration?).  Careful consideration should be given whether the arbitration clause provides for an institutional or ad hoc arbitration. Whilst most experienced arbitration lawyers would generally like to work with institutional rules, this often depends on the particular institutional rules themselves, because some of them are not exactly comprehensive, comprehensible or user friendly, and uncertainty offers leads to disputes; hence, even more costs.  Some inexperienced arbitration lawyers may be sceptical of ad hoc arbitrations, but experienced practitioners should be able to work with the tribunal in agreeing on the process and will often seek to adopt the UNCITRAL Rules to govern the process.\r\n\r\nSo the above checks have been made and you are now ready to start your arbitration, what next?\r\n\r\nThe arbitration is started when the claiming party (the Claimant) issues a ‘Notice to Arbitrate’ (often referred to in institutional proceedings as a ‘Request for Arbitration’).  Some arbitration laws may be vague or even silent on when proceedings are formally commenced, so careful regard may be needed to this issue if the expiry of a limitation period is looming.\r\n\r\nThe Notice to Arbitrate should clearly state that it is a demand to arbitrate the dispute. It should also provide some basic details; e.g. names of parties and their contact details, inclusion and reference to the arbitration clause, reference to underlying contract, description of dispute, relief sought, details of compliance with pre-conditions, choice of arbitrator (if appropriate), details of language, law and seat of the arbitration.\r\n\r\nIf it is to be an institutional arbitration then registration fees for filing the Request for Arbitration will have to be paid.\r\n\r\nWhilst institutional arbitrations allow for the responding party (the Respondent) to issue a response (by way of an Answer or Reply) and possible counterclaim, ad hoc proceedings generally do not cater for such a document (unless the arbitration clause has been drafted in considerable detail or the UNCITRAL Rules have been incorporated).\r\n\r\nThe next stage is the constitution of the arbitral tribunal.  The arbitral tribunal may comprise a sole arbitrator, or, as is more usual for construction disputes, a three-person tribunal.  If the mechanics for appointing a tribunal have not been set out in the arbitration clause, and if the parties fail to subsequently so agree (which may very well be likely once they are in dispute), the relevant provisions of the UAE’s arbitration law will apply.\r\n\r\nAlong with retaining experienced arbitration lawyers, choosing a suitable arbitrator is crucial to the success of the overall process.  As mentioned above, arbitration is a flexible process and the parties should take advantage of this flexibility by appointing suitably qualified and experienced arbitrators.  Unfortunately, leaving institutions to appoint can sometimes lead to unsuitable arbitrators being involved in the process.  Unlike the legal profession, there is little control or regulation over who may qualify and sit as an arbitrator in the region.\r\n\r\nIn our experience, the process of constituting the tribunal can sometimes become protracted due to challenges to party nominated and chairman arbitrators.\r\n\r\nWhilst in an institutional arbitration the tribunal will be appointed by the institution, in an ad hoc arbitration the parties will be required to enter into a tri-partite arbitration agreement with each arbitrator.\r\n\r\nIn the case of an institutional arbitration advance fees for the institution’s administration and tribunal’s fees will have to be paid before the case file will be transferred to the tribunal.\r\n\r\nThe UAE’s arbitration law provides that within 30 days of its constitution the tribunal is required to give notice of the date for the first (preliminary) meeting.\r\n\r\nThe parties and the tribunal will before, at, or after the preliminary meeting execute a document entitled the ‘Terms of Reference’.  This document is extremely important because it will set out the parties’ respective claims and the issues to be decided by the tribunal, thereby defining the scope of the tribunal’s jurisdiction.  It will also with ancillary issues, such as what rules of evidence will apply, what expert evidence is required, whether the witness statements are to stand as evidence-in-chief, etc.\r\n\r\nAt the preliminary meeting, or shortly thereafter, the tribunal will issue a ‘Procedural Directions Order’ which will map out what each party is expected to do and when.  One criticism of arbitration is that these timetables are often rescheduled leading to lengthy proceedings.  However, there are often genuine reasons why the timetable may need to change.\r\n\r\nIt is quite usual for the tribunal to request the lawyers to present their respective ‘Powers of Attorney’ at the preliminary meeting.\r\n\r\n<strong>The Team</strong>\r\n\r\nParties who are about to embark on a substantive construction arbitration should be aware that a team will be needed to handle the dispute.\r\n\r\nThe arbitration team will comprise: (i) the legal team (including possibly external counsel, more of which is discussed below); (ii) the experts (likely to include delay and quantum and possibly, technical, valuation, forensic accounting, and maybe legal); (iii) the client (including its in-house counsel,  commercial and contracting staff); and (iv) witnesses of fact.\r\n\r\nPicking the right legal team is crucial for several reasons.\r\n\r\nClients should be choosing their lawyers based not only on fees, but also on experience, knowledge and recommendations.\r\n\r\nConstruction arbitrations are legally and technically complex. It is essential, therefore, that the client carries out its own due diligence when appointing its lawyers.  They should be wary of lawyers with little hands-on experience of arbitrating construction disputes, or those who are generalists who dabble in construction disputes from time to time.\r\n\r\nThe best due diligence a client can do is by carefully reading CVs/profiles, interviewing and obtaining references/recommendations. Watch out for words like “assisted”, “involved”, or “managed” in CVs/profiles; ask what these words actually mean.\r\n\r\nFurther, when choosing the law firm clients may wish to have regard to how the firm usually handles such disputes. For example, it may be alien to some firms to instruct senior English barristers (QCs) to advocate at a final hearing; whilst some firms may instruct external counsel as a matter of course for almost everything.\r\n\r\nMost of the above apply to appointing experts and external counsel.  In terms of both external counsel and experts, a crucial factor will be at what stage in the process should they be appointed.\r\n\r\n<strong>Preparing for the Hearing</strong>\r\n\r\nSo the tribunal is constituted and the directions timetable leading to the final evidentiary hearing has been issued, what next?\r\n\r\nIn short, your appointed lawyers should lead in handling the process from start to finish.\r\n\r\nYour lawyers will need to marshal the evidence, both documentary and witness (factual and expert).\r\n\r\nIt is not unusual for requests to be made for disclosure of documents from the other party (usually set out in the form of a Redfern Schedule).  This is an extremely important facet of arbitration, because ordinarily in the UAE parties will only seek to disclose documents which support their own case.\r\n\r\nThe issues that the experts will be required to provide their opinion on need to be identified relatively quickly by the legal team and instructions issued accordingly.\r\n\r\nWitness statements, if not taken already, should also be taken relatively quickly.  Construction projects have definitive start and finish dates, so project staff will move on.  Therefore, it is imperative that the key witnesses are identified early on and interviewed so that their evidence will not be lost.\r\n\r\nThe pleadings will need to be prepared and these can run to hundreds of pages, with volumes of exhibits, schedules and appendices attached to them.\r\n\r\nAs well as managing fees and other issues relating to the experts and external counsel, the lawyers will be involved in assisting the experts in the preparation of their reports (i.e. obtaining important documents, giving instructions on matters of law/contract interpretation, etc.).  Sometimes, and especially with quantum and forensic accounting experts, confidentiality agreements may need to be executed to allow experts to review sensitive information.\r\n\r\nIn the build-up to the final hearing (which may involve a split hearing between liability and quantum (bi-furcated proceedings)), practical aspects such as finding a suitable venue, translators and transcribers will need to be arranged.\r\n\r\nImmediately prior to the hearing the parties will usually be required to file written opening submissions.  The tribunal will also likely fix the agenda for the hearing and deal with issues relating to the order of witnesses, whether experts should be allowed to sit in during the evidence of factual witnesses, whether experts will be required to give their evidence together, etc. All of this will normally be dealt with during a pre-hearing review.\r\n\r\nAt the end of the hearing the tribunal will normally state that proceedings are closed, subject to any final written closing submissions.  Sometimes, but not very often, proceedings may be re-opened.\r\n\r\nIn substantive construction arbitrations closing submissions will usually be dealt with in two rounds, the first dealing with a party’s substantive closings and claim for legal costs (if legal costs are an issue to be decided by the tribunal), followed by a second round which comments on the closing submissions (including claim for legal costs) made by the opposing party.\r\n\r\n<strong>The Award and Enforcement</strong>\r\n\r\nWhilst under UAE law the tribunal is bound to issue its award within the 6 months, the parties usually agree to grant the tribunal an extension to this period.\r\n\r\nIf there is a sole arbitrator then an award can usually be expected fairly quickly after the final hearing.  However, if there is a three-person tribunal, with some or all of the arbitrators residing overseas, it can often take several months to receive an award.  If there is an institutional body like the ICC involved, then there will be further time involved because the ICC will need to scrutinize the award before the award can be issued.\r\n\r\nAt some point the award will be issued to the parties.  It is essential that once received it is carefully reviewed to check that it complies with the formalities of the UAE arbitration law, e.g. it is signed on every page, states the place where it was issued, includes the arbitration agreement.  It should also be checked for arithmetical and typographical errors.\r\n\r\nThe dispositive part of the award will set out which party has won and what the losing party must do.  Sometimes, the losing party will act on this and that will be the end of the matter.  Unfortunately, that is not always the case.  If the award is not complied with the winning party will have to take steps to recover its entitlements.\r\n\r\nWhether the award is a foreign (seated and issued outside the UAE) or domestic (seated and issued within the UAE) will determine what laws apply to the enforcement process.\r\n\r\nIn the UAE, the enforcement of a domestic award involves: (i) the ratification of the award; and (ii) the execution of the ratified award.\r\n\r\nIn terms of the appropriate forum for enforcement, and following recent case law, the DIFC Courts now seemingly offer a viable alternative to having domestic awards (both ‘on-shore’ and ‘off-shore’) enforced and then taken across to the Dubai Courts for execution, thereby possibly by-passing the legal arguments that could otherwise be deployed in the defence of ratification proceedings (e.g. consider Article 216 of the UAE Civil Procedures Code) in the local courts.  However, this is a new development in this area of law and it remains to be seen how the Dubai Courts will act in the future.\r\n\r\n<strong>Summary</strong>\r\n\r\nArbitrating construction disputes can be a lengthy process, which inevitably leads to greater cost, but this is due to the fact that construction disputes are technically and legally complex, involve multiple parties, involve projects which span many years and involve the review of thousands of documents and numerous witnesses (factual and expert).\r\n\r\nTherefore, it is imperative that a party gives careful consideration to the process, the applicable laws and its team.'),
	(175177,5099,'core_values',''),
	(175178,5099,'_core_values','field_59b64ab071de4'),
	(175179,5099,'file',''),
	(175180,5099,'_file','field_59b64c10f6600'),
	(175181,5099,'orderValue4','4'),
	(175182,5099,'_orderValue4','field_59d2096a8ff34'),
	(175183,5099,'related_pages_header',''),
	(175184,5099,'_related_pages_header','field_59b6441e3cc94'),
	(175185,5099,'related_pages',''),
	(175186,5099,'_related_pages','field_59b6434af4880'),
	(93870,5099,'_content','field_59b649b5c8b2b'),
	(93871,5099,'lawUpdateArticleMonth','5089'),
	(93872,5099,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93873,5099,'content_description','So you have taken your claim through the prescribed contractual procedures to try and resolve it amicably but this has failed.  '),
	(93874,5099,'_content_description','field_59b641c07f473'),
	(93875,5099,'pageSummary','So you have taken your claim through the prescribed contractual procedures to try and resolve it amicably but this has failed.'),
	(93876,5099,'_pageSummary','field_59e59b307dec8'),
	(93877,5099,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/arbitrating-construction-disputes-in-the-uae-the-process-from-start-to-end.html'),
	(93878,5099,'_currentURL','field_59d35123ab1e7'),
	(93879,5099,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Dean O\'Leary'),
	(93880,5099,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(93881,5099,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','d.oleary@tamimi.com'),
	(93882,5099,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(93883,5099,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(93884,5099,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(93885,5099,'lawUpdateArticleNoWriters','1'),
	(93886,5099,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93887,5099,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','410'),
	(93888,5099,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(93889,5099,'lawUpdateArticlePractices_1_lawUpdateArticlePractice','537'),
	(93890,5099,'_lawUpdateArticlePractices_1_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(93891,5099,'lawUpdateArticlePractices','2'),
	(93892,5099,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(93893,5099,'_yoast_wpseo_metadesc','So you have taken your claim through the prescribed contractual procedures to try and resolve it amicably but this has failed.'),
	(93894,5100,'content','March 2015\r\n\r\n<hr />\r\n\r\nThe Committee voted on (and unanimously supported) a wide-ranging plan put forward by IOC President, Thomas Bach, referred to as “Agenda 2020”.  Agenda 2020 is a set of rules that substantially change the way the IOC conducts its business, outlines how it interacts with stakeholders and sets new parameters for the very structure of the Olympic Games (the “Games”) themselves.  The reforms reach the core of the Games, opening the possibility for new competitions to be included (provided a total agreed number of events is maintained), for greater community engagement and education to be promoted as well as increasing transparency and good governance in management, to name but a few.\r\n\r\nThis bold step amounts to a comprehensive roadmap for reform that is characterised by engagement and flexibility.  At a time when we have seen increased criticism of the processes and the organisations holding rights to major global sporting events, this marks a welcome change.  On examination, Agenda 2020 should be welcomed as the IOC’s significant step towards greater transparency and responsiveness, each of which will ultimately be crucial elements of the IOC’s continued relevance.\r\n\r\nEach of the 40-points adopted in the plan are worthy of independent consideration; however, for the scope of the current article, the liberalisation of the bid process to potentially include joint bids by cities (or even countries) is an area we should consider more closely, particularly in the face of a potential bid from the Middle East.   Qatar has voiced a clear desire to host the Games, as recently re-iterated by the Secretary General of the Qatar Olympic Committee ; however, with the recent rule changes, the possibility of an Abu Dhabi/Dubai bid could also prove a compelling possibility.  The new system of flexibility in approach to bidding allows for interaction between the IOC and potential host bidders prior to the host cities embarking on what has become a highly demanding and expensive two-year process of launching a formal bid.\r\n\r\nIt is to be hoped that this change in the rules will lead to improved communication with a preliminary exchange of information between the class of exploratory hosts and the IOC that should ultimately increase the likelihood of the best suited and motivated candidates proceeding through the process  at a mutually advantageous time (i.e., when they will be best able to host and showcase the Games to a high standard and when the Games would be most beneficial for them ).\r\n\r\nThere are growing signs that Dubai may be considering an Olympic bid in the near to medium term.   As has been noted previously, there would be great inherent strength in a United Arab Emirates bid that combines the resources of the UAE Capital and Dubai in an Abu Dhabi/Dubai Games. Whereas we could not previously consider such a combination because of the rules, the IOC’s adoption of Agenda 2020 has thrown open the door to a formal joint bid.  There are compelling reasons to believe that the combined transportation, hard and soft infrastructure and resources of these dynamic powers – not to mention the growing track record of excellence in regularly hosting successful sporting events to the highest global standards - could be combined to stage a potentially sensational Summer Olympics.\r\n\r\nWe can go a step further in recognising that IOC Vice-President John Coates noted that despite the new possibility of joint bids, the compactness of the bid is always an important component.  Given the proximity and excellent transportation between Abu Dhabi and Dubai, a joint Abu Dhabi/Dubai bid could arguably be as geographically compact as a number of past Games held at venues across a single expansive urban area.  In effect, a case could be made that an Abu Dhabi/Dubai bid could be one of the least logistically disruptive combinations for a joint bid imaginable.  This would be a prudent way for the IOC to stress-test the first run out of a joint Summer Games bid under the new rules.\r\n\r\nRegardless of the status on a potential bid for the first ever Games in the Middle East, the Agenda 2020 IOC reforms are a welcome step.  The package of reforms will require implementation and there could be slips along the way with such an ambitious plan but where the alternatives include minor incremental adjustment or inaction, this is a show of leadership at just the right time.\r\n\r\nSteve Bainbridge is the Regional Head of the Sports Law practice and is based in the firm’s Abu Dhabi office.  Steve has significant experience in relation to sponsorship agreements and packages of all types; athlete endorsement agreements; anti-ambush marketing strategies and enforcement; player contracts; broadcasting agreements and copyright protection; IP registration and enforcement; merchandising and licensing agreements; player disciplinary issues; sports event management; ticketing arrangements and a wide array of venue/facilities management arrangements.\r\n\r\n<em>This article first appeared in the Gulf News on 23 February 2015. </em>'),
	(175145,5100,'core_values',''),
	(175146,5100,'_core_values','field_59b64ab071de4'),
	(175147,5100,'file',''),
	(175148,5100,'_file','field_59b64c10f6600'),
	(93895,5100,'_content','field_59b649b5c8b2b'),
	(93896,5100,'lawUpdateArticleMonth','5089'),
	(93897,5100,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93898,5100,'content_description','In early December 2014 in an extraordinary session, the International Olympic Committee (the “IOC”) met in Monaco.  '),
	(93899,5100,'_content_description','field_59b641c07f473'),
	(93900,5100,'pageSummary','In early December 2014 in an extraordinary session, the International Olympic Committee (the “IOC”) met in Monaco.'),
	(93901,5100,'_pageSummary','field_59e59b307dec8'),
	(93902,5100,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/ioc-agenda-2020-strategic-roadmap-for-a-joint-abu-dhabidubai-olympic-bid.html'),
	(93903,5100,'_currentURL','field_59d35123ab1e7'),
	(93904,5100,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','927'),
	(93905,5100,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(93906,5100,'lawUpdateArticleWriters','1'),
	(93907,5100,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(93908,5100,'_yoast_wpseo_metadesc','In early December 2014 in an extraordinary session, the International Olympic Committee (the “IOC”) met in Monaco.'),
	(93909,5101,'content','March 2015\r\n\r\n<hr />\r\n\r\n<strong>Introduction </strong>\r\n\r\nUnder the UAE Civil Code, there is no obligation on the designer to take out and maintain an insurance cover. Similarly, no such requirement is mandated by Law No. 6 of 1997 in relation to Contracts with Government Departments in the Emirate of Dubai.\r\n\r\nThe situation is different in Abu Dhabi where design consultants need to be conscious of the requirements of classification pursuant to Regulation No.2 of 2009 (Concerning Contractor Classification in the Emirate of Abu Dhabi) and its associated instructions under Administrative Resolution No.58 of 2010.\r\n\r\nPursuant to these regulations, all contractors and consultants operating in Abu Dhabi need to apply for classification before the government authority. One of the pre-requisites of classification is adducing evidence of the existing insurance policies.\r\n\r\nIrrespective of the requirements of any law, it is in the interests of both employers and designers that appropriate insurance cover is in place that reflects, and covers, the level of the risk involved in the project.\r\n\r\nFor example, if, under the terms of an agreement, a designer indemnifies the employer for any loss, damage or injury arising as a result of the designer’s performance, the employer should ensure that the designer has the type and level of insurance necessary for it to pay any claim made under the indemnity.\r\n\r\nAs a designer, it is also best to ensure that appropriate insurance is in place to protect your business.\r\n\r\nHere are a few insurance options which employers and designers must consider, not only as matter of good practice, but also to minimise risks.\r\n\r\n<strong>Professional Indemnity Insurance</strong>\r\n\r\nProfessional indemnity insurance is a must for any designer especially when the liability for design defects can be particularly onerous for designers in the UAE. This sentiment is echoed by Administrative Resolution No.58 of 2010 which, for the purposes of classification, requires engineering consultants operating in Abu Dhabi to maintain professional indemnity cover from an insurance company based in the UAE.\r\n\r\nThe amount of professional indemnity insurance cover the designer is required to have in place is generally determined on a case by case basis, depending on the extent and the complexity of the design works in question.\r\n\r\nAs an employer this insurance is essential, especially if you have concerns about the accessible assets of the designer in the event the design is defective.\r\n\r\nIt should be kept in mind that professional indemnity insurance might not respond to a claim made under Article 880 (dealing with decennial liability) of the Civil Code for any major design defects which threaten the safety and stability of the building.\r\n\r\n<strong>Decennial Liability Insurance</strong>\r\n\r\nUnder the Civil Code, designers and contractors are jointly liable for any total or partial collapse of a building and for any defect affecting stability or safety of a structure for 10 years (starting from the completion of the works). Provided the designer is not also responsible for supervision of the works, the designer’s liability is limited to defects caused by its design.\r\n\r\nManaging the risk of a decennial liability claim for designers can be difficult as decennial liability falls outside the scope of the standard cover provided by Contractors’ All Risks (CAR) and Professional Indemnity (PI) insurance.\r\n\r\nCAR policies typically cover physical loss or damage to the works being executed, and will typically exclude liability for repair or replacement of property which is defective in design, specification, materials or workmanship. These policies are normally effected by the employer or the contractor.\r\n\r\nProfessional liability insurance typically covers loss caused by the negligent omissions or fault of the designer. Moreover, the coverage of professional indemnity insurance will usually be inadequate to cover for the loss of a partial or total building collapse.\r\n\r\nOne of the ways to manage decennial liability is to spread out the risk by way of collateral warranties. Contractors, architects and engineers within the first tier of the supply chain can exchange collateral warranties. Such collateral warranties enable an innocent party, caught by the decennial liability regime, to seek to recover the loss under the terms of the warranty from that party who actually is at fault.\r\n\r\nConsultants should also be aware of the precise nature of their role, that is, whether they are operating in a supervisory-only category or are actually responsible for the full design of the structure.\r\n\r\nThe consultancy agreement should also be checked to ensure that any decennial liability clause reflects the obligation imposed by law and does not impose a wider obligation. If this wider obligation is imposed by the agreement, a consultant’s insurance cover may not apply to it.\r\n\r\n<strong>Legal Costs Cover</strong>\r\n\r\nDesigners should also consider insurance to cover legal expenses to defend an action by the employer or other claimant in relation to loss or damage covered by a faulty design.\r\n\r\nThere is a possibility that the insurance companies might refuse to provide cover for defending a claim that does not have reasonable prospects of success and they may seek to investigate this prior to providing the cover. However, this should not deter the designers from seeking such insurance cover on a case to case basis.\r\n\r\n<strong>General Recommendation</strong>\r\n\r\nIt is recommended that both employers and designers consider the insurance and indemnity provisions of each contract.\r\n\r\nDepending on the risk allocation resulting from negotiations, the employer/developer may take out its own all risk insurance in relation to the project and/or site of the works.\r\n\r\nIn relation to insurance cover, consideration should be given as to whether a party should be an insured under that policy (for example, a consultant being covered under a contractor’s or owner’s CAR policy).\r\n\r\nThe level of cover will depend on the value of, and the type of works that will be performed under the construction contract (for example the level of dangerous activities being performed and the likelihood of damage or injury resulting from the works).\r\n\r\nIf a variety of insurance policies are taken out, there is a risk of overlap of insurance. Although not specifically provided under the Code, policies invariably do not allow recovery of the same insured loss more than once.  If the policies are checked to remove duplication, the insurance premiums will be kept to a minimum.\r\n\r\nIn any event, designers should always be required, and have in place, appropriate professional indemnity cover.\r\n\r\n<strong>Final Note</strong>\r\n\r\nIt is advisable that designers maintain adequate insurance cover for their design obligations to protect against claims from employers, contractors and third parties.\r\n\r\nLastly, it should be ensured that the insurance cover reflects the contractually agreed insurance obligations and decennial liability.'),
	(175111,5101,'core_values',''),
	(175112,5101,'_core_values','field_59b64ab071de4'),
	(175113,5101,'file',''),
	(175114,5101,'_file','field_59b64c10f6600'),
	(175115,5101,'orderValue4','4'),
	(93910,5101,'_content','field_59b649b5c8b2b'),
	(93911,5101,'lawUpdateArticleMonth','5089'),
	(93912,5101,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93913,5101,'content_description','UAE law generally does not require a designer to have insurance cover.'),
	(93914,5101,'_content_description','field_59b641c07f473'),
	(93915,5101,'pageSummary','UAE law generally does not require a designer to have insurance cover.'),
	(93916,5101,'_pageSummary','field_59e59b307dec8'),
	(93917,5101,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/designing-with-confidence-in-the-uae-do-you-have-the-right-insurance.html'),
	(93918,5101,'_currentURL','field_59d35123ab1e7'),
	(93919,5101,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Kanishka Singh'),
	(93920,5101,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(93921,5101,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','k.singh@tamimi.com'),
	(93922,5101,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(93923,5101,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(93924,5101,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(93925,5101,'lawUpdateArticleNoWriters','1'),
	(93926,5101,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93927,5101,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','632'),
	(93928,5101,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(93929,5101,'lawUpdateArticlePractices_1_lawUpdateArticlePractice','537'),
	(93930,5101,'_lawUpdateArticlePractices_1_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(93931,5101,'lawUpdateArticlePractices','2'),
	(93932,5101,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(93933,5101,'_yoast_wpseo_metadesc','UAE law generally does not require a designer to have insurance cover.'),
