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	(215520,7474,'content_header',''),
	(215521,7474,'_content_header','field_59b641b57f472'),
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	(215524,7474,'content','<p class=\"p1\"><span class=\"s1\"><img class=\"wp-image-7527 aligncenter\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/06/shutterstock_794105161-Converted-300x94.png\" alt=\"\" width=\"1404\" height=\"440\" /></span></p>\r\n&nbsp;\r\n<p class=\"p1\"><span class=\"s1\">The Kingdom of Saudi Arabia is currently going through major social and economic reforms as part of Saudi Vision 2030 and the associated National Transformation Programme. The Saudi Arabian government is introducing a number of laws and policy changes aimed at simplifying business and increasing foreign investment in the Kingdom. </span></p>\r\n<p class=\"p1\">Technological innovation is a particular area of focus. Recent media reports mention global names such as Google and Snap as being particularly interested in opportunities in Saudi Arabia. Meanwhile, the Kingdom is keen to harness the benefits that technological innovation can bring to areas as diverse as education, de-salination and power distribution. With advanced technological centres (such as the King Abdulaziz City for Science and Technology (‘KACST’)) and plans for NEOM - a five hundred billion US dollar technology-focused mega city - the potential for businesses operating in the areas of technology and innovation will continue to grow.</p>\r\n<p class=\"p1\">In this article, we look at some key issues associated with setting-up in Saudi Arabia - whether you are a local start-up with a great mobile app idea, or a major global tech company looking to get in on the action.</p>\r\n\r\n<h2 class=\"p3\"><b>Local opportunities </b></h2>\r\n<p class=\"p1\"><span class=\"s1\">The government views technology and innovation as one of the most important areas for investment, and there has been significant growth and success in this area in recent years. The Badir Program, initiated under the auspices of KACST, is a nation-wide program aimed at accelerating the growth of emerging, technology-based businesses in the Kingdom. As a result of the Badir Program, around 250 new companies have already become active in the fields of e-commerce, communications, software and smart device applications. </span></p>\r\n<p class=\"p1\">The barriers to entering the KSA market, for a Saudi national investor, are very low. The most common options available for individuals thinking about starting new businesses in technology and innovation are sole proprietorships and Limited Liability Companies (‘LLCs’).</p>\r\n<p class=\"p1\">For a Saudi national (who is not a public servant) to incorporate a sole proprietorship or an LLC, all that is required is his or her Saudi national identification card, and completion of an online registration process via the Ministry of Commerce and Investment (‘MOCI’) website. The entire process can be completed in a single working day and will allow the local investor to begin undertaking business under the umbrella of the new business vehicle.</p>\r\n<p class=\"p1\">At this stage, because of current foreign investment regulations in Saudi Arabia, opportunities for start-ups as entrepreneurs are really only available to Saudi nationals and Saudi companies. This is generally because a foreign investor must provide financial statements and a proven track-record of business before being allowed to invest in the KSA market. The government has only recently provided start-up opportunities for entrepreneurs with intellectual property or an invention to invest as individuals since the beginning of 2018. Whether the economic liberalisation arising out of Saudi Vision 2030 will eventually extend to allowing non-Saudis to establish start-ups in Saudi Arabia is difficult to say.</p>\r\n&nbsp;\r\n<p class=\"p3\"><b>Foreign investment in Saudi Arabia</b></p>\r\n<p class=\"p5\">Where a prospective investor in Saudi Arabia is a foreign investor for the purposes of the Kingdom’s foreign investment laws, it is necessary to obtain a Foreign Investment Licence from the Saudi Arabian General Investment Authority (‘SAGIA’) in order to establish a corporate entity. Other specific approvals may be required from other authorities, depending on the business that the entity wishes to undertake.</p>\r\n<p class=\"p1\"><span class=\"s1\"> Obtaining a Foreign Investment Licence has become much easier than in previous years. With the leadership of the Council for Economic and Developmental Affairs (‘CEDA’), and internal reforms within SAGIA, the processing time has decreased to a number of days. This is a stark contrast to the six to nine months that it would have typically taken in the relatively recent past. </span></p>\r\n<p class=\"p1\">Significantly, the business activities that an overseas investor wishes to undertake must not be activities classified as exclusive to Saudi Arabian (or GCC) companies and nationals. This restriction could arise due to the activities being on the so-called “Negative List” (being business activities that SAGIA has specified as being exclusive to Saudis) or being otherwise identified as being restricted to Saudis in internal SAGIA policies and guidelines.</p>\r\n&nbsp;\r\n<p class=\"p6\"><b>Types of entities </b></p>\r\n<p class=\"p1\"><span class=\"s1\">The most common activities undertaken by technology companies in KSA are generally related to services or trading. </span></p>\r\n<p class=\"p1\">Companies with overseas ownership that desire to undertake services (e.g. installation or maintenance of software and/or hardware products), are usually incorporated as a “Branch Office” or as an LLC, and can typically be completely foreign-owned. Entities incorporated to undertake services are not permitted to conduct any advertising or trading activities.</p>\r\n<p class=\"p1\">Companies with overseas ownership that wish to undertake marketing, promotions and sales activities (e.g. sales of software and/or hardware products) are generally regarded by SAGIA as ‘trading’ entities. A trading entity would typically be an LLC (or, less typically, due to rigorous governance requirements) a Joint Stock Company, but it could not be a Branch. It is possible to incorporate a wholly foreign-owned trading entity, although the significant investment requirements (between two and three hundred million Saudi Riyals over a five year period) mean that this is not very common in practice.</p>\r\n<p class=\"p1\">Besides a Branch Office and an LLC there are some other options available</p>\r\n\r\n<ul>\r\n 	<li class=\"p7\"><span class=\"s1\">Temporary Commercial Registration: This type of corporate entity is similar to a Branch, but is only relevant to servicing a government contract. As such, this type of entity is not uncommon in the context of technology projects with government ministries. In order to obtain a temporary commercial registration, it is necessary to submit a signed copy of the relevant contract to SAGIA.</span></li>\r\n 	<li class=\"p7\">Technical Scientific Office: This type of corporate entity has the ability to provide sales and marketing assistance to a registered agent in Saudi Arabia. However, it is not permitted to market or sell products, or generate any revenue in and of itself; it can only provide support to the registered agent.</li>\r\n</ul>\r\n&nbsp;\r\n<p class=\"p3\"><b>Secondary registrations</b></p>\r\n<p class=\"p1\">Once a Foreign Investment Licence has been granted by SAGIA and a Certificate of Commercial Registration has been issued from MOCI, a number of additional registrations must be completed with various governmental authorities to enable the new entity to function. These types of registrations allow an entity to pay taxes and insurance, obtain visas for expatriate workers, and register signatures at the Chamber of Commerce, etc. Each of these secondary registrations must be renewed and kept valid in order for the entity to continue to do business in Saudi Arabia. Substantial delays and inconvenience could arise if any of these licences are not maintained.</p>\r\n<p class=\"p1\">Following the completion of the secondary registrations process, any additional licensing for CITC will generally be required. The CITC has authority for the regulation of the internet and information technology and is generally responsible for the licensing of information technology companies that are providing services such as cloud computing and telecommunications. With Saudi Vison 2030’s focus on technology and artificial intelligence, the CITC is set to play a more pivotal role in the KSA economy.</p>\r\n&nbsp;\r\n<p class=\"p3\"><b>Conclusion</b></p>\r\n<p class=\"p1\">For overseas investors, particularly in the technology sector, the investment climate in Saudi Arabia has never been better. The social and economic reforms that underpin Saudi Vision 2030 are having a positive impact on the adoption of technology and innovation in Saudi Arabia, and will assist in propelling the Kingdom into the post-oil era. As the building blocks of Saudi Vision 2030 fall into place, setting-up business in Saudi Arabia is becoming more efficient than ever before.</p>\r\n<p class=\"p1\"><i>Al Tamimi &amp; Company’s <a href=\"http://localhost:8888/tamimi/practice/corporate-structuring/\">Corporate Structuring</a> team regularly advises on setting up businesses – large and small - in Saudi Arabia. For further information, please contact <a href=\"http://localhost:8888/tamimi/lawyer/hesham-al-homoud/\">Hesham AlHomoud</a> (h.alhomoud@tamimi.com) or <a href=\"http://localhost:8888/tamimi/lawyer/elye-parata/\">Elye Parata</a> (<a href=\"mailto:e.parata@tamimi.com\">e.parata@tamimi.com</a>).</i></p>'),
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	(215599,7477,'content_header',''),
