INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`)
VALUES
	(251153,24493,'ClientIP','86.98.5.18'),
	(251154,24493,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251155,24493,'CurrentUserID','8'),
	(251156,24493,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251157,24494,'PostID','7955'),
	(251158,24494,'PostType','law_update_articles'),
	(251159,24494,'PostTitle','IP Considerations for Event Planning ahead of Expo 2020'),
	(251160,24494,'PostStatus','draft'),
	(251161,24494,'PostDate','2018-07-31 18:18:58'),
	(251162,24494,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7955'),
	(251163,24494,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7955&amp;action=edit'),
	(251164,24494,'ClientIP','86.98.5.18'),
	(251165,24494,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251166,24494,'CurrentUserID','8'),
	(251167,24494,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251168,24495,'PostID','7955'),
	(251169,24495,'PostType','law_update_articles'),
	(251170,24495,'PostTitle','IP Considerations for Event Planning ahead of Expo 2020'),
	(251171,24495,'PostStatus','draft'),
	(251172,24495,'PostDate','2018-07-31 18:19:02'),
	(251173,24495,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7955'),
	(251174,24495,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7955&amp;action=edit'),
	(251175,24495,'ClientIP','86.98.5.18'),
	(251176,24495,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251177,24495,'CurrentUserID','8'),
	(251178,24495,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251179,24496,'AttachmentID','8035'),
	(251180,24496,'FileName','shutterstock_549959791.jpg'),
	(251181,24496,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251182,24496,'ClientIP','86.98.5.18'),
	(251183,24496,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251184,24496,'CurrentUserID','8'),
	(251185,24496,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251186,24497,'AttachmentID','8036'),
	(251187,24497,'FileName','shutterstock_714698206.jpg'),
	(251188,24497,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251189,24497,'ClientIP','86.98.5.18'),
	(251190,24497,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251191,24497,'CurrentUserID','8'),
	(251192,24497,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251193,24498,'PostID','7956'),
	(251194,24498,'PostType','law_update_articles'),
	(251195,24498,'PostTitle','From Expo 2020 to Asian Cup 2019: Developing a protocol for dealing with Ambush Marketing in the GCC'),
	(251196,24498,'PostStatus','draft'),
	(251197,24498,'PostDate','2018-07-31 18:22:01'),
	(251198,24498,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7956'),
	(251199,24498,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7956&amp;action=edit'),
	(251200,24498,'ClientIP','86.98.5.18'),
	(251201,24498,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251202,24498,'CurrentUserID','8'),
	(251203,24498,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251204,24499,'PostID','7956'),
	(251205,24499,'PostType','law_update_articles'),
	(251206,24499,'PostTitle','From Expo 2020 to Asian Cup 2019: Developing a protocol for dealing with Ambush Marketing in the GCC'),
	(251207,24499,'PostStatus','draft'),
	(251208,24499,'PostDate','2018-07-31 16:24:22'),
	(251209,24499,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7956'),
	(251210,24499,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7956&amp;action=edit'),
	(251211,24499,'ClientIP','86.98.5.18'),
	(251212,24499,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251213,24499,'CurrentUserID','8'),
	(251214,24499,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251215,24500,'PostID','7956'),
	(251216,24500,'PostTitle','From Expo 2020 to Asian Cup 2019: Developing a protocol for dealing with Ambush Marketing in the GCC'),
	(251217,24500,'PostStatus','draft'),
	(251218,24500,'PostType','law_update_articles'),
	(251219,24500,'PostDate','2018-07-31 18:22:03'),
	(251220,24500,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7956'),
	(251221,24500,'MetaID','224022'),
	(251222,24500,'MetaKey','content'),
	(251223,24500,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8036\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_714698206.jpg\" alt=\"\" width=\"5500\" height=\"1558\" />The 1984 Olympic Games in Los Angeles are notable for several things. US Athlete Carl Lewis picked up an amazing 4 gold medals. The particularly 1980s pastime of wind surfing was included as a sport. It was the first time that organisers limited the number of sponsors that could be attached to the Olympic Games, arranging tiers of high value sponsorship and limiting sponsors to one per product category. Commercially, the Games were funded privately, and remains one of the few games to ever make a profit.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, the 1984 Olympic Games recorded the first acknowledged case of ambush marketing when Kodak, then the world’s most popular film for cameras, lost the right to sponsor the Games to its rival Fuji Film. In retaliation, Kodak sponsored the US broadcast of the Games on NBC, and sponsored the entire US team. The vast majority of viewers of the games believed that Kodak was the sponsor, angering both the IOC and Fuji Film. Since then, organisers of sporting events and large scale commercial events (such as Expo 2020) have been seeking ways to ensure that companies that have no commercial sponsorship rights do not act in a way that leverages off the goodwill of the event in a way that devalues the benefits provided to the actual sponsors of that event.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Types of Ambush Marketing</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Since the early days of ambush marketing, marketers have become extremely clever at developing ways for non-sponsoring brands to create false links to major events.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may do this by attempting to create an association with the event itself. A very clever example of this, and one that was successful and remained unchallenged by the organisers because of its simplicity, was the association that Beats by Dr Dre headphones made with the 2012 London Games by providing free headphones to the British athletes.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The other method is ambush by intrusion in this case the brand sends its brand into the stadiums of event locations and exposes it to cameras. Early amateur examples of this saw brands paying people to stand behind goals or near interview subjects with cardboard placards bearing the brand logo, although the levels of sophistication have escalated significantly since then.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Brands sometimes ‘coat-tail’ a marketing association. Whilst not event sponsors, they may sponsor a competitor or provide equipment to a key member of the team. Similar to this they may use distractive ambushing – they may set up a smaller event (such as a concert or DJ event) near the main event to gain traction with fans.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Brazil 2014 World Cup saw the rise of a new and more difficult category of ambush marketing – the social ambush, involving the use of hashtags. Hashtags are often extremely opportunistic – happening within minutes of a notable occurrence at the event. For example, when Suarez bit an opponent in the 2014 World Cup, Snickers response was swift and went viral: \"Hey @luis16suarez. Next time you’re hungry just grab a Snickers. #worldcup #luissuarez #EatASNICKERS\". With a staggering 672 million Tweets created for World Cup 2014, and with social media continuing to increase its role in marketing across the board, we can expect this difficult area of ambush marketing to become more prevalent for future events.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some of these types of ambush marketing are more palatable to event organisers than others. Unfortunately not all are easy to control.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Legal Basis for Ambush Marketing</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has always been difficult for lawyers to find ways to deal with ambush marketing. In some cases, it can be claimed that the marketing campaign is infringing on the IP rights of either the event organiser or possibly even the official sponsor. There may be some assistance from competition laws, where they extend to passing off. Perhaps a little legal relief may be gained from the advertising regulations of the country in question – can it be perhaps argued that the advertising is deceptive in seeking to create a link with the event that does not exist?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Beyond this, the law becomes increasingly unhelpful.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Historically, the strongest way to deal with ambush marketing was to register a suite of trademarks and, then, using the trademarks legislation to bring action for infringement. However, this is increasingly less helpful as non-sponsoring brands become more adept at using subtle ways to imply a link to the event without the use of the trademarks involved. Clever marketing executives work with clever lawyers, and together they navigate a campaign idea though the many legal gaps.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst some countries may be able to rely on their trade practices or competition laws, these will not be as helpful in the UAE. There are no ‘look and feel’ rights associated with an event, and no laws that say that a company cannot act in a way that compromises contractual rights of a third party. It is possible that the event organiser and the event sponsor would find that, legally, they have few (or no) options in a courtroom.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Because of this common gap in the laws, many countries implement event-specific laws to protect both the organisers and the event sponsors from ambush marketing. For example, for the Russian 2018 World Cup, the Russian government passed Federal Law No. FZ-108 in 2013. This follows the pathway set by past governments seeking to protect large events that are held in their countries – enacting laws designed to provide quick solutions to the problems of ambush marketing. Generally speaking, these laws create new offences relating to the creation of any unauthorised association with the event – for example the Russian law is drafted broadly and captures anything that might falsely suggests that the product has the approval, recommendation, certification by, or connection with FIFA or the World Cup. The laws include heavy fines which can be implemented by the government itself, bypassing the need for any civil case to be launched.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without such laws in place well before the start of the event, the event organiser can expect to have a much more difficult time in preventing ambush marketing activities. But it is wise to remember that, even with such laws, an event organiser may struggle to stop an advertiser from, say, using a football game within its advertising during a World Cup, or referencing a world trade exhibition during an Expo.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Reacting to Ambush Marketing</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any entity with a large event approaching needs to strategise carefully its reaction to ambush marketing. Our suggestions include the following:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">Very large events, such as Expo 2020 or the Asian Cup 2019, must have as much government support as possible in the form of comprehensive and well-crafted legislation to allow a fine to be levied against undesirable activity.