	(93934,5102,'content','March 2015\r\n\r\n<hr />\r\n\r\nThe Property Lease Law introduces a new legislative framework for real property leases in the Kingdom of Bahrain and repeals the following laws, which previously applied to real property leases:\r\n<ul>\r\n 	<li>Lease Act issued under Declaration No. 29 of 1363 A.H. on 9 July 1944</li>\r\n 	<li>Lease Act issued under Declaration No. 43 of 1365 A. H. on 25 August 1946 and its amendments</li>\r\n 	<li>Defining Commercial Stores Rent in Manama of 1955 issued under Declaration No. 42 of 1374 A.H.</li>\r\n 	<li>Decree-law No. 9 of 1970 with respect of modifying some lease rules and amendments</li>\r\n 	<li>Decree-law No. 8 of 1984 with respect of setting property rent before January 1970.</li>\r\n</ul>\r\n<strong>Application</strong>\r\n\r\nThe Property Lease Law applies to real estate premises that are intended for residential, industrial, commercial, professional and craftsmanship purposes. However, the Property Lease Law does not apply to:\r\n<ul>\r\n 	<li>fixed and non-fixed industrial lands and construction subject to Decree-law No. 28 of 1999 with respect to industrial zones establishment and organisation</li>\r\n 	<li>agricultural lands</li>\r\n 	<li>lands leased for hotels and tourist purposes</li>\r\n 	<li>furnished flats leased for periods not exceeding one month</li>\r\n 	<li>residential units occupied for work conditions</li>\r\n 	<li>lands leased under musataha agreements for development.</li>\r\n</ul>\r\nThe Property Lease Law applies to both new leases and leases that were in existence on the Effective Date.\r\n\r\n<strong>Lease formalities and registration</strong>\r\n\r\nAll leases subject to the Property Lease Law must be in writing and must specify the lease period and the rent payable by the lessee. If a lease does not specify the lease period, the lease will be valid for the period specified in the lease for payment of rent. Further, if the rent is not specified, the rent will be determined on commencement of the lease by taking into account the condition, size and purpose of the leased premises, and the prevailing rent in the area in which the leased premises are situated.\r\n\r\nThe Property Lease Agreement Registration Office will be established by the Ministry of Justice in cooperation with the Ministry of Municipality for the registration of leases that are subject to the Property Lease Law. All new leases and their amendments must be registered with the Property Lease Agreement Registration Office within one month from the date of issue. Leases that existed when the Property Lease Law came into force must be issued in writing and registered within six months from the Effective Date.\r\n\r\nThe registration procedures and fees for registration will be issued by the Minister of Justice, subject to the fees being not less than 1 Dinar and not more than 5 Dinars for residential properties and not less than 5 Dinars and not more than 10 Dinars for other properties.\r\n\r\nIt is the lessor’s responsibility to register its lease and to pay the registration fees. However, if the lessor refuses to pay the fees, the lessee may register the lease and deduct the registration fees from the rent.\r\n\r\n<strong>Rent, security deposit and rent increases</strong>\r\n\r\nA lessor of residential premises can receive a maximum of 3 months’ rent paid by cash in advance. For other types of premises, the parties can agree on a different amount. The maximum security deposit that a lessor can require from a lessee is 1 month’s rent.\r\n\r\nThe lessee must pay the rent to the lessor within a maximum period of one week from the due date stated in the lease. If a lease does not specify the due dates for payment of rent, the rent will be due at the beginning of each month.\r\n\r\nA lessor may not increase the rent under a lease until two years from the lease commencement date or the previous rent increase (whichever is earlier). The rent increase is capped at 5% for residential properties and 7% for commercial, industrial, professional, craftsmanship or other properties. Additionally, the rent can only be increased a maximum of 5 times throughout the lease term, unless the parties agree otherwise in writing. If the lessor wishes to increase the rent, it must give the lessee written notice at least 3 months before expiry of the second year.\r\n\r\nThese restrictions also apply when existing leases are renewed or re-entered after the expiry of 3 years from the Effective Date.\r\n\r\n<strong>Leased premises condition, maintenance and alterations</strong>\r\n\r\nThe lessor is required to deliver the leased premises to the lessee in a condition suitable for the lessee’s intended purpose as agreed by the parties.\r\n\r\nThe lessor is obliged to perform urgent, necessary maintenance works that are required for keeping the leased premises in a safe condition and useable for the intended purpose. The lessee is obliged to maintain the leased premises through normal due care and to perform minor maintenance that is required for the lessee to use the leased premises for its intended purpose.\r\n\r\nThe lessee must not make any changes to the leased premises without obtaining the lessor’s written consent unless the changes will not be detrimental to the lessor. Upon vacating the leased premises, the lessee must return the premises to the lessor in the same condition as they were in when the lease commenced except for any improvements made by the lessee, which must remain in the premises unless the parties agree otherwise.\r\n\r\n<strong>Expiry and renewal</strong>\r\n\r\nAll leases will expire at the end of their term. If a lessee continues to use its leased premises after expiry of the lease with no objection from the lessor, the lease will be deemed to be extended for a similar period to the expired lease and on the same terms and conditions. However, the lessee’s continued occupation of the leased premises will not be deemed an extension of the lease after it receives a notice of eviction from the lessor.\r\n\r\nIf the lessee intends to leave the premises on expiry of the lease, it must give the lessor written notice of its intention at least 3 months before the lease expires.\r\n\r\nSimilarly, if a lessee wishes to renew its lease, it must give the lessor written notice at least 3 months before the lease expires. The lessee is entitled to renew for a period up to 3 years for residential premises and 7 years for commercial, industrial, professional, craftsmanship or other premises.\r\n\r\nThe Property Lease Law also provides that leases that are subject to the provisions of Decree-law No. 9 of 1970 will expire after 3 years from the Effective Date.\r\n\r\n<strong>Eviction of lessees</strong>\r\n\r\nFor leases signed after the Effective Date, a lessor cannot require a lessee to vacate leased premises until after a period of 3 years from the date of handover for residential premises and 7 years for commercial, industrial, professional, craftsmanship or other premises. However, the parties are entitled to agree in writing to a different period.\r\n\r\nThis restriction on evicting a lessee does not apply where:\r\n<ul>\r\n 	<li>the lessee has not paid the rent on the due date specified in the lease or by a decision of the Lease Disputes Committee for 2 consecutive months</li>\r\n 	<li>the lessee has sub-leased or allowed a third party to use all or part of the leased premises without obtaining the lessor’s consent</li>\r\n 	<li>the lessee or sub-lessee has allowed the number of people occupying the leased premises to exceed the normal limit</li>\r\n 	<li>the lessee has used or allowed the leased premises to be used in a way that violates the lease conditions, the intended purpose or public order and morals, or is detrimental to the financial interests of the lessor</li>\r\n 	<li>the condition of the property endangers the lives of residents, or a final demolition order has been issued by the relevant municipality</li>\r\n 	<li>at least 25 years has passed since the property was constructed, or the area in which the property is located was re-classified, and the lessor wishes to demolish and rebuild the property (which must occur within 1 year from the date of eviction)</li>\r\n 	<li>the lessor or its immediate relatives wish to occupy the leased premises for residency, subject to obtaining the lessee’s written agreement and provided that the lessor gives the lessee at least 6 months’ written notice prior to eviction and the lessor or its immediate relatives occupy the leased premises for at least 1 year</li>\r\n 	<li>the lessor wishes to live in the leased premises in circumstances where the lessor has not been living in the area where the leased premises are located or has been living out of Bahrain and owns no other property. In this case, the lessor can only evict the lessee if this intention was stated in the lease</li>\r\n 	<li>the lessee used or allowed the leased premises to be used for a purpose other than the intended purpose or made changes to the leased premises that have endangered its safety</li>\r\n 	<li>the lessee has abandoned the leased premises for at least 1 year.</li>\r\n</ul>\r\nIn these situations, a lessor can request the lessee to vacate the leased premises. However, if the circumstances under items 6, 7 or 8 above apply, the lessee may be entitled to a grace period of not more than 3 months for residential premises or 6 months for other premises.\r\n\r\n<strong>Sub-leasing and assignment</strong>\r\n\r\nA lessee may not transfer or sub-lease all or part of its leased premises without obtaining the written consent of the lessor. Further, a transfer or sub-lease to a third party is only effective against third parties after it has been registered.\r\n\r\nIf the lessor transfers ownership of the leased premises to a new owner, the new owner must give the lessee written notice of the ownership transfer within 30 days from the date of registration of the transfer. The new owner is bound by any leases existing at the date of transfer.<strong> </strong>\r\n\r\n<strong>Lease Disputes Committee</strong>\r\n\r\nThe Property Lease Law provides for a Lease Disputes Committee, which is affiliated to the Ministry of Justice, to be established to settle:\r\n<ul>\r\n 	<li>lawsuits and disputes arising from leases under the Property Lease Law</li>\r\n 	<li>lawsuits and disputes stipulated in clauses 6 and 7 in Article 8, as well as Article 8 (repeated) of the Code of Civil and Commercial Procedure</li>\r\n 	<li>preventative decisions with respect to the above lawsuits and disputes.</li>\r\n</ul>\r\nHowever, the Committee will not hear disputes arising from leases that are not registered with the Property Lease Agreement Registration office.\r\n\r\nA party to a dispute can appeal a decision of the Committee to the High Civil Court within 15 days from the date of judgement. The High Civil Court’s decision in relation to the matter will be final.\r\n\r\nThe Courts will continue to hear and determine cases relating to lease disputes that were filed with the Courts before the Property Lease Law came into effect.\r\n\r\n<strong>Conclusion</strong>\r\n\r\nThe new legislative regime for real property leases in Bahrain introduces a number of new requirements that lessors and lessees need to comply with, including the requirement to register their leases. The new law should put an end to the conflicts between the previous laws and the Civil Code, and the resulting disputes between lessees and lessors. The new rules in relation to lease renewals will also be a welcome relief to lessors.\r\n\r\nWhile the Property Lease Law prescribes a number of lease conditions, the law also allows some flexibility by giving the parties the option to agree in their leases to provisions contrary to some of the prescribed conditions, which will be particularly beneficial in a commercial context. Parties contemplating entering into new leases or reviewing their existing leases should obtain legal advice on the application of the Property Lease Law.'),
	(175079,5102,'core_values',''),
	(175080,5102,'_core_values','field_59b64ab071de4'),
	(175081,5102,'file',''),
	(175082,5102,'_file','field_59b64c10f6600'),
	(175083,5102,'orderValue4','4'),
	(93935,5102,'_content','field_59b649b5c8b2b'),
	(93936,5102,'lawUpdateArticleMonth','5089'),
	(93937,5102,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93938,5102,'content_description','Bahrain Law No. 27 of 2014 ‘Issuing the Property Lease Law’ (the “Property Lease Law”) was published on 7 August 2014 and came into force on 7 February 2015 (the “Effective Date”).'),
	(93939,5102,'_content_description','field_59b641c07f473'),
	(93940,5102,'pageSummary','Bahrain Law No. 27 of 2014 ‘Issuing the Property Lease Law’ (the “Property Lease Law”) was published on 7 August 2014 and came into force on 7 February 2015 (the “Effective Date”).'),
	(93941,5102,'_pageSummary','field_59e59b307dec8'),
	(93942,5102,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/new-leasing-framework-in-bahrain.html'),
	(93943,5102,'_currentURL','field_59d35123ab1e7'),
	(93944,5102,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Sonia Harvey'),
	(93945,5102,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(93946,5102,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','s.harvey@tamimi.com'),
	(93947,5102,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(93948,5102,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(93949,5102,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(93950,5102,'lawUpdateArticleNoWriters','1'),
	(93951,5102,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93952,5102,'_yoast_wpseo_metadesc','Bahrain Law No. 27 of 2014 ‘Issuing the Property Lease Law’ (the “Property Lease Law”) was published on 7 August 2014 and came into force on 7 February 2015 (the “Effective Date”).'),
	(93953,5103,'content','March 2015\r\n\r\n<hr />\r\n\r\nThis resolution allows foreign nationals and companies owned by foreign nationals to own usufruct rights over vacant plots of land for a period of 100 years in Sharjah, and to register such usufruct right with the Sharjah Real Estate Registration Department (“SRERD”). The New Resolution also permits foreign developers to register projects and sell usufruct rights to investors subject to obtaining a special approval from the Ruler of Sharjah.\r\n\r\n<strong>Rules of Ownership in Sharjah</strong>\r\n\r\nBy way of background, Article 4 of Sharjah Law No. 5 of 2010 (the “Registration Law”) restricts the ownership of real property rights in the Emirate of Sharjah to UAE and GCC nationals, and companies fully owned by UAE and GCC nationals, or a combination of both.\r\n\r\nThe text of Article 4 of the Registration Law states that:\r\n\r\n“The right to own Real Properties in the Emirate shall be restricted to nationals of the State, nationals of the Cooperation Council for the Arab States of the Gulf, and the companies and organizations wholly owned by any of the foregoing. Notwithstanding, the right to own Real Properties in the Emirate may be granted as follows: (a) Ownership with the consent of the Ruler and upon the conditions prescribed by the Ruler, and (b) By inheritance bequeath under decree of distribution or waiver from the owner to one of his first-degree relatives, according to what is prescribed in the Executive Regulations of this Law.”\r\n\r\nThus, Article 4 above clarified that the position till date was that foreign nationals could only be granted ownership of real property rights by prior consent of the Ruler and subject to satisfaction of conditions prescribed by the Ruler. In general, we are aware that the Ruler has granted exemption to several foreigners subject to satisfaction of certain requirements and payment of prescribed fees.\r\n\r\n<strong>Usufruct Licensing Under the New Resolution – Rejoice for Foreign Developers</strong>\r\n\r\nUsufruct is a real property right whereby the usufructuary enjoys the use and utilizes another person’s property without the disposition, alteration or destruction of the property itself.\r\n\r\nThe New Resolution permits the sale of usufruct rights through a usufruct system managed by SRERD. Under the usufruct system, whilst developers and real estate property owners from UAE nationals, GCC nationals, companies and institutions fully owned by them, are eligible to obtain such license, it also provides that foreign nationals and companies owned by foreign nationals may obtain such usufruct license to sell real estate in certain pre-approved areas in Sharjah, subject to prior consent of the Ruler.\r\n\r\nThis right of usufruct license by foreigners is viewed as a new and welcomed development in Sharjah, one that will promote foreign investment in the Emirate.\r\n\r\n<strong>Requirements for Obtaining the Usufruct License</strong>\r\n\r\nArticle 3 of the New Resolution lays down the requirements for the grant of usufruct license to developers. It should be noted that foreign developers pre-approved by the Ruler may be subject to further additional conditions.\r\n\r\nThe requirements are as follows:\r\n<ul>\r\n 	<li>The usufruct period shall be for a maximum period of (100) hundred years.</li>\r\n 	<li>The project plot shall be owned on a freehold basis by the licensed developer.</li>\r\n 	<li>The licensed developer must register the project with SRERD prior to marketing or selling any usufruct rights over the vacant plots in accordance with the usufruct system.</li>\r\n 	<li>The licensed developer shall furnish to SRERD a bank guarantee from a UAE bank equal to 20% of value of the project prior to the sales of usufruct rights over vacant plots in accordance with the usufruct system.</li>\r\n 	<li>The licensed developer will be required to sign the SRERD commitment form which lays down the rules and conditions for selling the usufruct rights.</li>\r\n</ul>\r\nIn our opinion, the above requirements set by Article 3 are to safeguard the investors in such projects, and to ensure that the licensed developer is capable and financially efficient to deliver the project.\r\n\r\n<strong>Ownership of usufruct right by Foreign Investors </strong>\r\n\r\nThe earlier position was that foreign nationals or companies owned by foreign nationals were not permitted to own real estate in Sharjah. With the introduction of the New Resolution, whilst foreign nationals are not permitted to obtain freehold ownership of real estate in Sharjah (unless special exemption is obtained from the Ruler) they will now be permitted to purchase real estate pursuant to the grant of a usufruct property right for a maximum period of 100 years.\r\n\r\nArticle 6 of the New Resolution states that foreign nationals will be permitted to own a usufruct right over vacant land in Sharjah subject to the following preconditions, namely:\r\n<ul>\r\n 	<li>For foreign natural persons, such persons must hold a valid residency in UAE; and</li>\r\n 	<li>For foreign corporate entities, such entities must hold a valid commercial license in the UAE.</li>\r\n</ul>\r\nFurthermore, foreign investors under the New Resolution shall have the right to assign the usufruct right to a third party provided that such assignment does not exceed the original usufruct period registered at SRERD and subject to prior approval from SRERD.\r\n\r\n<strong>Implementation of the Usufruct</strong>\r\n\r\nArticle 9 of the New Resolution determines the usufruct title owner’s rights, and states as follows:\r\n\r\n“(a) The usufructuary shall be entitled to use and utilize the property subject matter of usufruct and annexes thereto like the way of owner’s utilization of his property, provided that he shall not violate conditions of the usufruct contract, and (b) the usufructuary shall be entitled to dispose of his usufruct right in all kinds of disposal without contradiction with the purpose allocated for the property subject matter of usufruct and annexes thereto, provided that the disposal may not exceed the usufruct period after approval of the Department.”\r\n\r\nThe usufructuary shall be entitled to all natural, industrial and civil benefits of the property subject to the usufruct, namely:\r\n<ul>\r\n 	<li>To personally enjoy the property without any limitations,</li>\r\n 	<li>To lease the property to any third party and to assign his usufructory rights over the real estate property to third parties. However, the assignment to the usufructory rights shall terminate upon the termination of the assigned usufruct right; and</li>\r\n 	<li>To make useful improvements or expenses for further benefits as the usufructuary deems fit (but without the right to radically change the structure or destroy it).</li>\r\n</ul>\r\nFinally, Article 10 of the New Resolution sets out the obligations of the usufructuary, summarized as follows:\r\n<ul>\r\n 	<li>Upon the expiry of the usufruct lease, the usufruct right will terminate and the foreign investor is to reinstate the property back to the original condition prior to the usufruct commencement, unless agreed otherwise by the usufruct parties.</li>\r\n 	<li>Foreign investors are restricted from disposing of the ownership of the property unless approved by SRERD, provided that the assignment of the usufruct right does not exceed the original usufruct period.</li>\r\n 	<li>Foreign investors are permitted to make any substantial or structural amendments to the property subject to the prior consent of the developer and the competent authorities.</li>\r\n</ul>\r\nArticle 7 of the Resolution provides that upon termination of the usufruct right, the licensed developer shall be entitled to recover the property, annexes and structures built on the land purchased by the usufructuary during the lease term.\r\n\r\n<strong>Is it Usufruct or Musataha? </strong>\r\n\r\nUsufruct is defined as the right to use and utilize a vacant plot, or a building on its present form, without having the right to dispose, reconstruct or demolish the existing building subject the 100 years lease. Whereas, the New Resolution allows the sale of property on a usufruct basis to foreign nationals with the right to construct over the property. In our opinion, the investor is effectively obtaining a Musataha right, Musataha refers to a right in rem conferring upon the owner thereof the right to build a building or to plant on the land of another. Strictly speaking, such arrangement is recognized at law as a Musataha rather than a usufruct right.\r\n\r\n<strong>Conclusion</strong>\r\n\r\nThe New Resolution was issued to augment investment in Sharjah, by offering foreign nationals the opportunity to obtain usufruct rights which can extend up to 100 years. The Property Department at Al Tamimi &amp; Company has worked on the first project which implemented the new usufruct system, which is located in a designated area in Sharjah, and assisted the developer with the drafting of the sale and purchase agreements for the sale of usufruct rights within the project. We are expecting supplementary resolutions and decrees to be issued, identifying the investment areas, and provide further rules in real property ownership for foreign nationals to encourage foreign investors to invest in the real estate market of Sharjah. Should you wish to further discuss the contents of this article, please feel free to contact any member of the Property Department.'),
	(175045,5103,'core_values',''),
	(175046,5103,'_core_values','field_59b64ab071de4'),
	(175047,5103,'file',''),
	(175048,5103,'_file','field_59b64c10f6600'),
	(93954,5103,'_content','field_59b649b5c8b2b'),
	(93955,5103,'lawUpdateArticleMonth','5089'),
	(93956,5103,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93957,5103,'content_description','On 16 November 2014, H.H. Sultan bin Mohammed Al Qasimi, the Crown Prince in the Emirate of Sharjah, issued Executive Council Resolution No. 26 of 2014 Concerning the Usufruct of Real Estate Properties in the Emirate of Sharjah (the “New Resolution”). '),
	(93958,5103,'_content_description','field_59b641c07f473'),
	(93959,5103,'pageSummary','On 16 November 2014, H.H. Sultan bin Mohammed Al Qasimi, the Crown Prince in the Emirate of Sharjah, issued Executive Council Resolution No. 26 of 2014 Concerning the Usufruct of Real Estate Properties in the Emirate of Sharjah (the “New Resolution”).'),
	(93960,5103,'_pageSummary','field_59e59b307dec8'),
	(93961,5103,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/foreigners-can-own-usufruct-right-for-100-years-in-sharjah.html'),
	(93962,5103,'_currentURL','field_59d35123ab1e7'),
	(93963,5103,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Abdullah Khaled'),
	(93964,5103,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(93965,5103,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','a.khaled@tamimi.com'),
	(93966,5103,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(93967,5103,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(93968,5103,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(93969,5103,'lawUpdateArticleNoWriters','1'),
	(93970,5103,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93971,5103,'_yoast_wpseo_metadesc','On 16 November 2014, H.H. Sultan bin Mohammed Al Qasimi, the Crown Prince in the Emirate of Sharjah, issued Executive Council Resolution No. 26 of 2014 Concerning the Usufruct of Real Estate Properties in the Emirate of Sharjah (the “New Resolution”).'),
	(93972,5104,'content','March 2015\r\n\r\n<hr />\r\n\r\n<strong>Introduction</strong>\r\n\r\nThe Law explains the concept of ‘netting’ as a process of terminating, liquidating and/or  accelerating any payment or delivery obligations or entitlements between two parties under one or more qualified financial instruments (as explained below) entered into under a netting agreement or to which a netting agreement applies. This is done by calculating the net balance of close-out values and/or other relevant values in respect of such accelerated and/or terminated payment or delivery obligations or entitlements, either by operation of set-off or otherwise, to form a single value or netted amount payable between the parties. The goal in netting is to eliminate the number of required payments to be made under a series of transactions by offsetting the parties’ respective gains and losses, and provides for the net settlement of all obligations by way of a single currency payment by one party to the other.\r\n\r\nIt is common for jurisdictions with sophisticated financial markets to promulgate specific law to facilitate and provide certainty to netting transactions. The initiative on the part of the DIFC to implement a legal framework for netting is beneficial for banks and financial institutions that already frequently undertake various netting transactions. In the context of credit and operational risks, netting plays a vital role in mitigating the risks in the event of a “close out” (i.e. performance of an obligation following the occurrence of insolvency or an event of default as specified in the relevant agreement or agreements, including automatic termination and netting of all financial transactions between the parties). The DIFC becoming a netting-friendly jurisdiction means less capital exposure on the participants as payment will be calculated on a net basis rather than being grossed up for each individual transaction, and greater enforceability of the collateral arrangement in the event of a close-out. This should lead to an increase of business transactions in the DIFC.\r\n\r\n<strong>Application of the Law</strong>\r\n\r\nThe provisions of the Law apply to any qualified financial instrument, netting agreement or collateral arrangement (including any title transfer collateral arrangement) which is governed by DIFC law or which is entered into by a person incorporated or registered in the DIFC, irrespective of the date on which such qualified financial instrument, netting agreement or collateral arrangement was entered into. This wording suggests that the Law could be applied  retroactively to qualified financial instrument, netting agreement or collateral arrangement entered into prior to enactment of the Law.\r\n\r\nThe new Law sets out the following relevant concepts in relation to netting in the DIFC:\r\n\r\n(A)   Qualified Financial Instrument\r\n\r\nThe Law defines a “qualified financial instrument” as any financial agreement, contract or transaction pursuant to which payments or obligations are to be performed, or titles to certain commodities or assets are to be transferred, for consideration at certain agreed time or within a certain period of time whether or not subject to any condition or contingency, or pursuant to which obligations to make payments or deliveries or title transfer over commodities or assets are to be entered into or incurred.\r\n\r\nThe Law provides a non-exhaustive list of qualified financial instruments that derive value from underlying assets or commodities including, but not limited to, any asset such as currency, equity, index, interest rate, bond or debt security index, property index, and other forms of derivative products. Qualified financial instruments would also cover (without limitation) spot, future, forward or other securities or commodities transaction, commodities contract (i.e. commodities repurchase or reverse repurchase agreement, a commodities lending agreement or a commodities buy/sell back agreement), collateral agreement and/or any agreement, contract or transaction designated as such by the Dubai Financial Services Authority (DFSA), by written and published notice.\r\n\r\nNote that a qualified financial instrument will not include insurance or reinsurance contracts entered into by companies as part of their insurance business.\r\n\r\nIt is also interesting to note that Article 7 of the Law confirms that a qualified financial instrument will not be deemed void or unenforceable by reason of being, or having the characteristics of, a wager, lottery, gambling or gaming contract.  It may be noted that the UAE Penal Code which applies in the DIFC penalises any form of gambling or wagering in the UAE.  The enactment of the Law may alleviate the risk of any netting provision under any qualified financial instrument, netting agreement or collateral arrangement being characterised as gambling or wagering, however, this remains untested at present.\r\n\r\n(B)   Netting Agreement\r\n\r\nFor purposes of the Law, a netting agreement means:\r\n<ul>\r\n 	<li>any agreement between two parties that provides for netting of present or future payment or delivery of obligations or entitlements or obligations to make, receive or require payments or deliveries arising under or in connection with one or more qualified financial instruments entered into by the parties pursuant to a ‘master agreement’;</li>\r\n 	<li>any master agreement between two parties that provides for netting of the amounts due under two or more master netting agreements (i.e. a ‘master-master netting agreement’); and</li>\r\n 	<li>any collateral arrangement related to or forming part of one or more agreements referred to in paragraph (1) and (2) above.</li>\r\n</ul>\r\n(C)      Collateral Arrangement\r\n\r\nThe application of netting in accordance with the Law extends to any margin, collateral or security arrangement or other credit enhancement related to or forming part or a netting agreement or one or more qualified financial instruments entered into by the parties or to which a netting agreement applies, including but not limited to the following:\r\n<ul>\r\n 	<li>pledge, mortgage, charge or any other form of security interest or collateral, whether possessory or non-possessory;</li>\r\n 	<li>title transfer collateral arrangement; and</li>\r\n 	<li>(any guarantee, letter of credit or reimbursement obligation by or to a party in respect of one or more qualified financial instruments.</li>\r\n</ul>\r\nUnder the Law the realisation, appropriation and/or liquidation of collateral under a collateral arrangement shall take effect without any requirement of prior notice and consent between the parties unless otherwise agreed by them, and provided that such realisation, appropriation and/or liquidation of collateral is carried out in a commercially reasonable manner.\r\n\r\n<strong>Enforceability of Netting in Insolvency</strong>\r\n\r\nThe Law provides that it shall prevail in case of any conflict between the provisions of the Law and the DIFC Insolvency Law of 2009 or the Insolvency Regulations (excluding Section 7 (Financial Markets) of the Insolvency Regulations).\r\n\r\nPursuant to the Law the provisions of a netting agreement will be enforceable in accordance with its terms, including against an insolvent party, and where applicable, against a guarantor or any person providing security for the insolvent party. The provisions of a netting agreement will not be stayed, avoided or otherwise limited by:\r\n<ul>\r\n 	<li>the appointment of, or an application for the appointment of, a liquidator, or any action of a liquidator;</li>\r\n 	<li>any provision of law relating to bankruptcy, liquidation (including compulsory winding up proceeding), reorganisation, composition with creditors, receivership, conservatorship or any other insolvency proceeding to which a party to a netting arrangement may be subject; or</li>\r\n 	<li>any other provision of a law that may be applicable to an insolvent party.</li>\r\n</ul>\r\nThe Law confirms the effectiveness and enforceability of a netting agreement following the commencement of insolvency proceedings in relation to a party thereto. Notwithstanding the occurrence of any insolvency proceeding to which a party may be subject, the obligation of that party to make payments or deliveries under a qualified financial instrument, or to a transaction to which a netting agreement applies, will take effect in accordance with the terms thereof.\r\n\r\nThe Law further stipulates that the provisions of a netting agreement will not be affected by any applicable law limiting or prohibiting the exercise of the right to set off or net out obligations or payment of any such netted value between an insolvent party and the non-insolvent party. Therefore the Law permits set off even after one party to a netting agreement has been declared insolvent.\r\n\r\n<strong>Limitation on the powers of a Liquidator</strong>\r\n\r\nThe Law gives further preference to a party to whom payment is due under a netting transaction by limiting the powers of a liquidator in any insolvency proceeding to assume or repudiate contracts, transactions, claims or obligations in such a way that such powers will not prevent the close-out netting process under one or more qualified financial instruments or to which a netting agreement applies. The liquidator’s powers will only apply after the netting agreement has been given effect in accordance with its terms.\r\n\r\nMoreover the Law limits the liquidator’s ability to avoid, or render ineffective, certain payments, obligations or transactions of an insolvent party in the absence of clear and convincing evidence that the insolvent party made such payment, transfer, delivery, substitution or exchange or incurred such obligation or entered into such transaction with actual intent to deprive or defraud any person or other creditors of such insolvent party.\r\n\r\n<strong>Preemption </strong>\r\n\r\nThe Law provides that no stay, injunction, moratorium or similar order or proceeding issued by a court, administrative agency, liquidator or otherwise, shall limit or delay the application or performance of a netting agreement and the transactions contemplated there under or to which an otherwise enforceable netting agreement applies.\r\n\r\n<strong>Conclusion</strong>\r\n\r\nThe Law bolsters the effectiveness of a netting provision in any qualified financial instrument, or netting agreement that includes a collateral arrangement, and recognises the enforceability of such arrangement in the event of insolvency of a party. Its enactment has made DIFC a netting jurisdiction on par with other leading jurisdictions with sophisticated financial markets around the globe. The Law once again reaffirms the status of the DIFC as the leading financial hub in the region and underpins its objective to provide an attractive business environment in the regional financial market.\r\n\r\nCherry Ann Turcal is a member of the Banking and Finance Department in Al Tamimi &amp; Company’s DIFC office.'),
	(175011,5104,'core_values',''),
	(175012,5104,'_core_values','field_59b64ab071de4'),
	(175013,5104,'file',''),
	(175014,5104,'_file','field_59b64c10f6600'),
	(175015,5104,'orderValue4','4'),
	(93973,5104,'_content','field_59b649b5c8b2b'),
	(93974,5104,'lawUpdateArticleMonth','5089'),
	(93975,5104,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93976,5104,'content_description','On 14 December 2014 the DIFC Law No. 2 of 2014, or the “Netting Law of 2014” (the “Law”), came into force as a law in the Dubai International Financial Centre (“DIFC”) following its enactment on 7 December 2014 by His Highness Mohammed bin Rashid Al Maktoum, Ruler of Dubai.'),
	(93977,5104,'_content_description','field_59b641c07f473'),
	(93978,5104,'pageSummary','On 14 December 2014 the DIFC Law No. 2 of 2014, or the “Netting Law of 2014” (the “Law”), came into force as a law in the Dubai International Financial Centre (“DIFC”) following its enactment on 7 December 2014 by His Highness Mohammed bin Rashid Al Maktoum, Ruler of Dubai.'),
	(93979,5104,'_pageSummary','field_59e59b307dec8'),
	(93980,5104,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/march-8/the-difc-netting-law.html'),
	(93981,5104,'_currentURL','field_59d35123ab1e7'),
	(93982,5104,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Cherry Turcal'),