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	(215603,7477,'content','<p class=\"p1\">During the 2008 financial crisis, we experienced major real estate disputes that helped to test Dubai real estate laws and identify its weaknesses. After almost a decade of implementation, Dubai’s real estate laws and practice are much more robust.</p>\r\n<p class=\"p1\">Dubai now has a more mature real estate market after enacting several real estate laws regarding registration (including initial registration), strata, mortgages, escrow accounts and other laws and decrees. These laws clarify the rights and obligations of the real estate market stakeholders (i.e. investors, developers, banks and the land department) and helps them to understand their rights and best practices.</p>\r\n<p class=\"p1\">In this article we highlight the main real estate dispute resolution options in Dubai.</p>\r\n<img class=\"size-large wp-image-7476 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/06/shutterstock_682477819-1024x723.jpg\" alt=\"\" width=\"640\" height=\"452\" />\r\n<p class=\"p2\"><b>Amicable Settlement Centre (ASC) at Dubai Land Department (DLD) </b></p>\r\n<p class=\"p1\">We generally recommend that filing a claim with the Courts is a last resort for solving a real estate dispute given the cost and time involved.</p>\r\n<p class=\"p1\">We consider referring real estate disputes to the ASC is an efficient option because the ASC mediators are very experienced and have access to DLD databases, which help them to find facts and information about the properties, projects, developers and other information more efficiently. ASC does not charge fees to the parties and does not impose a judgment on the parties but seeks to mediate and to facilitate an amicable settlement. If successfully resolved, upon signing a settlement agreement, it becomes binding and enforceable against the signing parties. The ASC is located at DLD and managed by an expert legal team.</p>\r\n<p class=\"p2\"><b>DLD Legal Affairs Department (DLD Legal)</b></p>\r\n<p class=\"p1\">Law No 19 of 2017 granted developers the right to terminate a defaulting purchaser’s sale and purchase agreement without a court order provided specific procedures are followed. The termination process is actioned via a DLD online system. In our experience in assisting developers with this process, it takes around 3 to 4 months to terminate a sale and purchase agreement (including the notification period) in this manner. DLD Legal charges fee of AED 3,000 for this service (i.e. termination and deregistration of purchasers’ contracts). DLD Legal may also mediate a settlement between the developer and the defaulting purchaser. Investors have the right to lodge claims before court if any developer terminates an investor’s purchase agreement wrongfully or in bad faith.</p>\r\n<p class=\"p2\"><b>Judicial Committee for Liquidation of stalled projects (JCL)</b></p>\r\n<p class=\"p1\">The JCL was formed pursuant to Decree No 21 of 2013 in order to liquidate stalled projects. RERA has the authority to cancel stalled real estate projects (i.e. where construction has ceased or did not commence as set out in the Executive Council Resolution No 6 of 2010). JCL has exclusive jurisdiction over any dispute related to stalled projects and no other court or arbitration proceedings are permitted to decide on any stalled projects. The investors have the right to lodge their claims directly to the JCL through a designated website (https://www.dc.gov.ae/PublicServices/CancelledRealEstateProjects.jsf).</p>\r\n<p class=\"p1\"><span class=\"s1\"> The JCL review the stalled projects (referred to it by RERA) as per its own timetable and we have noted that the liquidation process is a slow one due to complexity involved in such projects. Investors in stalled projects who were not referred to JCL may follow up with RERA and check the status of the project’s liquidation. </span></p>\r\n<p class=\"p1\">The JCL has not published specific rules or procedures about the liquidation process but it has wide authority and its decisions are final.</p>\r\n<p class=\"p2\"><b>Judicial Committee for bounced cheques </b></p>\r\n<p class=\"p1\"><span class=\"s1\">This Committee was formed pursuant to Decree No. 56 of 2009 as a result of the increased number of bounced cheques issued by investors to developers during the international financial crisis. The Committee has the jurisdiction to (i) cancel the cheques, (ii) reschedule the payments of the purchase price and instruct purchasers to issue new cheques to developers or (iii) refer the bounced cheques to the competent judicial authority if the developer is entitled to receive the amount of the bounced cheques. The Committee issues its decisions based on the progress of the construction and the developer’s performance (or otherwise) of its obligations. </span></p>\r\n<p class=\"p2\"><b>Arbitration via Dubai International Arbitration Centre (DIAC) and other institutions </b></p>\r\n<p class=\"p1\">Arbitration as an alternative dispute resolution mechanism is highly recommended for complex commercial cases. However, some property cases cannot be arbitrated for public policy reasons; therefore parties need to be very careful before referring any property case to arbitration.</p>\r\n<p class=\"p1\">DIAC (http://www.diac.ae/idias/) is the region’s most frequently used arbitral institution. There are many other frequently used arbitration centres in the UAE such as DIFC - LCIA, ADGM and the Sharjah International Arbitration Centre.</p>\r\n<p class=\"p1\">In our experience, cases are generally determined between an average period of 6-18 months. However, if enforcement is necessary, recourse to the Court will be required and a further delay, sometimes taking years, can result depending upon whether all appeal avenues are exhausted by an opponent.</p>\r\n<p class=\"p1\">A dispute may be heard by a panel of arbitrators, or a sole arbitrator, depending on the agreement of the parties. When a panel is formed, each party is generally entitled to nominate one arbitrator each.</p>\r\n<p class=\"p1\">A successful party is likely to have his costs (legal, expert, arbitrator) paid either in full or part by the other side. If the unsuccessful party does not pay the award sum voluntarily, enforcement in the Courts is again required. There are only limited grounds upon which enforcement can be denied.</p>\r\n<p class=\"p2\"><b>Rent Disputes Settlement Centre (RDSC) </b></p>\r\n<p class=\"p1\"><span class=\"s1\">The RDSC was established pursuant to decree No 26 of 2013. The RDSC has exclusive jurisdiction over Dubai tenancy disputes in relation to the leasing of immovable assets. The RDSC has no jurisdiction over (i) long term leases (i.e. for a period exceeding 10 years), (ii) tenancy disputes in free zone areas which already have a court or judicial committee such as within the DIFC and (iii) lease to own contracts. RDSC judgments are issued by judges and can be appealed before an RDSC appeal committee subject to certain conditions. In general, the RDSC litigation process is very quick and the average time to obtain a judgment is between 2 to 3 months and it can be executed through the RDSC execution division. The RDSC has a mediation department that aims to resolve settlements between landlords and tenants prior to referring the case to judges. The fee to file a case with the RDSC is between AED 15,000 and AED 35,000 depending upon the nature of the claim. </span></p>\r\n<p class=\"p2\"><b>Dubai Property Court </b></p>\r\n<p class=\"p1\">Dubai Property Court has jurisdiction over all property disputes except those excluded pursuant to other laws or decrees. There are three levels of Courts being First Instance, Court of Appeal and the Court of Cassation. If it is necessary to appeal to all levels, it could take up to two years or more before an enforceable judgment is issued. A judge who decides on a property case may appoint an real estate expert to assist him on some technical issues. All documents submitted to court must be in Arabic or translated to Arabic. Once an enforceable judgment is issued, it is referred to the execution judge. The maximum court fee for filling a case before the Court of First Instance is AED 40,000 but it may be more if the case is related to more than one contract. The successful party may recover only a minimal amount of its legal fees in addition to the court and expert’s fee (if any) which are recoverable.</p>\r\n<p class=\"p1\">In our experience, referring property disputes to Dubai Property Court is a preferred option as compared to arbitration as most of the Dubai property laws have been tested in court and there is a good prospect of certainty in the decision making.</p>\r\n<p class=\"p1\">There are lots of excellent forums to resolve a property dispute without recourse to the courts. Depending upon the nature of the dispute, the sums involved and the pressures of time, care should be taken by any litigant to choose the correct forum for their requirements.</p>\r\n<p class=\"p1\"><span class=\"s1\"><i>Al Tamimi &amp; Company’s real estate team and litigation team regularly advises on real estate disputes. For further information please contact Mohammad Kawasmi (m.kawasmi@tamimi.com). </i></span></p>\r\n&nbsp;'),
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	(215707,7480,'content','<img class=\"size-medium wp-image-7478 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/05/shutterstock_704715226-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" />\r\n\r\nThe UAE Civil Transaction Code (“CTC”) provides in article (890) that the main contractor may sub-contract the construction contract, in whole, or in part, unless otherwise agreed in the construction contract. However, this article highlights that the main contractor, and not the subcontractor, will remain liable towards the employer.\r\nThis article does not differentiate between the domestic subcontractors whom being selected and appointed by the main contractors, and the nominated subcontractors whom being selected or nominated by the employers or the consultants.\r\nTherefore, the question now whether, or not, the UAE local courts recognize the difference between these two types of the subcontractors, and thus, the main contractors’ liability regarding the subcontractors’ defaults, as per article (890) of the UAE CTC, may not be applicable, if the subcontractors are nominated subcontractors. We will answer this question throughout the following case study.\r\n\r\n<strong>Background of case</strong>\r\n\r\nAn employer (“Employer”) entered into a construction contract (“Contract”) with a main contractor (“Main Contractor”) to construct a building, in Dubai, consisting of a basement floor, ground floor, and a further seven floors (“Project”). The construction period set out in the Contract was (365) day. The Contract imposed a delay penalty on the Main Contractor for each day in delay, with a cap of (10%) of the value of the Contract. The Contract empowered the Employer and/or the consultant (“Engineer”) to nominate subcontractors (“Nominated Subcontractors”) to execute certain provisional sum items of the Contract. However, the Main Contractor signed the subcontract agreements with the Nominated Subcontractors after the Engineer and/or the Employer nominated them.\r\nThe completion date of the Project was delayed, and therefore, the Employer retained monies owing to the Main Contractor by applying the contracted delay penalty. The Main Contractor submitted a claim to the Engineer, for extension of time since the delay occurred in the Project was contributed by the Nominated Subcontractors, and thus the Main Contractor requested to release the value of the delay penalty and to calculate the prolongation costs allegedly owed to the Main Contractor. The Engineer rejected the Main Contractor’s claim.\r\nThe Employer filed a case against the Main Contractor to establish the Main Contractor’s delay in completing the Project, and thus, to establish the Employer’s right to retain the value of the delay penalty. Meanwhile, the Main Contractor filed a counterclaim against the Employer to claim for the payment of the sums retained by the Employer in respect of the delay penalty, prolongation costs, as the Nominated Subcontractors were responsible for the Project’s delay.