</li>\r\n 	<li dir=\"LTR\">Where press is to be properly authorized for entry to the event, it should be made clear that any form of ambush marketing, even if only carried by that press outlet as advertising, will permit the cancellation of the press badges of all their correspondents.</li>\r\n 	<li dir=\"LTR\">Come to an understanding with key stakeholders about the scope of ambush marketing – what they will and will not allow. Obviously the key element is to consider whether the ambushing brand is trying to deceive consumers into thinking that they are associated with your event. But you should make sure that you consider the fine points of what association means to each of you. If a brand posts \"We are proud to be part of #Expo2020 this year\" that may be too far from most stakeholders. But what about a post that is less direct and simply reads: \"Congratulations to #mydubai on the opening of #Expo2020\"? Do stakeholders all agree that this is less direct, aimed at creating a link to the trending hashtags as much as the event. Is this worth chasing? It is important to know the position of all stakeholders in advance.</li>\r\n 	<li dir=\"LTR\">Ensure all key stakeholders are aligned on the actions that will be taken under point 3. For example if the plan for ambush by intrusion is to remove the item that will be creating the ambush inside a venue, it is imperative that all stakeholders are aware of that planned action, from government to broadcaster, from sponsor to security company.</li>\r\n 	<li dir=\"LTR\">Plan outcomes early and then develop action plans and template letters to cover all possible types of ambush marketing so that management has approved both the plan and the letters well in advance. Create a Protocol and Action Handbook that all staff from all stakeholders can have on hand so that everyone knows the process, timing, approvals and documents that are to be used. Time cannot be lost in seeking approvals when the event is actually in progress and in addition, a united front will assist all stakeholders to a better (and expected) result.</li>\r\n 	<li dir=\"LTR\">And finally, plan your social media tone and voice carefully and ensure adequate trained resources are available to react quickly to any social ambush.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst event sponsors are carefully planning and managing their marketing executions around the next big event, non-sponsor brands are similarly planning strategic and clever ambush marketing campaigns. Event organisers cannot do enough planning to ensure that the reactions taken to such ambush marketing are concise, controlled and consistent – to do anything else could severely compromise the position of their sponsors and affect these important contractual relationships.</p>\r\n<em><img class=\"alignleft size-full wp-image-8035\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_549959791.jpg\" alt=\"\" width=\"4500\" height=\"1500\" />Al Tamimi &amp; Company’s TMT team regularly advises on the full spectrum of technology, media and telecommunications matters and provides key support to our Expo 2020 practice group. For further information, please contact expo2020@tamimi.com).</em>'),
	(251224,24500,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">The 1984 Olympic Games in Los Angeles are notable for several things. US Athlete Carl Lewis picked up an amazing 4 gold medals. The particularly 1980s pastime of wind surfing was included as a sport. It was the first time that organisers limited the number of sponsors that could be attached to the Olympic Games, arranging tiers of high value sponsorship and limiting sponsors to one per product category. Commercially, the Games were funded privately, and remains one of the few games to ever make a profit.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, the 1984 Olympic Games recorded the first acknowledged case of ambush marketing when Kodak, then the world’s most popular film for cameras, lost the right to sponsor the Games to its rival Fuji Film. In retaliation, Kodak sponsored the US broadcast of the Games on NBC, and sponsored the entire US team. The vast majority of viewers of the games believed that Kodak was the sponsor, angering both the IOC and Fuji Film. Since then, organisers of sporting events and large scale commercial events (such as Expo 2020) have been seeking ways to ensure that companies that have no commercial sponsorship rights do not act in a way that leverages off the goodwill of the event in a way that devalues the benefits provided to the actual sponsors of that event.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Types of Ambush Marketing</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Since the early days of ambush marketing, marketers have become extremely clever at developing ways for non-sponsoring brands to create false links to major events.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may do this by attempting to create an association with the event itself. A very clever example of this, and one that was successful and remained unchallenged by the organisers because of its simplicity, was the association that Beats by Dr Dre headphones made with the 2012 London Games by providing free headphones to the British athletes.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The other method is ambush by intrusion in this case the brand sends its brand into the stadiums of event locations and exposes it to cameras. Early amateur examples of this saw brands paying people to stand behind goals or near interview subjects with cardboard placards bearing the brand logo, although the levels of sophistication have escalated significantly since then.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Brands sometimes ‘coat-tail’ a marketing association. Whilst not event sponsors, they may sponsor a competitor or provide equipment to a key member of the team. Similar to this they may use distractive ambushing – they may set up a smaller event (such as a concert or DJ event) near the main event to gain traction with fans.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Brazil 2014 World Cup saw the rise of a new and more difficult category of ambush marketing – the social ambush, involving the use of hashtags. Hashtags are often extremely opportunistic – happening within minutes of a notable occurrence at the event. For example, when Suarez bit an opponent in the 2014 World Cup, Snickers response was swift and went viral: \"Hey @luis16suarez. Next time you’re hungry just grab a Snickers. #worldcup #luissuarez #EatASNICKERS\". With a staggering 672 million Tweets created for World Cup 2014, and with social media continuing to increase its role in marketing across the board, we can expect this difficult area of ambush marketing to become more prevalent for future events.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some of these types of ambush marketing are more palatable to event organisers than others. Unfortunately not all are easy to control.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Legal Basis for Ambush Marketing</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has always been difficult for lawyers to find ways to deal with ambush marketing. In some cases, it can be claimed that the marketing campaign is infringing on the IP rights of either the event organiser or possibly even the official sponsor. There may be some assistance from competition laws, where they extend to passing off. Perhaps a little legal relief may be gained from the advertising regulations of the country in question – can it be perhaps argued that the advertising is deceptive in seeking to create a link with the event that does not exist?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Beyond this, the law becomes increasingly unhelpful.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Historically, the strongest way to deal with ambush marketing was to register a suite of trademarks and, then, using the trademarks legislation to bring action for infringement. However, this is increasingly less helpful as non-sponsoring brands become more adept at using subtle ways to imply a link to the event without the use of the trademarks involved. Clever marketing executives work with clever lawyers, and together they navigate a campaign idea though the many legal gaps.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst some countries may be able to rely on their trade practices or competition laws, these will not be as helpful in the UAE. There are no ‘look and feel’ rights associated with an event, and no laws that say that a company cannot act in a way that compromises contractual rights of a third party. It is possible that the event organiser and the event sponsor would find that, legally, they have few (or no) options in a courtroom.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Because of this common gap in the laws, many countries implement event-specific laws to protect both the organisers and the event sponsors from ambush marketing. For example, for the Russian 2018 World Cup, the Russian government passed Federal Law No. FZ-108 in 2013. This follows the pathway set by past governments seeking to protect large events that are held in their countries – enacting laws designed to provide quick solutions to the problems of ambush marketing. Generally speaking, these laws create new offences relating to the creation of any unauthorised association with the event – for example the Russian law is drafted broadly and captures anything that might falsely suggests that the product has the approval, recommendation, certification by, or connection with FIFA or the World Cup. The laws include heavy fines which can be implemented by the government itself, bypassing the need for any civil case to be launched.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without such laws in place well before the start of the event, the event organiser can expect to have a much more difficult time in preventing ambush marketing activities. But it is wise to remember that, even with such laws, an event organiser may struggle to stop an advertiser from, say, using a football game within its advertising during a World Cup, or referencing a world trade exhibition during an Expo.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Reacting to Ambush Marketing</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any entity with a large event approaching needs to strategise carefully its reaction to ambush marketing. Our suggestions include the following:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">Very large events, such as Expo 2020 or the Asian Cup 2019, must have as much government support as possible in the form of comprehensive and well-crafted legislation to allow a fine to be levied against undesirable activity.</li>\r\n 	<li dir=\"LTR\">Where press is to be properly authorized for entry to the event, it should be made clear that any form of ambush marketing, even if only carried by that press outlet as advertising, will permit the cancellation of the press badges of all their correspondents.