	(93983,5104,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(93984,5104,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','c.turcal@tamimi.comu'),
	(93985,5104,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(93986,5104,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(93987,5104,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(93988,5104,'lawUpdateArticleNoWriters','1'),
	(93989,5104,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93990,5104,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','411'),
	(93991,5104,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(93992,5104,'lawUpdateArticlePractices','1'),
	(93993,5104,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(93994,5104,'_yoast_wpseo_metadesc','On 14 December 2014 the DIFC Law No. 2 of 2014, or the “Netting Law of 2014” (the “Law”), came into force as a law in the Dubai International Financial Centre (“DIFC”) following its enactment on 7 December 2014 by His Highness Mohammed bin Rashid Al Maktoum, Ruler of Dubai.'),
	(93995,5105,'content','March 2015\r\n\r\n<hr />\r\n\r\nThere have also been several drafts available for discussion. One draft came in with aggressive changes whereby the entire law was revamped and a totally new draft was presented. Another draft had major amendments and the third draft had only a facelift to the existing law.\r\n\r\nCurrently the Commercial Companies Law provides all the legal rules for the establishment of commercial companies, public companies (in conjunction with ESCA), and branches of foreign companies (or representative offices) in the UAE.\r\n\r\nWe understand that the new Commercial Companies Law is now in its final stage prior to being enacted by the UAE Federal Government. It looks like the UAE, rather than having to go through the process of revamping the entire law (which would have taken too long to achieve) has settled on amending and adding new provisions. The new law seeks to remedy issues which were problematic in its implementation under the older law, and to introduce new ideas.\r\n\r\nOne of the new ideas that is likely to be introduced by the law is that of allowing one person to own a limited liability company (“LLC”). Currently a minimum of two persons are needed to own an LLC established in the UAE and it has not been possible, other than in some free zones, to establish an LLC owned by one individual or one entity.\r\n\r\nMy understanding is that the UAE National Assembly has raised a few concerns about the existing draft but it is likely that the law will be enacted and if any changes are to be made to the law, it will be made as further amendments in the future. The Federal Government is keen to enact this law to deal with a number of urgent issues that are present in the existing law.\r\n\r\nAs regards the implementation of the law, there will still need to be cooperation between the Ministry of Economy (representing the Federal Government) and the Department of Economic Development in the concerned Emirate.\r\n\r\nHowever, almost the entire responsibility and jurisdiction for licensing and overseeing public companies, and to some extend private joint stock companies, has been given to ESCA. There will only need to be limited cooperation on the subject of trade name approval and activity approval with the Ministry of Economy and the Department of Economic Development in the concerned Emirate.\r\n\r\nA key question which always comes up is whether the UAE will allow foreigners to own more than 49% of a company incorporated in the UAE. This however will remain unchanged. Currently under the UAE Commercial Companies Law a foreigner can only own maximum of 49% of locally incorporated company, apart from companies incorporated in a free zone in which they can own 100%. However, free zone companies cannot trade within the United Arab Emirates and are limited to the areas within the free zone or trading with other countries.\r\n\r\nThere has been discussion on whether to allow foreigners to own a percentage higher than 49%, however the general attitude of the Federal Government towards this is to leave this matter to be regulated by another law - the Investment Law - which is currently being discussed by the Federal Government and is available in draft. The law does however provide an article which entitles the Federal Cabinet Ministers to exempt certain companies from the 51:49 arrangement and so it may be foreigners, in certain circumstances and upon the approval of the Cabinet of Ministers, can be granted the ability to own more than 49%. This can to be done by submitting an application to the Cabinet of Ministers and it is likely that in due course a process will be provided for such applications to be granted or rejected. It is likely permission will only be granted in exceptional limited circumstances.\r\n\r\nThere has not been much change in the setting up of branches of foreign companies or representative offices. Both still require a sponsor, or what they call a local agent, to license foreign companies to be established in the UAE. However the law emphasizes the exclusive jurisdiction of the Ministry of Economy and Commerce at the Federal level for license approval and renewal of branch of foreign companies. Currently most of the branch offices, unless given an exception from the Executive Office, are limited in their activities of promotion and representation, and no trading right is granted to branch offices. It is argued that from the new draft law it may be possible for the Ministry of Economy and the Executive Office at the relevant Emirates to grant certain branch offices the right to trade. This however, is not yet clear and if granted it is likely to be in very limited circumstances.\r\n\r\nThe law has provided more stringent and transparent requirements for accounting, corporate governance and the auditing process. This will apply to all companies, including limited liability companies. It is clear from the law that the legislator is intending to tighten the supervision and the accounting standards of companies throughout the UAE and provide for better corporate governance to an international level.\r\n\r\nOf course, companies and branch of foreign companies continue to benefit from the UAE’s no tax environment, and no tax or extra fees or charges will be levied on local companies or branches of foreign companies.\r\n\r\nThe law is expected to be enacted within the United Arab Emirates shortly and possibly before the summer of 2015. There are no major changes that current operating companies need to comply with or any deadlines to meet. It should prove to be a welcome revision of the UAE Commercial Companies Law.\r\n<div></div>'),
	(174979,5105,'core_values',''),
	(174980,5105,'_core_values','field_59b64ab071de4'),
	(174981,5105,'file',''),
	(174982,5105,'_file','field_59b64c10f6600'),
	(174983,5105,'orderValue4','4'),
	(48771,2674,'_wp_attached_file','uploads/media-2673.jpg'),
	(48772,2674,'_wp_attachment_metadata','a:5:{s:5:\"width\";i:100;s:6:\"height\";i:133;s:4:\"file\";s:22:\"uploads/media-2673.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:{}}}'),
	(93558,5082,'_content','field_59b649b5c8b2b'),
	(93559,5082,'lawUpdateArticleMonth','5067'),
	(93560,5082,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(93561,5082,'content_description','A recent decision from Qatar’s highest court, the Court of Cassation, may prove to have significant implications on doing business in Qatar. '),
	(93562,5082,'_content_description','field_59b641c07f473'),
	(93563,5082,'pageSummary','A recent decision from Qatar’s highest court, the Court of Cassation, may prove to have significant implications on doing business in Qatar.'),
	(93564,5082,'_pageSummary','field_59e59b307dec8'),
	(93565,5082,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-11/february-7/decision-to-allow-gcc-companies-to-conduct-business-in-qatar-without-a-qatari-partner.html'),
	(93566,5082,'_currentURL','field_59d35123ab1e7'),
	(150683,5082,'lawUpdateArticleNoWriters',''),
	(150684,5082,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(93569,5082,'lawUpdateArticleWriters','1'),
	(93570,5082,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(93571,5082,'_yoast_wpseo_metadesc','A recent decision from Qatar’s highest court, the Court of Cassation, may prove to have significant implications on doing business in Qatar.'),
	(93572,5083,'content','February 2015\r\n\r\n<hr />\r\n<p class=\"MsoNormal\">As with the Dubai International Financial Centre (“<strong>DIFC</strong>”) ADGM will be a special free zone and will operating as a new jurisdiction carved out of the UAE and will not be subject to UAE civil and commercial law. English common law shall apply in and form part of the law of ADGM, with appropriate safeguards in order to ensure that any undesirable evolvement of the common law may be overridden by ADGM. This was not unexpected as it was commonly felt that ADGM would create a familiar legal environment for international banks and financial institutions.</p>\r\n<p class=\"MsoNormal\">From an employment perspective the Regulations closely follow those of the DIFC and as such differ in a number of significant areas from the UAE position (which we refer to as ‘onshore’ in this article).</p>\r\n<p class=\"MsoNormal\"><strong>The Key Points</strong></p>\r\n<p class=\"MsoNormal\"><strong>Overtime.</strong> The Regulations stipulate that the maximum working week is 48 hours “<em>unless the Employer has first obtained the Employee’s consent in writing</em>”. One would anticipate that employers would obtain this consent via the employment contract signed at the commencement of the relationship when the employee is unlikely to challenge it. There is no provision for overtime payment for hours worked in excess of 48 hours.</p>\r\n<p class=\"MsoNormal\"><strong>Annual leave.</strong> Employees are entitled to 20 working days annual leave (as opposed to 22 working days onshore) and are allowed to carry forward up to 20 working days into the next calendar year.</p>\r\n<p class=\"MsoNormal\"><strong>Maternity Leave</strong>. Employees are entitled to a minimum maternity leave of 65 working days of which the first 33 days are fully paid and the balance is paid at 50% normal rate. This contrasts with the onshore provision which is 45 calendar days paid maternity leave (which equates to 32 working days for those on a 5 day week).</p>\r\n<p class=\"MsoNormal\"><strong>Sick Leave.</strong> The very generous DIFC sick leave provisions are replicated in ADGM. An employee is entitled to 60 working days paid sick leave in any 12 month period. This contrasts with the onshore position where an employee is entitled to 90 calendar days sick leave (equating to 66 working days on a 5 day week basis) of which only one third is paid.</p>\r\n<p class=\"MsoNormal\"><strong>Discrimination.</strong> The Regulations prohibit an employer from discriminating against an employee on the grounds of sex, marital status, race, nationality, religion and mental/physical disability. However, in its draft form, the Regulations do not set out the remedies or potential penalties for acting in breach of these provisions or indeed any other provisions within the Regulations. ADGM has invited comments in relation to the best approach to deal with this aspect so presumably in its final form the Regulations will contain further detail.</p>\r\n<p class=\"MsoNormal\"><strong>Data Protection</strong>. There are minimal data protection requirements imposed on employers to ensure that employees’ data is (i) processed fairly, lawfully and securely, (ii) obtained and processed only for specified and lawful purposes, (iii) not excessive, (iv) accurate, and (v) not kept longer than necessary.</p>\r\n<p class=\"MsoNormal\"><strong>Probation period</strong>. An employer may place an employee on an initial probation period of 3 months which is extendable by another 3 months. This differs slightly from the onshore position (one period up to 6 months) and DIFC (which is silent on the issue of probationary periods albeit that they are routinely used).</p>\r\n<p class=\"MsoNormal\"><strong>Paternity Leave.</strong> For the first time in the UAE private sector, paternity leave of 5 working days is provided to employees in ADGM.</p>\r\n<p class=\"MsoNormal\"><strong>Right to a written contract.</strong> Employees may only be employed pursuant to a written contract which must be in English and signed by both parties. The contract must contain certain fundamental pieces of information such as salary, term, notice period, job title and so on.</p>\r\n<p class=\"MsoNormal\"><strong>End of service gratuity</strong> is calculated the same way as onshore however there is no reduction in gratuity where an employee with less than 5 years service resigns. Gratuity is not payable in cases of gross misconduct or where the employee elects to take a company pension instead.</p>\r\n<p class=\"MsoNormal\"><strong>Termination</strong></p>\r\n<p class=\"MsoNormal\">Significantly, there is no provision for compensation for unfair dismissal nor is there a requirement for an employer to follow established procedures for implementing dismissals. From an employer’s perspective this is highly attractive in that it obviously reduces liability and due process concerns.</p>\r\n<p class=\"MsoNormal\">Perhaps in an effort to provide a counter-balance for employees the minimum notice periods in ADGM are more generous for longer serving employees than onshore. For employees with 3 months to 5 years service the minimum notice is 30 days and for those with over 5 years service it is 90 days. The onshore equivalent is 30 days.</p>\r\n<p class=\"MsoNormal\">The employer may terminate for cause (without notice and without end of service gratuity) if the employee’s conduct is such that “<em>a reasonable employer would consider immediate termination to be warranted</em>”.</p>\r\n<p class=\"MsoNormal\"><strong>Post Termination Restrictions</strong></p>\r\n<p class=\"MsoNormal\">The effectiveness of post termination restrictions in the UAE has been debated for some time. Non-compete and non-solicitation clauses will potentially have more bite within ADGM in that the equitable remedy of injunctive relief should be available in the ADGM courts.  This will have the effect of potentially blocking a departing employee from securing employment with a competitor within ADGM until such time as the non compete is no longer applicable. It would also be open to an employer to claim damages for breach of these clauses. It will be interesting to see the interplay between the DIFC and ADGM jurisdictions on this front and whether either jurisdiction would enforce the restrictive covenant emanating from the other.</p>\r\n<p class=\"MsoNormal\"><strong>Employment Disputes</strong></p>\r\n<p class=\"MsoNormal\">It is proposed that a dedicated employment tribunal system will be established to deal with all employment cases arising in ADGM with its own discrete procedural rules. This should ensure that those adjudicating on employment disputes are specialised and experienced in that field, resulting in just outcomes and efficient case management which can only benefit employers and employees. The draft procedural rules will be submitted for public consultation in a similar manner to the Regulations. Prior to the establishment of that system the ADGM courts will handle any employment disputes.</p>\r\n<p class=\"MsoNormal\"><strong>Regulatory Transition</strong></p>\r\n<p class=\"MsoNormal\">One aspect of ADGM is the creation of a new jurisdiction but another aspect is the formation of a new regulatory body. Most employers currently based in the geographical area that will become ADGM are subject to the remit of the Ministry of Labour (“<strong>MOL</strong>”). Their employees have labour cards (work permits) and the employer is subject to MOL inspection and oversight. (There are some government owned entities in the area that are not under the remit of the MOL).</p>\r\n<p class=\"MsoNormal\">When the free zone is operational a transition process will occur whereby employers will get licensed by the ADGM free zone authority (“<strong>FZA</strong>”) and the employees will shift from onshore visas to free zone visas. From an employment law perspective this is a termination of one employment and commencement of another. Employers will need to consider how to deal with accrued benefits like end of service gratuity and annual leave. It is expected that most employers will seek to ‘roll over’ these accrued benefits to the new employment, which may be done subject to the correct agreements being in place.</p>\r\n<p class=\"MsoNormal\">Dependent visas will also have to be cancelled and reissued. Currently it is necessary to produce an Abu Dhabi tenancy contract to obtain a dependent visa in Abu Dhabi (but not for the employee’s visa) and it is not clear yet whether this will change under the new regime.</p>\r\n<p class=\"MsoNormal\">From an employer’s perspective the FZA will replace the MOL as the regulatory and oversight body. Generally speaking free zones are considered to be more relaxed about providing permission for hybrid working arrangements and short term working arrangements.</p>\r\n<p class=\"MsoNormal\">Most free zones have a mediation process (with differing levels of formality) that must be exhausted by the parties to an employment dispute before a party can file a case in court and it remains to be seen whether this is followed in ADGM.</p>\r\n<p class=\"MsoNormal\"><strong>UAE nationals</strong></p>\r\n<p class=\"MsoNormal\">There are explicit onshore requirements regarding the termination of UAE national employees- specifically the MOL must be consulted at least 30 days prior to the proposed dismissal of a UAE national and its approval for the dismissal must be obtained. These requirements will not apply in ADGM. The same considerations will apply in respect of nationals and non-nationals.</p>\r\n<p class=\"MsoNormal\"><strong>Emiratisation</strong></p>\r\n<p class=\"MsoNormal\">Certain onshore Ministerial Resolutions stipulate that a percentage (which varies between certain sectors) of a company’s workforce should be UAE nationals. There is presently no such requirement in ADGM.</p>\r\n<p class=\"MsoNormal\"><strong>Conclusion</strong></p>\r\n<p class=\"MsoNormal\">The Regulations are very employer friendly in that there is no provision for unfair dismissal compensation and employers are not required to follow established procedures for implementing dismissals. Furthermore the prospect of obtaining injunctive relief to enforce post termination restrictions is likely to be attractive to employers. The working hour arrangements, which oftentimes can represent a challenge for onshore employers, are also quite flexible.</p>\r\n<p class=\"MsoNormal\">From the employee perspective there are anti-discrimination and data protection provisions as well as more generous sick leave, maternity leave and also, for the first time in the UAE private sector, paternity leave. Furthermore there is no reduced gratuity where the employee resigns.</p>\r\n<p class=\"MsoNormal\">Overall the Regulations are likely to be welcomed by employers and without doubt they send out a powerful message that ADGM is open for business.</p>\r\n<p class=\"MsoNormal\">ADGM has invited comments from interested parties in relation to the Regulations. Al Tamimi &amp; Co held a client workshop to discuss the Regulations with a view to obtaining valuable front line feedback and will be submitting comments to ADGM. Thereafter we expect to see the final regulations published and will be in a position to provide an update at that time.</p>'),
	(175635,5083,'core_values',''),
	(175636,5083,'_core_values','field_59b64ab071de4'),
	(100938,5488,'content_description','Subject to the issuance of the formal enactment notice, the Dubai International Financial Centre (“DIFC”) will soon have a new electronic transactions law, DIFC Law No. 2 of 2016, the DIFC Electronic Transactions Law. '),
	(100939,5488,'_content_description','field_59b641c07f473'),
	(100940,5488,'pageSummary','Subject to the issuance of the formal enactment notice, the Dubai International Financial Centre (“DIFC”) will soon have a new electronic transactions law, DIFC Law No. 2 of 2016, the DIFC Electronic Transactions Law. '),
	(100941,5488,'_pageSummary','field_59e59b307dec8'),
	(100942,5488,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/october-6/a-new-electronic-transactions-law-in-the-difc.html'),
	(100943,5488,'_currentURL','field_59d35123ab1e7'),
	(100944,5488,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','893'),
	(100945,5488,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(100946,5488,'lawUpdateArticleWriters','1'),
	(100947,5488,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(100948,5488,'_yoast_wpseo_metadesc','Subject to the issuance of the formal enactment notice, the Dubai International Financial Centre (“DIFC”) will soon have a new electronic transactions law, DIFC Law No. 2 of 2016, the DIFC Electronic Transactions Law.'),
	(100949,5489,'content','<p class=\"p1\">Amongst various responsibilities, the DIFC Commissioner is charged with promoting, amongst data controllers in the DIFC, good practices and observance of the requirements of the DIFC Data Protection Law, and promoting greater awareness and public understanding of data protection. These activities can broadly be understood as the supervisory role of the DIFC Commissioner.</p>\r\n<p class=\"p1\"><span class=\"s1\"> In performing its supervisory role, the DIFC Commissioner balances the need to educate the DIFC community about data protection compliance with the practical reality of limited personnel and resources. Over the last few years, the DIFC Commissioner has performed this aspect of its role by way of various relatively low-profile exercises, including ‘supervisory visits’ and ‘notices to produce’. </span></p>\r\n<p class=\"p1\">The ‘supervisory visit’ scenario typically involves the DIFC Commissioner approaching entities licensed in the DIFC in order to arrange for a meeting at an appointed date. These meetings provide an opportunity for the review of documentation and processes relating to the processing of personal data, and appear more likely to be about ensuring a culture of awareness and compliance than being deeply forensic or judicial in nature.</p>\r\n<p class=\"p1\">The types of topics that the DIFC Commissioner might expect to address during a supervisory visit include:</p>\r\n<p class=\"p2\"></p>\r\n\r\n<ul>\r\n 	<li>a general description of the entity, the number of staff, locations in which it operates, and its area of business;</li>\r\n 	<li>details of the class of personal data the entity processes, the types of data subjects to which such data relates, and the purposes for which it is processed;</li>\r\n 	<li>details of the entity’s data protection policies and procedures (including aspects such as the level of security applied, whether disclosure is consistent with the purpose for which personal data was collected, and whether there are procedures for keeping personal data up-to-date);</li>\r\n 	<li>an explanation of any data protection training given to personnel, along with information on training materials and records of training conducted;</li>\r\n 	<li>details of any periodic reviews and audits of personal data held, to assist in complying with obligations under the DIFC Data Protection Law;</li>\r\n 	<li>details relating to the transfer of personal data to other jurisdictions outside the DIFC, and the grounds upon which such transfers are based; and</li>\r\n 	<li>any other background material that might be appropriate to demonstrate the entity’s compliance with the DIFC Data Protection Law.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p1\"><span class=\"s2\">In contrast to the supervisory visit approach, the ‘notice to produce’ scenario involves the DIFC Commissioner approaching entities licensed in the DIFC and directing them to provide greater detail on the substance of their data processing activities. In the past, this has involved what could broadly be described as a ‘bulk mail out’, whereby a significant number of entities (anecdotal reports indicate more than 100 in February 2016) received such letters, specifying a deadline by which they were required to provide a substantive response. </span></p>\r\n<p class=\"p1\">In both the supervisory visit scenario, and the notice to produce scenario, entities approached by the DIFC Commissioner often wonder why they have been singled out for attention. While we cannot be certain how the DIFC Commissioner identifies appropriate targets, the most obvious explanation appears to be irregularities with the content of the notifications previously filed by such entities with the DIFC Commissioner. (The filing of a notification of personal data processing activities is a requirement of all entities licensed in the DIFC, and this needs to occur at the time of initial licensing and at the time of each subsequent renewal, as well as at any time in the interim when the manner of processing changes from that already notified.)</p>\r\n<p class=\"p1\">Anecdotally, it would seem that the entities that received ‘notices to produce’ were entities that had previously advised the DIFC Commissioner, via their annual data processing notifications, that they were not processing any personal data in the course of their activities. (The likelihood of an entity not processing any personal data is very limited, so a ‘negative’ notification would likely benefit from closer scrutiny.) In the case of entities who were the targets of ‘supervisory visits’ by the DIFC Commissioner, such entities also appear to have had discrepancies in the content of their notifications that resulted in greater scrutiny being applied.</p>\r\n<p class=\"p1\"><span class=\"s2\"> There is a legal obligation on entities licensed in the DIFC to comply with the DIFC Data Protection Law. The ‘risk’ of coming to the attention of the DIFC Commissioner should not be the driver for compliance with the law, but in practical terms the DIFC Commissioner’s supervisory activities may well be a catalyst for many DIFC entities to review their data protection compliance obligations and make sure that everything is in order. The reality is that DIFC data protection notifications are, in many instances, not given appropriate attention and treated simply as a ‘box ticking’ exercise. We are aware of instances where poorly considered notifications have simply been renewed annually without any further thought.</span></p>\r\n<p class=\"p1\">To ensure compliance, we recommend that all entities operating in the DIFC undertake a full audit of their own personal data processing operations so as to ensure that they are compliant with DIFC Data Protection Law requirements, including with regard to the substance of their activities and with regard to the official notification that needs to be filed with the DIFC Commissioner.</p>\r\n<p class=\"p1\">The DIFC Data Protection Law provides for significant penalties for non-compliance. While the DIFC Commissioner appears, to date, to have been generous in focussing on developing a culture of awareness, there can be no guarantees that failure to comply will not result in penalties in appropriate circumstances.</p>\r\n<p class=\"p1\"><span class=\"s2\"> The Abu Dhabi Global Market (“ADGM”) has only recently been established, and the ADGM Data Protection Regulations only came into effect in October 2015. In this context, the ADGM Registrar is still at a very early stage in establishing processes, but in due course we would expect that it will also become active in ensuring that ADGM licensees comply with the data protection obligations imposed on them pursuant to the ADGM Data Protection Regulations.</span></p>\r\n<p class=\"p4\"></p>\r\n<p class=\"p5\">Al Tamimi &amp; Company’s Technology, Media &amp; Telecommunications team regularly advises on data and data protection issues throughout the Middle East, including in the Dubai International Financial Centre, the Abu Dhabi Global Market and Dubai Healthcare City. For further information please contact Nick O’Connell (n.oconnell@tamimi.com) or Sana Saleem (s.saleem@tamimi.com).</p>'),
	(212129,5489,'core_values',''),
	(212130,5489,'_core_values','field_59b64ab071de4'),
	(212131,5489,'file',''),
	(212132,5489,'_file','field_59b64c10f6600'),
	(212133,5489,'orderValue4','4'),
	(100950,5489,'_content','field_59b649b5c8b2b'),
	(100951,5489,'lawUpdateArticleMonth','5479'),
	(100952,5489,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100953,5489,'content_description','Recent activity by the Dubai International Financial Centre (“DIFC”) Commissioner of Data Protection (the “DIFC Commissioner”) has attracted attention and caused DIFC licensed entities to review their own personal data processing operations and revisit their DIFC data protection compliance obligations. '),
	(100954,5489,'_content_description','field_59b641c07f473'),
	(100955,5489,'pageSummary','Recent activity by the Dubai International Financial Centre (“DIFC”) Commissioner of Data Protection (the “DIFC Commissioner”) has attracted attention and caused DIFC licensed entities to review their own personal data processing operations and revisit their DIFC data protection compliance obligations. '),
	(100956,5489,'_pageSummary','field_59e59b307dec8'),
	(100957,5489,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/october-6/supervisory-visits-by-the-difc-commissioner-of-data-protection.html'),
	(100958,5489,'_currentURL','field_59d35123ab1e7'),
	(100959,5489,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','893'),
	(100960,5489,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(100961,5489,'lawUpdateArticleWriters','1'),
	(100962,5489,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(100963,5489,'_yoast_wpseo_metadesc','Recent activity by the Dubai International Financial Centre (“DIFC”) Commissioner of Data Protection (the “DIFC Commissioner”) has attracted attention and caused DIFC licensed entities to review their own personal data processing operations and revisit their DIFC data protection compliance obligations.'),