\r\n\r\n<strong>Court of First Instance</strong>\r\n\r\nThe Court of First Instance appointed an engineering expert to establish whether the Project completion date was delayed, or not, and if so, to identify who was responsible for the delay, the exact period of delay, and the due compensation, if any.\r\nThe Court-appointed expert prepared a report, in which the expert highlighted that the Project’s completion date was delayed because of the Nominated Subcontractors, and accordingly the Employer did not have the right to apply the delay penalty to the detriment of the Main Contractor. The expert further pointed out that the Main Contractor was owed AED 937,434.00 for work done, which the Employer retained based on its unjustified claim to apply the delay penalty on the Main Contractor. The expert did not calculate the prolongation costs claimed by the Main Contractor.\r\nThe Employer objected to the result of the expert’s report, and argued that the expert should not release the Main Contractor from the liability of the Project’s delay. The Main Contractor also objected to the report, and argued that the Court-appointed expert should have had calculated the prolongation costs that the Main Contractor suffered due to the Nominated Subcontractors’ delay.\r\nConsequently, the Court remitted the case file, including the objections raised by the Employer and the Main Contractor regarding the expert’s report, to the appointed expert for his response.\r\nThe expert prepared a supplementary report, in which he asserted the validity of the result of its first report, except the Main Contractor’s entitlement for the claimed prolongation costs, which was not calculated in the first report. The expert added in its supplementary report that the Main Contractors should be entitled for an additional amount of AED 351,142.00 as a prolongation costs.\r\nThe Court of First Instance issued its judgment, in which the Court rejected the Employer’s case, as the Nominated Subcontractors were responsible for the Project’s delay. Meanwhile, the Court accepted part of the Main Contractor’s claim against the Employer, which is the outstanding amount of AED 937,434.00 that was retained by the Employer against the delay penalty.\r\nThus, the Court of First Instance did not allow the Employer to apply the delay penalty on the Main Contractor, as it determined that the Nominated Subcontractors were responsible for the Project’s delay. The Court did not award the Main Contractor its claimed prolongation costs.\r\n\r\n<strong>Appeal Court</strong>\r\n\r\nThe Employer filed an appeal, and requested the Appeal Court to withhold the judgment issued by the Court of First Instance, based on the Main Contractor’s liability for the Nominated Subcontractors’ delay, as the Main Contractor was the party who contracted with the Nominated Subcontractors, even though the nomination for those Nominated Subcontractors was initiated by the Engineer. The Employer further argued that the Main Contractor was responsible for supervising the Nominated Subcontractors’ work, and there was no contractual relationship between the Employer and those Nominated Subcontractors. Therefore, the Employer asserted to the Appeal Court that the Main Contractor should pay the delay penalty to the Employer.\r\nThe Main Contractor filed an appeal, and requested the Appeal Court to amend the judgment issued by the Court of First Instance in respect of its rejection of the prolongation costs claim, and thus the Main Contractor requested the Appeal Court to add the prolongation costs to the amount awarded by the Court of First Instance.\r\nThe Appeal Court issued its judgment, in which it rejected the Employer’s appeal, and accepted the Main Contractor’s appeal, and therefore amended the judgment issued by the Court of First Instance by adding the prolongation costs in an amount of AED 352,142.00 to the amount awarded to the Main Contactor. The Appeal Court determined that the Nominated Subcontractors’ delay was due to the Engineer’s delay in nominating them, although the Main Contractor requested the Engineer several times to nominate those Nominated Subcontractors to avoid any delay in the Project’s completion date.\r\n\r\n<strong>Cassation Court</strong>\r\n\r\nThe Employer filed a cassation appeal, and requested the Dubai Cassation Court to withhold the judgment issued by the Appeal Court, based on article (890) of the UAE CTC, which stipulates that the Main Contractor is liable towards the Employer, for the subcontractors’ defaults, including the subcontractors’ delay. The Employer asserted to the Cassation Court that the Appeal Court misapplied the law when it relieved the Main Contractor of the Nominated Subcontractors’ delay, and accordingly, awarded the Main Contractor compensation (i.e. prolongation costs) for the delay occurred in the Project. The Employer reiterated its arguments related to the non-existence of any contractual relationship between the Employer and the Nominated Subcontractors, as the Main Contractor is the party who contracted with them, and therefore these subcontractors should be considered as domestic subcontractors, and not Nominated Subcontractors, even though the nomination of those subcontractors came from the Engineer. In addition, the Employer argued again that the Main Contractor was supervising the work of the Nominated Subcontractors, and accordingly should be liable for their delay.\r\nThe Dubai Cassation Court issued its judgment number (266/2008), in which it held that article (890) of the UAE CTC is applicable to the domestic subcontractors selected by, and contracted with the main contractor. The Cassation Court held that article (890) of the UAE CTC is not applicable to nominated subcontractors, even though the main contractor is the party who contracted with them, as long as the consultant and/or the employer nominated them to the main contractor.\r\nThe Cassation Court further pointed out that the employers are responsible for any default may occur by their nominated subcontractors, even where they were nominated by the engineer.\r\nTherefore, the Cassation Court rejected the Employer’s cassation appeal.\r\n\r\n<strong>Conclusion</strong>\r\n\r\nAlthough article (890) of the UAE CTC does not differentiate between domestic subcontractors and nominated subcontractors (nominated by the consultant and/or the employer), the UAE local courts do differentiate between these two types of subcontractors.\r\nArticle (890) of the UAE CTC is not applicable to the nominated subcontractors, as long as the consultant and/or the employer nominated them to the main contractors, even though their contracts are with the main contractor.\r\nThe main contractors should not be responsible for the defaults of the nominated subcontractors, unless the main contractors contributed to these defaults.\r\n\r\nFor further information please contact Ahmad Ghoneim (a.ghoneim@tamimi.com).'),
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	(217053,7558,'content','On Tuesday 24th of April, we held our first bespoke KSA Vision 2030 focused event, which was also our largest and most successful event in Saudi Arabia to date. Entitled ‘Foreign Investment in KSA: The Road to Vision 2030’ the half-day event provided a forum for a number of high profile industry experts to share their knowledge and views on important topics such as foreign investment, the future of privatisation and PPPs, establishing business and the prevention of cybercrime in the Kingdom. With the overarching theme throughout being Vision 2030.\r\n\r\nOur Senior Partner and Founder, Essam Al Tamimi, welcomed over 150 guests, which included a large number of local and international business representatives, government officials and key media outlets. Our first panel which addressed Foreign Investment in KSA, included guest speakers Khalid Abdullah Al Hussan, CEO of the Saudi Stock Exchange (Tadawul), Ibrahim Suwail, Deputy Governor of Investor Services at SAGIA and Dr. Ahmed Khattan, Deputy Minister of Labour Policy for the Ministry of Labour. Moderated by John Sfakianakis, Director of Economic Research for the Gulf Research Center the session presented a number of differing and captivating views and points of discussion.\r\n\r\nLater panels sessions included special guest speakers Laurent Viviez and Ashish Singhal from AT Kearney and Dr Saleh Shoaib, Corporate Affairs Manager from Microsoft, covering the very interesting topics of doing business in KSA and the issue of cybersecurity and financial cybercrime in the Kingdom.\r\n\r\nThroughout the event, our Al Tamimi lawyers; <a href=\"http://localhost:8888/tamimi/lawyer/grahame-nelson/\">Grahame Nelson</a>, Partner, Head of Office – Riyadh, <a href=\"http://localhost:8888/tamimi/lawyer/hesham-al-homoud/\">Hesham Al Homoud</a>, Partner, Head of Corporate Structuring - KSA, <a href=\"http://localhost:8888/tamimi/lawyer/rakesh-bassi/\">Rakesh Bassi</a>, Head of Office – Jeddah and <a href=\"http://localhost:8888/tamimi/lawyer/nick-oconnell/\">Nick O’Connell</a>, Partner, Head of Technology, Media &amp; Telecommunications – KSA participated in the discussions.\r\n\r\nThe event was a great success and provided a platform to gather key stakeholders and decision makers to share insights and address the most pressing topics.\r\n\r\n&nbsp;\r\n\r\n<img class=\"size-large wp-image-7559 aligncenter\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/06/SaudiImage-1024x478.jpg\" alt=\"\" width=\"640\" height=\"299\" />\r\n\r\n&nbsp;\r\n\r\n<img class=\"size-large wp-image-7560 aligncenter\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/06/Saudiimage2-1024x468.jpg\" alt=\"\" width=\"640\" height=\"293\" />'),