</li>\r\n 	<li dir=\"LTR\">Come to an understanding with key stakeholders about the scope of ambush marketing – what they will and will not allow. Obviously the key element is to consider whether the ambushing brand is trying to deceive consumers into thinking that they are associated with your event. But you should make sure that you consider the fine points of what association means to each of you. If a brand posts \"We are proud to be part of #Expo2020 this year\" that may be too far from most stakeholders. But what about a post that is less direct and simply reads: \"Congratulations to #mydubai on the opening of #Expo2020\"? Do stakeholders all agree that this is less direct, aimed at creating a link to the trending hashtags as much as the event. Is this worth chasing? It is important to know the position of all stakeholders in advance.</li>\r\n 	<li dir=\"LTR\">Ensure all key stakeholders are aligned on the actions that will be taken under point 3. For example if the plan for ambush by intrusion is to remove the item that will be creating the ambush inside a venue, it is imperative that all stakeholders are aware of that planned action, from government to broadcaster, from sponsor to security company.</li>\r\n 	<li dir=\"LTR\">Plan outcomes early and then develop action plans and template letters to cover all possible types of ambush marketing so that management has approved both the plan and the letters well in advance. Create a Protocol and Action Handbook that all staff from all stakeholders can have on hand so that everyone knows the process, timing, approvals and documents that are to be used. Time cannot be lost in seeking approvals when the event is actually in progress and in addition, a united front will assist all stakeholders to a better (and expected) result.</li>\r\n 	<li dir=\"LTR\">And finally, plan your social media tone and voice carefully and ensure adequate trained resources are available to react quickly to any social ambush.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst event sponsors are carefully planning and managing their marketing executions around the next big event, non-sponsor brands are similarly planning strategic and clever ambush marketing campaigns. Event organisers cannot do enough planning to ensure that the reactions taken to such ambush marketing are concise, controlled and consistent – to do anything else could severely compromise the position of their sponsors and affect these important contractual relationships.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<em>Al Tamimi &amp; Company’s TMT team regularly advises on the full spectrum of technology, media and telecommunications matters and provides key support to our Expo 2020 practice group. For further information, please contact expo2020@tamimi.com).</em>'),
	(251225,24500,'MetaLink','content'),
	(251226,24500,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7956&amp;action=edit'),
	(251227,24500,'ReportText','<p dir=\"LTR\" align=\"LEFT\">The 1984 Olympic Games in Los Angeles are notable for several things. US Athlete Carl Lewis picked up an amazing 4 gold medals. The particularly 1980s pastime of wind surfing was included as a sport. It was the first time that organisers limited the number of sponsors that could be attached to the Olympic Games, arranging tiers of high value sponsorship and limiting sponsors to one per product category. Commercially, the Games were funded privately, and remains one of the few games to ever make a profit.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, the 1984 Olympic Games recorded the first acknowledged case of ambush marketing when Kodak, then the world’s most popular film for cameras, lost the right to sponsor the Games to its rival Fuji Film. In retaliation, Kodak sponsored the US broadcast of the Games on NBC, and sponsored the entire US team. The vast majority of viewers of the games believed that Kodak was the sponsor, angering both the IOC and Fuji Film. Since then, organisers of sporting events and large scale commercial events (such as Expo 2020) have been seeking ways to ensure that companies that have no commercial sponsorship rights do not act in a way that leverages off the goodwill of the event in a way that devalues the benefits provided to the actual sponsors of that event.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Types of Ambush Marketing</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Since the early days of ambush marketing, marketers have become extremely clever at developing ways for non-sponsoring brands to create false links to major events.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may do this by attempting to create an association with the event itself. A very clever example of this, and one that was successful and remained unchallenged by the organisers because of its simplicity, was the association that Beats by Dr Dre headphones made with the 2012 London Games by providing free headphones to the British athletes.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The other method is ambush by intrusion in this case the brand sends its brand into the stadiums of event locations and exposes it to cameras. Early amateur examples of this saw brands paying people to stand behind goals or near interview subjects with cardboard placards bearing the brand logo, although the levels of sophistication have escalated significantly since then.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Brands sometimes ‘coat-tail’ a marketing association. Whilst not event sponsors, they may sponsor a competitor or provide equipment to a key member of the team. Similar to this they may use distractive ambushing – they may set up a smaller event (such as a concert or DJ event) near the main event to gain traction with fans.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Brazil 2014 World Cup saw the rise of a new and more difficult category of ambush marketing – the social ambush, involving the use of hashtags. Hashtags are often extremely opportunistic – happening within minutes of a notable occurrence at the event. For example, when Suarez bit an opponent in the 2014 World Cup, Snickers response was swift and went viral: \"Hey @luis16suarez. Next time you’re hungry just grab a Snickers. #worldcup #luissuarez #EatASNICKERS\". With a staggering 672 million Tweets created for World Cup 2014, and with social media continuing to increase its role in marketing across the board, we can expect this difficult area of ambush marketing to become more prevalent for future events.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some of these types of ambush marketing are more palatable to event organisers than others. Unfortunately not all are easy to control.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Legal Basis for Ambush Marketing</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has always been difficult for lawyers to find ways to deal with ambush marketing. In some cases, it can be claimed that the marketing campaign is infringing on the IP rights of either the event organiser or possibly even the official sponsor. There may be some assistance from competition laws, where they extend to passing off. Perhaps a little legal relief may be gained from the advertising regulations of the country in question – can it be perhaps argued that the advertising is deceptive in seeking to create a link with the event that does not exist?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Beyond this, the law becomes increasingly unhelpful.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Historically, the strongest way to deal with ambush marketing was to register a suite of trademarks and, then, using the trademarks legislation to bring action for infringement. However, this is increasingly less helpful as non-sponsoring brands become more adept at using subtle ways to imply a link to the event without the use of the trademarks involved. Clever marketing executives work with clever lawyers, and together they navigate a campaign idea though the many legal gaps.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst some countries may be able to rely on their trade practices or competition laws, these will not be as helpful in the UAE. There are no ‘look and feel’ rights associated with an event, and no laws that say that a company cannot act in a way that compromises contractual rights of a third party. It is possible that the event organiser and the event sponsor would find that, legally, they have few (or no) options in a courtroom.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Because of this common gap in the laws, many countries implement event-specific laws to protect both the organisers and the event sponsors from ambush marketing. For example, for the Russian 2018 World Cup, the Russian government passed Federal Law No. FZ-108 in 2013. This follows the pathway set by past governments seeking to protect large events that are held in their countries – enacting laws designed to provide quick solutions to the problems of ambush marketing. Generally speaking, these laws create new offences relating to the creation of any unauthorised association with the event – for example the Russian law is drafted broadly and captures anything that might falsely suggests that the product has the approval, recommendation, certification by, or connection with FIFA or the World Cup. The laws include heavy fines which can be implemented by the government itself, bypassing the need for any civil case to be launched.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without such laws in place well before the start of the event, the event organiser can expect to have a much more difficult time in preventing ambush marketing activities. But it is wise to remember that, even with such laws, an event organiser may struggle to stop an advertiser from, say, using a football game within its advertising during a World Cup, or referencing a world trade exhibition during an Expo.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Reacting to Ambush Marketing</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any entity with a large event approaching needs to strategise carefully its reaction to ambush marketing. Our suggestions include the following:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">Very large events, such as Expo 2020 or the Asian Cup 2019, must have as much government support as possible in the form of comprehensive and well-crafted legislation to allow a fine to be levied against undesirable activity.</li>\r\n 	<li dir=\"LTR\">Where press is to be properly authorized for entry to the event, it should be made clear that any form of ambush marketing, even if only carried by that press outlet as advertising, will permit the cancellation of the press badges of all their correspondents.</li>\r\n 	<li dir=\"LTR\">Come to an understanding with key stakeholders about the scope of ambush marketing – what they will and will not allow. Obviously the key element is to consider whether the ambushing brand is trying to deceive consumers into thinking that they are associated with your event. But you should make sure that you consider the fine points of what association means to each of you. If a brand posts \"We are proud to be part of #Expo2020 this year\" that may be too far from most stakeholders. But what about a post that is less direct and simply reads: \"Congratulations to #mydubai on the opening of #Expo2020\"? Do stakeholders all agree that this is less direct, aimed at creating a link to the trending hashtags as much as the event. Is this worth chasing? It is important to know the position of all stakeholders in advance.</li>\r\n 	<li dir=\"LTR\">Ensure all key stakeholders are aligned on the actions that will be taken under point 3. For example if the plan for ambush by intrusion is to remove the item that will be creating the ambush inside a venue, it is imperative that all stakeholders are aware of that planned action, from government to broadcaster, from sponsor to security company.