	(100964,5490,'content','<ul>\r\n 	<li>list a set of new corporate governance rules in accordance with, and to adhere to, the Federal Law No. (2) of 2015 on Commercial Companies (CCL); and</li>\r\n 	<li>repeal the UAE Ministerial Resolution No. (518) of 2009 Concerning Governance Rules and Corporate Discipline Standards (Repealed Governance Rules).</li>\r\n</ul>\r\n<p class=\"p4\">New provisions were also introduced under the New Governance Rules, that did not exist under the Repealed Governance Rules, such as the provisions related to Insiders Register, Confidentiality of Data &amp; Information, Conflict of Interest, Register of Related Parties, General Assembly Meetings, Capital Increase, Dividends Distribution, Investors Relation, and Obligations of the Auditor.</p>\r\n<p class=\"p1\">The purpose of this article is to compare the New and Repealed Governance Rules and highlight some of the provisions that we consider would benefit from clarification from SCA in relation to the following:</p>\r\n<p class=\"p5\"></p>\r\n\r\n<ul>\r\n 	<li>Definitions;</li>\r\n 	<li>Scope of Application and Enforcement; and</li>\r\n 	<li>Parent, Subsidiary and Allied Companies.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p7\">It is worth mentioning that any capitalised terms shall have the same meaning to those mentioned in the New Governance Rules.</p>\r\n<p class=\"p7\"><strong>Definitions</strong></p>\r\n<p class=\"p7\">In addition to the reference of the CCL, the New Governance Rules introduced the following new definitions that were not defined under the Repealed Governance Rules:</p>\r\n<p class=\"p9\"><em>“</em><strong><em>State</em></strong><em>”: The United Arab Emirates</em></p>\r\n<p class=\"p9\"><em> </em><em>“</em><strong><em>Government</em></strong><em>”: The Federal Government or any of UAE’s governments member to the federation in addition to any authority, entity, council, institution, body or public company wholly owned by any of them whether directly or indirectly.</em></p>\r\n<p class=\"p11\"><em>“</em><strong><em>Senior Executive Management</em></strong><em>”: The company’s executive management, including the general manager, executive director, chief executive officer, and managing director authorized by the Board Members to manage the Company, and their delegates.</em></p>\r\n<p class=\"p11\"><em>“</em><strong><em>Deals</em></strong><em>”: Transactions, contracts or agreements entered into by a public joint stock company that is listed in the market and do not fall under the main activity of such company or by way of including preferential terms that are not usually granted by the company to its clients, in addition to any other deals to be specified by SCA from time to time by virtue of a resolution, instruction or circulation issued thereby.</em></p>\r\n<p class=\"p11\"><em>“</em><strong><em>Remuneration</em></strong><em>”: The amounts received by the Company’s staff, employees or Board Members from the Company; i.e. salaries, bonuses, attendance bonus, transportation allowance, or any other allowances, benefits, and the like.</em></p>\r\n<p class=\"p1\">Other definitions had some amendments such as:</p>\r\n<p class=\"p10\"><em>“</em><strong><em>Executive Board Member</em></strong><em>”: Even though it may seem that the difference between the old and new definitions is immaterial, the new definition requires the Board Member to hold a position at the Company and to receive a monthly or annual salary from the Company to be considered as an Executive Board Member while the old definition requires either of them. Practically speaking, a Board Member shall not receive a salary from the Company unless he holds an executive position within the company to manage it.</em></p>\r\n<p class=\"p4\"><em>“</em><strong><em>Independent Board Member</em></strong><em>”: The new definition removed any reference to the disclosure obligations on the relatives of a Board Member towards the Company. The new definition has also referred the conditions under which a Board Member shall not be construed as an Independent Board Member to a separate article (Article 45) in the New Governance Rules while in the Repealed Governance Rules such conditions were listed in the definition itself.</em></p>\r\n<p class=\"p4\"><em>“</em><strong><em>Relatives</em></strong><em>”: The new definition added brothers and sisters to the definition of relatives.</em></p>\r\n<p class=\"p7\">On a further note, the definitions of “Parent Company”, “Subsidiary” and “Allied Company” were significantly amended as illustrated later in this article.</p>\r\n<p class=\"p1\"><span class=\"s2\"> As for the remaining definitions, they either have exactly the same meaning given to the terms defined under the Repealed Governance Rules or the meaning is substantially similar.</span></p>\r\n<p class=\"p8\"><span class=\"s1\"><strong>Scope of Application and Enforcement</strong></span></p>\r\n<p class=\"p7\">The New Governance Rules made it clear under Article 2 that the rules are subject to the provisions of the:</p>\r\n<p class=\"p2\"></p>\r\n\r\n<ul>\r\n 	<li>the CCL;</li>\r\n 	<li>Federal Law No. 10 of 1992 on Evidence in Civil and Commercial Transactions (“Evidence Law”); and</li>\r\n 	<li>Federal Law No. 11 of 1992 on Civil Procedure (“Civil Procedure Law”).</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p4\">Although the Repealed Governance Rules are subject to same laws mentioned above by way of default, this was not explicitly mentioned.</p>\r\n<p class=\"p1\">The important difference in the scope of application and enforcement between the two rules is that the Repealed Governance Rules exempt banks and financing, investment, banking and financial intermediation companies that are subject to the control of the UAE Central Bank from the scope of its rules. The New Governance Rules on the other hand made the provisions of Part 1 - Corporate Discipline Standards (Articles 3 to 39) and Part 3 - General Provisions (Articles 53 to 55) applicable to the said companies but exempted them from the provisions of Part 2 - Corporate Governance (Articles 40 to 52).</p>\r\n<p class=\"p1\"><span class=\"s3\"> Exemption of foreign listed companies from the scope of application and enforcement continues to apply in the New Governance Rules.</span></p>\r\n<p class=\"p8\"><span class=\"s4\"><strong>Parent, Subsidiary and Allied Companies</strong></span></p>\r\n<p class=\"p1\"><span class=\"s5\">When comparing the definitions of “Parent Company” under the New and Repealed Governance Rules, it is notable that the new definition uses the term “juristic person” to expand the reach to all types of entities whether it is a company or not. The reason for using such term can be attributed to the fact that parent companies can be located in any jurisdiction worldwide which some of them will allow for different types of entities such as governmental entities or NGOs to carry out commercial activities and incorporate commercial companies permitting them to have control on other companies. It is worth mentioning that the new definition excludes natural persons from the scope of the definition.</span></p>\r\n<p class=\"p1\"><span class=\"s3\"> Another difference is that the old definition defines parent companies as companies that own 50% of another company. This definition raised confusion as to whether or not such shareholding is only limited to direct ownership. Another issue with the old definition is that some companies may own less than 50% of a listed company’s shares and yet have indirect control over that company (for example by getting its Subsidiaries to own shares of the listed company in which it control whereby each Subsidiary will own less than 50% of the controlled company yet together directly/indirectly own more than 50% in aggregate).The new definition resolved this confusion by considering a Parent Company to be the juristic person who have control to pass a resolution in a general assembly.</span></p>\r\n<p class=\"p1\"><span class=\"s5\"> Nevertheless, the new definition is not clear on whether the power to pass the resolution is limited or unlimited; i.e. is it enough in order to be considered as a Parent Company to have the power to pass a resolution in most general assemblies with restriction to some matters (such as liquidation) or it has to be an unlimited power to pass any resolution whatsoever. The articles of association of some companies may stipulate that some matters are reserved and have to be taken unanimously even though one partner may be controlling more than 90% of the shares whilst in other companies you will find that one shareholder will indirectly hold an unlimited power to pass any resolution whatsoever in a general assembly (whether directly or indirectly) even though his/her shareholding can sometimes be less than 50%. Our interpretation is that the new definition considers Parent Companies to be the companies that hold the power to pass a resolution in a general assembly in a majority of the matters discussed as the purpose of the New Governance Rules is to restrict the powers of those who have influence on a publicly listed company.</span></p>\r\n<p class=\"p1\"><span class=\"s5\"> As for “Subsidiary”, the new definition includes the power to appoint the board of directors. Therefore, a company can still be considered to be a subsidiary even it is not more than 50% owned by another company only if the other company has the power, whether directly or indirectly, to appoint all of its board of directors. Furthermore, and even though this is not mentioned in the definition, we believe that “the ownership of more than 50%” can be either direct or indirect since indirect ownership will still grant the owning company the power to act as a shareholder subject to one condition, namely; it must have full control over the company that divrectly own the shares thus enabling the indirect owner to have full powers to appoint the board of directors of the owned company.</span></p>\r\n<p class=\"p1\"><span class=\"s3\"> Regarding the definition of “Allied Company”, we consider that the new definition is a better definition since the terms “cooperation” and “coordination” used under the Repealed Governance Rules does not promote a company to be allied with another company unless one company owns shares of the other. It should be noted that the New Governance Rules defines an “Allied Company” as being “the company owned by another company by more than 25% and less than 50% of its capital”. We consider that restricting the minimum shareholding threshold to more than 25% in order to consider a company as an allied company is valid since 25% or less can be considered to be merely an investment with no actual control over the owned company. </span></p>\r\n<p class=\"p1\"><span class=\"s3\"> However, there is one area of confusion that arises in terms of whether owning just 50% still promotes the owning company to be an allied company or not. The new definition is vague on this point since the wordings consider Allied Companies as companies that are less than 50% owned by another company, while owning more than 50% will consider the owned company to be a Subsidiary. We believe that a company owning 50% of the shares of another company means that the owning company falls under the definition of an ‘Allied Company’ since the owning company has some control over the other company yet such control is not sufficient to pass a resolution at a general assembly meeting.</span></p>\r\n<p class=\"p1\"><span class=\"s3\"> Another question that may rise is whether or not to consider the company that owns only 25% of another company is an ‘Allied Company’ or not. Unfortunately, the current wordings of the new definition excludes such a company from the definition of ‘Allied Companies’ and it cannot be implied that it falls within the scope of such definition.</span></p>\r\n<p class=\"p1\"><span class=\"s3\"> In addition, as mentioned above in the paragraph related to the “Subsidiary”, the ownership can be either direct or indirect since indirect ownership will still grant the owning company the power to act as a shareholder subject to one condition which is to have full control over the company that directly own the shares.</span></p>\r\n<p class=\"p7\"><span class=\"s3\"> </span></p>\r\n<p class=\"p13\"><span class=\"s6\">This article is part one of a series of four articles with the other articles being published in subsequent editions of Law Update.</span></p>'),
	(212096,5490,'core_values',''),
	(212097,5490,'_core_values','field_59b64ab071de4'),
	(212098,5490,'file',''),
	(212099,5490,'_file','field_59b64c10f6600'),
	(212100,5490,'orderValue4','4'),
	(212101,5490,'_orderValue4','field_59d2096a8ff34'),
	(212102,5490,'related_pages_header',''),
	(100937,5488,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100936,5488,'lawUpdateArticleMonth','5479'),
	(100935,5488,'_content','field_59b649b5c8b2b'),
	(100934,5488,'content','<p class=\"p1\">The DIFC Electronic Transactions Law is primarily focussed on electronic contracts, electronic records, and electronic signatures. The purpose of the law is expressed as:</p>\r\n<p class=\"p2\"></p>\r\n\r\n<ul>\r\n 	<li>to facilitate electronic transactions in DIFC;</li>\r\n 	<li>to eliminate barriers to electronic transactions resulting from uncertainties over writing and signature requirements;</li>\r\n 	<li>to promote the development of the legal and business infrastructure necessary to implement secure electronic transactions in DIFC; and</li>\r\n 	<li>to help to establish uniformity of rules, regulations and standards in DIFC regarding the authentication and integrity of electronic records.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p4\"><span class=\"s1\">In its July 2016 public consultation paper, the DIFC Authority explained that it wanted to clarify that, from a DIFC law perspective, electronic signatures are enforceable, electronic records are of the same effect as hard copies, and references to writing include writing by electronic means. Agreements made electronically would be as valid as those signed with ‘wet ink’ signatures, and electronic documentation would be treated as equivalent to paper documentation.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Electronic dealings, including dealings with the DIFC Authority, are already fairly common in the DIFC. By way of example, much of the DIFC company registration process, and associated licence renewal process, can be done on-line via the DIFC Authority’s portal. The DIFC Authority acknowledges that there is little benefit in insisting on paper when parties are comfortable dealing electronically, and technology can bring with it similar, or greater, certainty than paper and wet ink.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> With regard to electronic records, the DIFC Electronic Transactions Law provides that where any other DIFC law requires any record to be retained (or provides for certain consequences if it is not retained), that requirement is met by retaining the record electronically if certain conditions are satisfied. These conditions include: that the information contained in such record be preserved and capable of being reproduced in tangible form; that the record to be retained in the format in which it was originally created, generated, sent or received (or in a format that can be demonstrated to accurately replicate the information originally created, generated, sent or received); and that any details relating to the date and time, origin and destination and any sender or receiver be retained. Additionally, the law contemplates situations where authorities within the DIFC may specify compliance with certain other requirements relating to the retention of specific types of electronic records within their own areas of responsibility.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> In its public consultation paper, the DIFC Authority noted that the draft law does not differentiate between different standards of secure and non-secure electronic signatures. It observed that most international legislation that includes such differentiation tends to attribute a higher evidential weight to electronic signatures that apply specified security procedures implemented by designated third party providers. In taking this approach, the DIFC Authority has avoided unnecessarily complicating the issue and negated the need to become involved in assessing and regulating a ‘higher level’ of electronic signatures. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> In practical terms, prospective users of electronic signatures will, where circumstances require, be drawn towards electronic signatures that can be shown to utilise a higher level of technical security. Having a legislated certification process for ‘secure electronic signatures’ (as is the approach taken in the UAE Federal Electronic Transactions Law) would not change this. (In our experience, the ‘deemed reliability’ outcome of the approach contained in the UAE Federal Electronic Transactions Law does not have particularly strong appeal in the market, particularly where international technology providers offering electronic signature solutions with a very high level of technical security have been reluctant to have themselves licensed as Certification Service Providers in the UAE.)</span></p>\r\n<p class=\"p1\"><span class=\"s2\"> It should be noted that the DIFC Electronic Transactions Law contains significant exclusions in respect of the use of electronic records, electronic contracts and electronic signatures in the context of powers of attorney, wills and trusts, affidavits or affirmations and sale, purchase or long term lease of real property.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> The DIFC Electronic Transactions Law is intended to be a framework for the recognition of electronic transactions, so it does not provide for penalties or sanctions. Other laws, such as the UAE Cyber Crimes Law and the UAE Penal Code, provide for penalties in respect of cybercrime type issues that may arise in the context of electronic transactions, and the DIFC Contract Law 2004 provides for remedies in the case of a breach of contract.</span></p>\r\n<p class=\"p5\"><span class=\"s1\"> </span>Al Tamimi &amp; Company’s Technology, Media &amp; Telecommunications team regularly advises on electronic contracting, e-signatures, certification service provider issues, and other e-commerce related issues throughout the Middle East. For further information please contact Nick O’Connell (n.oconnell@tamimi.com) or Sana Saleem (s.saleem@tamimi.com).</p>'),
	(212162,5488,'core_values',''),
	(212163,5488,'_core_values','field_59b64ab071de4'),
	(100931,5487,'lawUpdateArticleWriters','1'),
	(100932,5487,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(100933,5487,'_yoast_wpseo_metadesc','The UAE Securities and Commodities Authority (“SCA”) has recently released Chairman Resolution No. 9 R.M. of 2016 (Concerning the Regulation on Mutual Funds) (“New Fund Regulations”).'),
	(100920,5487,'_content','field_59b649b5c8b2b'),
	(100921,5487,'lawUpdateArticleMonth','5479'),
	(100922,5487,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100923,5487,'content_description','The UAE Securities and Commodities Authority (“SCA”) has recently released Chairman Resolution No. 9 R.M. of 2016 (Concerning the Regulation on Mutual Funds) (“New Fund Regulations”). '),
	(100924,5487,'_content_description','field_59b641c07f473'),
	(100925,5487,'pageSummary','The UAE Securities and Commodities Authority (“SCA”) has recently released Chairman Resolution No. 9 R.M. of 2016 (Concerning the Regulation on Mutual Funds) (“New Fund Regulations”). '),
	(100926,5487,'_pageSummary','field_59e59b307dec8'),
	(100927,5487,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/october-6/fund-regulation-in-the-uae.html'),
	(100928,5487,'_currentURL','field_59d35123ab1e7'),
	(100905,5486,'_content','field_59b649b5c8b2b'),
	(100906,5486,'lawUpdateArticleMonth','5479'),
	(100907,5486,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100908,5486,'content_description','In April 2015, FIFA undertook a complete overhaul of the rules governing football agents (now called intermediaries). The FIFA Players’ Agents regulations were replaced with the FIFA Regulations on Working with Intermediaries. '),
	(100909,5486,'_content_description','field_59b641c07f473'),
	(100910,5486,'pageSummary','In April 2015, FIFA undertook a complete overhaul of the rules governing football agents (now called intermediaries). The FIFA Players’ Agents regulations were replaced with the FIFA Regulations on Working with Intermediaries. '),
	(100911,5486,'_pageSummary','field_59e59b307dec8'),
	(100912,5486,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/october-6/uaes-adoption-of-fifas-regulations-for-football-intermediaries.html'),
	(100913,5486,'_currentURL','field_59d35123ab1e7'),
	(100914,5486,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','607'),
	(100915,5486,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(100916,5486,'lawUpdateArticleWriters','1'),
	(100917,5486,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(100918,5486,'_yoast_wpseo_metadesc','In April 2015, FIFA undertook a complete overhaul of the rules governing football agents (now called intermediaries). The FIFA Players’ Agents regulations were replaced with the FIFA Regulations on Working with Intermediaries.'),
	(100919,5487,'content','<p class=\"p1\"><span class=\"s1\">The New Fund Regulations have been long-awaited and have replaced both the Board of Directors Resolution No. 37 of 2012 (Concerning the Regulation of Mutual Funds) (“2012 Fund Regulations”) and the Board of Directors Resolution No. 13 of 2013 (on Amending the Regulation of Investment Funds) (the “Private Placement Exceptions” and together with the 2012 Fund Regulations, the “Former Regulations”). The New Fund Regulations were published in the UAE Federal Gazette dated 31 July 2016 and are currently in force. We note that SCA has also recently circulated certain draft regulations for review and comment which will also be of relevance to fund regulation in the UAE. Accordingly, we note that the New Fund Regulations will need to be read in conjunction with any applicable resolution, regulation, directive or circular issued by SCA from time to time, including those in relation to the arranging and promoting of financial products and securities. </span></p>\r\n<p class=\"p1\">Similar to the 2012 Fund Regulations, the New Fund Regulations include provisions on licensing, management, offer document requirements, subscription, and issuance and listing of fund units. However, the New Fund Regulations also feature some changes to the Former Regulations, including the introduction of provisions for specialized categories of funds, such as umbrella and feeder funds. While the majority of these changes will largely affect UAE domiciled funds, there are new provisions that will also affect foreign funds. This article covers some of the key aspects of the New Fund Regulations.</p>\r\n<p class=\"p2\"><strong>Foreign Funds</strong></p>\r\n<p class=\"p2\">The New Fund Regulations greatly simplify the requirements for the promotion of foreign funds in the UAE. The seven articles (containing twenty-two clauses) under the 2012 Fund Regulation have been pared down to just one article (of five clauses), perhaps reflecting that most foreign funds are currently promoted on a cross-border basis or under the private placement exceptions. Both the 2012 Fund Regulations and the New Fund Regulations only relate to the promotion of a foreign fund in the UAE through a local distributor who has a duty to register the fund with the SCA and comply with certain requirements. The New Fund Regulations essentially pare the requirements down to requiring registration of a foreign fund and annual renewal of registration where a local distributor is used.</p>\r\n<p class=\"p1\"><span class=\"s3\"> That said, promoters of foreign funds should note that the private placement exceptions under the New Fund Regulations have been narrowed in scope. Under the Former Regulations, the 2012 Fund Regulations did not apply in respect of the private promotion of foreign funds targeting:</span></p>\r\n<p class=\"p4\"></p>\r\n\r\n<ul>\r\n 	<li>federal or local government financial portfolios;</li>\r\n 	<li>companies, institutions or entities trading on their own account whose main purpose, or one of their main purposes, is to invest in securities; and</li>\r\n 	<li>investment managers who have a discretionary investment mandate.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p6\">This position has changed as the exception to promotion of foreign funds is now limited only to federal or local government authorities. It is also important to note that where the Former Regulations are silent on reverse solicitation, the New Fund Regulations explicitly provide that the New Fund Regulations shall not apply to reverse solicitations. While the New Fund Regulations do not grant express permission for short marketing visits to the UAE in relation to such reverse solicitations, the current understanding is that such visits will be tolerated. However, care should still be taken over activities while physically in the UAE so as to avoid being deemed to be “conducting business” in the UAE, which would itself require licensing.</p>\r\n<p class=\"p2\"><strong>Legal Form</strong></p>\r\n<p class=\"p2\">The New Fund Regulations have eliminated the ambiguity and uncertainty that has been associated with the legal form of a fund. Under the 2012 Fund Regulations, there are certain provisions which imply that the governance of the fund will be subject to similar rules as a corporate entity (i.e. meetings of unit holders, liquidation etc.). The New Fund Regulations go further and clarify that investment funds are to be treated as corporate persons and this also includes provisions setting out the terms of expiry of such corporate personality. This is further supported by UAE Federal Law No 2 of 2015 (governing commercial companies in the UAE) which, unlike its predecessor, specifically provides for the establishment of investment funds under the rules and regulations of SCA and recognises such funds as a separate legal entity.</p>\r\n<p class=\"p1\">The New Fund Regulations also contain express provisions in relation to the assets of investment funds. In particular, the New Fund Regulations provides that the assets of investment funds will guarantee the rights of the unit owners and that such assets cannot be mortgaged, lent, attached or disposed of for the fulfilment of any obligations to a third party. This coupled with the clarification on the legal form should provide some comfort for investors in such funds as it supports the notion that the assets of such investment funds are separate from the assets of its fund managers. Accordingly, the assets of an investment fund, and the associated rights of unit owners, should not be jeopardised by the insolvency of its fund manager.</p>\r\n<p class=\"p2\"><strong>Regulatory Oversight </strong></p>\r\n<p class=\"p2\">The UAE financial regulatory landscape has undergone some changes since 2010 when the UAE Central Bank (“Central Bank”) and SCA entered into an arrangement to determine the responsibilities of each regulator relating to particular financial activities. The changing dynamics between the Central Bank and SCA were made apparent in the 2012 Fund Regulations which delineated the roles of each regulator and a handover of funds regulation in the UAE from the Central Bank to SCA. However, under the 2012 Fund Regulations the Central Bank continues to play a regulatory role in the oversight and inspection of local funds in relation to their financial position which has not been adopted in the New Fund Regulations. In this regard, the New Fund Regulations appears to reflect the culmination of the changing relationship between the Central Bank and SCA as full responsibility for the control and inspection of funds now rests with SCA.</p>\r\n<p class=\"p2\"><strong>Other Highlights</strong></p>\r\n<p class=\"p2\">The New Fund Regulations introduce the concepts of feeder funds and umbrella funds. Under the New Fund Regulations, a feeder fund is a public investment fund or part of a group of funds for an umbrella fund which invests at least 85% of its assets in the units of a public master fund or foreign public fund and is excluded from investing in negotiable securities and certain other investments determined by SCA. An umbrella fund is also a public investment fund but one whose investment policy is represented in establishing affiliate sub-funds.</p>\r\n<p class=\"p1\">SCA has also released Chairman Resolution No. 10 R.M. of 2016 (Concerning the Fees of Mutual Fund Regulation) (“Fees Resolution”) which is also now in force. The Fees Resolution sets out the fees payable for both registration and licensing of investment funds and for the annual renewal of such registration and licensing.</p>\r\n<p class=\"p2\"><strong>Conclusion</strong></p>\r\n<p class=\"p2\">The New Fund Regulations will certainly have an impact on both the establishment of local investment funds and the marketing and promotion of foreign funds in the UAE. Such institutions will need to re-evaluate their current practices in order to ensure compliance with the New Fund Regulations, noting that the penalties for non-compliance include suspension or cancellation of the relevant license, registration or approval.</p>'),
	(212196,5487,'core_values',''),
	(212197,5487,'_core_values','field_59b64ab071de4'),
	(100886,5485,'_content','field_59b649b5c8b2b'),
	(100887,5485,'lawUpdateArticleMonth','5479'),
	(100888,5485,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100889,5485,'content_description','Treasury shares have been always a mystery to simple investors and shareholders around the world. The purpose of this article is to give a general overview of treasury shares as regulated under Kuwaiti laws.'),
	(100890,5485,'_content_description','field_59b641c07f473'),
	(100891,5485,'pageSummary','Treasury shares have been always a mystery to simple investors and shareholders around the world. The purpose of this article is to give a general overview of treasury shares as regulated under Kuwaiti laws.'),
	(100892,5485,'_pageSummary','field_59e59b307dec8'),
	(100893,5485,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/october-6/what-to-be-aware-of-regarding-treasury-shares-in-kuwait.html'),
	(100894,5485,'_currentURL','field_59d35123ab1e7'),
	(100895,5485,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','722'),
	(100896,5485,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(100897,5485,'lawUpdateArticleWriters','1'),
	(100898,5485,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(100899,5485,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','542'),
	(100900,5485,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(100901,5485,'lawUpdateArticlePractices','1'),
	(100902,5485,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(100903,5485,'_yoast_wpseo_metadesc','Treasury shares have been always a mystery to simple investors and shareholders around the world. The purpose of this article is to give a general overview of treasury shares as regulated under Kuwaiti laws.'),
	(100904,5486,'content','<p class=\"p1\"><span class=\"s1\">FIFA removed a system that was primarily based on the qualification, recognition and registration of a certain limited number of agents and replaced it with a system whereby the barriers to entry were lowered but the scrutiny on specific transactions conducted using intermediaries was increased. The new regulation issued a set of guidelines to be implemented at the national level by football associations across the globe. Whilst these regulations proved controversial at the time, it attempted to bring about a uniform set of minimum standards to be applied across the board, with particular focus on disclosure and transparency in transactions and dealing with conflicts of interest.</span></p>\r\n<p class=\"p2\"><strong>UAE FA Guidelines</strong></p>\r\n<p class=\"p2\">The UAE Football Association (“UAE FA”) adopted the guidelines on 30th June 2015 (“Guidelines”) and a summary of the key points of the Guidelines relating to the UAE are described below:</p>\r\n<p class=\"p2\"><em>Article 1 – Definition of an Intermediary</em></p>\r\n<p class=\"p2\">Article 1 broadly defines an intermediary as a person (natural or corporate) who (i) represents players or clubs in negotiations with the goal of signing an employment contract between them, or (ii) represents clubs in relation to discussions with the goal of entering into transfer or loan agreements.</p>\r\n<p class=\"p1\"><em>Article 2 - Implementation of the Regulation </em></p>\r\n<p class=\"p1\">The Regulations apply to the clubs and players using the intermediary’s services.</p>\r\n<p class=\"p1\"><span class=\"s3\"> Article 2 goes on the state that the implementation of the Regulations or any amendment shall not prejudice the validity of an employment contract or Transfer or Loan agreement. </span></p>\r\n<p class=\"p1\">Generally, in terms of the employment contract, FIFA’s Professional Football Player Contract Minimum Requirements should be taken into account although these are subject to mandatory local law provisions. In relation to player contracts in the UAE, they are in fact subject to UAE Labour Law.</p>\r\n<p class=\"p1\"><em>Article 3 – General Principles</em></p>\r\n<p class=\"p1\">Article 3 of the Regulations sets out general principles which include a requirement that an intermediary must be registered in accordance with the Guidelines and that players and clubs, when choosing their intermediaries must show ‘best effort attempts’, which means that clubs and players must use their best efforts to make sure that the intermediary engaged signs a representation agreement between them.</p>\r\n<p class=\"p2\"><em>Article 4 – Registration of Intermediaries</em></p>\r\n<p class=\"p2\">This article states that the intermediary is required to record every transaction and that the clubs or players using intermediaries must submit the intermediary’s registration and any other documents in relation to every transaction carried out using the intermediary. Therefore, the UAE FA is required to implement a registration system for intermediaries, who must be registered for each transaction that they are involved in. This attempts to allow for increased tracking of intermediary activities.</p>\r\n<p class=\"p1\"><em>Article 5 - Requirements and Conditions for Registration</em></p>\r\n<p class=\"p1\">Even though no formal qualification is now required for an individual to be an intermediary, there are still minimum conditions in force which need to be met before an intermediary can be registered in the UAE and registration would still be subject to the UAE FA’s approval.</p>\r\n<p class=\"p1\">To be registered the applicant must:</p>\r\n<p class=\"p4\"></p>\r\n\r\n<ul>\r\n 	<li>present a Good Conduct Certificate</li>\r\n 	<li>have a license to be an intermediary and must have permanent residence.</li>\r\n 	<li>be a national, except for non-national intermediaries who must be registered with their local federations.</li>\r\n 	<li>have at least 5 years experience in the sport.</li>\r\n 	<li>adhere to signing all document required by these rules</li>\r\n 	<li>not have any affiliation with the national federation or regional federations since this would lead to a conflict of interest.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p1\"><em>Article 6 – Fees</em></p>\r\n<p class=\"p1\">These fees are not set out in FIFAs regulations and are left to national federations to determine.</p>\r\n<p class=\"p1\"><span class=\"s3\"> In relation the UAE, the Regulations deals with fees to be paid to the UAE FA, which states that the intermediary must: </span></p>\r\n\r\n<ul>\r\n 	<li>pay a fee of AED 20,000 annually.</li>\r\n 	<li>pay 5% of their fee for each transaction to the UAE FA if they have a local office, otherwise they must pay 10%.</li>\r\n</ul>\r\n<p class=\"p1\"><em>Article 7 – Conditions of the Agreement</em></p>\r\n<p class=\"p1\"><span class=\"s4\">This article addresses the minimum conditions relating to the scope of the intermediary’s services and which must be included in the representation agreement between the intermediary and the club or player. These conditions include:</span></p>\r\n<p class=\"p5\"></p>\r\n\r\n<ul>\r\n 	<li>setting out the legal nature of parties relationship;</li>\r\n 	<li>setting out details of the contract which, at a minimum must contain the names of the parties, description of the intermediary’s services, the term, fees, general terms for payment, date of the agreement and termination provisions. The agreement must also be properly signed by the parties; and</li>\r\n 	<li>The intermediary must disclose his contract for every transaction.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p1\"><em>Article 8 – Disclosure of Information </em></p>\r\n<p class=\"p1\">In general:</p>\r\n<p class=\"p4\"></p>\r\n\r\n<ul>\r\n 	<li>players and clubs must declare to the UAE FA all details of fees or payments paid or to be paid to the intermediary.</li>\r\n 	<li>players and clubs must, at the request of the UAE FA provide all contracts and agreements signed with the intermediary, for investigation purposes.</li>\r\n 	<li>all contracts stated in paragraph 2 above must be provided together with the employment contract or transfer contract, for the player’s registration.</li>\r\n 	<li>all employment contracts and transfer agreements must contain the name and signature of the intermediary, in addition to a statement if there is no intermediary.</li>\r\n 	<li>The UAE FA shall at the end of May each year via its electronic platform, tally all the names of registered agents and transactions participated in. Then it will announce the total fees and payments made to them.</li>\r\n 	<li>The UAE FA must look into all transactions that are not in adherence with these rules.