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	(217153,7563,'content','Saudi Arabia’s Vision 2030 is the country’s blueprint for the post-oil era, leading the Kingdom towards economic diversification and a modern and diverse economy.\r\n\r\nThe planned IPO of Aramco may have grabbed all the headlines, but behind this colossal listing lies something which could prove to be even more transformational.\r\n\r\nAs the government aims to achieve its 2030 Vision goals, an important catalyst towards this effort is the transfer of ownership of property and business operations from the government to the private sector, better known as ‘privatisation’.\r\n\r\nThe Saudi Arabian government aims to raise around $200 billion through privatisation programmes in around 16 different sectors ranging from oil and airports to health care and education. So, as foreign investors continue to look towards the Saudi market, what does all this mean for the Kingdom?\r\n\r\nThe amounts raised from the proposed privatisations will be a boon to an economy whose principal source of export revenue is now much reduced.  And that revenue could kick-start other Vision programmes thus adding further momentum to the Vision project.\r\n\r\nThe planned privatisations may also bring benefits that a government entity, with all its many responsibilities finds it hard to deliver. These include improved efficiencies, enhanced service levels and increased choice.  One usual goal of privatisation is to achieve these benefits with less public subsidy or none at all in some instances.\r\n\r\nHowever, comparative assessments between publicly and privately delivered services are often more difficult to make than may be commonly supposed.  This is especially the case where advantages and concessions that are not available to the public sector services provider have to be granted to the private sector operator.  For example, it may be part of the remit of the public sector to undertake unprofitable but essential public services. Because private sector businesses are ultimately profit focused, they are unlikely to be unwilling to take on these responsibilities unless they are adequately compensated for doing so.  In some instances, it may be found that they are unwilling to shoulder these responsibilities at all.\r\n\r\nIt can also be said that profit should not be a primary driver when it comes to the delivery of essential services.  Nor that it necessarily improve standards in certain sectors, such as healthcare, education and public transport.  There are examples that appear to both prove and disprove this point.\r\n\r\nPerhaps the key question is whether any government can actually relinquish all responsibility for the delivery of essential public services.\r\n\r\nOne function of the regulatory framework applicable to the privatised business is to allow the government to adopt a more hands off role in relation to the provision of services without service levels being compromised.  Amongst other things, this will require the regulatory regime to strike a balance which   a) allows the private services operator to generate a reasonable profit to justify both its initial and continuing investment b) delivers minimum levels of service and c) keeps the cost for the consumer at affordable levels.  These will be key challenges for the Saudi government’s privatisation programme and how they play out may determine whether that programme delivers the benefits the government is seeking - or proves to be a Pandora’s Box.'),
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	(218109,7562,'_yoast_wpseo_title','What you should know about the new Saudi Bankruptcy Law | Al Tamimi & Company'),
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	(217201,7567,'countryGroupContent','Al Tamimi &amp; Company has been observing with keen interest the increased volume of trade and investment of Turkish companies doing business in the Middle East, with a significant rise in the number of Turkish companies setting up business in the Gulf region.\r\n\r\nWith the rapid expansion in construction projects across the Middle East, there has been an increase in engagement from Turkish companies looking to do business within the region. Turkey’s growing dominance in foreign contracting services awarded by GCC states for construction projects is a strong reflection of the growing economic and cultural ties between Turkey and Arab Countries.\r\n\r\nOur Turkey Group was established to support Turkish companies with their specific legal and commercial objectives. We are well positioned to provide comprehensive legal services and support new Turkish market entrants on the most suitable structure for their business and to meet their on-going legal requirements.\r\n\r\nWe assist in both contentious and non-contentious matters with expertise in nine jurisdictions across the region. Our team is able to advise Turkish companies on their legal and cultural requirements in Turkish - English language, and provide a full spectrum of legal services, including working with our team of litigators who have the right to represent Turkish companies in local court proceedings. In addition, we offer a full range of services including corporate and commercial, banking and financing, construction and real estate and employment.\r\n\r\nWe are committed to assisting our clients with their needs in a result-oriented way.\r\n\r\n&nbsp;\r\n\r\n<span style=\"text-decoration: underline;\"><strong>Key Contact</strong></span>\r\n\r\nGulsun Ozmen\r\nParalegal\r\n<span style=\"color: #333333; font-family: \'Georgia\',serif;\"><a href=\"mailto:g.ozmen@tamimi.com\">g.ozmen@tamimi.com</a></span>'),
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	(217271,7569,'content','In line with the sweeping changes being made by the UAE Government recently, the UAE Cabinet introduced a host of changes to the visa and immigration rules yesterday evening. The two most significant changes are the launch of an insurance scheme to replace the bank guarantee system and the introduction of a six-month temporary residency visa for individuals following loss of employment.\r\n\r\n&nbsp;\r\n\r\n<strong>1. Insurance Scheme\r\n</strong>Currently, all private sector employers have to issue a bank guarantee for each employee that they recruit in the amount of AED 3,000 (subject to a maximum of AED 1.5-3 million depending on categorisation of the employer). This is designed to cover repatriation costs (and partially pay for end of service benefits) of any employee(s) in the event that the employer is in financial trouble and unable to pay for the costs. For employees, the major drawback of this system is that the guarantee amount of AED 3,000, while ordinarily sufficient to pay for a one-way air ticket to their home country, it is wholly inadequate to also cover end of service benefits.  Further, for employers, it means that potential working capital is tied up in the system (currently estimated to be in the region of AED 14 billion).\r\n\r\nThe new insurance scheme largely addresses these drawbacks by having insurance coverage of up to AED 20,000 per employee, which will go much further in addressing repatriation costs and end of service entitlements.  Additionally employers can now pay an annual premium of AED 60 per employee and release their tied up capital in the form of the bank guarantees that they have issued.\r\n\r\n&nbsp;\r\n\r\n<strong>2. Temporary Residency Visa\r\n</strong>One of the most difficult issues the employees have to deal with on being made redundant or loss of their job in the UAE are the very limited timelines that they have to thereafter leave the country if they are unable to find alternative employment. The current immigration rules require that an employer cancels the employer sponsored residency visa within 30 days of the termination of employment and the employee has a further 30 days thereafter to exit the country. This often causes undue hardship and upheaval to the individual and their family, especially where there are children in school.\r\n\r\nThe launch of the temporary six-month visa will certainly alleviate some of this difficulty for individuals as it will allow them to remain in the country, following cancellation of their employer sponsored residency visa, and to seek new employment for that extended period.\r\n<strong>\r\n</strong>\r\n\r\nWhilst this alert focuses on these key developments, the overhaul also includes changes to transit visas, the exit of illegal entrants and individuals overstaying their visas to the country, dependant students’ visas and permitting the adjustment of an individual’s visa status in country.\r\n\r\nThese changes, along with the others that have recently been announced, are a step in the right direction to keep the UAE an attractive place to do business and live. While these changes are ground-breaking in this region we would hope that in due course they go even further in order to create a more flexible labour market and help drive forward the economy.\r\n\r\nTo learn more about the recent changes, please contact <strong><a href=\"http://localhost:8888/tamimi/lawyer/samir-kantaria/\">Samir Kantaria</a></strong> or <strong><a href=\"http://localhost:8888/tamimi/lawyer/gordon-barr/\">Gordon Barr</a></strong>.'),
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	(217315,7570,'content','The UAE is greeting its residents and visitors before Eid Holidays with some positive announcements related to the hospitality sector.\r\n\r\nHH Sheikh Hamadan bin Rashid Al Maktoum has announced that “there will be a 3% reduction on the sale value for purchases in hotel facilities and restaurants in Dubai”. This means that the municipality fees applicable on services within hotels and related facilities are to be reduced from 10% down to 7%.\r\n\r\nConcurrently, under the instruction of Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi, the tourism fee currently applied to hotel rooms and outlets has been reduced from 6 per cent to 3.5 per cent and the municipality fee has been reduced from 4 per cent to 2 per cent.\r\n\r\nThe timely news will undoubtedly result in an increase in occupancy levels in hotels and restaurants, especially over the coming Eid holidays and the upcoming period.\r\n\r\nThe recent initiatives in the hospitality sector are in line with the Expo 2020 spirit and will help to maintain Dubai’s ranking as one of the world’s most popular travel destination with the aim to receive 20 million visitors per year by 2020.\r\n\r\nThe announcement comes following a string of several other positive announcements recently, including a reduction in market fees for investors, waiver of corporate fines and a freeze on private schooling fees.\r\n\r\nThe government strategies will surely enhance the market confidence in the short term and give a definitive boost to the growth of the hospitality and the tourism sectors in the coming years, uplifting the economy and attracting global investments in order to sustain the Emirates position as a preferred destination for both tourists and businesses internationally.\r\n\r\nWe wish you a blessed and happy Eid Al Fitr.'),