</li>\r\n 	<li dir=\"LTR\">Plan outcomes early and then develop action plans and template letters to cover all possible types of ambush marketing so that management has approved both the plan and the letters well in advance. Create a Protocol and Action Handbook that all staff from all stakeholders can have on hand so that everyone knows the process, timing, approvals and documents that are to be used. Time cannot be lost in seeking approvals when the event is actually in progress and in addition, a united front will assist all stakeholders to a better (and expected) result.</li>\r\n 	<li dir=\"LTR\">And finally, plan your social media tone and voice carefully and ensure adequate trained resources are available to react quickly to any social ambush.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst event sponsors are carefully planning and managing their marketing executions around the next big event, non-sponsor brands are similarly planning strategic and clever ambush marketing campaigns. Event organisers cannot do enough planning to ensure that the reactions taken to such ambush marketing are concise, controlled and consistent – to do anything else could severely compromise the position of their sponsors and affect these important contractual relationships.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<em>Al Tamimi &amp; Company’s TMT team regularly advises on the full spectrum of technology, media and telecommunications matters and provides key support to our Expo 2020 practice group. For further information, please contact expo2020@tamimi.com).</em>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8036\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_714698206.jpg\" alt=\"\" width=\"5500\" height=\"1558\" />The 1984 Olympic Games in Los Angeles are notable for several things. US Athlete Carl Lewis picked up an amazing 4 gold medals. The particularly 1980s pastime of wind surfing was included as a sport. It was the first time that organisers limited the number of sponsors that could be attached to the Olympic Games, arranging tiers of high value sponsorship and limiting sponsors to one per product category. Commercially, the Games were funded privately, and remains one of the few games to ever make a profit.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, the 1984 Olympic Games recorded the first acknowledged case of ambush marketing when Kodak, then the world’s most popular film for cameras, lost the right to sponsor the Games to its rival Fuji Film. In retaliation, Kodak sponsored the US broadcast of the Games on NBC, and sponsored the entire US team. The vast majority of viewers of the games believed that Kodak was the sponsor, angering both the IOC and Fuji Film. Since then, organisers of sporting events and large scale commercial events (such as Expo 2020) have been seeking ways to ensure that companies that have no commercial sponsorship rights do not act in a way that leverages off the goodwill of the event in a way that devalues the benefits provided to the actual sponsors of that event.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Types of Ambush Marketing</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Since the early days of ambush marketing, marketers have become extremely clever at developing ways for non-sponsoring brands to create false links to major events.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may do this by attempting to create an association with the event itself. A very clever example of this, and one that was successful and remained unchallenged by the organisers because of its simplicity, was the association that Beats by Dr Dre headphones made with the 2012 London Games by providing free headphones to the British athletes.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The other method is ambush by intrusion in this case the brand sends its brand into the stadiums of event locations and exposes it to cameras. Early amateur examples of this saw brands paying people to stand behind goals or near interview subjects with cardboard placards bearing the brand logo, although the levels of sophistication have escalated significantly since then.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Brands sometimes ‘coat-tail’ a marketing association. Whilst not event sponsors, they may sponsor a competitor or provide equipment to a key member of the team. Similar to this they may use distractive ambushing – they may set up a smaller event (such as a concert or DJ event) near the main event to gain traction with fans.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Brazil 2014 World Cup saw the rise of a new and more difficult category of ambush marketing – the social ambush, involving the use of hashtags. Hashtags are often extremely opportunistic – happening within minutes of a notable occurrence at the event. For example, when Suarez bit an opponent in the 2014 World Cup, Snickers response was swift and went viral: \"Hey @luis16suarez. Next time you’re hungry just grab a Snickers. #worldcup #luissuarez #EatASNICKERS\". With a staggering 672 million Tweets created for World Cup 2014, and with social media continuing to increase its role in marketing across the board, we can expect this difficult area of ambush marketing to become more prevalent for future events.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some of these types of ambush marketing are more palatable to event organisers than others. Unfortunately not all are easy to control.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Legal Basis for Ambush Marketing</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has always been difficult for lawyers to find ways to deal with ambush marketing. In some cases, it can be claimed that the marketing campaign is infringing on the IP rights of either the event organiser or possibly even the official sponsor. There may be some assistance from competition laws, where they extend to passing off. Perhaps a little legal relief may be gained from the advertising regulations of the country in question – can it be perhaps argued that the advertising is deceptive in seeking to create a link with the event that does not exist?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Beyond this, the law becomes increasingly unhelpful.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Historically, the strongest way to deal with ambush marketing was to register a suite of trademarks and, then, using the trademarks legislation to bring action for infringement. However, this is increasingly less helpful as non-sponsoring brands become more adept at using subtle ways to imply a link to the event without the use of the trademarks involved. Clever marketing executives work with clever lawyers, and together they navigate a campaign idea though the many legal gaps.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst some countries may be able to rely on their trade practices or competition laws, these will not be as helpful in the UAE. There are no ‘look and feel’ rights associated with an event, and no laws that say that a company cannot act in a way that compromises contractual rights of a third party. It is possible that the event organiser and the event sponsor would find that, legally, they have few (or no) options in a courtroom.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Because of this common gap in the laws, many countries implement event-specific laws to protect both the organisers and the event sponsors from ambush marketing. For example, for the Russian 2018 World Cup, the Russian government passed Federal Law No. FZ-108 in 2013. This follows the pathway set by past governments seeking to protect large events that are held in their countries – enacting laws designed to provide quick solutions to the problems of ambush marketing. Generally speaking, these laws create new offences relating to the creation of any unauthorised association with the event – for example the Russian law is drafted broadly and captures anything that might falsely suggests that the product has the approval, recommendation, certification by, or connection with FIFA or the World Cup. The laws include heavy fines which can be implemented by the government itself, bypassing the need for any civil case to be launched.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without such laws in place well before the start of the event, the event organiser can expect to have a much more difficult time in preventing ambush marketing activities. But it is wise to remember that, even with such laws, an event organiser may struggle to stop an advertiser from, say, using a football game within its advertising during a World Cup, or referencing a world trade exhibition during an Expo.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Reacting to Ambush Marketing</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any entity with a large event approaching needs to strategise carefully its reaction to ambush marketing. Our suggestions include the following:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">Very large events, such as Expo 2020 or the Asian Cup 2019, must have as much government support as possible in the form of comprehensive and well-crafted legislation to allow a fine to be levied against undesirable activity.</li>\r\n 	<li dir=\"LTR\">Where press is to be properly authorized for entry to the event, it should be made clear that any form of ambush marketing, even if only carried by that press outlet as advertising, will permit the cancellation of the press badges of all their correspondents.</li>\r\n 	<li dir=\"LTR\">Come to an understanding with key stakeholders about the scope of ambush marketing – what they will and will not allow. Obviously the key element is to consider whether the ambushing brand is trying to deceive consumers into thinking that they are associated with your event. But you should make sure that you consider the fine points of what association means to each of you. If a brand posts \"We are proud to be part of #Expo2020 this year\" that may be too far from most stakeholders. But what about a post that is less direct and simply reads: \"Congratulations to #mydubai on the opening of #Expo2020\"? Do stakeholders all agree that this is less direct, aimed at creating a link to the trending hashtags as much as the event. Is this worth chasing? It is important to know the position of all stakeholders in advance.</li>\r\n 	<li dir=\"LTR\">Ensure all key stakeholders are aligned on the actions that will be taken under point 3. For example if the plan for ambush by intrusion is to remove the item that will be creating the ambush inside a venue, it is imperative that all stakeholders are aware of that planned action, from government to broadcaster, from sponsor to security company.</li>\r\n 	<li dir=\"LTR\">Plan outcomes early and then develop action plans and template letters to cover all possible types of ambush marketing so that management has approved both the plan and the letters well in advance. Create a Protocol and Action Handbook that all staff from all stakeholders can have on hand so that everyone knows the process, timing, approvals and documents that are to be used. Time cannot be lost in seeking approvals when the event is actually in progress and in addition, a united front will assist all stakeholders to a better (and expected) result.</li>\r\n 	<li dir=\"LTR\">And finally, plan your social media tone and voice carefully and ensure adequate trained resources are available to react quickly to any social ambush.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst event sponsors are carefully planning and managing their marketing executions around the next big event, non-sponsor brands are similarly planning strategic and clever ambush marketing campaigns. Event organisers cannot do enough planning to ensure that the reactions taken to such ambush marketing are concise, controlled and consistent – to do anything else could severely compromise the position of their sponsors and affect these important contractual relationships.</p>\r\n<em><img class=\"alignleft size-full wp-image-8035\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_549959791.jpg\" alt=\"\" width=\"4500\" height=\"1500\" />Al Tamimi &amp; Company’s TMT team regularly advises on the full spectrum of technology, media and telecommunications matters and provides key support to our Expo 2020 practice group. For further information, please contact expo2020@tamimi.com).</em>'),