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p6\">It is interesting to note that there is a requirement that a player and a club using an intermediary report that fact to the UAE FA on a transaction-by-transaction basis, along with all financial details. This attempts to deal with FIFA’s concern regarding transparency of transactions.</p>\r\n<p class=\"p1\">Prior to the implementation of the FIFA rules it was believed that at an international level (not necessarily relating to the UAE), there had long been an under-reporting of agent involvement in international transfers. This has occurred for reasons of confidentiality, to disguise side-agreements and incentives, to avoid administrative compliance, to reduce timelines for deal-making and numerous additional reasons.</p>\r\n<p class=\"p1\"><em>Article 9 – Payments to Intermediaries</em></p>\r\n<p class=\"p1\">This important article deals with intermediaries’ remuneration. The Regulations state that:</p>\r\n<p class=\"p4\"></p>\r\n\r\n<ul>\r\n 	<li>the fee collected by the intermediary for a player or club shall not exceed 3% of the total monthly salary of the player for the entire term of the employment contract.</li>\r\n 	<li>the intermediary’s fee where it represents a club in a transfer or loan shall not exceed 3% of total salary of a player for the entire period of the employment contract.</li>\r\n 	<li>the intermediary who represents a club is entitled to an advance fee prior to completion of the service, which shall be incorporated and taken into account into the total 3% to be collected.</li>\r\n 	<li>the clubs shall not make player transfer payments or loan payments via the intermediaries or to them and must not ask that payments relating to players are made to the intermediary.</li>\r\n 	<li>in accordance with paragraph 6 of Article 9 and subject to Article 10, the intermediary must be paid immediately after the performance of its service.</li>\r\n 	<li>after completion of a contract between the club and player and if incorporated into the terms agreed between the player and its intermediary, a payment may be made via the intermediary.</li>\r\n 	<li>directors/managers are not permitted to receive any payment from the intermediary and any such breach will lead to disciplinary measures.</li>\r\n 	<li>clubs and player shall not pay any fees to the intermediary if the player is incapacitated in some way as per the rules of transfer of players.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p6\"><span class=\"s5\">It is interesting to note that when adopting the FIFA guidelines the UAE FA went a step further in relation to commission fees earned by an intermediary. The FIFA guidelines made a recommendation that fees paid to intermediaries are limited to 3% of the player’s basic gross income or of the transfer compensation. The UAE FA’s Regulations however, made it a mandatory requirement to limit intermediaries to 3% commission on the fixed salary of a player. Compliance with the Regulations is at odds with the previous practice (a default 3% unless otherwise specified in the contract) and a broadly accepted international expectation that agents could anticipate a commission between 5%-10% as well as a percentage of transfer fees. </span></p>\r\n<p class=\"p1\">It is important to note that the FIFA guidelines clearly state that any payments made to intermediaries acting on behalf of minor players are strictly prohibited.</p>\r\n<p class=\"p1\"><em>Article 10: Conflict of Interest</em></p>\r\n<p class=\"p1\">FIFA had a significant concern that on an international basis there were increased conflict of interest issues with player transfers. The UAE Guidelines state that:</p>\r\n<p class=\"p4\"></p>\r\n\r\n<ol>\r\n 	<li>players and clubs must ensure there is no conflict of interest before using an intermediary.</li>\r\n 	<li>there shall be no conflict of interest where an intermediary has beforehand declared his actual or potential conflict, and the other parties have agreed in writing to let him proceed in the negotiations.</li>\r\n 	<li>if the player or club wants to complete a transaction in line with Article 2 above, they must state in writing their consent beforehand and disclose the identity of the party that will be paying the fee to the intermediary. The parties must also inform the UAE FA and submit all written documents during registration in accordance with the Regulations.</li>\r\n</ol>\r\n&nbsp;\r\n<p class=\"p1\"><em>Article 11: Disciplinary Measures</em></p>\r\n<p class=\"p1\">Disciplinary measures can apply to the following offences by an intermediary:</p>\r\n<p class=\"p4\"></p>\r\n\r\n<ul>\r\n 	<li>if any false information is presented to the UAE FA in breach of the Regulations or if there are any breach of the Regulations;</li>\r\n 	<li>breach of obligations under the contract;</li>\r\n 	<li>inducement of a player to end the contract or breach it; and</li>\r\n 	<li>breach of the provisions of the Regulations or articles of association of the UAE FA or regulations of the UAE FA or its circulars, or the non-fulfilment of obligations in relation to decisions made.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p6\">The sanctions against an intermediary include one or a combination of the following:</p>\r\n<p class=\"p4\"></p>\r\n\r\n<ol>\r\n 	<li>written warning;</li>\r\n 	<li>fine of AED 20,000 - AED 100,000;</li>\r\n 	<li>temporary cancellation of a license;</li>\r\n 	<li>permanent cancellation of a license; and</li>\r\n 	<li>ban from participating in any football activity.</li>\r\n</ol>\r\n&nbsp;\r\n<p class=\"p6\">In addition, each player or club in violation of the Regulations will be disciplined in accordance with the Regulations of the UAE FA. The Regulations provide for a committee to be set up to look into any alleged breaches.</p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Overview</strong></span></p>\r\n<p class=\"p1\">With the Intermediaries Regulations, FIFA has delegated responsibility for managing the regulations and increasing transparency of matters relating to intermediaries to over 200 national associations. FIFA has attempted to implement a uniform set of standards across the different federations, as in the past there were differing standards and qualifications relating to football agents. The range of enthusiasm, resources and motivations for implementing the regulations across those national associations varies widely. While the electronic transfer management system (“TMS”) provides a platform for transparency, only fully declared and disclosed agent activity and documentation is entered and only keen management, oversight and enforcement by national associations can make the system work effectively. By adoption and implementation, the UAE FA has implemented the Regulations but the new system is just a year in process. To date there are only six registered intermediaries on the UAE FA website and the level of reported transfer activity is unclear. It therefore remains to be seen over the next few years how the Regulations are adopted and administered.</p>\r\n<p class=\"p7\">Raj Pahuja (r.pahuja@tamimi.com) is Head of Corporate Commercial in the firm’s Bahrain office (previously working with the firm in the UAE) and a key member of Al Tamimi’s dedicated Sports and Events Management practice. He has previously acted for the Bahrain International Circuit for several years advising on various aspects, including the F1 Grand Prix. Raj has also advised on the inaugural and subsequent Dubai Tours Cycle Race and in relation to a T20 cricket tournament.</p>'),
	(212229,5486,'core_values',''),
	(212230,5486,'_core_values','field_59b64ab071de4'),
	(212231,5486,'file',''),
	(212232,5486,'_file','field_59b64c10f6600'),
	(212233,5486,'orderValue4','4'),
	(100861,5484,'_content','field_59b649b5c8b2b'),
	(100862,5484,'lawUpdateArticleMonth','5479'),
	(100863,5484,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100864,5484,'content_description','In 2013, the Abu Dhabi Government established the Abu Dhabi Global Market (“ADGM”), an international financial free zone in the heart of the UAE’s capital city. ADGM is comprised of three authorities, including the Abu Dhabi Global Market Courts (“ADGM Courts”). The ADGM Courts have recently commenced operations. The purpose of this article is to briefly introduce readers to the composition, structure and functioning of the ADGM Courts.'),
	(100865,5484,'_content_description','field_59b641c07f473'),
	(100866,5484,'pageSummary','In 2013, the Abu Dhabi Government established the Abu Dhabi Global Market (“ADGM”), an international financial free zone in the heart of the UAE’s capital city. ADGM is comprised of three authorities, including the Abu Dhabi Global Market Courts (“ADGM Courts”). The ADGM Courts have recently commenced operations. The purpose of this article is to briefly introduce readers to the composition, structure and functioning of the ADGM Courts.'),
	(100867,5484,'_pageSummary','field_59e59b307dec8'),
	(100868,5484,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/october-6/abu-dhabi-establishes-english-language-commercial-courts.html'),
	(100869,5484,'_currentURL','field_59d35123ab1e7'),
	(100870,5484,'lawUpdateArticleWriters_0_lawUpdateArticleWriter',''),
	(100871,5484,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(100872,5484,'lawUpdateArticleWriters_1_lawUpdateArticleWriter','551'),
	(100873,5484,'_lawUpdateArticleWriters_1_lawUpdateArticleWriter','field_59da2ac06b065'),
	(100874,5484,'lawUpdateArticleWriters','2'),
	(100875,5484,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(100876,5484,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Malak Nasreddine'),
	(100877,5484,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(100878,5484,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','m.nasreddine@tamimi.com'),
	(100879,5484,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(100880,5484,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','Abu Dhabi, UAE'),
	(100881,5484,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(100882,5484,'lawUpdateArticleNoWriters','1'),
	(100883,5484,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(100884,5484,'_yoast_wpseo_metadesc','Al Tamimi & Company briefly introduce readers to the composition, structure and functioning of the ADGM Courts.'),
	(212302,5484,'_yoast_wpseo_content_score','30'),
	(212307,5478,'_yoast_wpseo_metadesc','The lack of legislation addressing mixed-use projects (a single project that has both residential units and commercial units) has hampered the progress of such projects.'),
	(100885,5485,'content','<p class=\"p1\">Treasury shares are the portion of shares that a company keeps in its own treasury. They may have come from a re-purchase or buyback from shareholders, or they may have never been issued to the public in the first place. Treasury shares do not pay dividends, have no voting rights and should not be included in shares outstanding calculations.</p>\r\n<p class=\"p1\"><span class=\"s1\"> The concept of treasury shares is an accounting concept and the debate over how to treat them goes back for decades. In 1946, the California Law Review published an article by Henry W. Ballantine entitled ‘The Curious Fiction of Treasury Shares’. Ballantine is quoted as saying: ‘<em>Treasury shares are indeed a masterpiece of legal magic, the creation of something out of nothing. They are no longer outstanding shares in the hands of a holder.</em>’</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Under Decree No. 287 of 2016 Promulgating the Executive Regulation of Law No.1 of 2016 Promulgating the Companies Law (‘Companies Law’), the Kuwaiti legislator has defined treasury shares as: “<em>the shares acquired and resold by the company and used on its issued shares traded in the stock exchange within the limit of the decreed percentage</em>”. However, the Kuwaiti legislator did not address treasury shares in the Companies Law with any deeper or clearer research.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> In November 2015, the Kuwaiti legislator issued the new executive bylaws by way of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Amendments (‘Executive Bylaws’), which define treasury shares as a company’s shares which the issuing company re-purchases or buys back or otherwise makes use of. At this time, the legislator devoted a full chapter clarifying and regulating treasury shares and stipulated that such provisions shall apply to public and closed shareholding companies, except that units subject to the supervision of the Central Bank shall be excluded.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> The Executive Bylaws limit the use of treasury shares to the following cases: </span></p>\r\n<p class=\"p2\"></p>\r\n\r\n<ul>\r\n 	<li>Maintaining stability of the company’s share price;</li>\r\n 	<li>Reduction of the company’s paid-up capital;</li>\r\n 	<li>Settlement of a company’s account receivables;</li>\r\n 	<li>Repayment of a company’s outstanding debt;</li>\r\n 	<li>Distribution of bonus shares to shareholders without an increase of the capital or the number of shares issued;</li>\r\n 	<li>Swap deals in the event of merger with or an acquisition offer of other companies;</li>\r\n 	<li>Distribution of all or some of the treasury shares to the company’s workers in the context of the employees’ share option plans conditional upon the general assembly’s approval, and in accordance with the regulatory rules approved by the general assembly of the company; and</li>\r\n 	<li>Other cases determined by the Capital Markets Authority (CMA).</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p4\"><span class=\"s1\">Furthermore, the Executive Bylaws stipulate that unlisted companies may not dispose of shares in the circumstances set out at (1), (3) and (4) above. </span></p>\r\n<p class=\"p1\"><span class=\"s2\"> One of the most significant issues in this regard is that the percentage of shares owned by the company and its subsidiaries may not exceed 10% of the total of the number of shares issued by the company. Moreover, the Executive Bylaws set out the guidelines, procedures and accounting treatment of treasury shares and provide that the constitutional documents of the company shall state that, at most, 10% of the issued shares of the company may be purchased at their market value and that partners may not purchase or sell the company’s shares unless they obtain the written approval of the CMA, which is given pursuant to an application submitted to the CMA.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> In addition to the above, the Executive Bylaws include obligations on companies listed with the Kuwait Stock Exchange and stipulate that listed companies may not deal in shares thereof through financial derivatives. Any deals in shares must take place in accordance with the rules applicable on the exchange. Cases specified at (3), (4), (5), (6) and (7) above, and other cases approved by the CMA, shall be excluded. Furthermore, listed companies shall disclose the CMA’s approval for purchasing or selling treasury shares upon issuance and in accordance with the provisions and procedures stated in Module No. 10 (Disclosure and Transparency) of the Executive Bylaws and a listed company shall not deal in shares for 10 business days before disclosing its financial statements (reviewed quarterly financial statement or audited annual financial statements) or any other significant information that may affect the value of the company’s shares.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> In conclusion, treasury shares do not have voting rights or dividend rights. In addition, a company may only acquire the number of shares which equals or is less than 10% of its issued share capital according to the market value of the company’s shares and it may acquire its shares only if the company’s memorandum and articles of association provide that it may do so. Furthermore, a company wishing to buy or sell treasury shares must seek and obtain the approval of the CMA. It is worth noting that a sale or purchase by the company of its treasury shares can only be effective upon approval by the company’s general assembly and, in the event that the sale of the treasury shares is to particular shareholders, those shareholders are prohibited from participating in any general assembly vote. Finally, it is important to note that all shareholding companies have an obligation to report and disclose treasury shares issues to the CMA. </span></p>'),
	(212260,5485,'core_values',''),
	(212261,5485,'_core_values','field_59b64ab071de4'),
	(212262,5485,'file',''),
	(212263,5485,'_file','field_59b64c10f6600'),
	(100843,5483,'pageSummary','This article offers an insight into the reoccurring issues of time, payment, performance bonds and termination which we regularly encounter when arbitrating construction disputes involving the FIDIC Red Book1 in the UAE.'),
	(100844,5483,'_pageSummary','field_59e59b307dec8'),
	(100845,5483,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/october-6/time-payment-performance-bonds-and-termination-under-the-1999-fidic-red-book.html'),
	(100846,5483,'_currentURL','field_59d35123ab1e7'),
	(100847,5483,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Dean O’ Leary'),
	(100848,5483,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(100849,5483,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','d.oleary@tamimi.com'),
	(100850,5483,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(100851,5483,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','Dubai, UAE'),
	(100852,5483,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(100853,5483,'lawUpdateArticleNoWriters','1'),
	(100854,5483,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(100855,5483,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','410'),
	(100856,5483,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(100857,5483,'lawUpdateArticlePractices','1'),
	(100858,5483,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(100859,5483,'_yoast_wpseo_metadesc','This article offers an insight into the reoccurring issues of time, payment, performance bonds and termination which we regularly encounter when arbitrating construction disputes involving the FIDIC Red Book1 in the UAE.'),
	(100860,5484,'content','<p class=\"p1\"><strong>Overview</strong></p>\r\n<p class=\"p1\"><strong> </strong>The ADGM Courts are common-law courts, based on the English court system. They form part of both ADGM and the Abu Dhabi judicial system. The Courts adjudicate civil and commercial disputes. The ADGM Courts thus offer a common law system in the midst of a predominantly civil law Middle East region. Moreover, English law will be directly applicable in the ADGM, making the ADGM the first jurisdiction in the Middle East to directly apply English law.</p>\r\n<p class=\"p1\">The ADGM Courts are located in the ADGM Building in Al Maryah Island, Abu Dhabi, although sittings and any other business may be conducted in any place in the world, i.e., hearings are not limited to the ADGM hearing rooms. Hearings may be conducted by video conference and will be available for real time viewing in ADGM Courts’ hearing rooms. This allows ADGM judges to manage cases with greater flexibility, expeditiously, efficiently and economically. ADGM Court hearings are fully open to the public; however, all arbitration-related proceedings are to be heard in closed court (unless all parties agree otherwise, or the Court is satisfied that the proceeding ought to be heard in open court).</p>\r\n<p class=\"p1\">The ADGM Courts are accepting cases electronically since becoming operational. The electronic and physical infrastructures for the conduct and hearing of cases are close to being finalised.</p>\r\n<p class=\"p2\"><strong>ADGM Court Structure</strong></p>\r\n<p class=\"p2\">The ADGM Courts are comprised of a Court of First Instance and a Court of Appeal. The Court of First Instance consists of a Civil Division, Employment Division and Small Claims Division.</p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Legal Framework</strong></span></p>\r\n<p class=\"p1\">The ADGM Courts’ legal framework comprises the ADGM Courts’ Regulations, a single unified statute, which are complemented by the ADGM Court Rules (“Rules”) and Practice Directions. The Rules comprise the Division and Jurisdiction Rules, ADGM Court Procedure Rules, Certification of Enforcement Agents Rules, Taking Control of Goods and Commercial Rent Arrears Recovery Rules, Judicial Discipline Prescribed Procedure Rules, Judicial Conduct Rules, and Rules of Conduct.</p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Judges of the ADGM Courts</strong></span></p>\r\n<p class=\"p1\">The Judges of the ADGM Courts are drawn from around the world and led by the Chief Justice of ADGM Courts, Lord Hope of Craighead KT.</p>\r\n<p class=\"p1\">The ADGM Courts Judges are the Right Honourable the Lord Mark Saville of Newdigate PC, the Honourable Kenneth Hayne AC, the Right Honourable Sir Peter Blanchard KNZM, William Stone SBS QC, and the Honourable Lord McGhie (who will preside over the Small Claims Division). The judges have significant experience in England &amp; Wales, Scotland, Australia, New Zealand and Hong Kong. The judges may sit both in the Court of First Instance and the Court of Appeal. They may also act as arbitrators under ADGM’s arbitration framework. ADGM Judges are required to be independent and impartial.</p>\r\n<p class=\"p1\"><span class=\"s4\"> In addition to the foregoing judicial appointments, ADGM has appointed Linda Fitz-Alan as Registrar of the ADGM Courts in 2015. She was previously CEO and Principal Registrar of the Supreme Court of New South Wales. </span></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Jurisdiction of the ADGM Courts</strong></span></p>\r\n<p class=\"p1\"><em>Court of First Instance</em></p>\r\n<p class=\"p1\">The Court of First Instance has jurisdiction over matters relating to:</p>\r\n\r\n<ul>\r\n 	<li>Civil or commercial cases and disputes involving</li>\r\n</ul>\r\n&nbsp;\r\n<ul>\r\n 	<li>\r\n<ul>\r\n 	<li>the ADGM;</li>\r\n 	<li>any of ADGM’s Authorities (which are the ADGM Registration Bureau, the Financial Services Regulatory Authority, and the ADGM Courts); or</li>\r\n 	<li>any company or entity which is registered and licensed to operate within the ADGM;</li>\r\n</ul>\r\n</li>\r\n</ul>\r\n&nbsp;\r\n<ul>\r\n 	<li>Lawsuits and civil or commercial disputes arising out of or relating to</li>\r\n</ul>\r\n&nbsp;\r\n<ul>\r\n 	<li>\r\n<ul>\r\n 	<li>a contract or a transaction conducted in whole or in part in the ADGM; or</li>\r\n 	<li>to an incident that occurred in the ADGM;</li>\r\n</ul>\r\n</li>\r\n</ul>\r\n&nbsp;\r\n<ul>\r\n 	<li>Any appeal against a decision or a procedure issued by the ADGM Authorities; and</li>\r\n 	<li>Any request which the ADGM Courts has the jurisdiction to consider under the ADGM Regulations.</li>\r\n</ul>\r\n<p class=\"p7\"><span class=\"s1\">In relation to the matters specified in (1.) and (2.) above, parties may specify in their commercial contracts and transactions that they agree to ‘opt out’ of the ADGM jurisdiction, and instead choose any other jurisdiction or agree to refer their disputes to arbitration. Conversely, parties with no nexus to the ADGM can also ‘opt in’ to the ADGM jurisdiction. </span></p>\r\n<p class=\"p1\"><em>Civil Division</em></p>\r\n<p class=\"p1\">The Civil Division has jurisdiction over cases where the claim exceeds USD100,000. It also hears appeals in relation to judgments of the Small Claims Division and reviews decisions of the ADGM Authorities.</p>\r\n<p class=\"p1\">The Civil Division does not have jurisdiction over any claim or dispute:</p>\r\n<p class=\"p4\"></p>\r\n\r\n<ol>\r\n 	<li>Where the value of the claim or dispute is, or is less than, USD100,000;</li>\r\n 	<li>Arising out of or in connection with family proceedings; and</li>\r\n 	<li>Relating to employment matters.</li>\r\n</ol>\r\n&nbsp;\r\n<p class=\"p1\"><em>Small Claims Division</em></p>\r\n<p class=\"p1\">The Small Claims Division has exclusive jurisdiction over:</p>\r\n\r\n<ul>\r\n 	<li>Claims and disputes with a value of USD100,000 or less;</li>\r\n 	<li>Disputes falling within Employment Division jurisdiction, where all parties have agreed in writing that the relevant claim or dispute is to be heard in or determined by the Small Claims Division.</li>\r\n</ul>\r\n<p class=\"p2\"><em>Employment Division</em></p>\r\n<p class=\"p1\">The Employment Division of the Civil Division has exclusive jurisdiction over claims and disputes:</p>\r\n\r\n<ul>\r\n 	<li>Relating to the enforcement of rights and obligations under the Employment Regulations; and</li>\r\n 	<li>For the enforcement of any claim relating to employment matters other than the enforcement of any right or obligation under the Employment Regulations 2015.</li>\r\n</ul>\r\n<p class=\"p7\">The Employment Division does not have jurisdiction over any claim or dispute relating to the Civil and the Small Claims Divisions.</p>\r\n<p class=\"p2\"><em>Court of Appeal</em></p>\r\n<p class=\"p1\"><span class=\"s5\">The Court of Appeal has jurisdiction (a) to consider appeals made against judgments or decisions issued by the Court of First Instance, and (b) to interpret any articles of the ADGM laws and regulations. There is no automatic right to appeal in respect of judgments issued by the Civil and Employment Divisions. A party must apply for permission to appeal the judgment, either to the Court of First Instance or Court of Appeal. In the case of a judgment issued by the Small Claims Division, an appeal can only be made on a question of law. The Court of Appeal’s judgments are final and may not be appealed. </span></p>\r\n<p class=\"p1\"><strong>Types of cases the ADGM Courts may and may not hear</strong></p>\r\n<p class=\"p2\">The ADGM Courts will hear the following types of cases:</p>\r\n<p class=\"p4\"></p>\r\n\r\n<ul>\r\n 	<li>Commercial and contract disputes;</li>\r\n 	<li>Tort cases;</li>\r\n 	<li>Personal injury cases;</li>\r\n 	<li>Judicial review cases; and</li>\r\n 	<li>Application relating to the recognition and enforcement of arbitral awards.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p7\">The jurisdiction of the ADGM Courts is, of course, not unlimited. ADGM Courts <em>cannot</em> hear:</p>\r\n\r\n<ul>\r\n 	<li>Criminal cases;</li>\r\n 	<li>Family cases (i.e. matters relating to divorce, guardianship, alimony, personal status, and inheritance which are matters governed by Sharia).</li>\r\n</ul>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Relief available to parties</strong></span></p>\r\n<p class=\"p1\">The ADGM Courts may order a range of effective remedies in respect of disputes falling within their jurisdiction:</p>\r\n<p class=\"p4\"></p>\r\n\r\n<ul>\r\n 	<li>The Courts have the power to order injunctions to restrain parties from acting in a position, in relation to which they are not entitled to act. The Court of First Instance may grant specific performance.</li>\r\n 	<li>The Court may award damages in addition to, or in substitution for, an injunction or specific performance.</li>\r\n 	<li>The Courts may appoint a receiver. The power to appoint a receiver by way of equitable execution will operate in relation to all legal estates and interests in real property.</li>\r\n 	<li>The Courts may order debtor-specific remedies. The Court may order goods to be returned to the debtor, or order an enforcement agent to pay damages for loss suffered by the debtor.</li>\r\n 	<li>The Courts have the power to grant relief against forfeiture for non-payment of rent.</li>\r\n 	<li>The Courts can order damages for personal injuries.</li>\r\n 	<li>In judicial review cases, the ADGM Courts may order mandatory, prohibiting or quashing orders, a declaration, or an injunction to restrain parties from acting in offices in which they are not entitled to act. (The Courts can also award damages, restitution or the recovery of a sum due.)</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p3\"><span class=\"s2\"><strong>Rights of audience before the ADGM Courts</strong></span></p>\r\n<p class=\"p1\">Any person may have a right of audience and appear before the Small Claims Division of the Court of First Instance, but such appearance is subject to compliance with the rules of conduct of the Courts.</p>\r\n<p class=\"p1\">Otherwise, in order to appear before the ADGM Courts, one must be a lawyer who has been practising for a continuous period of at least 5 years prior to appearing before the Court. Lawyers who have been banned or suspended as a result of disciplinary proceedings do not enjoy a right of audience. ADGM Courts have not instituted a registration system of legal practitioners as a pre-requisite for a right of audience, as is the case for the Dubai International Financial Centre Courts.</p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Online Services</strong></span></p>\r\n<p class=\"p1\">Parties will be assisted with the ADGM Courts’ electronic services, as soon as the e-services become fully implemented. ADGM Courts will offer a range of electronic services, including e-filing, e-case management and e-trials. ADGM Court e-services will include (a) e-filing for all documents, and the ability to conduct payments online, (b) communication between parties and ADGM Courts, and allowing lawyers to track their cases, and (c) e-trials, with access to electronic documents, audio visual remote connections, real time transcript and research capability.</p>');

INSERT INTO `tm_postmeta` (`meta_id`, `post_id`, `meta_key`, `meta_value`)
VALUES
	(212291,5484,'core_values',''),
	(212292,5484,'_core_values','field_59b64ab071de4'),
	(212293,5484,'file',''),
	(212294,5484,'_file','field_59b64c10f6600'),
	(212295,5484,'orderValue4','4'),
	(212296,5484,'_orderValue4','field_59d2096a8ff34'),
	(100842,5483,'_content_description','field_59b641c07f473'),
	(100841,5483,'content_description','This article offers an insight into the reoccurring issues of time, payment, performance bonds and termination which we regularly encounter when arbitrating construction disputes involving the FIDIC Red Book1 in the UAE. '),
	(100840,5483,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100838,5483,'_content','field_59b649b5c8b2b'),
	(100839,5483,'lawUpdateArticleMonth','5479'),
	(100794,5481,'_content','field_59b649b5c8b2b'),
	(100795,5481,'lawUpdateArticleMonth','5479'),
	(100796,5481,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100797,5481,'content_description','When it comes to resisting the enforcement of an award in the UAE, a common defence is that the Defendant was not a party to the arbitration agreement because the person who signed on its behalf did not have the required authority to bind the company to arbitration.'),
	(100798,5481,'_content_description','field_59b641c07f473'),
	(100799,5481,'pageSummary','When it comes to resisting the enforcement of an award in the UAE, a common defence is that the Defendant was not a party to the arbitration agreement because the person who signed on its behalf did not have the required authority to bind the company to arbitration.'),
	(100800,5481,'_pageSummary','field_59e59b307dec8'),
	(100801,5481,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/october-6/helpful-dubai-court-of-cassation-judgment-on-capacity-and-foreign-arbitral-awards.html'),
	(100802,5481,'_currentURL','field_59d35123ab1e7'),
	(100803,5481,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Saif Almobideen'),
	(100804,5481,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(100805,5481,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','s.almobideen@tamimi.com'),
	(100806,5481,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(100807,5481,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','Dubai, UAE'),
	(100808,5481,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(158704,5481,'_timeline_header','field_59b63de5b74bf'),
	(158703,5481,'timeline_header',''),
	(158701,5481,'orderValue2','2'),
	(158702,5481,'_orderValue2','field_59d0c6f6175b8'),
	(158700,5481,'_stats_list','field_59b6372466bcc'),
	(158699,5481,'stats_list',''),
	(158697,5481,'orderValue1','1'),
	(158698,5481,'_orderValue1','field_59d0c6e5175b5'),
	(100815,5481,'lawUpdateArticleNoWriters','1'),
	(100816,5481,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(100817,5481,'_yoast_wpseo_metadesc','When it comes to resisting the enforcement of an award in the UAE, a common defence is that the Defendant was not a party to the arbitration agreement because the person who signed on its behalf did not have the required authority to bind the company to arbitration.'),