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	(217536,7577,'content','<ul>\r\n 	<li>Two new partners for Saudi Arabia, supporting the firm’s growth strategy in the Kingdom</li>\r\n 	<li>First Korean lawyer to join the partnership</li>\r\n 	<li>Highest number of partner promotions in a single round in the firm\'s history</li>\r\n</ul>\r\nWe are delighted to announce the promotion of seven lawyers to the partnership. This latest development takes the total number of partners at the firm to 65.\r\n\r\nOur newly promoted partners will officially join the partnership on 1st July 2018.\r\n\r\nThe firm will continue to lead the way in the Middle East with its offering of sophisticated and strategic legal services. These promotions strengthen our position in key areas and support our strategy for growth in key markets.\r\n\r\n&nbsp;\r\n<table class=\" aligncenter\" style=\"height: 627px;\" width=\"824\">\r\n<tbody>\r\n<tr>\r\n<td colspan=\"4\"><strong>Our New Partners</strong></td>\r\n</tr>\r\n<tr>\r\n<td><img class=\"alignnone size-thumbnail wp-image-5788\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2017/09/Bandar-Al-Hamidani-2-150x150.jpeg\" alt=\"\" width=\"150\" height=\"150\" /></td>\r\n<td><strong><a href=\"http://localhost:8888/tamimi/lawyer/bandar-al-hamidani/\">Bandar Al Hamidani</a></strong>\r\nCorporate, KSA\r\n<a href=\"mailto:b.alhamidani@tamimi.com\">b.alhamidani@tamimi.com</a></td>\r\n<td><img class=\"alignnone size-thumbnail wp-image-1407\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2017/09/Mohammed-Al-Muhtaseb-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" /></td>\r\n<td><a href=\"http://localhost:8888/tamimi/lawyer/mohammad-al-muhtaseb/\"><strong>Mohammad Al Muhtaseb</strong></a>\r\nLitigation, Dubai\r\n<a href=\"mailto:m.almuhtaseb@tamimi.com\">m.almuhtaseb@tamimi.com</a></td>\r\n</tr>\r\n<tr>\r\n<td><img class=\"alignnone size-thumbnail wp-image-6707\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2017/09/Emad-Salameh-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" /></td>\r\n<td><a href=\"http://localhost:8888/tamimi/lawyer/emad-salameh/\"><strong>Emad Salameh</strong></a>\r\nLitigation, KSA\r\n<a href=\"mailto:e.salameh@tamimi.com\">e.salameh@tamimi.com</a></td>\r\n<td><img class=\"alignnone size-thumbnail wp-image-1457\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2017/09/Richard-Catling-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" /></td>\r\n<td><a href=\"http://localhost:8888/tamimi/lawyer/richard-catling/\"><strong>Richard Catling</strong></a>\r\nCorporate, Dubai\r\n<a href=\"mailto:r.catling@tamimi.com\">r.catling@tamimi.com</a></td>\r\n</tr>\r\n<tr>\r\n<td><img class=\"alignnone size-thumbnail wp-image-1336\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2017/09/Fady-Ghanem-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" /></td>\r\n<td><strong><a href=\"http://localhost:8888/tamimi/lawyer/fady-ghanem/\">Fady Ghanem</a></strong>\r\nCorporate Structuring, Dubai\r\n<a href=\"mailto:f.ghanem@tamimi.com\">f.ghanem@tamimi.com</a></td>\r\n<td><img class=\"alignnone size-thumbnail wp-image-1503\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2017/09/Sherif-Rahman-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" /></td>\r\n<td><a href=\"http://localhost:8888/tamimi/lawyer/sherif-rahman/\"><strong>Sherif Rahman</strong></a>\r\nCorporate Structuring, Dubai\r\n<a href=\"mailto:s.rahman@tamimi.com\">s.rahman@tamimi.com</a></td>\r\n</tr>\r\n<tr>\r\n<td><img class=\"alignnone size-thumbnail wp-image-1315\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2017/09/Christina-Lee-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" /></td>\r\n<td><strong><a href=\"http://localhost:8888/tamimi/lawyer/jongeun-christina-lee/\">Jongeun (Christina) Lee</a></strong>\r\nKorea Group, Dubai\r\n<a href=\"mailto:j.lee@tamimi.com\">j.lee@tamimi.com</a></td>\r\n<td>&nbsp;</td>\r\n<td>&nbsp;</td>\r\n</tr>\r\n</tbody>\r\n</table>'),
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	(217819,7588,'content','We are pleased to inform you that His Highness Sheikh Khalifa bin Zayed Al Nahyan, the President of the United Arab Emirates, has issued Federal Law No. 6 of 2018, which formally promulgates a new arbitration law for the UAE and repeals the previous provisions contained within the Arbitration Chapter of the UAE Civil Procedures Law No. 11 of 1992.\r\n\r\nThe new law will enter into effect one month following the day of its publication and will apply to all arbitral proceedings that are ongoing at the time the law comes into effect.\r\n\r\nThe much-awaited self-standing arbitration law of 61 articles, which is based on the UNCITRAL Model Law, will significantly revamp UAE arbitration law. The new law is expected to build the UAE’s reputation as a preferred seat for international arbitration in the region, since it is aligned with international best practice and standards.\r\n\r\nSome of the key highlights of the new arbitration law include:\r\n<table border=\"0\">\r\n<tbody>\r\n<tr>\r\n<td>1.</td>\r\n<td valign=\"top\" width=\"15\"></td>\r\n<td>Application to local and international arbitrations in line with the UNCITRAL Model Law and international practice</td>\r\n</tr>\r\n<tr>\r\n<td>2.</td>\r\n<td valign=\"top\" width=\"15\"></td>\r\n<td>The principles of separability and competence-competence</td>\r\n</tr>\r\n<tr>\r\n<td>3.</td>\r\n<td valign=\"top\" width=\"15\"></td>\r\n<td>Both arbitral tribunals and courts (through the president of the court) have the power to order interim and conservatory measures relating to ongoing or potential arbitrations; the fact that the court has ordered such measures does not mean that the parties have waived their right to arbitrate</td>\r\n</tr>\r\n<tr>\r\n<td>4.</td>\r\n<td valign=\"top\" width=\"15\"></td>\r\n<td>Clarification on the competent court and its powers</td>\r\n</tr>\r\n<tr>\r\n<td>5.</td>\r\n<td valign=\"top\" width=\"15\"></td>\r\n<td>Confirmation that electronic writings satisfy the requirement that the arbitration clause be in writing</td>\r\n</tr>\r\n<tr>\r\n<td>6.</td>\r\n<td valign=\"top\" width=\"15\"></td>\r\n<td>Limited restrictions on the requirements of arbitrators</td>\r\n</tr>\r\n<tr>\r\n<td>7.</td>\r\n<td valign=\"top\" width=\"15\"></td>\r\n<td>Enforceability of interim and partial awards</td>\r\n</tr>\r\n<tr>\r\n<td>8.</td>\r\n<td valign=\"top\" width=\"15\"></td>\r\n<td>An arbitration award need not be physically signed by the arbitral tribunal in the seat</td>\r\n</tr>\r\n<tr>\r\n<td>9.</td>\r\n<td valign=\"top\" width=\"15\"></td>\r\n<td>Annulment (total or partial) must be initiated within 30 days of notification of the award to the parties</td>\r\n</tr>\r\n<tr>\r\n<td>10.</td>\r\n<td valign=\"top\" width=\"15\"></td>\r\n<td>An application for annulment does not automatically stay enforcement proceedings</td>\r\n</tr>\r\n<tr>\r\n<td>11.</td>\r\n<td valign=\"top\" width=\"15\"></td>\r\n<td>The Minister of Economy will coordinate with the arbitration institutions in the UAE in order to issue a charter on the professional conduct of arbitrators</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n&nbsp;\r\n\r\nThe UAE’s legal community welcomes this positive development and looks forward to a new chapter in arbitration in the UAE.\r\n\r\nEssam Al Tamimi, Senior Partner at Al Tamimi &amp; Company, said that “this state-of-the-art arbitration law will fortify the UAE’s position as the leading arbitral seat in the MENA region.  It is a landmark law that is the best arbitration law in the region.”\r\n\r\nDr. Hassan Arab, Deputy Managing Partner and Co-Head of Litigation, commented that “the much-anticipated new law will bring clarity to the conduct of arbitrations seated in the UAE as well arbitration-related court proceedings.”\r\n\r\nThomas R. Snider, Partner and Head of Arbitration, stated that “with this new law, the UAE has achieved a critical milestone in fostering arbitration as a leading and reliable form of dispute resolution for all types of commercial and construction disputes in the country.”\r\n\r\n<hr />\r\n\r\n<a href=\"http://localhost:8888/tamimi/video-gallery/the-uaes-new-arbitration-law-federal-law-no-6-of-2018/\">Watch Thomas Snider discuss what the law covers</a>\r\n\r\nAn unofficial English translation of the law can also be found <a href=\"http://localhost:8888/tamimi/crm-media-uploader/fileupload/server/php/files/UAE%20Arbitration%20Law%20-%20Federal%20Law%20No%20%206%20of%202018.pdf\">here</a>.\r\n\r\nAl Tamimi &amp; Company will be rolling out a series of client seminars to introduce clients to the new law and discuss its impact on their business.\r\n\r\n<hr />\r\n\r\nAl Tamimi &amp; Company has a dedicated arbitration team and advises on international commercial and investment arbitration. For further information, please contact Essam Al Tamimi (<a href=\"mailto:e.tamimi@tamimi.com\" target=\"_blank\" rel=\"noopener\">e.tamimi@tamimi.com</a>), Dr. Hassan Arab (<a href=\"mailto:h.arab@tamimi.com\" target=\"_blank\" rel=\"noopener\">h.arab@tamimi.com</a>), or Thomas Snider (<a href=\"mailto:t.snider@tamimi.com\" target=\"_blank\" rel=\"noopener\">t.snider@tamimi.com</a>).'),
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	(218254,7596,'content','<b>Background</b>\r\n\r\nThe Dubai International Financial Centre Authority (“<b>DIFCA</b>”) has recently drafted a new DIFC Employment Law (the “<b>Proposed Law</b>”), which shall replace DIFC’s Employment Law (Law No. 4 of 2005), as amended by Law No. 3 of 2012 (the “<b>Current Law</b>”) in its’ entirety. The Proposed Law is out for consultation and the DIFC has invited any comments by 22 March 2018. Thereafter, subject any amendments, the Proposed Law will be published and will come into force.\r\n\r\n<b>Summary of the changes</b>\r\n\r\nThe Proposed Law sets out several key changes, a number of which we summarize below:\r\n\r\n<strong>1.  PART TIME EMPLOYEES</strong>\r\n\r\n<b>Current Law:</b>  Part time employees are entitled to the same benefits and leaves as full time employees.\r\n\r\n<b>Proposed Law: </b>Part time employees will be entitled to leave entitlements on a pro-rated basis.\r\n\r\n<strong>2.  ARTICLE 18 PENALTY</strong>\r\n\r\n<b>Current Law:</b> Employers are required to pay all wages and termination payouts to an employee within 14 days of the termination of employment. If an employer fails to pay within 14 days, the employer is required to pay the employee a penalty of the last daily wage for each day delayed. This Article 18 penalty has proven to be contentious and has been the subject of various DIFC Court decisions.\r\n\r\n<b>Proposed Law: </b>Retains an obligation to pay certain sums to the employee within 14 days of the termination of employment. However, the penalty payment is no longer automatic and the following applies:\r\n<ul>\r\n 	<li>if the outstanding amount to be paid to the employee is less than 5% of the full amount due, no penalty shall apply;</li>\r\n 	<li>the penalty shall be capped at 6 months’ wages; and</li>\r\n 	<li>the DIFC Courts may waive or reduce the penalty in unreasonable circumstances.</li>\r\n</ul>\r\n<strong>\r\n3.  SICK LEAVE PAY</strong><b>\r\n</b>\r\n<b>Current Law:</b> Employees are entitled to 60 working days of sick leave with full pay.\r\n\r\n<b>Proposed Law: </b>Sick leave remains at 60 days but sick pay will be calculated as follows:\r\n<ul>\r\n 	<li>The first 10 working days of sick leave: Full pay</li>\r\n 	<li>The next 20 working days of sick leave: Half pay</li>\r\n 	<li>Any additional working days of sick leave: Unpaid</li>\r\n</ul>\r\n<strong>\r\n4.  DISCRIMINATION</strong>\r\n\r\n<b>Current Law:</b> Protected characteristics for discrimination include sex, marital status, race, nationality, religion and mental or physical disability. No provision for a remedy in discrimination claims.\r\n\r\n<b>Proposed Law</b>: Adds pregnancy and age to the above list of protected characteristics for discrimination purposes. Importantly, it also introduces a remedy for discrimination claims and provides that compensation can be sought. The compensation payable in respect of a discrimination claim is capped at one years’ wages (or two years’ wages for repeat offenders). In addition, the concept of a victimization claim is included.\r\n\r\n<strong>\r\n5.  