	(251228,24500,'ClientIP','86.98.5.18'),
	(251229,24500,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251230,24500,'CurrentUserID','8'),
	(251231,24500,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251232,24501,'PostID','7956'),
	(251233,24501,'PostType','law_update_articles'),
	(251234,24501,'PostTitle','From Expo 2020 to Asian Cup 2019: Developing a protocol for dealing with Ambush Marketing in the GCC'),
	(251235,24501,'PostStatus','draft'),
	(251236,24501,'PostDate','2018-07-31 18:22:03'),
	(251237,24501,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7956'),
	(251238,24501,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7956&amp;action=edit'),
	(251239,24501,'ClientIP','86.98.5.18'),
	(251240,24501,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251241,24501,'CurrentUserID','8'),
	(251242,24501,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251243,24502,'PostID','7956'),
	(251244,24502,'PostType','law_update_articles'),
	(251245,24502,'PostTitle','From Expo 2020 to Asian Cup 2019: Developing a protocol for dealing with Ambush Marketing in the GCC'),
	(251246,24502,'PostStatus','draft'),
	(251247,24502,'PostDate','2018-07-31 18:22:08'),
	(251248,24502,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7956'),
	(251249,24502,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7956&amp;action=edit'),
	(251250,24502,'ClientIP','86.98.5.18'),
	(251251,24502,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251252,24502,'CurrentUserID','8'),
	(251253,24502,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251254,24503,'AttachmentID','8037'),
	(251255,24503,'FileName','shutterstock_712537774.jpg'),
	(251256,24503,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251257,24503,'ClientIP','86.98.5.18'),
	(251258,24503,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251259,24503,'CurrentUserID','8'),
	(251260,24503,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251261,24504,'AttachmentID','8038'),
	(251262,24504,'FileName','shutterstock_712537774-1.jpg'),
	(251263,24504,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251264,24504,'ClientIP','86.98.5.18'),
	(251265,24504,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251266,24504,'CurrentUserID','8'),
	(251267,24504,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251268,24505,'AttachmentID','8039'),
	(251269,24505,'FileName','shutterstock_1032816913.jpg'),
	(251270,24505,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251271,24505,'ClientIP','86.98.5.18'),
	(251272,24505,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251273,24505,'CurrentUserID','8'),
	(251274,24505,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251275,24506,'AttachmentID','8040'),
	(251276,24506,'FileName','shutterstock_733922404.jpg'),
	(251277,24506,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251278,24506,'ClientIP','86.98.5.18'),
	(251279,24506,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251280,24506,'CurrentUserID','8'),
	(251281,24506,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251282,24507,'AttachmentID','8038'),
	(251283,24507,'FileName','shutterstock_712537774-1.jpg'),
	(251284,24507,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251285,24507,'ClientIP','86.98.5.18'),
	(251286,24507,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251287,24507,'CurrentUserID','8'),
	(251288,24507,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251289,24508,'AttachmentID','8037'),
	(251290,24508,'FileName','shutterstock_712537774.jpg'),
	(251291,24508,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251292,24508,'ClientIP','86.98.5.18'),
	(251293,24508,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251294,24508,'CurrentUserID','8'),
	(251295,24508,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251296,24509,'PostID','7957'),
	(251297,24509,'PostType','law_update_articles'),
	(251298,24509,'PostTitle','Catching the wave: New Data Protection Law in Bahrain'),
	(251299,24509,'PostStatus','draft'),
	(251300,24509,'PostDate','2018-07-31 18:29:26'),
	(251301,24509,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7957'),
	(251302,24509,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7957&amp;action=edit'),
	(251303,24509,'ClientIP','86.98.5.18'),
	(251304,24509,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251305,24509,'CurrentUserID','8'),
	(251306,24509,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251307,24510,'PostID','7957'),
	(251308,24510,'PostType','law_update_articles'),
	(251309,24510,'PostTitle','Catching the wave: New Data Protection Law in Bahrain'),
	(251310,24510,'PostStatus','draft'),
	(251311,24510,'PostDate','2018-07-31 16:33:49'),
	(251312,24510,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7957'),
	(251313,24510,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7957&amp;action=edit'),
	(251314,24510,'ClientIP','86.98.5.18'),
	(251315,24510,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251316,24510,'CurrentUserID','8'),
	(251317,24510,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251318,24511,'PostID','7957'),
	(251319,24511,'PostTitle','Catching the wave: New Data Protection Law in Bahrain'),
	(251320,24511,'PostStatus','draft'),
	(251321,24511,'PostType','law_update_articles'),
	(251322,24511,'PostDate','2018-07-31 18:29:28'),
	(251323,24511,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7957'),
	(251324,24511,'MetaID','224072'),
	(251325,24511,'MetaKey','content'),
	(251326,24511,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"size-full wp-image-8040 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_733922404.jpg\" alt=\"\" width=\"6000\" height=\"4000\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes 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 BHD1,000 and BHD20,000 (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:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">processing personal data without notifying the 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 dir=\"LTR\">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 dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There 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 the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. 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 will result in some degree of a 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.</p>'),
	(251327,24511,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes 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 BHD1,000 and BHD20,000 (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:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">processing personal data without notifying the 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 dir=\"LTR\">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 dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There 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 the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. 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 will result in some degree of a 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.</p>'),
	(251328,24511,'MetaLink','content'),
	(251329,24511,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7957&amp;action=edit'),
	(251330,24511,'ReportText','<p dir=\"LTR\" align=\"LEFT\">Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes 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 BHD1,000 and BHD20,000 (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:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">processing personal data without notifying the 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 dir=\"LTR\">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 dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There 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 the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. 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 will result in some degree of a 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.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"size-full wp-image-8040 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_733922404.jpg\" alt=\"\" width=\"6000\" height=\"4000\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes 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 BHD1,000 and BHD20,000 (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:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">processing personal data without notifying the 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 dir=\"LTR\">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 dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There 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 the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. 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 will result in some degree of a 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.</p>'),
	(251331,24511,'ClientIP','86.98.5.18'),
	(251332,24511,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251333,24511,'CurrentUserID','8'),
	(251334,24511,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251335,24512,'PostID','7957'),
	(251336,24512,'PostType','law_update_articles'),
	(251337,24512,'PostTitle','Catching the wave: New Data Protection Law in Bahrain'),
	(251338,24512,'PostStatus','draft'),
	(251339,24512,'PostDate','2018-07-31 18:29:28'),
	(251340,24512,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7957'),
	(251341,24512,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7957&amp;action=edit'),
	(251342,24512,'ClientIP','86.98.5.18'),
	(251343,24512,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251344,24512,'CurrentUserID','8'),
	(251345,24512,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251346,24513,'PostID','7957'),
	(251347,24513,'PostType','law_update_articles'),
	(251348,24513,'PostTitle','Catching the wave: New Data Protection Law in Bahrain'),
	(251349,24513,'PostStatus','draft'),
	(251350,24513,'PostDate','2018-07-31 18:29:33'),
	(251351,24513,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7957'),
	(251352,24513,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7957&amp;action=edit'),
	(251353,24513,'ClientIP','86.98.5.18'),
	(251354,24513,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251355,24513,'CurrentUserID','8'),
	(251356,24513,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251357,24514,'PostID','7957'),
	(251358,24514,'PostType','law_update_articles'),
	(251359,24514,'PostTitle','Catching the wave: New Data Protection Law in Bahrain'),
	(251360,24514,'PostStatus','draft'),
	(251361,24514,'PostDate','2018-07-31 18:29:28'),
	(251362,24514,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7957'),