	(100818,5482,'content','October 2016\r\n\r\n<hr />\r\n<p class=\"p1\">Indeed, in December 2015 the press reported that the Supreme Judicial Council had removed several court experts from its approved experts list due to the delays in cases assigned to them and further, a few have been referred to the Public Prosecution to be questioned in respect of alleged wrongdoing and dereliction of duty.</p>\r\n<p class=\"p1\">This article considers recent litigation which has offered the prospect of quicker access to justice for parties in Qatari litigation disputes.</p>\r\n<p class=\"p1\">Historically, the Qatari courts, when faced with matters of a technical nature or a requirement to deal with voluminous documentation as typically associated with construction disputes, will usually issue a preliminary judgment to appoint an expert to meet the parties, study the subject matter and write a report with their findings. At that stage, the parties have the right to object to the report and the court may send the file back once again to the expert if it finds that the objections raised by the parties need to be addressed. Eventually once the court is satisfied with the final report it will rely heavily upon it in making its determination. Furthermore, even in simple and direct monetary claims, the Qatari courts have tended to refer such cases to an expert.</p>\r\n<p class=\"p1\">This prolonged process takes approximately 6 to 18 months. As a result, it can financially debilitate businesses due to the uncertainty caused by the overhanging litigation.</p>\r\n<p class=\"p1\"><span class=\"s1\"> However, in two recent cases before the civil and commercial court circuits in Qatar’s Court of First Instance, a new and potentially significant approach has developed which has reduced the time taken for the issuance of a judgment. </span></p>\r\n<p class=\"p1\">Both cases involved monetary claims and resulted in the issuance of a judgment within a period of less than four months from the date that the claim was filed. In both cases, the Court reached its decision without the appointment of an expert.</p>\r\n<p class=\"p1\">It is necessary to briefly consider each case in order to further analyse this alternative approach taken by the Qatari Courts.</p>\r\n<p class=\"p1\">The first case involved a subcontractor’s claim for QAR 6 million against a main contractor in respect of unpaid dues arising from the full execution of the contract.</p>\r\n<p class=\"p1\">The Court found in favour of the Claimant (the sub-contractor) on three findings:</p>\r\n\r\n<ul>\r\n 	<li>The document submitted by the Claimant established a contractual relationship between the parties.</li>\r\n 	<li>The Claimant carried out the agreed works as contracted.</li>\r\n 	<li>The Respondent admitted the debt in writing.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p3\"><span class=\"s2\">Further, it should be noted that the Respondent, which had been served duly with the case summons, did not appear to refute the claims. </span></p>\r\n<p class=\"p1\"><span class=\"s3\"> The second case involved a seller’s claim of unpaid instalments (in addition to the remaining purchase price pre-matured due to the buyer’s failure). The Court based its judgment on the following findings:</span></p>\r\n\r\n<ul>\r\n 	<li>The document submitted by the Claimant established the contractual relationship between the parties.</li>\r\n 	<li>The buyer failed to pay his dues and thus a breach of the contract was established.</li>\r\n 	<li>The buyer and guarantor’s failure to appear to refute the claim with a sound defence.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p3\">In summary, these two claims were both monetary claims and similarities were present as noted by the reasons founded upon by the Court in its respective judgments.</p>\r\n<p class=\"p5\"><span class=\"s4\"><strong>What does the future hold?</strong></span></p>\r\n<p class=\"p6\">As set out, for many parties excessive delay is the most worrisome issue in civil and commercial litigation in Qatar with the preliminary appointment of a court appointed expert appointment being highlighted as one, if not the major exacerbating factor.</p>\r\n<p class=\"p1\">The recent case developments give some encouragement to the prospect that the appointment of an expert (and the associated delay) can be avoided at least in some cases.</p>\r\n<p class=\"p1\">In order to try and avoid the appointment of an expert, litigants ought to provide all relevant documentation related to the matter to their lawyers for consideration.</p>\r\n<p class=\"p1\">It goes without saying that the Court is much more likely to fast track a decision without the reliance of a court appointed expert in circumstances where a claim is supported by clear and convincing evidence and observance with the other governing rules and procedures that the Court requires.</p>\r\n<p class=\"p1\"><span class=\"s3\"> Furthermore, it should be borne in mind that even in complex contractual claims, an explicit or implied admission may be considered as conclusive evidence and a determinative factor. In the event of such an admission, the prospect of the judgment being issued without the appointment of an expert will certainly be increased. </span></p>\r\n<p class=\"p1\">Where possible, it is to be hoped that procedural delays will be avoided and that the Qatari Courts will continue to issue judgments without recourse to court appointed experts.</p>\r\n<p class=\"p1\"><span class=\"s3\"> Our Qatari litigation practice at Al Tamimi can assist with all enquires related to these developments. For further information please do get in touch.</span></p>'),
	(159233,5482,'core_values',''),
	(159234,5482,'_core_values','field_59b64ab071de4'),
	(159235,5482,'file',''),
	(159236,5482,'_file','field_59b64c10f6600'),
	(100819,5482,'_content','field_59b649b5c8b2b'),
	(100820,5482,'lawUpdateArticleMonth','5479'),
	(100821,5482,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100822,5482,'content_description','In general, cases of a commercial nature lodged at the Qatar civil and commercial Court of First Instance usually take around 1 to 2 years for judgment to be issued. This inefficacy and delay are attributed mainly to court proceedings, and, in particular expert appointment and time spent by the expert to present his report. '),
	(100823,5482,'_content_description','field_59b641c07f473'),
	(100824,5482,'pageSummary','In general, cases of a commercial nature lodged at the Qatar civil and commercial Court of First Instance usually take around 1 to 2 years for judgment to be issued. This inefficacy and delay are attributed mainly to court proceedings, and, in particular expert appointment and time spent by the expert to present his report.'),
	(100825,5482,'_pageSummary','field_59e59b307dec8'),
	(100826,5482,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/october-6/what-is-the-secret-behind-a-quick-judgment-in-qatar.html'),
	(100827,5482,'_currentURL','field_59d35123ab1e7'),
	(100828,5482,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Ahmed Eljaily'),
	(100829,5482,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(100830,5482,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','a.eljaily@tamimi.com'),
	(100831,5482,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(100832,5482,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','Doha, Qatar'),
	(100833,5482,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(100834,5482,'lawUpdateArticleNoWriters','1'),
	(100835,5482,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(100836,5482,'_yoast_wpseo_metadesc','Al Tamimi & Company in this article considers recent litigation which has offered the prospect of quicker access to justice for parties in Qatari litigation disputes.'),
	(218912,7662,'lawyerVideos',''),
	(100837,5483,'content','October 2016\r\n\r\n<hr />\r\n<p class=\"p1\"><strong>Introduction</strong></p>\r\n<p class=\"p2\">Internationally, the FIDIC forms of contract are the most widely used standard forms for construction and engineering projects.<sup>2</sup> Whilst this success can be attributed to a number of factors, the most prominent is down to the support by the World Development Bank.<sup>3</sup></p>\r\n<p class=\"p1\">In terms of FIDIC’s history, the 1st Edition was published in 1957. The FIDIC 1st Edition was based upon the ACE form of contract which was itself based on the ICE 4th Edition (an English civil engineering contract).<sup>4</sup> The FIDIC 2nd Edition was published in 1969. The 3rd Edition was issued in 1977, and the FIDIC 4th Edition was issued in 1987. In 1999 FIDIC published its ‘Rainbow Suite’ of contracts, which included, along with the FIDIC Red Book, the Yellow Book (Design and Build), the Silver Book (EPC) and the Green Book (Short Form). Other forms followed by way of the Red Book Subcontract (2002), the Pink Book (MDB) (2004), the Blue Book (Dredging) 2006 and the Gold Book (DBO) in 2008. In 2000 FIDIC published an extremely useful Contracts Guide.<sup>5</sup></p>\r\n<p class=\"p1\"><span class=\"s2\"> The Rainbow Suite was drafted to create a more balanced allocation of risk between the parties, though, of course, different forms of contract seek to allocate risk in differing proportions, e.g. the Silver Book shifts the majority of risk and responsibility onto the Contractor with little involvement by the Employer during the project execution phase. Users of the Pink Book will be aware of its subtle but important differences with the Red Book (e.g. sub-clauses 2.5, 3.1, 3.5, 4.2, 8.1, 12.3, 15.6, 17.6, 20.1 and 20.6).<sup>6</sup></span></p>\r\n<p class=\"p1\">The FIDIC Red Book comprises a set of General Conditions (with 20 main clauses), Particular Conditions (prepared on a project-by-project basis) and an Appendix to Tender (which includes crucial contract data). Whilst FIDIC contemplates the execution of a formal Contract Agreement, the contract between the parties in the Red Book will actually be made by way of the issue of a Letter of Acceptance. In the Silver Book a contract is concluded by way of execution of a Contract Agreement.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Time</strong></span></p>\r\n<p class=\"p1\">In terms of time, sub-clause 8.2 of the FIDIC Red Book makes it clear that the Contractor must complete the Works by the Time for Completion, the latter being stated in the Appendix to Tender. The Contractor’s progress will be monitored against its baseline programme and any updated/revisions thereto.<sup>7</sup> The Particular Conditions may prescribe the level of detail and format required of the Contractor’s programme. Once it has started the Works the Contractor must then proceed with ‘due expedition and without delay’.<sup>8</sup> As part of its monthly reporting obligations set out in sub-clause 4.21, the Contractor must provide information on all matters likely to affect the progress of the Works so that all concerned parties can identify potential problems and deal with them accordingly.</p>\r\n<p class=\"p1\">If during the course of the Works the Contractor believes that it is entitled to an extension of time for one of the grounds listed in sub-clause 8.4 it is required to make a claim pursuant to sub-clause 20.1 within 28 days of becoming aware of the delay event.<sup>9</sup> To the extent that the Engineer believes that the Contractor’s progress is too slow to meet with the Time for Completion then, pursuant to sub-clause 8.6, the Engineer may issue a notice for the Contractor to speed up its rate of progress. The Contractor should be aware that failing to act upon a sub-clause 8.6 notice could ultimately lead to an Employer termination pursuant to sub-clause 15.2(c)(i).</p>\r\n<p class=\"p1\">Following receipt of a claim for an extension of time the Engineer is required to follow the process prescribed in sub-clauses 20.1 and 3.5 to make a ‘fair’ determination as to the Contractor’s entitlement.<sup>10</sup> To the extent that the Contractor is not awarded an extension of time then it will be liable for delay damages for the late completion of the Works pursuant to sub-clause 8.7. Difficulties often arise when the Contractor believes it has been wrongly denied an extension of time and is subsequently issued with a sub-clause 8.6 notice.</p>\r\n<p class=\"p1\">Ultimately, the Works will be complete when a Taking-Over Certificate has been issued under Clause 10.<sup>11</sup> Determining whether the Works are ready for taking over will be a matter of fact for the Engineer to decide on.<sup>12</sup></p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Payment</strong></span></p>\r\n<p class=\"p1\">In terms of payment, the FIDIC Red Book is a remeasurable contract. Whilst the payment process is briefly described below, it should be noted that if certain conditions are not met then the process can be derailed.</p>\r\n<p class=\"p1\">The Contractor will submit monthly applications (i.e. statements).<sup>13</sup> The Engineer will, following an evaluation carried out pursuant to sub-clause 12.3, issue an Interim Payment Certificate within 28 days thereof<sup>14</sup> and the Employer should make payment within a further 56 days.<sup>15</sup> Within 84 days of the issuance of the Taking-Over Certificate the Contractor will submit its Statement at Completion<sup>16</sup> and the Engineer will issue a Payment Certificate accordingly. 56 days after receiving the Performance Certificate the Contractor will submit its Application for Final Payment Certificate.<sup>17</sup> To the extent that the Engineer agrees with this Application,<sup>18</sup> the Contractor will issue its Final Statement for the agreed amount along with a written discharge<sup>19</sup> following which the Engineer will issue a Final Payment Certificate. Importantly, if the Employer fails to pay on time against a certified amount then the Contractor will be entitled to finance charges,<sup>20</sup> and possibly to terminate.<sup>21</sup></p>\r\n<p class=\"p1\">Clause 13 defines what will constitute a Variation and also prescribes how a Variation is to be dealt with and valued.</p>\r\n<p class=\"p1\">To the extent that the Contractor believes it is entitled to additional payment (there can sometimes be a dispute as to what is meant by ‘additional’) then it is required to make a claim in accordance with sub-clause 20.1. The time bar provision included within this particular sub-clause has been the subject of numerous articles over the years and its applicability in the UAE remains a hot topic.</p>\r\n<p class=\"p1\">The FIDIC Red Book caters for Provisional Sums, though such work will only be carried out if instructed by the Engineer.<sup>22</sup></p>\r\n<p class=\"p1\">Crucially from the Contractor’s perspective (who may be tendering for large construction or engineering projects), sub-clause 14.2 allows for an Advance Payment to be made. The Contractor will be required to provide a guarantee for this Advanced Payment and the Employer will claw this money back incrementally via interim payment certificates.</p>\r\n<p class=\"p1\">An often overlooked provision of the FIDIC Red Book is the ability of the Contractor to request that the Employer provides reasonable evidence of its financial arrangements. During periods of economic downturn this could be a useful tool for the Contractor. Contractors should be wary of an Employer who wishes to have this sub-clause deleted.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Performance Bonds</strong></span></p>\r\n<p class=\"p1\">Ever since the global financial crisis hit Dubai in late 2008 there has been a propensity for calls to be made against ‘on-demand’ Performance Bonds (‘PB’).</p>\r\n<p class=\"p1\">Sub-clause 4.2 provides (paraphrasing) that a Contractor must provide a PB within 28 days of receiving the Letter of Acceptance, usually for 10% of the Accepted Contract Amount.</p>\r\n<p class=\"p1\"><span class=\"s2\"> Sub-clause 4.2 prescribes the circumstances under which an Employer may make a demand on the PB: (i) a failure by the Contractor to extend the period of validity of the PB; (ii) a failure by the Contractor to pay an amount due to the Employer; (iii) failure by the Contractor to remedy a default; and (iv) where the Employer has grounds to terminate (importantly, the Employer need not actually terminate). </span></p>\r\n<p class=\"p1\">The sub-clause itself is silent as to what form a PB should take and that is a matter of separate negotiation but the FIDIC Red Book does provide a template. The wording of the PB itself needs to be carefully considered because the agreed version may actually contain pre-conditions to making a demand. The FIDIC template includes optional wording that the PB will expire upon the issuance of a Taking-Over Certificate; however, it is quite usual in the UAE for the period of validity of the PB to be extended through to the issuance of a Performance Certificate.<sup>23</sup> Difficulties for the Contractor often arise when a Performance Certificate is never issued or there is no fixed period for the PB.</p>\r\n<p class=\"p1\"><span class=\"s3\"> However, and quite often in the UAE, the Employer often forgets (or ignores) that it has a duty to account for the monies called under a PB. The Employer would do well to remember the penultimate paragraph of sub-clause 4.2 whereby the Employer provides the Contractor with an indemnity for any claim made on the PB which it was not entitled to make. In practice, if the Employer makes a call for the full amount of a PB during the Defects Notification Period when it has already taken over the Works and is operating the same for its intended purpose, the Contractor will often seek to rely on arguments under the UAE Civil Code to challenge the validity of the call, including, amongst other things, that the demand was an unlawful exercise of a contractual right (Article 106) or made contrary to good faith (Article 246(1)). </span></p>\r\n<p class=\"p1\">Given the importance of this issue, the process and implications of making a call on the PB are considered in more detail below.</p>\r\n<p class=\"p1\">Firstly, the Employer will make a demand on the bank which provided the PB. For tactical reasons this demand is often made so that the bank has as little time as possible to inform the Contractor, and at an inconvenient time so that the Contractor struggles to engage lawyers to prevent the bank from paying out on the PB.</p>\r\n<p class=\"p1\">Notwithstanding that a call on the PB has been made and that it should be paid out immediately it can sometimes take up to 2 or 3 weeks for a bank to release the money.</p>\r\n<p class=\"p1\">Once it has been notified by the bank that the Employer has made a call on the PB the Contractor will almost certainly apply for an attachment order (the equivalent of a freezing order injunction).<sup>24</sup> The Contractor’s application is made <em>ex parte</em>. It is quite usual for the attachment to be granted at this first <em>ex parte</em> hearing.<sup>25</sup> Often, the first time the Employer becomes aware of the attachment is when it receives notice that its bank account has been frozen.</p>\r\n<p class=\"p1\">Once the attachment has been granted the Contractor is required to commence proceedings for the main dispute within 8 days of the attachment,<sup>26</sup> and if it does not do so the attachment will be dismissed.<sup>27</sup> However, the commencement of proceedings for the main dispute within this 8 day period can be problematic for the Contractor if the main contract includes for arbitration and there are pre-conditions to commencing arbitration (e.g. a dispute first has to be referred to a Dispute Adjudication Board).</p>\r\n<p class=\"p1\">At the first <em>inter partes</em> court hearing after the Contractor has filed a claim for the main dispute the court will normally join the attachment order proceedings to the main proceedings.</p>\r\n<p class=\"p1\"><span class=\"s4\"> As one would expect, and so as not to undermine the status of bonds in the international banking community, the <em>inter partes</em> court hearing will usually, though not always, result in the lifting of the attachment. The court will generally take the view that the issue of whether the PB was properly called is a matter to be decided as part of the main dispute.</span></p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Termination</strong></span></p>\r\n<p class=\"p1\">The termination of a construction contract which is subject to the FIDIC Red Book is far from straightforward in the UAE because of the interface between the contractual termination provisions and what local law provides for in respect of termination.</p>\r\n<p class=\"p1\">At the outset, one would do well to remember some important provisions of UAE law. Firstly, Article 2(1) of the UAE Commercial Code provides a hierarchy of laws whereby the contract comes first, followed by the Commercial Code, then custom and practice and then the provisions of the UAE Civil Code. Secondly, Article 31 of the UAE Civil Code provides that a mandatory provision of law will take precedence over any conflicting contractual provision. Therefore, mandatory provisions of UAE law, along with others, need to be carefully considered when contemplating a termination under the provisions of the FIDIC Red Book.</p>\r\n<p class=\"p1\">Clauses 15 and 16 set out the contractual grounds for termination in the event of default by the Contractor or Employer respectively (sub-clause 15.5 allows the Employer to terminate for convenience). In short, provided the relevant grounds exist and, in some instances, the appropriate notices have been issued, the aggrieved party may serve a 14-day notice on the other party to terminate.</p>\r\n<p class=\"p1\"><span class=\"s4\"> That all sounds relatively straightforward. However, the problem lies in how these contractual provisions sit with UAE law.<sup>28</sup> </span></p>\r\n<p class=\"p1\">Article 267 of the UAE Civil Code provides that a contract can only be terminated in one of three ways: (i) by consent; (ii) by order of the court (or tribunal); or (iii) by a provision of law.<sup>29</sup> This last provision is generally taken to mean (in a construction setting) a force majeure type event as prescribed in Article 273 of the UAE Civil Code.<sup>30</sup> It is the first two provisions which create issues in the context of a termination under the FIDIC Red Book.</p>\r\n<p class=\"p1\">The first type of termination, i.e. by consent, sometimes gives rise to the argument that when the parties negotiated and signed the contract they thereby agreed (consented) that either party would be able to terminate the contract if the grounds for termination were met, such that a court order for termination is not needed and termination takes effect immediately. However, the contrary view to this argument is that such agreement can only take place when the termination itself is contemplated. The least risky challenge to a termination by consent is to ensure that the contract expressly includes a provision that a termination can be made without the need for a judicial order, which would make the termination compliant with Article 271 of the UAE Civil Code.</p>\r\n<p class=\"p1\"><span class=\"s2\"> The second way of terminating a contract under UAE law is by way of a court (or tribunal) order pursuant to Article 272 of the UAE Civil Code, but there are pre-conditions to be met if a termination under this provision is to be lawfully effected.<sup>31</sup> Indeed, what will often happen when terminating under the FIDIC Red Book is that the terminating party will seek to rely upon its contractual default and termination notices as Article 272 compliant notices. </span></p>\r\n<p class=\"p1\">One can foresee the potential issues that may arise. On the one hand a party may terminate a contract in real time under FIDIC but, under UAE law, the contract may be said to remain in existence until a court (or tribunal) declares the contract terminated.<sup>32</sup> Some lawyers may argue that the contractual termination under FIDIC gives rise to a ‘determination’, i.e. it is only the primary obligation of performance which has been ended, but the ancillary secondary obligations remain intact. However, a UAE court may well take a more broad-brush approach and simply ask itself whether a party is seeking to argue that a contract has been terminated, yes or no. Furthermore, the local courts have previously decided that upon a termination a party’s ancillary rights (e.g. liquidated damages) fall away, which is inconsistent with the termination provisions of FIDIC.</p>\r\n<p class=\"p1\">Ultimately, no matter what the parties argue or their lawers advice, it will be for a court (or tribunal) to decide whether the termination was lawful.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Summary</strong></span></p>\r\n<p class=\"p1\">The perennial problems surrounding time, payment, performance bonds and termination have carried across from the use of the FIDIC 4th Edition through to FIDIC’s 1999 Rainbow suite and there is no reason to suggest that they will disappear when FIDIC introduces its updated standard form contracts. With this in mind, and given that the UAE’s construction industry has now experienced its first boom-bust cycle, maybe it is time that the industry’s players started looking at more collaborative approaches to contracting and consider using other industry standard forms such as the NEC3.</p>\r\n<p class=\"p2\">Footnotes:</p>\r\n<p class=\"p6\">1<em>Federation International des Ingenieurs-Conseils</em>, Conditions of Contract for Construction for Building and Engineering Works designed by the Employer, 1st Edition (1999)</p>\r\n<p class=\"p6\"><sup>2 </sup>Baker E, Mellors B, Chalmers S, Lavers A, <em>FIDIC Contracts: Law and Practice</em>, Informa (2009) p1</p>\r\n<p class=\"p6\"><sup>3 </sup>Mason J, <em>Construction Law: From Beginner to Practitioner</em>, Routledge (2016) p170</p>\r\n<p class=\"p6\"><sup>4 </sup>Baker E, Mellors B, Chalmers S, Lavers A, <em>FIDIC Contracts: Law and Practice</em>, Informa (2009) p4</p>\r\n<p class=\"p6\"><sup>5 </sup><em>The FIDIC Contracts Guide</em>, FIDIC (2000)</p>\r\n<p class=\"p6\"><sup>6 </sup>The Pink Book is a special version of the Red Book whereby FIDIC conferred a license to amend its General Conditions to suit the MDBs.</p>\r\n<p class=\"p6\"><sup>7 </sup>Sub-clause 8.3 FIDIC Red Book</p>\r\n<p class=\"p6\"><sup>8 </sup>Sub-clause 8.1 FIDIC Red Book</p>\r\n<p class=\"p6\"><sup>9 </sup>In the recent case of <em>Obrasconv. AG for Gibraltar</em> [2014] EWHC 1028 (TCC) the Court considered the issues surrounding a sub-clause 20.1 in some detail.</p>\r\n<p class=\"p6\"><sup>10 </sup>There is some discrepancy as to at what stage the Engineer is to follow sub-clause 3.5 when dealing with a claim under sub-clause 20.1.</p>\r\n<p class=\"p6\"><sup>11 </sup>Note that sub-clause 10.1 allows for a deemed taking-over and sub-clause 10.2 allows for a partial taking-over.</p>\r\n<p class=\"p6\"><sup>12 </sup>Baker E, Mellors B, Chalmers S, Lavers A, <em>FIDIC Contracts: Law and Practice</em>, Informa (2009) p241</p>\r\n<p class=\"p6\"><sup>13 </sup>Sub-clause 14.3 FIDIC Red Book</p>\r\n<p class=\"p6\"><sup>14 </sup>Sub-clause 14.6 FIDIC Red Book</p>\r\n<p class=\"p6\"><sup>15 </sup>Sub-clause 14.7 FIDIC Red Book</p>\r\n<p class=\"p6\"><sup>16 </sup>Sub-clause 14.10 FIDIC Red Book</p>\r\n<p class=\"p6\"><sup>17 </sup>Sub-clause 14.11 FIDIC Red Book</p>\r\n<p class=\"p6\"><sup>18 </sup>The Contractor and Engineer are required to discuss matters to see what can be agreed.If all items cannot be agreed upon then the Engineer should issue an interim payment certificate for those items not in dispute.</p>\r\n<p class=\"p6\"><sup>19 </sup>Sub-clause 14.12 FIDIC Red Book</p>\r\n<p class=\"p6\"><sup>20 </sup>Sub-clause 14.7 FIDIC Red Book</p>\r\n<p class=\"p6\"><sup>21 </sup>Sub-clause 16.2(c) FIDIC Red Book</p>\r\n<p class=\"p6\"><sup>22 </sup>Sub-clause 13.5 FIDIC Red Book</p>\r\n<p class=\"p6\"><sup>23 </sup>Sub-clause 11.9 FIDIC Red Book refers</p>\r\n<p class=\"p6\"><sup>24 </sup>Article 252 of Federal Law No.11 of 1992 (The UAE Civil Procedures Law)</p>\r\n<p class=\"p6\"><sup>25 </sup>Article 259 UAE Civil Procedures Law</p>\r\n<p class=\"p6\"><sup>26 </sup>Article 255(2) UAE Civil Procedures Law</p>\r\n<p class=\"p6\"><sup>27 </sup>Dubai Court of Cassation Judgment 322/94</p>\r\n<p class=\"p6\"><sup>28 </sup>One would do well to remember that the UAE Civil Code was implemented well before the explosion of mega building projects in Dubai and the proliferation of using complex standard form construction contracts.</p>\r\n<p class=\"p6\"><sup>29 </sup>These grounds for termination are somewhat mirrored in Article 892 of the Muqawala provisions of the Civil Code.Whilst not expressly provided for in the UAE Civil Code, there is case law which suggests that an Employer may terminate for convenience but in doing so it will be liable to pay the Contractor for, amongst other things, its loss of profit.</p>\r\n<p class=\"p6\"><sup>30 </sup>This is mirrored by Article 893 of the Muqawala section of the Civil Code</p>\r\n<p class=\"p6\"><sup>31 </sup>This is mirrored by Article 877 of the Muqawala section of the Civil Code</p>\r\n<p class=\"p6\"><sup>32 </sup>Grose M, <em>Construction Law in the United Arab Emirates and the Gulf</em>, Wiley Blackwell (2016) p186</p>'),
	(159265,5483,'core_values',''),
	(159266,5483,'_core_values','field_59b64ab071de4'),
	(159267,5483,'file',''),
	(159268,5483,'_file','field_59b64c10f6600'),
	(159269,5483,'orderValue4','4'),
	(159270,5483,'_orderValue4','field_59d2096a8ff34'),
	(159271,5483,'related_pages_header',''),
	(159272,5483,'_related_pages_header','field_59b6441e3cc94'),
	(159273,5483,'related_pages',''),
	(159274,5483,'_related_pages','field_59b6434af4880'),
	(100787,5479,'pageSummary',''),
	(100788,5479,'_pageSummary','field_59e59b307dec8'),
	(100789,5479,'lawUpdateStartMonth','October'),
	(100790,5479,'_lawUpdateStartMonth','field_59da247791f14'),
	(100791,5479,'currentURL','http://localhost:8888/tamimi/en/section/law-update/section-14/october-6'),
	(100792,5479,'_currentURL','field_59d35123ab1e7'),
	(100793,5481,'content','October 2016\r\n\r\n<hr />\r\n<p class=\"p1\">This can be a persuasive argument because in the UAE arbitration is seen as an exceptional form of dispute resolution, one that deprives parties of their rights to refer disputes to the national courts. The Courts will therefore need to be satisfied that the company signatory had the required authority when signing to ensure the company consented to arbitration.</p>\r\n<p class=\"p1\">Where a UAE company is subject to a foreign award, a question that often emerges is which law needs to be complied with when determining the authority of the signatory. Is it UAE law (being the law under which the party was formed and exits); the governing law of the agreement; or the law where the arbitration takes place?</p>\r\n<p class=\"p1\">In a recent decision 693/2015 Commercial Appeal, the Dubai Court of Cassation has clarified that it is sufficient that the signatory has the authority to sign under the laws where the arbitration took place. Al Tamimi represented the successful Plaintiffs.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Background</strong></span></p>\r\n<p class=\"p1\">In October 2014, a major shipping line (the “<em>Owners</em>” or “<em>Plaintiffs</em>”), filed a claim for the recognition and enforcement of a foreign arbitral award in the UAE. The award has been issued pursuant to the LMAA rules in London. The party against whom the arbitral award was issued was a commercial company based in the UAE (the “<em>Defendants</em>” or “<em>Charterers’ Guarantor</em>”).</p>\r\n<p class=\"p1\">The facts of the arbitral award are as below:</p>\r\n<p class=\"p1\">The Owners chartered their vessel to ‘X’, with the Defendants countersigning the Charterparty as a Charterers’ Guarantor. X went into compulsory liquidation and failed to pay the hire amount punctually to the Owners. In accordance with the terms of the Charterparty, the matter was referred to arbitration in London.</p>\r\n<p class=\"p1\">By a Second Final Partial Arbitration Award, the arbitrators ordered the Charterers’ Guarantor, as the counter signatory, to pay the Owners an amount of USD 12,221,875.00 plus costs, 5% annual interest from 2011 until complete payment, and arbitration fees.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Dubai Court of First Instance</strong></span></p>\r\n<p class=\"p1\">The Charterers’ Guarantor submitted a reply to challenge the enforcement proceedings, raising, amongst other arguments, the below defences:</p>\r\n\r\n<ul>\r\n 	<li>\r\n<div class=\"p4\"></div></li>\r\n 	<li>The Defendants were not a party to the Charterparty, as their counter-signature was only to authenticate the Charterers’ signature on the Charterparty.</li>\r\n 	<li>The Second Final Arbitral Award should be refused pursuant to Article V (1)(a) of the New York Convention, on the basis that the Defendants were under some incapacity. The person who signed the Charterparty, which contains the arbitration clause, was not authorized on behalf of the Defendants to bind them in arbitration proceedings. As per the UAE laws, which ought to be the applicable law on the Defendants (as it is a UAE entity), only a director of the company or its board can bind the company to an arbitration clause.</li>\r\n 	<li>The Second Final Arbitral Award should be refused pursuant to Article V (1)(c) of the said convention, as the Defendants were not given proper notice of the appointment of the arbitrator and/or of the arbitration proceedings of the Second Final Arbitral Award, hence, they were unable to present their defense.</li>\r\n 	<li>The Second Final Arbitral Award should be considered as null and void, as the Second Arbitral Award dealt with a difference not contemplated by and not falling within the terms of the submission to arbitration, and the arbitral tribunal ended its jurisdiction over this dispute by issuing its First Final Arbitral Award.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p1\">The Plaintiffs argued that:</p>\r\n\r\n<ul>\r\n 	<li>Pursuant to Article 5(1)(a) of the New York Convention, the issue of whether the Defendants were a party to the charterparty or not was an issue that could only be determined by the applicable law to the contract (which was English Law). The tribunal had found that under English law the Defendants were bound by the charterparty and the arbitration clause it contained, and there was no reason to disturb this finding.</li>\r\n 	<li>The issue of whether the person who signed the arbitration agreement was an authorized signatory on behalf of the company or not should not be considered, as the Defendants had previously acknowledged its signature on the arbitration agreement as a countersigning party. In addition, this issue was subject to English law, being the applicable law on the Defendants. Under English Law an arbitration clause can be agreed upon by the representative of the company, its brokers, or by any way of communication.</li>\r\n 	<li>As regards the alleged procedural defects, the Plaintiffs submitted that there was no merit to these allegations as the Defendants had been duly served and had an opportunity to present its case and attend hearings, but had refused to do so.</li>\r\n 	<li>With regard to the allegation that the Second Arbitral Award dealt with a difference not contemplated by and not falling within the terms of the submission to arbitration, the Plaintiffs argued that this defence was not arguable before the Dubai Courts as the Defendants failed to submit a proof of this argument. Furthermore, a mere denial and objection on the arbitral award before the court where it is sought to be recognised should not have any effect as long as Defendants had not obtain a judgment from the competent authority to invalidate the award (in this case the English courts).