TERMINATION FOR CAUSE &amp; CONSTRUCTIVE DISMISSAL</strong>\r\n\r\n<b>Current Law:</b>  Both, employers and employees are entitled to terminate for cause where the conduct of the other party warrants termination and where it passes the test of reasonableness.\r\n\r\n<b>Proposed Law: </b>Introduces an expanded test to determine whether termination for cause is reasonable, including:\r\n<ul>\r\n 	<li>whether or not the employer / employee acted reasonably or unreasonably, given the circumstances for termination; and</li>\r\n 	<li>in accordance with equity and in consideration of the substantial merits of the case.</li>\r\n</ul>\r\nImportantly, the Proposed Law contains provision for a compensation claim of up to one years’ wage if an employee terminates for ‘cause’. Thus the Proposed Law introduces constructive dismissal as a concept.\r\n\r\n<strong>\r\n6.  GRATUITY - TERMINATION WITH CAUSE</strong>\r\n\r\n<b>Current Law:</b> Where an employer terminates an employee for cause, they are not required to pay gratuity.\r\n\r\n<b>Proposed Law: </b>Mandates that employers pay gratuity even in circumstances where the termination is with “cause”.\r\n\r\n<strong>\r\n7.  SALARY SPLIT</strong><b>\r\n</b>\r\n<b>Current Law:</b> No minimum percentage for split of basic salary and allowances.\r\n\r\n<b>Proposed Law: </b>Basic salary must comprise at least 50% of the total wage.\r\n\r\n<strong>\r\n8.  WEEKLY WORKING HOURS</strong>\r\n\r\n<b>Current Law:</b> Weekly working hours are capped at an average of 48 hours per week.\r\n\r\n<b>Proposed Law:  </b>Removal of 48-hour provision, but provisions remain with regard to daily and weekly rest. The provision which states that employees are not allowed to work excessive hours which may be detrimental to their health is also retained.\r\n\r\n<strong>\r\n9.  PATERNITY LEAVE</strong>\r\n<b>\r\nCurrent Law:</b> No provisions for paternity leave.\r\n\r\n<b>Proposed Law: </b>Allows for 5 working days of paid paternity leave for male employees who have a child or adopt a child under the age of 5 years, subject to certain conditions being met. Further, male employees will now be entitled to attend medical appointments for ante-natal care or adoption proceedings.\r\n\r\n<strong>\r\n10.  HIRING COSTS AND RETAINING PASSPORTS</strong>\r\n<b>\r\nCurrent Law:</b> No reference to passing on costs of hiring an employee to the employee and does not specify the position with regard to an employer holding an employee’s passport.\r\n\r\n<b>Proposed Law: </b>Clarifies that employers are not allowed to pass on the hiring and sponsorship costs to employees. It further states that employers are not allowed to retain employee’s original passports.\r\n\r\n<strong>\r\n11.  FINES AND PENALTIES</strong>\r\n<b>\r\nCurrent Law:</b> Specifies a number of basic requirements for employers to adhere to but does not specify any corresponding fines.\r\n\r\n<b>Proposed Law: </b>Introduces fines and penalties to ensure adherence to basic employment and immigration requirements. It further allows for the DIFCA Board of Directors to expand the fines and penalties regime, impose additional fines and appoint inspectors (similar to the onshore Ministry of Human Resources and Emiratisation inspectors) to ensure compliance. <b></b>\r\n\r\n<strong>\r\n12.  USE OF SETTLEMENT AGREEMENTS</strong>\r\n\r\n<b>Current Law:</b> Employees are not allowed to waive their minimum rights. This has proven problematic for employers and employees settling disputes.\r\n\r\n<b>Proposed Law: </b>Allows for the waiver of rights if the waiver intends to settle a dispute. The DIFC Courts will have the discretion to void any settlement agreements found to be unreasonable but it cannot do so when independent legal advice has been obtained by the parties.\r\n\r\n<strong>\r\n13.  EMPLOYER’S VICARIOUS LIABILITY</strong><b>\r\n</b>\r\n<b>Current Law:</b> Employers are vicariously liable for any act of an employee done during the course of employment.\r\n\r\n<b>Proposed Law: </b>Specifies that employers can only be held liable for claims for loss, damages or compensation for any act, attempted act or omission on the part of an employee if the claim is sufficiently connected with what was authorised or expected of the employee.\r\n\r\n<strong>\r\n14.  CONTRIBUTORY NEGLIGENCE</strong><b>\r\n</b>\r\n<b>Current Law:</b> Employers are fully liable for any injury arising out of or during employment.\r\n\r\n<b>Proposed Law: </b>Introduces the principle of contributory negligence to employee compensation claims for injury or death arising out of or during employment. This means that the DIFC Courts may reduce the employer’s liability if it found that the employee’s negligence caused the injury or death.\r\n\r\n<strong>\r\n15.  WHISTLE-BLOWER PROTECTION</strong>\r\n\r\n<b>Current Law:</b> No protection for whistle-blowers.\r\n\r\n<b>Proposed Law: </b>References whistle-blower protections included in the proposed new DIFC Companies Law (details awaited).\r\n\r\n<strong>\r\n16.  ADDITIONAL PROPOSED CHANGES</strong>\r\n\r\nThe Proposed Law also includes additional changes, including but not limited to:\r\n<b>\r\nCurrent Law:</b> Minimum age to employ a child is 15 years\r\n<b>Proposed Law:</b> Increases the age of hiring children to 16 years.\r\n\r\n<b>Current Law:</b> Requires employers to retain employee records for 2 years\r\n<b>Proposed Law:</b> Increases the requirement for employers to retain employee records to 6 years\r\n\r\nWe will be submitting our comments on the proposed changes to the DIFC by 22 March 2018 and will also be collating comments from our clients for inclusion in our submission. If you wish to have your comments including in our submission please let us these by 15 March 2018.\r\n\r\nDependent upon the final form of the Proposed Law, changes to existing employment contracts, employee handbooks and document retention policies will inevitably be required. Please let our employment practice know if you require our input.\r\n\r\nThe link to the Proposed Law and Consultation Paper is accessible <strong><a href=\"https://www.difc.ae/laws-regulations/consultation-papers\" target=\"_blank\" rel=\"noopener\">here</a>.</strong>'),
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	(218429,7615,'content','The Central Bank of the United Arab Emirates (“Central Bank”) has recently issued a notice to UAE banks and finance companies on the application of VAT to the capped fees charged in respect of loans and other services offered to individual customers.\r\n\r\nThe newly issued Notice No.157/2018 (“Notice”) replaces a previous notice issued by the Central Bank (Notice No. 421/2017 dated 28 December 2017) which restricted banks and finance companies from increasing their existing fee structures for individual and non-individual customers and instructed them to absorb any applicable VAT until further notice.\r\n\r\n&nbsp;\r\n\r\n<strong>Key Takeaways of the Notice:</strong>\r\n<ul>\r\n 	<li>Appendix 2 of the Regulations Regarding Bank Loans and Other Services Offered to Individual Customers (Circular 29/2011) has been amended;</li>\r\n 	<li>Fee caps are exclusive of UAE VAT;</li>\r\n 	<li>Banks and finance companies will need to notify and seek approval from the Central Bank ex-ante for any planned introduction of a new fee or a change in existing fee levels (which exceeds 5%) for fees which are not capped;</li>\r\n 	<li>The Notice is applicable prospectively with effect from 19 June 2018; and</li>\r\n 	<li>Banks and finance companies need to provide the Central Bank with a full list of fees charged within 30 days from the effective date of the Notice.</li>\r\n</ul>\r\n&nbsp;\r\n\r\n<strong>What should you do next? </strong>\r\n\r\nBanks and finance companies should consider the impact of the new Notice on their existing fee structures, ensure compliance with the VAT legislation if they decide to pass on the VAT to their customers and communicate with their customers on any changes to their existing fee structures.\r\n\r\n<strong>How can we help?</strong>\r\n\r\nAl Tamimi can assist you to assess the impact of this new Notice and advise you on the compliance requirements from a VAT perspective, as well as draft communication on any changes to your existing fee structures. Please do not hesitate to contact <a href=\"http://localhost:8888/tamimi/our-firm/find-a-lawyer/?searchPractice=651\">Al Tamimi’s Tax Team</a> if you require any assistance.\r\n\r\n&nbsp;'),
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	(218478,7620,'content','The Department of Health - Abu Dhabi (“DOH”) (formerly the Health Authority - Abu Dhabi) released a new policy to govern the use and implementation of Artificial Intelligence (“AI”) in health care, with the goal of encouraging its safe and secure use.\r\n\r\nThe policy describes AI as “the mimicking of human thought and cognitive processes to solve complex problems automatically”. . . “such as machine learning, distributed intelligent systems, [and] expert systems\".\r\n\r\nWhile the policy leaves to future regulatory decisions a number of key elements, essential requirements of an effective AI in healthcare framework are addressed. The DOH is directed to develop a regulatory framework that will govern the following elements of AI use in healthcare:\r\n<ul>\r\n 	<li>safety and responsibility;</li>\r\n 	<li>privacy and security;</li>\r\n 	<li>transparency and oversight; and</li>\r\n 	<li>ethical implications.</li>\r\n</ul>\r\n&nbsp;\r\n\r\nThe new policy applies to:\r\n<ul>\r\n 	<li>all Abu Dhabi licensed health care providers and professionals;</li>\r\n 	<li>national and locally based international end-users that utilise, or wish to utilise, Abu Dhabi based population or patient clinical and non-clinical data in AI endeavours, directly or indirectly;</li>\r\n 	<li>UAE based Pharmaceutical manufacturers;</li>\r\n 	<li>Abu Dhabi based healthcare insurers;</li>\r\n 	<li>Abu Dhabi licensed healthcare researchers involved in human subjects research; and</li>\r\n 	<li>Abu Dhabi patients.</li>\r\n</ul>\r\n&nbsp;\r\n\r\nThe policy sets out minimum acceptable requirements that the DOH expects for AI (and its tools) introduced in Abu Dhabi, which includes certification by recognised international agencies, compliance with ADSSSA regulations and auditable validation statements.\r\n\r\nFurther, users of AI (other than patients) will be required to, among other things, 1) have in place clear governance on the use of AI, 2) provide clear guidelines and boundaries on access to and sharing of any patient information to protect confidentiality and ownership of such information, 3) conduct regular audits of AI functionality and reporting to DOH, 4) comply with all UAE and DOH related regulatory requirements, including those governing e-health, health information exchanges, data protection, information security, and AI.\r\n\r\nThe policy reflects DOH’s recognition of the critical role AI can play and the benefits to be gained from its use in in healthcare.  To support and encourage the use of AI in healthcare clear regulatory frameworks must be created, following which companies can create the compliance structures necessary to ensure smooth and compliant adoption of AI into healthcare. We will stay tuned for further implementing frameworks expected from the DOH.\r\n\r\nShould you require any advice concerning the new AI policy, our <a href=\"http://localhost:8888/tamimi/sectors/healthcare/\">Healthcare sector</a> would be happy to assist.'),