	(251363,24514,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7957&amp;action=edit'),
	(251364,24514,'ClientIP','86.98.5.18'),
	(251365,24514,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251366,24514,'CurrentUserID','8'),
	(251367,24514,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251368,24515,'PostID','7957'),
	(251369,24515,'PostTitle','Catching the wave: New Data Protection Law in Bahrain'),
	(251370,24515,'PostStatus','draft'),
	(251371,24515,'PostType','law_update_articles'),
	(251372,24515,'PostDate','2018-07-31 18:30:41'),
	(251373,24515,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7957'),
	(251374,24515,'MetaID','224072'),
	(251375,24515,'MetaKey','content'),
	(251376,24515,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8040 size-large\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_733922404-1024x683.jpg\" alt=\"\" width=\"640\" height=\"427\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes 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 BHD1,000 and BHD20,000 (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:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">processing personal data without notifying the 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 dir=\"LTR\">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 dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There 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 the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. 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 will result in some degree of a 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.</p>'),
	(251377,24515,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"size-full wp-image-8040 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_733922404.jpg\" alt=\"\" width=\"6000\" height=\"4000\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes 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 BHD1,000 and BHD20,000 (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:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">processing personal data without notifying the 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 dir=\"LTR\">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 dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There 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 the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. 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 will result in some degree of a 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.</p>'),
	(251378,24515,'MetaLink','content'),
	(251379,24515,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7957&amp;action=edit'),
	(251380,24515,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"size-full wp-image-8040 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_733922404.jpg\" alt=\"\" width=\"6000\" height=\"4000\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes 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 BHD1,000 and BHD20,000 (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:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">processing personal data without notifying the 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 dir=\"LTR\">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 dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There 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 the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. 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 will result in some degree of a 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.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8040 size-large\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_733922404-1024x683.jpg\" alt=\"\" width=\"640\" height=\"427\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes 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 BHD1,000 and BHD20,000 (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:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">processing personal data without notifying the 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 dir=\"LTR\">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 dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There 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 the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. 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 will result in some degree of a 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.</p>'),
	(251381,24515,'ClientIP','86.98.5.18'),
	(251382,24515,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251383,24515,'CurrentUserID','8'),
	(251384,24515,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251385,24516,'PostID','7957'),
	(251386,24516,'PostType','law_update_articles'),
	(251387,24516,'PostTitle','Catching the wave: New Data Protection Law in Bahrain'),
	(251388,24516,'PostStatus','draft'),
	(251389,24516,'PostDate','2018-07-31 18:30:41'),
	(251390,24516,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7957'),
	(251391,24516,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7957&amp;action=edit'),
	(251392,24516,'ClientIP','86.98.5.18'),
	(251393,24516,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251394,24516,'CurrentUserID','8'),
	(251395,24516,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251396,24517,'AttachmentID','8041'),
	(251397,24517,'FileName','zxzxz.jpg'),
	(251398,24517,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251399,24517,'ClientIP','86.98.5.18'),
	(251400,24517,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251401,24517,'CurrentUserID','8'),
	(251402,24517,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251403,24518,'AttachmentID','8042'),
	(251404,24518,'FileName','shutterstock_272116580.jpg'),
	(251405,24518,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251406,24518,'ClientIP','86.98.5.18'),
	(251407,24518,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251408,24518,'CurrentUserID','8'),
	(251409,24518,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251410,24519,'AttachmentID','8043'),
	(251411,24519,'FileName','Screen-Shot-2018-07-31-at-6.31.28-PM.png'),
	(251412,24519,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251413,24519,'ClientIP','86.98.5.18'),
	(251414,24519,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251415,24519,'CurrentUserID','8'),
	(251416,24519,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251417,24520,'PostID','7957'),
	(251418,24520,'PostType','law_update_articles'),
	(251419,24520,'PostTitle','Catching the wave: New Data Protection Law in Bahrain'),
	(251420,24520,'PostStatus','draft'),
	(251421,24520,'PostDate','2018-07-31 18:31:54'),
	(251422,24520,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7957'),
	(251423,24520,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7957&amp;action=edit'),
	(251424,24520,'ClientIP','86.98.5.18'),
	(251425,24520,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251426,24520,'CurrentUserID','8'),
	(251427,24520,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251428,24521,'AttachmentID','8040'),
	(251429,24521,'FileName','shutterstock_733922404.jpg'),
	(251430,24521,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251431,24521,'ClientIP','86.98.5.18'),
	(251432,24521,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251433,24521,'CurrentUserID','8'),
	(251434,24521,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251435,24522,'AttachmentID','8041'),
	(251436,24522,'FileName','zxzxz.jpg'),
	(251437,24522,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251438,24522,'ClientIP','86.98.5.18'),
	(251439,24522,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251440,24522,'CurrentUserID','8'),
	(251441,24522,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251442,24523,'AttachmentID','8044'),
	(251443,24523,'FileName','cvdfd.jpg'),
	(251444,24523,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251445,24523,'ClientIP','86.98.5.18'),
	(251446,24523,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251447,24523,'CurrentUserID','8'),
	(251448,24523,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251449,24524,'PostID','7958'),
	(251450,24524,'PostType','law_update_articles'),
	(251451,24524,'PostTitle','Amended Arbitration Legislative Framework in Jordan'),
	(251452,24524,'PostStatus','draft'),
	(251453,24524,'PostDate','2018-07-31 18:33:06'),
	(251454,24524,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7958'),
	(251455,24524,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7958&amp;action=edit'),
	(251456,24524,'ClientIP','86.98.5.18'),
	(251457,24524,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251458,24524,'CurrentUserID','8'),
	(251459,24524,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251460,24525,'PostID','7958'),
	(251461,24525,'PostType','law_update_articles'),
	(251462,24525,'PostTitle','Amended Arbitration Legislative Framework in Jordan'),
	(251463,24525,'PostStatus','draft'),
	(251464,24525,'PostDate','2018-07-31 16:43:57'),
	(251465,24525,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7958'),
	(251466,24525,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7958&amp;action=edit'),
	(251467,24525,'ClientIP','86.98.5.18'),
	(251468,24525,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251469,24525,'CurrentUserID','8'),
	(251470,24525,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251471,24526,'PostID','7958'),
	(251472,24526,'PostTitle','Amended Arbitration Legislative Framework in Jordan'),
	(251473,24526,'PostStatus','draft'),
	(251474,24526,'PostType','law_update_articles'),
	(251475,24526,'PostDate','2018-07-31 18:33:08'),
	(251476,24526,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7958'),
	(251477,24526,'MetaID','224124'),
	(251478,24526,'MetaKey','content'),
	(251479,24526,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8039 size-large\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_1032816913-1024x683.jpg\" alt=\"\" width=\"640\" height=\"427\" />On 29 March 2018, His Highness King Abdullah Al Thani Ibn Al Hussein promulgated Law No. (16) for the year 2018, a law amending the Jordanian Arbitration Law No. (31) for the year 2001 (the \"Amended Law\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces new and anticipated changes to the procedural framework of arbitrations seated in Jordan, many of which can be traced in the UNCITRAL Model Law as amended in 2006. Further, the Amended Law provides for much needed clarity on some of the ambiguities witnessed under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we highlight the key features of the Amended Law and discuss some of their practical implications on the conduct of arbitral proceedings in Jordan.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Scope of Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law came into force thirty (30) days after its publication in the Official Gazette No. 5513/2018 dated 2 May 2018. The Amended Law will apply to arbitrations seated in Jordan, as well as arbitrations in which the parties agree to subject such arbitration proceedings to the Amended Law, and irrespective of the nature of the legal relationship giving rise to the dispute.</p>\r\nTo this end, the Amended Law defines the \"<em>Seat of Arbitration</em>\" as \"<em>the country agreed upon by the parties to the arbitration to be the seat of the arbitral proceedings, the country whose applicable arbitration law is agreed upon by the parties to apply to the arbitral proceedings or the country selected by the arbitral tribunal as its seat in the absence of an agreement.