</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p7\">The Court of First Instance decided to dismiss the arguments of the Defendants, and decided to recognise the Second Final Arbitral Award in the UAE. It was satisfied that the award complied with the 1958 New York Convention on the Recognition and Enforcement of Foreign Awards (which the UAE signed in 2006), and was in compliance with local laws and did not contradict or breach UAE public policy.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Dubai Court of Appeal: </strong></span></p>\r\n<p class=\"p1\">The Defendants appealed the Court of First Instance judgment, raising the same arguments. However, the Court of Appeal upheld the arguments made by the Plaintiffs and ordered that the arbitral award be recognised and enforced in the UAE. In a short judgment the Court referred to the New York Convention, acknowledging that it applied directly to the enforcement of foreign arbitral awards, and rejected the arguments made by Defendants.</p>\r\n<p class=\"p3\"><span class=\"s1\"><strong>Dubai Court of Cassation: </strong></span></p>\r\n<p class=\"p1\">The Defendants chose to lodge a further appeal before the Dubai Court of Cassation, and also submitted an application to stay the execution proceedings until a final judgment had been issued by the Dubai Court of Cassation. The application for a stay of execution proceedings was approved by the Dubai Court of Cassation, as it was held that prior to enforcing the award it was necessary that a final court judgment be issued by the Court of Cassation.</p>\r\n<p class=\"p1\">The Defendants appeal was based on two main reasons, namely:</p>\r\n\r\n<ul>\r\n 	<li>The Defendants were not served duly with the arbitration proceedings. Although a special federal decree (no 38 of 2007) had been enacted to regulate the judicial cooperation between the UAE and the UK, the proceedings had not been served through diplomatic channels.</li>\r\n 	<li>The Defendant is an LLC company, based and incorporated under UAE laws. Only its director had the authority to bind the company to an arbitration clause. The director of the company had never signed or agreed to the arbitration clause.</li>\r\n</ul>\r\n<p class=\"p7\">The Dubai Court of Cassation issued its judgment on 10 April 2016, dismissing the appeal and affirming the Court of First Instance and the Court of Appeal judgments, for the following reasons:</p>\r\n\r\n<ul>\r\n 	<li>Article V of the NY Conventions regulates when an foreign award can be refused enforcement, and states that:  <em>“ 1. Recognition and enforcement of the award may be refused, at the request of the party against whom it is invoked, only if that party furnishes to the competent authority where the recognition and enforcement is sought, proof that: (a) The parties to the agreement referred to in article II were, under the law applicable to them, under some incapacity, or …..; or (b) The party against whom the award is invoked was not given proper notice of the appointment of the arbitrator or of the arbitration proceedings or was otherwise unable to present his case; or (c) ….etc.”. </em></li>\r\n 	<li>The advantage of this article is that an arbitral award shall not be dismissed and a party against whom it is invoked shall not challenge the arbitral award, unless he proves to the competent authority where the recognition and enforcement is sought to be recognised that he was under some incapacity pursuant to the law where the arbitral award was issued, or that he was not duly served with the appointment of the arbitrator or the arbitration proceedings which made him unable to present his defense.</li>\r\n 	<li>Upon reviewing the Second Arbitral Award, it is apparent that the tribunal did mention in paragraph 6 of its award that the Defendants denied its responsibility in this claim, as it was not a party to the Charterparty. This meant that the Defendants were aware of the arbitration proceedings and did attend before the tribunal to submit its initial defences.</li>\r\n 	<li>It is apparent to the court upon reviewing the charterparty that the Defendants had signed the charterparty and its company stamp was placed on the charterparty. This meant that they were charterers of the vessel and a party to this agreement.</li>\r\n 	<li>Furthermore, the Defendants did not submit any proof to the UAE courts confirming that they were under some incapacity pursuant to English law, despite being granted this opportunity before the Dubai Court of First Instance the Court of Appeal.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p3\"><span class=\"s1\"><strong>Practice Note:</strong></span></p>\r\n<p class=\"p1\">This case helpfully clarifies at the highest level that a company’s capacity to enter into an arbitration clause shall not be limited to its director, but can also be extended to its employees, agents or brokers as long as this is in compliance with the laws applicable where the arbitration proceedings take place (the seat). This means that even if the signatory may not have been authorised pursuant to UAE law, provided the signatory would have had the authority under the foreign law, that is sufficient.</p>\r\n<p class=\"p1\">This is because the Court interpreted the phrase “the law applicable to them” referred to in article V(1)(a) of the New York Convention, as the laws governing the arbitration proceedings (i.e. the laws of the seat) rather than the laws governing the incorporation of each party.</p>\r\n<p class=\"p1\"><span class=\"s2\"> This is a welcome judgment that demonstrates the Dubai Courts’ supportive attitude towards the enforcement of foreign arbitral awards, and will strengthen the perception of the UAE as a pro-arbitration jurisdiction. </span></p>'),
	(158711,5481,'core_values',''),
	(158712,5481,'_core_values','field_59b64ab071de4'),
	(158713,5481,'file',''),
	(158714,5481,'_file','field_59b64c10f6600'),
	(158715,5481,'orderValue4','4'),
	(158716,5481,'_orderValue4','field_59d2096a8ff34'),
	(100786,5479,'_lawUpdateYear','field_59da245091f13'),
	(100785,5479,'lawUpdateYear','2016'),
	(100784,5479,'_lawUpdateDesc','field_59da24cd91f17'),
	(100781,5479,'lawUpdateImageURL','5946'),
	(100782,5479,'_lawUpdateImageURL','field_59c8deca117cd'),
	(100783,5479,'lawUpdateDesc',''),
	(100777,5478,'lawUpdateArticleNoWriters','1'),
	(100778,5478,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(100779,5480,'_wp_attached_file','uploads2/media-5479.jpg'),
	(100780,5480,'_wp_attachment_metadata','a:5:{s:5:\"width\";i:100;s:6:\"height\";i:133;s:4:\"file\";s:23:\"uploads2/media-5479.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:{}}}'),
	(100737,5477,'_content','field_59b649b5c8b2b'),
	(100738,5477,'lawUpdateArticleMonth','5452'),
	(100739,5477,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100740,5477,'content_description','A trade (or industrial) mark is a sign chosen by the merchant or manufacturer to be put on their products to distinguish those products from other similar products. The trademark aims to distinguish the products to attract customers. '),
	(100741,5477,'_content_description','field_59b641c07f473'),
	(100742,5477,'pageSummary','A trade (or industrial) mark is a sign chosen by the merchant or manufacturer to be put on their products to distinguish those products from other similar products. The trademark aims to distinguish the products to attract customers.'),
	(100743,5477,'_pageSummary','field_59e59b307dec8'),
	(100744,5477,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/september-6/accepted-logos-under-egypt-trademark-law.html'),
	(100745,5477,'_currentURL','field_59d35123ab1e7'),
	(100746,5477,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Hassane Hassan'),
	(100747,5477,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(100748,5477,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','h.hassan@tamimi.com'),
	(100749,5477,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(100750,5477,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','Cairo, Egypt'),
	(100751,5477,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(100752,5477,'lawUpdateArticleNoWriters_1_lawUpdateAuthorName','Maha Ayche'),
	(100753,5477,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(100754,5477,'lawUpdateArticleNoWriters_1_lawUpdateAuthorEmail','m.ayche@tamimi.com'),
	(100755,5477,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(100756,5477,'lawUpdateArticleNoWriters_1_lawUpdateAuthorLocation','Abu Dhabi, UAE'),
	(100757,5477,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(100758,5477,'lawUpdateArticleNoWriters','2'),
	(100759,5477,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(100760,5477,'_yoast_wpseo_metadesc','A trade (or industrial) mark is a sign chosen by the merchant or manufacturer to be put on their products to distinguish those products from other similar products. The trademark aims to distinguish the products to attract customers.'),
	(100761,5478,'content','September 2016\r\n\r\n<hr />\r\n<p class=\"p1\"><span class=\"s1\">Jordan is becoming a major destination for real estate developers from all over the region. Over the past 10 years, real estate developers from the GCC have entered the market by either acquiring ongoing projects in Amman and Aqaba, or by establishing new projects in the Kingdom. However, the lack of legislation addressing mixed-use projects (a single project that has both residential units and commercial units) has hampered the progress of such projects. </span></p>\r\n<p class=\"p1\">The current legislation regulating the ownership of property in the Kingdom is the Ownership of Apartments and Floors Law No. 25 of 1968 as amended (the “Law”), which lacks the basic essential features for the proper regulation of mixed-use projects. Under the current legislation, every property owner has a vote at the owners’ association, which is established pursuant to the Law. The Law provides that such an association must be established for every building that has more than 4 apartments/stories for the purpose of managing the property (an “Association”). Voting at meetings of an Association is by owners of individual units within the project, with each owner having one vote regardless of the total area he owns.</p>\r\n<p class=\"p1\"><span class=\"s1\">However, these voting rights defy the purpose of having one project managed by one party, essential for such types of projects. The fact that every building has a separate management Association in a mixed-use project is likely to create numerous issues for developers, including making it difficult for the developer to set out a set of unified rules applicable to the entirety of the project. The difficulties are particularly acute in relation to the enforcement of managerial decisions, including the imposition of service charges to be paid by owners, both commercial and residential. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">Another major issue that may arise is the control of an Association in a project comprised of residential units, shopping malls, hotels etc. Every person whose name appears on the title deed has one vote in an Association, regardless of his share in the total area of the project. By way of example, hotels have the same voting rights as a single unit owner. This grants residential owners the controlling stake in an Association, including the right to make decisions related to sub-projects in a mixed-use project.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Jordan urgently needs to revise its real estate development legislation by adopting regulations similar to those applied in the UAE, which endorse strata and mixed-use concepts that are recognised worldwide.</span></p>'),
	(100762,5478,'_content','field_59b649b5c8b2b'),
	(100763,5478,'lawUpdateArticleMonth','5452'),
	(100764,5478,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100765,5478,'content_description',''),
	(100766,5478,'_content_description','field_59b641c07f473'),
	(100767,5478,'pageSummary',''),
	(100768,5478,'_pageSummary','field_59e59b307dec8'),
	(100769,5478,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/september-6/mixed-use-projects-in-jordan.html'),
	(100770,5478,'_currentURL','field_59d35123ab1e7'),
	(100771,5478,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Ala Hadidi'),
	(100772,5478,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(100773,5478,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','a.hadidi@tamimi.com'),
	(100774,5478,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(100726,5476,'_content_description','field_59b641c07f473'),
	(100727,5476,'pageSummary','The Saudi Vision 2030 was announced in April 2016 and represents Saudi Arabia’s roadmap to diversify its economy and address the challenges brought by low global energy prices. In June 2016 the National Transformation Program 2020 (“NTP”) was launched by the Saudi Government as part of the implementation of the Saudi Vision 2030 with the aim of meeting interim targets by 2020 through various strategic initiatives across 24 Saudi governmental bodies.'),
	(100728,5476,'_pageSummary','field_59e59b307dec8'),
	(100729,5476,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/september-6/saudi-vision-2030-what-does-it-mean-for-your-industry.html'),
	(100730,5476,'_currentURL','field_59d35123ab1e7'),
	(100731,5476,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','784'),
	(100732,5476,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(100733,5476,'lawUpdateArticleWriters','1'),
	(100734,5476,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(100735,5476,'_yoast_wpseo_metadesc','Al Tamimi & Company looks at some of The Saudi Vision 2030 opportunities with particular reference to Saudi’s Eastern Province where a significant proportion of the initiatives are focused.'),
	(100736,5477,'content','September 2016\r\n\r\n<hr />\r\n<p class=\"p1\">The trademark may also refer to the country of issue, production source, source of selling, the goods’ quality, category, guarantee, preparation process, or the provision of any service.</p>\r\n<p class=\"p1\"><span class=\"s1\"> In order to register a trademark in Egypt, the word and/or image element will have to fulfill certain criteria.</span></p>\r\n<p class=\"p2\"><span class=\"s2\"><strong>1. Names represented in a distinctive manner:</strong></span></p>\r\n<p class=\"p3\"><span class=\"s1\">It must take a distinctive manner i.e. to be put in a particular form, with certain colors or with a special drawing/design creating certain characteristics to the trademark to differentiate it from other marks.</span></p>\r\n<p class=\"p5\"><span class=\"s2\"><strong>2. Letters and numbers:</strong></span></p>\r\n<p class=\"p3\"><span class=\"s1\">The trademark may take a specific form of letters or numbers to distinguish the products.</span></p>\r\n<p class=\"p5\"><span class=\"s2\"><strong>3. Drawings, pictures and engravings:</strong></span></p>\r\n<p class=\"p3\">The trademark might be a certain symbol that refers to a special form, whether derived from nature as a tree or a flower or a pyramid, or the form of an animal or buildings, ships, cars to distinguish and highlight the property of the products.</p>\r\n<p class=\"p5\"><span class=\"s2\"><strong>4. Covers and shape or color of product/goods:</strong></span></p>\r\n<p class=\"p3\"><span class=\"s1\">The use of a three-dimensional mark has recently spread, especially for the cover of products/goods related to drinks, toys, electrical and electronic appliances. These 3D shapes are often subject to infringement and counterfeiting from their competitors.</span></p>\r\n<p class=\"p6\"><span class=\"s1\">The trademark, in whatever form it is, must identity the product sufficiently to avoid confusion with other marks that are placed on similar products or services. It is also important to have a legitimate trademark which does not violate the law or public order and good morals.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Some trademarks are not considered legally protected, such as marks that are devoid of any specific properties or qualities, or photographs of people. Article 67 of the Egyptian Trademark Law gives the following list of marks that cannot be used or protected:</span></p>\r\n\r\n<ul>\r\n 	<li>\r\n<div class=\"p7\"></div></li>\r\n 	<li>Marks devoid of any distinctive character, or composed of signs or statements which only usage grants to the products, or which is the normal picture or image thereof.</li>\r\n 	<li>Any mark which is contrary to public order or morality.</li>\r\n 	<li>Public armorial bearings, flags and other emblems pertaining to the State or any other state, regional or international organizations, as well as any imitations thereof.</li>\r\n 	<li>Marks which are identical with, or similar to, symbols of religious character.</li>\r\n 	<li>Symbols of the Red Cross or Red Crescent, or any other emblem of the same character, as well as any imitations thereof.</li>\r\n 	<li>The portrait of an individual or his armorial bearings, except with his consent.</li>\r\n 	<li>Designations of honorary degrees which the applicant is unable to prove his right thereto.</li>\r\n 	<li>Marks and geographical indications which are likely to mislead or confuse the public or which contain false descriptions as to the origin of products, whether goods or services, or their other qualities, as well as the signs that contain an indication of a fictitious, imitated or forged trade name.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p6\"><span class=\"s1\">It is recommended to conduct a search prior to filing a trademark to check its availability. The search result takes around 4 - 7 working days. This step may avoid the applicant from having his trademark refused if it has been applied for or registered earlier by someone else.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Upon availability, the trademark then can be filed with the Trademark Office. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> To file a trademark, an application should be filed with the applicant’s name, address and nature of business specifying the class with the list of goods/services, with a copy of the trademark. A legalized Power of Attorney should also be submitted. The mark can be applied for in one or more classes. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Upon examination, the Registry may apply certain conditions and require the applicant to undertake modifications on the mark in order to define and clarify it so as to avoid confusion with a mark already registered, or a mark for which a registration application has already been filed. Such decision shall, within 30 days of its issue, be communicated to the applicant in writing. The Department may reject the application should the applicant fail, within six months of the notification, to introduce the amendments required.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> The applicant may appeal the decision of the Department within 30 days from the communication of such a decision. Appeals are considered by a committee composed of three members, one of whom is a member of the Council of State.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> If the trademark is accepted, the Department shall have the decision published in the Gazette of Trademarks and Industrial Designs. Within 60 days after this, any interested party may submit an application opposing the trademark in writing to the Department. The Department shall then send a copy of the opposition to the applicant, within 30 days from the receipt of such a notification. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> The applicant then has 30 days to reply, failing which he will be considered to have withdrawn his application. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> In the absence of any opposition, registration of the mark is then approved by a decision of the Department, which is published in the Trademarks and Industrial Designs Gazette. Registration will take effect from the date of filing the application. The Department will give the owner of the mark a certificate containing the information published in the Gazette, which can serve as proof that the mark has been registered and is protected. </span></p>'),
	(159918,5477,'core_values',''),
	(159919,5477,'_core_values','field_59b64ab071de4'),
	(100725,5476,'content_description','The Saudi Vision 2030 was announced in April 2016 and represents Saudi Arabia’s roadmap to diversify its economy and address the challenges brought by low global energy prices. In June 2016 the National Transformation Program 2020 (“NTP”) was launched by the Saudi Government as part of the implementation of the Saudi Vision 2030 with the aim of meeting interim targets by 2020 through various strategic initiatives across 24 Saudi governmental bodies. '),
	(100723,5476,'lawUpdateArticleMonth','5452'),
	(100724,5476,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100722,5476,'_content','field_59b649b5c8b2b'),
	(100684,5474,'_content','field_59b649b5c8b2b'),
	(100685,5474,'lawUpdateArticleMonth','5452'),
	(100686,5474,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100687,5474,'content_description','This article considers the scope of copyright protection in Bahrain. \r\n\r\n'),
	(100688,5474,'_content_description','field_59b641c07f473'),
	(100689,5474,'pageSummary','This article considers the scope of copyright protection in Bahrain.'),
	(100690,5474,'_pageSummary','field_59e59b307dec8'),
	(100691,5474,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/september-6/copyright-protection-in-bahrain.html'),
	(100692,5474,'_currentURL','field_59d35123ab1e7'),
	(159809,5474,'_timeline_header','field_59b63de5b74bf'),
	(159808,5474,'timeline_header',''),
	(159806,5474,'orderValue2','2'),
	(159807,5474,'_orderValue2','field_59d0c6f6175b8'),
	(159805,5474,'_stats_list','field_59b6372466bcc'),
	(159804,5474,'stats_list',''),
	(159802,5474,'orderValue1','1'),
	(159803,5474,'_orderValue1','field_59d0c6e5175b5'),
	(100699,5474,'lawUpdateArticleNoWriters',''),
	(100700,5474,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(100701,5474,'_yoast_wpseo_metadesc','The Bahraini Copyright Law no. 22 of 2006 as amended (“Copyright Law”) replaced Law no. 10 of 1993, providing wider protection. This article considers the scope of copyright protection in Bahrain.'),
	(100702,5475,'content','September 2016\r\n\r\n<hr />\r\n<p class=\"p1\">The Competition Law introduced a new regime of jurisprudence to Qatar. It was enacted in response to obligations created by multilateral trade agreements and World Trade Organisation requirements. It applies to all business activities in Qatar within the private sector. However, it does not apply to governmental acts or acts of any entity controlled or supervised by the state.</p>\r\n<p class=\"p1\"><span class=\"s1\"> The Competition Law forbids collusion, mergers and abusive conduct that would result in dominant market positions. It aims to: stabilise domestic markets and achieve social justice by removing any hurdles that restrict businesses from reaching local consumers; and, encouraging competition to assist economic growth and national development aims.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Article one states that it applies to both collective activities and unilateral activities in areas of control. Control is defined as ‘the ability of a person or group of persons working together to control the market of products in order to affect prices or quantities without competitors having the ability to limit such effect.’</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> A mandatory notification of mergers creating or likely to create a so-called control situation is provided by Article 10. A merger is an acquisition of rights, assets or shares, or the creation of joint ventures or an amalgamation between two or more corporate entities. The Committee is responsible for receiving Article 10 notifications. It must make a decision on these notifications within 90 days, failing which acceptance of the merger is deemed to have taken place. Details of ways to lodge notifications can be found in the Resolution of the Minister of Economy and Commerce (No. (61) of 2008).</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Mergers are excluded from the operation of Article 10 where they contribute to economic progress in a manner that compensates for any adverse effect on competition (Article 11). What comprises economic progress is yet to be determined.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Any member of the Committee, as well as properly appointed ministerial officials, are responsible for investigating breaches of the Competition Law. To that end, they are empowered to enter business premises and other places where activities are being undertaken and to inspect all books and other documentary records.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Under Article 15, the Committee can make stop orders against entities in breach of any collusive or abusive conduct or engaging in any unlawful mergers. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Article 17 provides for punitive fines ranging from 100,000 to 5,000,000 Qatari Riyals (approximately $27,000 to $1.4 million). It also grants the court the power to confiscate profits made as a consequence of the unlawful activity. Article 18 provides the same fines are applicable to any individual responsible for the management of an entity found to have committed an infringement provided that the individual had knowledge of and contributed to the infringement. However, it appears that such individuals are entitled to an indemnity for the fine from the corporate entity. The Minister for Economy and Commerce can agree a settlement without penal remedies, provided that the settlement contains a payment of between 100,000 to 5,000,000 Qatari Riyals.</span></p>\r\n<p class=\"p2\"><span class=\"s1\"> </span></p>\r\n<p class=\"p3\"><span class=\"s1\">This article was first published in the July/August 2016 edition of International Financial Law Review magazine. </span></p>'),
	(159850,5475,'core_values',''),
	(100703,5475,'_content','field_59b649b5c8b2b'),
	(100704,5475,'lawUpdateArticleMonth','5452'),
	(100705,5475,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100706,5475,'content_description','Qatar’s De-monopolisation and Competition Protection Committee (the Committee) at the Ministry of Economy and Commerce has become much more active of late. Therefore, ten years after its enactment, it is a good time to review the key provisions of the law on the protection of competition and prohibition of monopolistic practices (19 of 2006) (Competition Law).'),
	(100707,5475,'_content_description','field_59b641c07f473'),
	(100708,5475,'pageSummary','Qatar’s De-monopolisation and Competition Protection Committee (the Committee) at the Ministry of Economy and Commerce has become much more active of late. Therefore, ten years after its enactment, it is a good time to review the key provisions of the law on the protection of competition and prohibition of monopolistic practices (19 of 2006) (Competition Law).'),
	(100709,5475,'_pageSummary','field_59e59b307dec8'),
	(100710,5475,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/september-6/competition-law-in-qatar-a-closer-look.html'),
	(100711,5475,'_currentURL','field_59d35123ab1e7'),
	(100712,5475,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Carlo Procacci'),
	(100713,5475,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(100714,5475,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','c.procacci@tamimi.com'),
	(100715,5475,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(100716,5475,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','Doha, Qatar'),
	(100717,5475,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(100718,5475,'lawUpdateArticleNoWriters','1'),
	(100719,5475,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(100720,5475,'_yoast_wpseo_metadesc','Ten years after its enactment, it is a good time to review the key provisions of the law on the protection of competition and prohibition of monopolistic practices (19 of 2006) (Competition Law).'),
	(100721,5476,'content','September 2016\r\n\r\n<hr />\r\n<p class=\"p1\">The Saudi Vision 2030 and the NTP include a strong emphasis on increased private sector involvement and investment and the privatisation of a large number of Government businesses as well as the development of various industries.</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=\"p3\"><span class=\"s1\"><strong>Expected Cost of NTP initiatives over 5 years</strong></span></p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p3\"><span class=\"s1\"><strong>SAR Billion</strong></span></p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p3\"><span class=\"s1\"><strong>Percentage</strong></span></p>\r\n</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p3\"><span class=\"s1\"><strong>Government</strong></span></p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p4\">268</p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p4\">60</p>\r\n</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p3\"><span class=\"s1\"><strong>Private Sector</strong></span></p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p4\">179</p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p4\">40</p>\r\n</td>\r\n</tr>\r\n<tr>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p3\"><span class=\"s1\"><strong>Totals</strong></span></p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p4\">447</p>\r\n</td>\r\n<td class=\"td1\" valign=\"middle\">\r\n<p class=\"p4\">100</p>\r\n</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<p class=\"p1\">These plans will result in opportunities throughout Saudi Arabia .This Article looks at some of those opportunities with particular reference to Saudi’s Eastern Province where a significant proportion of the initiatives are focused.</p>\r\n<p class=\"p5\"><span class=\"s2\"><strong>Saudi Vision 2030 and the NTP</strong></span></p>\r\n<p class=\"p1\">The Saudi Vision 2030 sets out a wide range of strategic and economic goals aimed at reducing the dependency on oil production and Government spending. Particular highlights include:</p>\r\n\r\n<ul>\r\n 	<li>Defence Industry - 50% of military equipment spending to be localised by 2030</li>\r\n 	<li>Mining Industry - to be reformed to stimulate massive growth with target of SAR97 billion by 2020 and 90,000 job opportunities</li>\r\n 	<li>Non-Oil Sectors - the development of the non-oil sectors by 2020 with consequent reduced dependence on hydrocarbons</li>\r\n 	<li>Oil and Gas - the continued localisation of the sector from 40% to 75%, development of support sectors, increased gas production with a national gas distribution network</li>\r\n 	<li>Private Sector Investment - increasing the private sector contribution from 40% to 65% of GDP with particular focus on energy, healthcare, housing and municipal services</li>\r\n 	<li>Saudi Aramco IPO - the listing of up to 5% of Saudi Aramco with proceeds of the IPO to go to the Public Investment Fund (“PIF”)</li>\r\n 	<li>Overseas Investment - the PIF to become a global sovereign wealth fund valued at up to US$ 3 trillion</li>\r\n 	<li>Privatisations - a wide range of Government assets to be privatised</li>\r\n 	<li>Renewable Energy Industry - to be developed with private sector participation</li>\r\n 	<li>Retail and Trading Sector - to be developed with a view to creating a million jobs through the easing of foreign investment restrictions</li>\r\n 	<li>Telecommunications Industry - to develop the telecommunications and information technology infrastructure including high speed broadband</li>\r\n 	<li>Transportation - the creation of a regional logistics hub with completed and linked internal and cross border infrastructure</li>\r\n</ul>\r\n<p class=\"p7\">The NTP sets out strategic objectives with interim targets to be achieved by 2020, key performance targets and benchmarks of the 24 Government bodies involved and in each case links them to Vision 2030. The NTP also lists the various initiatives to be undertaken by each Governmental body involved. A total of 534 initiatives were approved for 2016 with a total cost to the Government over the next five years of around SAR 270 billion.</p>\r\n<p class=\"p1\">The NTP is therefore essential reading for international and domestic companies investing and operating in Saudi Arabia.</p>\r\n<p class=\"p1\">As the core area of Saudi Arabia’s petrochemical and industrial production and a key area for transportation and logistics, the Eastern Province of Saudi Arabia is a huge beneficiary of many of the initiatives and projected investments outlined in the NTP. The emphasis on “buying Saudi” and localisation will also have an increasing impact on how foreign investors will need to adapt to operating in Saudi Arabia.</p>\r\n<p class=\"p5\"><span class=\"s2\"><strong>Some key initiatives and 2020 targets in the NTP</strong></span></p>\r\n<p class=\"p1\">There is a wide-ranging list of initiatives and 2020 targets in the NTP. Those which will directly or indirectly impact on the Eastern Province include:</p>\r\n<p class=\"p1\"><em>Energy, Industry and Natural Resources</em> (NTP budget - SAR 2.5 billion)</p>\r\n\r\n<ul>\r\n 	<li>Increasing value of non-oil exports from SAR185 billion to SAR 330 billion (a large part of this is expected to come from mining)</li>\r\n 	<li>Increasing the mining sector contribution to GDP from SAR64 billion to SAR 97 billion</li>\r\n 	<li>Increasing local content in public and private sectors from 36% to 50% with an extra 5% of jobs to be localised in the private sector</li>\r\n 	<li>Increasing private sector involvement in high-potential less-developed regions from 0 to SAR28 billion (e.g. development of mining sector)</li>\r\n</ul>\r\n<p class=\"p7\">In line with the localisation initiatives in the NTP, under its “In Kingdom Total Value Added Programme” announced to suppliers in December 2015, Saudi Aramco aims to double the amount of locally made and supplied goods and energy related services to 70% of its supply chain within five years. This is expected to create 500,000 local jobs.