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	(220294,7729,'videoContentField','Want to know more about the new <a href=\"http://localhost:8888/tamimi/blog/significant-changes-end-of-the-bank-guarantee-and-uae-visa-overhaul/\">UAE Visa Changes</a>?\r\n\r\nThe UAE Cabinet introduced a host of changes to the visa and immigration rules on the 13th of June 2018. The two most significant changes are the launch of an insurance scheme to replace the bank guarantee system and the introduction of 10 year residency visas for certain categories of employees.\r\n\r\nListen to our Senior Associate Kamaljit Dosanjh on the new visa changes and how this will benefit you as an employer or employee.\r\n\r\n<hr />\r\n\r\nAl Tamimi &amp; Company has a dedicated <a href=\"http://localhost:8888/tamimi/practice/employment-incentives/\">Employment &amp; Incentives</a> team. For further information, please contact <a href=\"http://localhost:8888/tamimi/lawyer/samir-kantaria/\">Samir Kantaria</a> (<a href=\"mailto:s.kantaria@tamimi.com\">s.kantaria@tamimi.com</a>) or <a href=\"http://localhost:8888/tamimi/lawyer/gordon-barr/\">Gordon Barr</a> (<a href=\"mailto:g.barr@tamimi.com\">g.barr@tamimi.com</a>).\r\n\r\n<strong><em> <a href=\"https://www.youtube.com/channel/UCiNjxGP327UmWLNNghaunyg?view_as=subscriber\">Subscribe</a> to our channel today for access to the best legal solutions, knowledge, experience and expertise.  </em></strong>\r\n\r\n<hr />\r\n\r\nText Transcript\r\n\r\n<em>The UAE has traditionally been a highly regulated labor market, but since the beginning of 2018, a number of visa changes have been announced. And, what is hoped that these changes are going to make it much easier for both employers and employees to work in this region.</em>\r\n\r\n<em>The first big change has been doing away with the mandatory bank guarantees of 3,000 dirhams per employee. This is going to be replaced with a new insurance system where employers only pay 60 dirhams per employee per year.</em>\r\n\r\n<em>The second big change is introduction of 10 years residency visas for certain categories of employees. Now this will include for example, doctors, engineers, scientists. What this visa means is that individuals that fall into the list of categories will actually be able to stay in the UAE for a period of ten years, and that period won\'t necessarily be linked to the employer that they are working for.</em>\r\n\r\n<em>As we\'re aware, visa changes in this region, we can have changes which happen quite rapidly and over night. So, here at Al Tamimi we stay on top of those changes. We keep abreast of the developments before they\'re actually introduced. So, as an employer in the region, if you come to us, we\'ll be able to guide through not only what the law is at the moment, but also the changes that are going to be introduced, and help you make a decision that is going to be most appropriate for your business.</em>'),
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	(220429,7763,'biography','Suzanne is an employment law solicitor with 10 years of private practice experience, both contentious and non-contentious (approximately five years in the United Kingdom (\"<strong>UK</strong>\") and approximately five years in the United Arab Emirates (\"<strong>UAE</strong>\")).\r\n\r\nIn the UAE, Suzanne provides the full range of employment advice to employers including: advising on regulations in free zones, compliance with UAE laws including the Federal Civil Service Law, Federal Labour Law, ADGM Employment Regulations and DIFC Employment Law, employment of UAE/GCC nationals, international secondments and assignments, drafting and reviewing employment contracts and HR policies for local law compliance, recruitment, transfers, terminations, redundancies, post-termination restrictions, end of service gratuity and terminable benefits as well as structuring employment contracts and arrangements across multiple jurisdictions. Suzanne also regularly advises on the employment aspects of corporate transactions including business and share purchases or sales and re-organisation of businesses for local and multi-national clients.\r\n\r\nSuzanne has contentious employment law experience and works closely with the firm’s litigation department in respect of local labour court disputes.\r\n\r\nPrior to joining the firm, Suzanne worked in the employment departments in DLA Piper Rudnick Gray Cary UK LLP and Irwin Mitchell\'s respective Birmingham (UK) offices.'),
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	(221725,4118,'_yoast_wpseo_metadesc','Samer Qudah, Partner at Al Tamimi & Company, explains the competition between free zones and its positive impact. Click here to watch the video.'),
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	(221766,7830,'content','The Securities and Commodities Authority (“<strong>SCA</strong>”) has issued Chairman Resolution Decision No. (3/R.M) of 2017 Concerning Regulation of Promotion and Introduction (“<strong>Promotion Regulations</strong>”) providing for the regulation of all promotion and introduction activities associated with local and foreign financial products (within the regulatory purview of SCA). The Promotion Regulations provide a general prohibition on financial products being promoted or introduced within the UAE unless by a licensed promoter and that such financial products are registered or recorded by the SCA.\r\n\r\nSCA Administrative Decision No. (58) of 2017 Concerning Compliance Mechanisms for Introduction and Promotion Activities and Fund Administrative Services (“<strong>Compliance Regulations</strong>”) had granted local promoters with a one year grace period to comply with the Promotion Regulations and obtain a promotion license. The grace period provided to local promoters of foreign mutual funds to comply with Compliance Regulations has expired effective as of Thursday, June 28, 2018.\r\n\r\nThe SCA, has on 2nd of July issued notifications to local promoters (on their approved list) and to legal representatives of foreign funds. The notifications provide that effective 28 June 2018, only SCA licensed promoters can promote units of foreign funds in the UAE. Additionally, SCA has advised legal representatives of foreign funds to not accept any new subscriptions in currently approved foreign funds, if the local promoter/ distributer is currently unlicensed. Currently only one promoter is licensed by the SCA pursuant to the Promotion Regulations.\r\n\r\nBased on discussions with SCA, the rationale behind the two announcements is the expiry of the licensing period granted to obtain the license under the Compliance Regulations. We are given to understand that a decision granting extension on the one year grace period provided under Compliance Regulations is under consideration and this decision could be issued by SCA in the next couple of weeks.\r\n\r\nHowever, it is still permissible to continue accepting monthly contributions under SCA approved systematic investment plans. It is however clear that banks and other distributors that have applied to the SCA for a promotion license would be required to ensure they are now prompt in complying with requirements to obtain the final SCA license.'),
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	(222640,7927,'content','<span style=\"color: #00578f;\"><strong>Bahrain’s new Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019</strong>.</span>\r\n\r\nThe Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. Historically, data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law provides a considerable lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.\r\n\r\n<span style=\"color: #00578f;\"><strong>Application</strong></span>\r\n\r\nBahrain’s Data Protection Law describes the legal protection of personal privacy as among the main constitutional rights of the person, and notes that it should be protected, particularly in the context of the increasing use of electronic/digital means for processing information. The Law applies to:\r\n<ul>\r\n 	<li>Every individual residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) having a place of business in the Kingdom of Bahrain; and</li>\r\n 	<li>Every individual not residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) not having a place of business in the Kingdom of Bahrain, where such persons are processing data using means available in Bahrain, except where such processing means are solely for the purpose of passing data through Bahrain.</li>\r\n</ul>\r\n<span style=\"color: #00578f;\"><strong>Criminal provisions</strong></span>\r\n\r\nThe Law criminalises a variety of acts that would, at most, be the subject of administrative penalties in data protection laws elsewhere. Penalties generally comprise up to one year in prison and/or a fine of between BHD 1,000 and BHD 20,000 (between about USD 2,600 to about USD 53,000) (or a fine only in the case of corporate entities). The following are examples of activities that attract criminal penalties under the Law:\r\n<ul>\r\n 	<li>Processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li>Transferring personal data outside Bahrain contrary to the provisions specifying requirements for transfers to jurisdictions that provide an adequate level of data protection, and associated exceptions;</li>\r\n 	<li>Processing personal data without notifying the new Data Protection Authority in accordance with the provision that sets out the obligation to notify the Authority before commencing any data processing activities (except where certain exceptions apply), or failing to update such notification to the Authority;</li>\r\n 	<li>Processing personal data contrary to the provision that requires prior authorization from the Authority before processing personal data in certain circumstances;</li>\r\n 	<li>Providing false or misleading information to the Authority or to a data subject, or withholding relevant information from the Authority, or otherwise hindering the Authority’s work; and</li>\r\n 	<li>Disclosing any data or information accessed due to work, or using the same for own benefit or for the benefit of others unreasonably and in violation of the provisions of this law.</li>\r\n</ul>\r\n<span style=\"color: #00578f;\"><strong>Security considerations</strong></span>\r\n\r\nGenerally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard. Data controllers are required to apply technical and organizational measures capable of protecting personal data against unintentional or unauthorized destruction, accidental loss, unauthorized alteration, disclosure or access, or any other form of processing. The measures adopted need to be appropriate, bearing in mind the nature of the data in question and the risks associated with processing it.