</em>\"\r\n\r\nThe Amended Law further defines the \"Competent Judge\" as \"<em> The head of the Competent Court or any of its judges as authorized by the head of the Competent Court in writing</em>.\"\r\n<p dir=\"LTR\" align=\"LEFT\">It is worth noting that the Amended Law will not have a retroactive effect. As such, it will only apply to arbitral proceedings and/or court cases that have commenced or are currently ongoing and/or being examined before arbitral tribunals and/or courts. For purposes of determining the commencement date of arbitral proceedings, the Amended law, under article 26, considers the date of the formal constitution of the arbitral tribunal as the date of commencement of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interpretation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important addition reflected in the Amended Law is the explicit reference to legal principles and guidelines of international arbitration, as well as international trade customs, as sources of interpretation of the provisions of the Jordan Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitration Agreement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law has brings changes to the rules governing arbitration agreements. While the Amended Law has reconfirmed the writing requirement for the validity of arbitration agreements, it specified that the writing requirement can be satisfied through any form, including electronic correspondence. A welcome change in the Amended Law lies in the explicit admission of arbitration agreements incorporated by reference. There are indeed instances where an arbitration agreement may be incorporated by reference to an arbitration agreement contained in another document. Under the previous regime, an arbitration agreement incorporated by reference was regarded as valid provided the reference itself clearly considered the arbitration agreement to form part of the main agreement entered into between the parties. The Amended Law eases the conditions of validity of arbitration agreements by removing the requirement for an explicit acknowledgment that the arbitration agreement incorporated by reference forms part of the main agreement. Under the regime of the Amended Law, any reference or indication contained in the main agreement concluded between the parties to another document containing an arbitration agreement is deemed to be analogous to a written arbitration clause under the original agreement. This is particularly useful in instances where parties sign specific terms and conditions which contain a reference to general terms and conditions containing an arbitration agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also stipulates that prior arbitration agreements in employment contracts and consumer contracts concluded on preprinted forms shall be null and void. This amendment, in particular the ban on arbitrating any dispute that may arise out of an employment contract, is in line with the most recent and prevailing decisions of the Jordanian courts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Tribunal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces provisions relating to the number of arbitrators, their appointment and the designation of the presiding tribunal member in events where the disputing parties are 3 or more. According to Article (16) of the Amended Law, an agreement on the appointment and number of arbitrators as well as on the mechanism of appointing of the presiding member by the disputing parties shall always take precedence and prevail however, in absence of any such agreement: (i) the Competent Judge will appoint the arbitrators if their number was agreed upon between the disputing parties and will also name the presiding tribunal member and; (ii) Where the number of arbitrators and their method of appointment is not agreed upon by the disputing parties, the arbitral tribunal must then be comprised of 3 members appointed by the Competent Judge who will also name the presiding tribunal member and; (iii) if the number of arbitrators and their method of appointment was known, the appointed arbitrators must select the presiding member by a majority decision, if the majority was not achieved, the Competent Judge will name the presiding member pursuant to a request by any of the disputing parties. The Amended Law grants any of the disputing parties the right to resort to the Competent Judge in event of a disagreement as to any of the matters pertaining to the appointment of arbitrators who, in turn, must rule as necessary to resolve such disagreement. Finally in this regard, the Amended Law placed a duty on the Competent Judge, when selecting an arbitrator, (i) to consider the requirements of the law and the parties’ pre-set conditions in this regard and; (ii) to accelerate the process of decision making when selecting an arbitrator. Under the previous regime, decisions by the Competent Court appointing an arbitrator(s) were not subject to appeal before a higher court and were to be considered final. The Amended Law, in this regard, implicitly allows for an appeal of the Competent Judge’s decision by deleting, from the amended relevant article, the previous explicit text on the appeal constraints.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the challenge of arbitrators, the Amended Law placed a duty on both the prospective and appointed arbitrators to be impartial and independent. The Amended Law, in line with the UNCITRAL Model Law, places a continuing duty on the arbitrators to remain impartial and independent throughout the arbitral proceedings and imposes a duty on the arbitrators to disclose any such circumstances that may cause their impartiality or independence to be impaired.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Amended Law, the application for the disqualification of an arbitrator by a party must be based on serious grounds. In addition, the procedures for requesting an arbitrator to be recused have been amended. Under the previous law, a request challenging the impartiality and independence of an arbitrator was to be submitted to the court of appeal; however, under the regime, the same request must now be submitted to the arbitral tribunal itself, which, in turn, must refer the request along with the challenged arbitrator’s response to the court of appeal if the challenged arbitrator does not recuse himself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the UNCITRAL Model Law, the Amended Law contains a special provision with regards to placing an obligation on the arbitral tribunal to act fairly and impartially and ensure that parties have an equal opportunity to present their case. The arbitral tribunal must also avoid any unjustified delay or unnecessary expenses in order to resolve the dispute in a timely manner \"<em>for the sake of achieving a fair and urgent means for dispute resolution.</em>\"</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the arbitral tribunal’s fees, the Amended Law introduced a new provision regarding the fees of the arbitral tribunal. Pursuant to such a provision, and in absence of an agreement between the disputing parties and the arbitral tribunal on the fees, the arbitral tribunal shall determine its own fees and order the disputing parties to each pay their share equally. A very important, yet lopsided addition under the Amended Law lies in a clause granting the arbitral tribunal the right to order the compliant party to pay the defaulting party’s share of the arbitral tribunal fees in events where a disputing party defaults in paying their share of the tribunal fees or any expenses of arbitration. Any decision issued by the arbitral tribunal concerning its fees may now be challenged through an appeal before the court of appeal within (15) days from the date of notification of the parties of the same.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Proceedings</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law now allows Jordanian lawyers to \"<em>engage any non-Jordanian lawyer or any other professional and experienced person, if the contract subject matter of the dispute referred to arbitration is subject to the provisions of a foreign law.</em>\" Such an addition on the recourse to foreign legal counsel, as well as other relevant professionals to instances where the contract at issue in an arbitration is governed by the provisions of a foreign law, and by a means of assistance to the Jordanian lawyer, is favorable. It is regrettable, however, that the Amended Law did not make any provisions as to permitting non-Jordanian representation in arbitral proceedings where the underlying contract is governed by Jordanian law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law reconfirmed that Arabic shall be the default language applicable to the arbitral proceedings unless the parties agree otherwise. The arbitral tribunal is also entrusted with the power to determine the application of another language.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that the Amended Law now allows the parties, at any time during the arbitral proceedings, to submit additional evidence to support their claim/defense unless the arbitral tribunal disapproves such submission. This new addition to the Amended Law was not provided for under the previous regime as the parties were only allowed to amend their grounds of defense and their final requests but were not permitted to submit any additional evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also introduces major and welcomed changes to the means through which arbitration hearings and proceedings can now be conducted. Under the Amended Law, the arbitral tribunal is granted greater leeway in holding the hearings in a manner the tribunal sees fit so long as the hearings and the meetings can be documented in writing. The Amended Law introduced various provisions recognizing contemporary means of communication as it now permitted the arbitral tribunal to use any new method of communication to conduct any arbitration procedure, including the use of different telecommunication technological methods, such as videoconferencing for the purpose of hearing witness testimony. Such cost and time effective measures will undoubtedly contribute to the efficiency of the proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also reiterated the acceptance of affidavits, i.e., sworn statements of testimony, as evidence in arbitral proceedings. However, the Amended Law provided that should the opponent wish to cross examine the witness and the latter fails to appear before the arbitral tribunal, the entire affidavit must be ruled out as evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for experts, the Amended Law sets new conditions for the admission of expert reports where any of the parties to the arbitration submits such reports with their documentary evidence. For the expert report to be admissible under the Amended Law, the submitting party must disclose the expert appointment letter, the scope of work/assignment of the expert, and the fees that were paid to them. It is mandatory, under the Amended Law, to call the expert for questioning at the request of a party or should the tribunal so decide. As for the appointment of the expert, the Amended Law introduces an option for the appointment of a juristic person (company) as an expert as opposed to solely an individual as was the case under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interim and Conservatory Measures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where either party wishes to apply for interim or conservatory measures, the Amended Law, like the previous law, allows the arbitrating parties to do so prior to the commencement of arbitral proceedings or during such proceedings in accordance with the relevant articles of the Jordanian Law of Civil Procedures No. (24) for the year 1988.