</p>\r\n<p class=\"p1\"><em>Health Sector</em> (NTP Budget - SAR 23 billion)</p>\r\n\r\n<ul>\r\n 	<li>Increasing the private sector contribution to heath care expenditure from 25% to 35%</li>\r\n 	<li>Increasing the localisation of pharmaceutical manufacturing from 20% to 40% of the total market</li>\r\n</ul>\r\nA number of public to private partnerships are expected in the health sector and also the privatisation of one of Saudi’s medical cities.\r\n<p class=\"p1\"><em>Education</em> (NTP budget - SAR 24 billion)</p>\r\n\r\n<ul>\r\n 	<li>Increasing private sector involvement with target of increasing percentage of students in non- Government higher education from 6% to 15%</li>\r\n</ul>\r\nUnder the NTP approximately SAR 3 billion is allocated for developing colleges and institutes in Jubail and Yanbu Industrial Cities.\r\n<p class=\"p1\"><em>Environment, Water and Agriculture</em> (NTP budget - SAR12.9 billion)</p>\r\n\r\n<ul>\r\n 	<li>Desalinated water production involving strategic partnerships to increase from 16% to 52%</li>\r\n 	<li>Treated water production involving strategic partnerships to increase from 0% to 20%</li>\r\n 	<li>Cities covered by water and sewage services supplied by the National Water Company to increase from 42% to 70% with expected collaboration from the private sector</li>\r\n</ul>\r\nThe NTP includes an emphasis on environmental matters and includes a budget of approximately SAR 1.5 billion relating to the protection of the environment in Jubail, Yanbu and Ras Al Khair, which already have a comprehensive local environmental regulatory regime.\r\n<p class=\"p1\"><em>Housing</em> (NTP Budget - SAR 59 billion)</p>\r\n\r\n<ul>\r\n 	<li>Increasing real estate sector contribution to GDP from 5% to 10%</li>\r\n 	<li>Establishment of partnerships with private sector developers to develop Government land for housing projects</li>\r\n 	<li>Establishing fast-track licences and special finance packages to encourage private sector investment in housing projects</li>\r\n</ul>\r\n<p class=\"p7\">Housing is the biggest area of Government expenditure under the NTP. Over SAR5 billion is committed in the NTP for housing development in Eastern Province in addition to very significant budgets for developing residential and community areas and public facilities in Jubail, Yanbu and Ras Al Khair.</p>\r\n<p class=\"p1\"><em>King Abdullah City for Atomic and Renewable Energy (“KACARE”)</em> (NTP budget - SAR 5 billion)</p>\r\n\r\n<ul>\r\n 	<li>Enabling atomic energy to contribute to the national energy mix</li>\r\n 	<li>Enabling renewable energy to contribute to the national energy mix in the amount of 3.45Gw</li>\r\n 	<li>Increasing local content in the industrial and service value chains and expertise in renewable energy sector from 25% to 35% and in the atomic energy sector from 25% to 30%</li>\r\n</ul>\r\n<p class=\"p7\">KACARE is working with the RCJY on a solar energy project with 50MW capacity for Yanbu Industrial City.</p>\r\n<p class=\"p1\"><em>Royal Commission for Jubail and Yanbu (“RCJY”) </em>(NTP budget – SAR 41.5 billion)</p>\r\n\r\n<ul>\r\n 	<li>Attracting diverse and integrative industries with target of increasing number of value added manufacturing and transformation products from 432 to 516</li>\r\n 	<li>Increasing RCJY’s cities industrial production from 252 to 309 million tons</li>\r\n 	<li>Significant increase in new private sector investment from SAR 681 billion to SAR 1065 billion</li>\r\n</ul>\r\n<p class=\"p7\">The RCJY is second only to the Ministry of Housing in its size of budget under the NTP. Significant initiatives include the development of new infrastructure in Yanbu Industrial City (including localising the renewable energy and rubber industries and establishing industrial gas and steam networks), Jubail Industrial City and Ras Al Khair Industrial City.</p>\r\n<p class=\"p1\">One of the biggest elements of the RCJY’s budget under the NTP is for developing value-added manufacturing and transformation products. Currently the limited chemical conversion industrial base in the Eastern Province means that most relevant petrochemical output is used for basic chemicals and polymers and only relatively small amounts of specialty chemicals and end use products are produced. The establishment of a downstream specialty chemicals and end use product sector is seen as critically important in establishing a higher added-value manufacturing industry</p>\r\n<p class=\"p1\"><em>Saudi Arabian General Investment Authority</em> (NTP budget - SAR 1 billion)</p>\r\n\r\n<ul>\r\n 	<li>Increasing direct foreign investment from SAR 30 billion to SAR 70 billion</li>\r\n 	<li>Promoting investment opportunities with a target of SAR 2.3 trillion new investment opportunities</li>\r\n 	<li>Increasing local content from 20% to 40%</li>\r\n 	<li>Reducing time needed for new business licences from 19 days to 1 day</li>\r\n 	<li>Establishing a Government agency to handle mega projects</li>\r\n 	<li>Initiatives include localising several industries (construction materials and equipment, transportation and logistics services) and launching a unified licences service for foreign investors</li>\r\n</ul>\r\n<p class=\"p1\"><em>Technology</em> (NTP Budget - SAR8.3 billion)</p>\r\n\r\n<ul>\r\n 	<li>The localisation and transfer of technology in building and construction, mining and advanced materials, health, energy, information and communication, water, oil and gas and transportation and logistics</li>\r\n</ul>\r\n<p class=\"p7\">In Eastern Province the NTP budgets for a smart city to be established in Yanbu and for the automation of Jubail and Ras Al Khair Industrial Cities.</p>\r\n<p class=\"p2\"><em> </em></p>\r\n<p class=\"p1\"><em>Transportation</em> (NTP budget - SAR 5.5 billion)</p>\r\n\r\n<ul>\r\n 	<li>Increasing private sector contribution in developing and operating ports projects from 30% to 70%</li>\r\n 	<li>Increasing private sector contribution in developing and operating rail projects from 5% to 50%</li>\r\n 	<li>Improving the container capacity of the Dammam to Riyadh rail link</li>\r\n</ul>\r\n<p class=\"p7\"><span class=\"s3\">The General Ports Authority is expected to be on the privatisation list. Initiatives include setting up private sector operation and maintenance concessions, and development of an integrated programme to improve port efficiency, which will be of particular importance to the ports in Eastern Province.</span></p>\r\n<p class=\"p1\">Specific initiatives also include establishing multi-modal logistics hubs in each of Jubail and Yanbu with Yanbu also to have a minerals port.</p>\r\n<p class=\"p5\"><span class=\"s2\"><strong>Investment Opportunities</strong></span></p>\r\n<p class=\"p1\">Developments since the launch of Vision 2030 and the NTP provide strong evidence of the fast pace of change, with both foreign and local investors being involved in significant opportunities in Saudi Arabia and the Governmental authorities (such as the RCJY) being proactive in seeking and promoting initiatives and private sector involvement.</p>\r\n<p class=\"p1\"><span class=\"s3\"> The range of initiatives and opportunities spans social and community related projects (housing, sports centres, public facilities) and the education, healthcare, municipal services, energy, environmental, industrial and manufacturing, oil and gas, technology and transportation sectors.</span></p>\r\n<p class=\"p1\">The conditions allowing 100% foreign-owned trading companies have come into force and although geared at large investments by multi-national companies, several foreign groups have already been approved to establish such entities.</p>\r\n<p class=\"p1\"><span class=\"s3\"> One of these companies is US conglomerate 3M, the largest chemicals manufacturer in the USA, which was granted a 100% trading licence in June 2016. 3M is establishing a facility in Dammam which, when completed, will be the largest manufacturing plant in the MENA region.</span></p>\r\n<p class=\"p1\">The massive projected budget of the RCJY under the NTP and the targets of diversifying into higher added-value and transformation industries with the support services required for greater infrastructure and more workers should result in many opportunities throughout Eastern Province.</p>\r\n<p class=\"p1\">The agreement announced in May 2016 of General Electric’s deal with Saudi Arabian Industrial Investments Company involving an initial US$1.4 billion (with potential increase to US$3 billion) of investment in manufacturing projects evidenced the Government’s commitment to increasing foreign sector investment and promoting the development of local industry.</p>\r\n<p class=\"p1\">Hard on the heels of the NTP launch, Saudi Aramco and Saudi Arabian Basic Industries Company announced that, in support of Vision 2030, they had agreed to establish a joint venture to set up and operate a fully integrated crude oil to chemicals complex in Eastern Province which is expected to lead to the creation of a 100,000 direct and indirect jobs.</p>\r\n<p class=\"p1\">In August 2016 it was reported that in line with Vision 2030 the RCJY had signed 24 contracts with up to 16 private sector investors for the development of commercial centres, hotels, housing, medical clinics and other projects in Jubail and Ras Al Khair Industrial Cities.</p>\r\n<p class=\"p1\">Investments may take the form of joint ventures and/or public private partnerships and given the initiatives in the NTP many opportunities can be expected in the Eastern Province particularly in the energy, education, housing and municipal services, transportation and oil and gas sectors.</p>\r\n<p class=\"p1\">It is also expected that there will be a number of privatisations with related opportunities for foreign and local investors, lenders and advisers.</p>\r\n<p class=\"p1\">Further initiatives in relation to the Saudi Vision 2030 and the NTP are expected and we will issue further updates on significant related developments.</p>\r\n<p class=\"p1\">With the launch of our third Saudi office in Al Khobar, Al Tamimi &amp; Co are perfectly placed to advise on opportunities and issues in Eastern Province and across Saudi Arabia relating to Vision 2030 and the NTP.</p>'),
	(212351,5457,'stats_list',''),
	(159884,5476,'core_values',''),
	(159885,5476,'_core_values','field_59b64ab071de4'),
	(159886,5476,'file',''),
	(159887,5476,'_file','field_59b64c10f6600'),
	(159888,5476,'orderValue4','4'),
	(159889,5476,'_orderValue4','field_59d2096a8ff34'),
	(159890,5476,'related_pages_header',''),
	(159891,5476,'_related_pages_header','field_59b6441e3cc94'),
	(159892,5476,'related_pages',''),
	(159893,5476,'_related_pages','field_59b6434af4880'),
	(159894,5476,'relatedArticles',''),
	(100459,5463,'_content','field_59b649b5c8b2b'),
	(100460,5463,'lawUpdateArticleMonth','5452'),
	(100461,5463,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(100462,5463,'content_description','Whether it is an airport, industrial facility, power station, hospital, commercial tower, residential project or any other asset, for a project to retain its value, be attractive to its users and function as intended, it must be operated and maintained properly. This is normally done through the appointment of a facility manager under a facility management contract.'),
	(100463,5463,'_content_description','field_59b641c07f473'),
	(100464,5463,'pageSummary','Whether it is an airport, industrial facility, power station, hospital, commercial tower, residential project or any other asset, for a project to retain its value, be attractive to its users and function as intended, it must be operated and maintained properly. This is normally done through the appointment of a facility manager under a facility management contract.'),
	(100465,5463,'_pageSummary','field_59e59b307dec8'),
	(100466,5463,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-14/september-6/facilities-management-contracts-a-few-things-to-know.html'),
	(100467,5463,'_currentURL','field_59d35123ab1e7'),
	(100468,5463,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','527'),
	(100469,5463,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(100470,5463,'lawUpdateArticleWriters','1'),
	(100471,5463,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(100472,5463,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','537'),
	(100473,5463,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(100474,5463,'lawUpdateArticlePractices','1'),
	(100475,5463,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(100476,5463,'_yoast_wpseo_metadesc','Regardless of the type of facility, it is important to ensure that the facilities management contract contains certain key provisions to ensure that the facility management contract properly fulfils its required purpose.'),
	(100477,5464,'content','September 2016\r\n\r\n<hr />\r\n<p class=\"p1\">The slowdown in the UAE economy has resulted in a corresponding slowdown in loan growth for the UAE banks and some debt delinquencies, especially in the SME market, and that has lead in some cases to a drop in bank profits as a result of increased bad debt provisions. While we understand that contractors who were the first to be affected have largely already made arrangements, that still leaves many bank customers who are feeling the stress of making scheduled loan repayments when their own profitability and cashflows are coming under pressure. If it is not sufficient to grant a rescheduling of the debt so that payments are reduced as the tem of the loans are extended, the banks and their customers will have to start considering entering into a more formal restructuring.</p>\r\n<p class=\"p1\">The practice in the UAE has been for consensual restructuring, partly as the current laws are designed for traders rather groups of companies with complex debt structures, and partly by the desire to ensure that these businesses survived as going concerns, even if the bargain stuck through the restructuring does not reflect usual commercial terms. Other reasons for pursuing a consensual process outside of court action are that:</p>\r\n\r\n<ul>\r\n 	<li>the statistics that we have show that for the few formal insolvencies that have taken place, they each take approximately 3.2 years, cost 20% of the assets of the borrower, and return only 29 fils in every dirham;</li>\r\n 	<li>a formal insolvency process or enforcement of security is almost always value destructive to the assets of the borrower; and</li>\r\n 	<li>the insolvency process under UAE law can be unpredictable.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p4\">Many UAE banks learned significant lessons from the 2008/9 financial crisis — these lessons or principles are now being dusted off to be put to use again, which can be seen in the recent “mini insolvency law” announced by the United Arab Emirates Banks Federation.</p>\r\n<p class=\"p1\">The key restructuring lessons are:</p>\r\n\r\n<ul>\r\n 	<li>Financial creditors should work together and not pursue an “every lender for itself” policy. Taking unilateral court action may force other creditors to follow a similar approach so that any advantage of taking early court action is probably negated.</li>\r\n 	<li>A standstill period should be given for a limited period to allow the borrower and lenders a breathing space to reach agreement. Of course, as lenders want to keep the borrower’s feet to the fire, the period tends to be relatively short and extended at the banks’ discretion.</li>\r\n 	<li>In situations where there are multiple lenders, the selection of one or more of those lenders to deal directly with the borrower to coordinate a deal that is acceptable to all lenders.</li>\r\n 	<li>If the borrower wants the protection of the standstill period (and if necessary its extension) they should provide access to all relevant information in order for a proper evaluation to be made of its position.</li>\r\n 	<li>There should be fair treatment of financial creditors with no creditor receiving preferential treatment. This will also mean the ranking of calls on a particular debtor in the group has to be preserved via priority deeds or intercreditor arrangements between the lenders.</li>\r\n 	<li>Provided it does not breach preserving existing priority, the movement of debt around a group to where it was incurred or where it can be repaid, or even the movement out of the group onto shareholders if the evaluation shows shareholders actually utilised the debt rather than the borrower, or have shareholders give security over the assets purchased with that debt.</li>\r\n 	<li>Part of the restructuring process in the UAE has been an untangling of personal assets with those of the borrower’s assets, with assets purchased by shareholders or affiliated companies with the borrowers’ money sometimes transferred back to the borrower to use or sell or at least to be secured in favour of the lenders. Of course, whether or not the shareholders benefitted, banks should always be looking to make sure that the shareholders are contributing to the restructuring by providing guarantees over personal assets or guarantees. Shareholders’ advisors will, of course, seek to limit such guarantees (for example, by demanding that they fall away once borrowing reaches more normal leverages levels).</li>\r\n 	<li>The banks should have their professional advisors provide them with an analysis of the likely position on enforcement of security, guarantees and a formal insolvency process so they understand the alternative outcomes to any offer being made by the borrower. This should involve the banks checking that their securities are properly taken and perfected and their finance documentation is enforceable and complete.</li>\r\n 	<li>Where new security is being offered to replace old security, lenders should consider whether existing security may be confirmed as remaining in place alongside new security until any hardening period is over, at which point the existing security may be discharged and the new security “takes over”.</li>\r\n 	<li>Although lenders may continue to allow the borrower to utilise existing working capital facilities during the standstill period, where there is a need for new working capital, such facilities may need to be given priority over the existing financial debt.</li>\r\n 	<li>Consider using ratchet margins to encourage concentration on the most profitable businesses and sale of other assets to reduce debt burden and hence the margin.</li>\r\n 	<li>Consider corporate governance oversight of the borrower by the lenders, ranging from a management committee of lenders having to agree various material decision, to minimal involvement (such as an observer appointed by the lenders to attend key meetings).</li>\r\n 	<li>Recognise that negative publicity affects a borrower’s ability to continue to operate normally as trade creditors stop providing trade credit and subcontractors ask to be paid upfront, squeezing cashflows. Therefore, the parties should consider appointing a professional to manage press coverage or at least coordinate on positive statements and ensure that confidentiality agreements are in place (although it would be idealistic to think that the existence of confidentiality agreements will guarantee no leaks to the press or adverse publicity).</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p4\">The “mini insolvency law” referred to earlier is the United Arab Emirates Banks Federation announcement that they are to suspend action against SME borrowers if they have (i) financial distress and (ii) AED50m or more of debt with two or more banks. Instead they will enter into a 90 day standstill agreement and the bank with the biggest exposure will agree how to manage or restructure the debt with that SME borrower. This is a practical example of some of the above principles being put into action on an industry-led basis for a specific area of distress.</p>\r\n<p class=\"p1\">For each restructuring there will of course be specific points of concern or pressure. The lessons and principles set out in this article may not all be applicable to every situation. However, they do provide a foundation on which creditors can build, working with the borrower to reconstruct a sound and functioning lending relationship.</p>\r\n<p class=\"p7\">* Previously published by Bloomberg Business Week Online on 8 September .2016.</p>'),
	(159299,5464,'core_values',''),
	(100449,5462,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Raissa Hajjar'),
	(100450,5462,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(100451,5462,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','r.hajjar@tamimi.com'),
	(100452,5462,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(100453,5462,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','Dubai, UAE'),
	(100454,5462,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(100455,5462,'lawUpdateArticleNoWriters','1'),
	(100456,5462,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(100457,5462,'_yoast_wpseo_metadesc','The guide provides hotel operators, owners and investors with a straitghtforward overview of the different regulations governing the hospitality sector across the Middle East region.'),
	(100458,5463,'content','September 2016\r\n\r\n<hr />\r\n<p class=\"p1\">Regardless of the type of facility, it is important to ensure that the facilities management contract contains certain key provisions to ensure that the facility management contract properly fulfils its required purpose.</p>\r\n<p class=\"p2\"><span class=\"s1\"> </span></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Scope of services and the consequences of breaches</strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">The primary rule for any facility management contract is that the precise scope of the facilities management services to be performed by the service provider are clearly set out in the facilities management contract (typically in a schedule), together with the relevant Key Performance Indicators (or KPIs) which the service provider is required to achieve. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Such KPIs should be SMART – Specific, Measurable, Achievable, Relevant and Time based. They need to be clearly defined as well as capable of being assessed objectively. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> The service provider is usually required to submit to the employer a ‘work plan’ which demonstrates how the service provider will discharge facilities management services and satisfy (if not exceed) the KPIs. The work plan should be a ‘living document’ and should therefore be subject to periodic review and refinement. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> The KPIs should address the fundamental requirements of the facilities management services and often focus on such things as availability, response times as well as the overall quality of service. However, the precise scope of these requirements needs to be tailored on a case by case basis. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> To ensure single point responsibility, it is important that the service provider warrants that it has carried out all reasonable investigations and inspections of the asset and that the asset is capable of being managed to the standards prescribed by the facilities management contract. This will eradicate the risk of the service provider seeking to blame the building contractor for any deficiencies in the facilities management services. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> From a practical perspective, where the asset is a new building, it may be a good idea to have the service provider inspect the asset prior to Take Over and to attend any tests on completion under the construction contract. You may also consider including in the building contract an obligation on the building contractor to provide the service provider with training for the operation and maintenance of the asset. This will need to be addressed at the earliest stages of a project so that it is possible for the construction contract to include clauses to address these issues. </span></p>\r\n<p class=\"p2\"><span class=\"s1\"> </span></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Penalties </strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">In order to incentivise the service provider to comply with the KPIs, it is usual for financial penalties to be levied if the relevant requirements are not attained while bonuses may be available if KPIs are exceeded (particularly if this will confer a financial benefit upon the employer).</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Careful thought should be given to any penalty regime, especially from a practical perspective and bearing in mind the specific characteristics of the project. For example, a service interruption which occurs during non peak hours may have far less of an impact than would have been the case had the interruption occurred during peak hours, so the penalty regime should reflect this.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Additionally, care must be taken when determining the amount of any penalties (which the employer should be able to recover without any need to establish any loss). A balance must be struck between imposing financial penalties which are significant enough to incentivize the service provider to properly discharge its obligations under the facilities management contract but which are not unduly onerous. Indeed, levying severe penalties can be counterproductive as they can damage commercial relationships and may damage the service provider’s cashflow and therefore its ability to adequately provide the facilities management services. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> To facilitate the recovery of penalty payments, it would be usual for an employer to insist on having a clear right to set off penalties from subsequent payments to be made to the service provider. The employer may also wish to have the ability to make a call on any performance bond provided by the service provider (particularly if the outstanding penalty exceeds a certain threshold).</span></p>\r\n<p class=\"p2\"><span class=\"s1\"> </span></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Termination rights </strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">While most commercial agreements provide for rights of termination in the event of ‘material’ breaches of contract, what constitutes a material breach can be unclear. In the context of facilities management contracts, this uncertainty can be circumvented by stating that a ground for termination is triggered in the event of specified breaches of the KPI regime. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> For example, a right of termination may be invoked if the financial penalties levied for failure to satisfy the KPIs exceed a stated threshold as this is indicative of consistent poor performance or if a ‘fundamental’ breach occurs (i.e. if there is a complete outage for a significant but defined period of time). </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Aside from termination of the facilities management contract pursuant to the KPI regime, facilities management contracts should also contain customary grounds for termination (including in the event of insolvency and breaches of any anti corruption laws), while the employer may also wish to have the flexibility to terminate the facilities management contract at its convenience. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> Termination for convenience should be considered as the term of facilities management contracts can be relatively long (i.e. 5 years would not be unusual) while commercial circumstances can quickly change. In practice, the employer’s right to terminate a facilities management contract at its convenience may be limited to set times, for example on the third anniversary of the date of the facilities management contract.</span></p>\r\n<p class=\"p1\">Whether or not the service provider will be prepared to agree to a right of termination for convenience will be largely determined by the party’s respective bargaining power as well as the compensation payments to which the service provider will be entitled if the right to terminate for convenience is used. The issue of loss of profit is likely to feature highly in any such negotiations.</p>\r\n<p class=\"p2\"><span class=\"s1\"> </span></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Monitoring performance </strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">Regardless of how well a KPI regime is drafted, the KPI regime will have little practical significance unless the service provider’s performance can be effectively monitored and evaluated. </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> It is therefore vital that the service provider submits regular reports (typically on a monthly basis) to the employer regarding the status of the facilities management services. These reports should include details of (and the reasons for) such things as outages, accidents and complaints.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> The monthly reports should be complemented by the employer having clearly defined inspection and audit rights (including of the service providers records, which survive termination).</span></p>\r\n<p class=\"p4\"><span class=\"s2\"><strong> </strong></span></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Scheduled maintenance </strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">Wear and tear is fact of life and it is therefore important that any facilities management contract makes adequate provision for scheduled maintenance to take place. This is typically performed pursuant to a maintenance plan which has been pre-agreed by the employer (including in terms of scope and cost). </span></p>\r\n<p class=\"p1\"><span class=\"s1\"> The KPI mechanism needs to take into account the scheduled maintenance plan (which should cause as little disruption as possible) and contains appropriate carve-outs. However, care must be taken to ensure that breaches by the services provider are not incorrectly characterized as scheduled maintenance, thus wrongly absolving the service provider from liability.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> The facilities management contract should also make it clear whether the employer or the service provider is responsible for procuring spare parts. This is particularly important when any stockpile of spare parts provided by the building contractor has dissipated and spare parts need to be independently procured. It is often felt that the service provider is best placed to accept this responsibility in which case the service provider’s remuneration needs to address this issue. </span></p>\r\n<p class=\"p2\"><span class=\"s1\"> </span></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Interface with third parties </strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">Given that facilities management contracts usually concern operating assets and facilities, it is pivotal that the drafting of the facilities management contract makes it clear that the service provider must not delay, interfere with or disrupt the day to day operations of the asset. How the interaction between the service provider and other contractors on site is managed needs to be considered and documented.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"> If any such clause is to be meaningful, it is important that the service provider is fully aware of the day to day use and operation of the asset and this usually means that the employer is required to disclose relevant third party contacts to the service provider. If the employer is to disclose any third party contracts, the employer should be mindful of any confidentiality provisions as well as the need to delete any commercially sensitive information.</span></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Handback procedures</strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">Employers usually periodically re-tender facilities management contracts, including to ensure that it is obtaining the most competitive rates in the market. It is therefore important that the duration of the term is considered and that the facilities management contract contains a clear handover procedure, which will become operational if the employer decides to change service provider.</span></p>\r\n<p class=\"p1\">The handover procedure should include a programme for the service provider’s transition out of managing the asset. The outgoing service provider may be required to provide its successor with appropriate training as well as a license to use any intellectual property rights to perform the facilities management services going forward.</p>\r\n<p class=\"p1\"><span class=\"s1\"> There should also be an inspection of the asset prior to the expiry or termination of the facilities management contract and the service provider should be required to remedy any defects in the asset which are attributable to the service provider’s breach. The employer should have the right to engage a third party to remedy any such defects (at the cost of the service provider) if the service provider fails to adequately correct such defects. </span></p>\r\n<p class=\"p2\"><span class=\"s1\"> </span></p>\r\n<p class=\"p3\"><span class=\"s2\"><strong>Other provisions</strong></span></p>\r\n<p class=\"p1\"><span class=\"s1\">Although the provisions discussed above form the cornerstone of an effective facilities management contracts, it is important that other fundamental clauses are properly addressed bearing in mind the commercial deal and tailored provisions to comply with the relevant laws of the jurisdiction. These include such things as insurance, force majeure, performance security, payment, subcontracting and clauses addressing the respective liability of the parties.</span></p>'),