\r\n\r\nData controllers are required to engage only data processors who provide sufficient guarantees regarding the application of technical and organisational measures. Importantly, there is an obligation on data controllers to take steps to verify compliance with such measures, and to enter into a written contract with the data processor requiring that the data processor shall only process data in accordance with the instructions of the data controller, and in accordance with the data controller’s requirements with regard to security and confidentiality.\r\n\r\nThere does not appear to be any specific obligation to notify the Authority in the event of a data breach incident. It is possible that this level of detail might be addressed in the regulations, or that the Authority is expected to address breaches only in the event that they become aware of them, and when the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.\r\n\r\n<span style=\"color: #00578f;\"><strong>Data Protection Supervisor</strong></span>\r\n\r\nThe Law contemplates a role of ‘Data Protection Supervisor’ (not a data protection officer type role) intended to act as an independent and impartial intermediary between the data controller and the Authority. The data protection supervisor will help the data controller fulfil its rights and obligations, and coordinate between the data controller and the Authority. It will also be required to verify the data controller’s processing in compliance with the law, alert the data controller to any apparent non-compliance to enable the issue to be addressed, and alert the Authority where such non-compliance has not been addressed within a specified timeframe.\r\n\r\nThe concept of a data protection supervisor has the potential to result in a whole new industry in the Bahrain market. The regulations setting out the requirements for the registration of data protection supervisors may shed greater light on what is anticipated, in terms of who might be able to fulfil such roles. The most natural development may be for the role to be filled by consulting/audit firms with expertise in data protection related issues.\r\n\r\n<em>Al Tamimi &amp; Company regularly advises on data protection issues across the Middle East. For further information about the new Data Protection Law in Bahrain, or assistance in ensuring compliance, please do not hesitate to contact us.</em>\r\n\r\n<a href=\"http://localhost:8888/tamimi/lawyer/nick-oconnell/\">Nick O\'Connell</a>, Partner, TMT\r\n<a href=\"http://localhost:8888/tamimi/lawyer/foutoun-hajjar/\">Foutoun Hajjar</a>, Partner, Head of Office - Bahrain\r\n<a href=\"http://localhost:8888/tamimi/lawyer/camelia-quinnell/\">Camelia Quinnell</a>, Senior Data Protection Adviser, TMT'),
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	(222738,7929,'content_header',''),
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	(222742,7929,'content','<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8077\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_732097636.jpg\" alt=\"\" width=\"3008\" height=\"1379\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">It is rare for arbitrators to be sued in the UAE although the prospect of such steps being taken has garnered much press interest in recent times. The new 2018 arbitration law (UAE Federal Arbitration Law No. 6 of 2018) does not address the issue, and the old law (Articles 208 to 218 of UAE Civil Procedure Law No. 11 of 1992) merely stated that an arbitrator could be liable for damages if the arbitrator resigns without a good reason. However, a recent Dubai Court of Cassation judgment (No. 484 of 2017) has considered the issue and provided helpful guidance. This article considers this important judgment and its implications.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A developer, Al Sayyah &amp; Sons Investments LLC (the \"Developer\"), sold various units off-plan in a tower it was developing in Dubai Marina. Various purchasers assigned their rights under the sale and purchase agreements they had with the Developer to a real estate finance company, Amlak.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Amlak initiated DIAC arbitration proceedings against the Developer, alleging that the units (now built) were not in conformity with the agreements.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In July 2012 DIAC appointed the sole arbitrator (\"Arbitrator No.1\"). He issued a partial award in November 2013 determining jurisdictional issues. Arbitrator No.1 resigned in December 2013 due to issues regarding impartiality. Arbitrator No.2 was subsequently appointed as the sole arbitrator by DIAC. Arbitrator No 2 issued a final award against the Developer. The award ordered that the Developer pay Amlak AED 46.5m plus interest, as well as AED 466,788 in arbitration costs. Arbitrator No 2 issued a supplemental award to correct accounting calculation errors in the final award which reduced the amount payable to AED 42.7m.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The final award was ratified by the Dubai Courts and an amount of AED 42.7m was paid in full by the Developer to Amlak.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Claim Before the Courts</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Developer then filed a claim before the Dubai Court of First Instance alleging that the two arbitrators had committed material errors in their respective awards. It was claimed that:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">The two arbitrators lacked capacity to decide the dispute.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.1 erred in his award on jurisdiction by holding that Al Sayyah &amp; Sons Investments LLC and Al Sayyah Investments were the same legal entity. Arbitrator No.2 made the same error by relying on and adopting the terms of the partial award in issuing the final award.</li>\r\n 	<li dir=\"LTR\">The Developer was not a party to the agreements containing the arbitration clause.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 had denied the Developer’s right to submit its defence as Amlak should have been ordered to submit the original agreements.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 had altered the terms of the agreement in order to render the final award and had failed to address the issue of lack of jurisdiction.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 failed to include the names of the unit owners and misrepresented the unit area data as set out in the architect’s report in his supplemental award.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 failed to take into consideration the relevant Land Department documents delineating the gross area of the units when making the final award.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">For the above reasons the Developer asserted that they were wrongfully ordered to pay Amlak the AED 42m and sought that both arbitrators be held jointly and severally liable to repay this money to the Developer.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of First Instance dismissed the Developer’s claim in January 2017. This was upheld by the Dubai Court of Appeal in September 2017. The Developer appealed to the Dubai Court of Cassation.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Dubai Court of Cassation judgment</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 21 December 2017 the Court of Cassation dismissed the appeal. The Court of Cassation explained that in order for an arbitrator to be found liable in tort, the following elements had to be proved by the claimant:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">There had been an act or omission by the arbitrator;</li>\r\n 	<li dir=\"LTR\">Harm was incurred by the claimant; and</li>\r\n 	<li dir=\"LTR\">There was a causal link between the act or omission and the harm caused.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Significantly, the Court then went further and stated that the act or omission would need to be \"a serious mistake tainted by deceit, fraud, collusion with the opponent, or refusal to act without acceptable justification. An ordinary mistake or negligence, whether in judgment or procedure, is not sufficient to hold the arbitrator liable unless it is a serious mistake or fraud\".</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court held that it is for the trial court to examine the evidence and determine whether an arbitrator is liable. In this case the Court held that the errors which the Developer alleged were errors of judgment for which the two arbitrators could not be sued.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignright  wp-image-8076\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_1087401539-1024x683.jpg\" alt=\"\" width=\"492\" height=\"328\" />A Step in the Right Direction</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court found that it was not enough for the claimant to demonstrate that an arbitrator made an error that had caused loss to the claimant. The error has to be a ‘serious mistake’ or one tainted by fraud or deceit or otherwise inexplicable. This suggests a high-threshold and one that should give comfort to arbitrators.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This standard of civil liability is in tune with the threshold found in other laws. Both the DIFC and the ADGM have arbitration laws stating that an arbitrator will not be liable ‘unless they are shown to have caused damage by conscious and deliberate wrongdoing’ (Article 22 of the DIFC Arbitration Law 2008; Article 23 of the ADGM Arbitration Regulations 2015).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Many arbitral rules contain terms stating that the parties agree not to sue the arbitrator. This includes the DIAC rules which state, at Article 40, that no member of a tribunal shall be liable in connection with the arbitration. It is not clear why this was not referred to by the Court in its judgment, but its absence leaves open the question of whether an arbitrator’s liability under the law can be further limited by the consent of the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This Court of Cassation judgment is definitely a positive step forward. It should make arbitrator’s feel more confident that whilst they are not immune from suit, they are protected from spurious claims brought by disgruntled parties.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi uniquely possesses the capability to litigate before both of the financial free zone courts and conduct litigation before the UAE Federal Courts and the courts of each individual Emirate. <a href=\"http://localhost:8888/tamimi/practice/arbitration/\">Al Tamimi &amp; Company’s Arbitration team</a> regularly advises on international investment and commercial arbitration. For further information, please contact Dr. Hassan Arab (<a href=\"mailto:h.arab@tamimi.com\">h.arab@tamimi.com</a>) or Dalal Al Houti (<a href=\"mailto:D.Alhouti@tamimi.com\">D.Alhouti@tamimi.com</a>).</em>'),