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Jordanian Law of Civil Procedures No. (24) for the year 1988 provides that a claimant may apply to the judge of summary proceedings for a motion to attach and/or freeze property of the defendant party as a precautionary measure either prior to the filing of the substantive lawsuit or along with it. Where the motion is made prior to filing the substantive lawsuit, the Jordanian Law of Civil Procedures stipulates that the substantive lawsuit must be filed within a period of eight (8) days after procuring the decision to attach/freeze the properties of the defendant, otherwise any or all (where applicable) attached properties will be released.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For the purpose of upholding the attachment of property after the (8) day period, the Amended Law now considers a notice to appoint an arbitrator served by the claimant upon the respondent along with the appointed arbitrator’s written confirmation of acceptance to be sufficient as a time barring event for the running of the (8) day period mentioned under the Jordanian Law of Civil Procedures. Such a trigger event to the confirmation of the attachment may cause some practical challenges as often the appointment of an arbitrator comes at a later stage in the proceedings, after the request for arbitration. In some urgent cases, the need to sustain the attachment would have to occur prior to the appointment of an arbitrator. Also, in some instances, the power to appoint an arbitrator, and depending on the agreement among the parties, lies outside of the parties, through for example an appointing authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Award</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the time limit within which the arbitral tribunal must render its final award, the previous regime provides that such time limit shall start to run from the date of the commencement of the arbitral proceedings until the lapse of a twelve (12) month period. The extension provided for was for only another six (6) months. The Amended Law provides for the same period; however, the time limit shall start to run from the date of the constitution of the arbitral tribunal. The arbitral tribunal may in any event extend the time limit for a period of twelve (12) months or as otherwise agreed by the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the final arbitration award, the Amended Law provides that the final award must be issued unanimously or by a majority decision. In the absence of a majority, the parties may agree that the award be made by the president of the arbitral tribunal alone. If the parties do not agree as to how the award will be issued when a majority is not reached the arbitral proceedings shall cease and terminate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where any part of the claim was acknowledged by the opponent, the claimant may procure a final award for the acknowledged part of the claim. This provision was not provided for under the previous law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While the Amended Law did not introduce significant changes to the interpretation and correction of the final award, it provides that the explanatory award and the corrected award must be presented to the court before which a party files for a set aside action. The Amended Law also provides for the possibility to submit the correction or interpretation application to the court of appeal in the event that it is not possible for the arbitral tribunal to convene for making that correction or interpretation. Also, with regards to any additional awards made by the arbitral tribunal in connection with any missed part of the claim, the additional award shall take the form of an addendum and shall constitute part of the award. The additional award must also be submitted to court where a party files for a set aside action.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Award Set Aside and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces a major significant change with regards to set aside actions. Under the previous regime, a set aside action could only be submitted to the court of appeal and its decision to set aside could be appealed before the cassation court. However, in the event that the court of appeal dismissed the set aside action and decided to uphold the arbitration award, such a decision could not be appealed against. The Amended Law stipulates that the only competent court for the purpose of filing a set aside action is now the cassation court, thereby reducing the stages of appeal to only one in the event that the cassation court rules to set aside the arbitration award. Therefore, should the cassation court rule to set aside the award, neither party further may appeal the decision. This is in contrast to the previous law under which there were two steps to an appeal since a set aside order by the court of appeal was subject to appeal before the cassation court.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Previously, the arbitration law provided that a decision to set aside an arbitration award would consequently render the arbitration agreement nullified as it results in litigation unless both parties agree on further arbitration. The Amended Law however provides that a decision to set aside an arbitration award does not affect the arbitration agreement unless such an agreement was in itself null void. This consequently means that the disputing parties, in the event an arbitration award is set aside, must resort again to arbitration as a method of dispute resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also transferred the role of examining enforcement applications to the sole jurisdiction of the cassation court as opposed to the court of appeal as was the case under the previous law. The Amended Law has withdrawn a party’s right to appeal the court’s decision rejecting enforcement due to incorrect service of summons or due to impossibility of enforcement when the award itself contravenes with public order.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As part of Jordan’s efforts to stimulate its economy and attract foreign investments, the Amended Law provides a comprehensive reform to the legislative framework of arbitration in Jordan. It undoubtedly provides a more modern and secure means of dispute resolution through arbitration in line with most internationally recognised arbitration guidelines and practices. With the Amended Law, arbitrating in Jordan is expected to gain new traction.</p>\r\n&nbsp;\r\n\r\n<em><img class=\"alignleft size-full wp-image-8043\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/Screen-Shot-2018-07-31-at-6.31.28-PM.png\" alt=\"\" width=\"3994\" height=\"1378\" />For further information please contact Sara Koleilat-Aranjo (s.aranjo@tamimi.com) or Dana Al Shawa (d.alshawwa@tamimi.com).</em>'),
	(251480,24526,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">On 29 March 2018, His Highness King Abdullah Al Thani Ibn Al Hussein promulgated Law No. (16) for the year 2018, a law amending the Jordanian Arbitration Law No. (31) for the year 2001 (the \"Amended Law\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces new and anticipated changes to the procedural framework of arbitrations seated in Jordan, many of which can be traced in the UNCITRAL Model Law as amended in 2006. Further, the Amended Law provides for much needed clarity on some of the ambiguities witnessed under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we highlight the key features of the Amended Law and discuss some of their practical implications on the conduct of arbitral proceedings in Jordan.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Scope of Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law came into force thirty (30) days after its publication in the Official Gazette No. 5513/2018 dated 2 May 2018. The Amended Law will apply to arbitrations seated in Jordan, as well as arbitrations in which the parties agree to subject such arbitration proceedings to the Amended Law, and irrespective of the nature of the legal relationship giving rise to the dispute.</p>\r\nTo this end, the Amended Law defines the \"<em>Seat of Arbitration</em>\" as \"<em>the country agreed upon by the parties to the arbitration to be the seat of the arbitral proceedings, the country whose applicable arbitration law is agreed upon by the parties to apply to the arbitral proceedings or the country selected by the arbitral tribunal as its seat in the absence of an agreement.</em>\"\r\n\r\nThe Amended Law further defines the \"Competent Judge\" as \"<em> The head of the Competent Court or any of its judges as authorized by the head of the Competent Court in writing</em>.\"\r\n<p dir=\"LTR\" align=\"LEFT\">It is worth noting that the Amended Law will not have a retroactive effect. As such, it will only apply to arbitral proceedings and/or court cases that have commenced or are currently ongoing and/or being examined before arbitral tribunals and/or courts. For purposes of determining the commencement date of arbitral proceedings, the Amended law, under article 26, considers the date of the formal constitution of the arbitral tribunal as the date of commencement of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interpretation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important addition reflected in the Amended Law is the explicit reference to legal principles and guidelines of international arbitration, as well as international trade customs, as sources of interpretation of the provisions of the Jordan Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitration Agreement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law has brings changes to the rules governing arbitration agreements. While the Amended Law has reconfirmed the writing requirement for the validity of arbitration agreements, it specified that the writing requirement can be satisfied through any form, including electronic correspondence. A welcome change in the Amended Law lies in the explicit admission of arbitration agreements incorporated by reference. There are indeed instances where an arbitration agreement may be incorporated by reference to an arbitration agreement contained in another document. Under the previous regime, an arbitration agreement incorporated by reference was regarded as valid provided the reference itself clearly considered the arbitration agreement to form part of the main agreement entered into between the parties. The Amended Law eases the conditions of validity of arbitration agreements by removing the requirement for an explicit acknowledgment that the arbitration agreement incorporated by reference forms part of the main agreement. Under the regime of the Amended Law, any reference or indication contained in the main agreement concluded between the parties to another document containing an arbitration agreement is deemed to be analogous to a written arbitration clause under the original agreement. This is particularly useful in instances where parties sign specific terms and conditions which contain a reference to general terms and conditions containing an arbitration agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also stipulates that prior arbitration agreements in employment contracts and consumer contracts concluded on preprinted forms shall be null and void. This amendment, in particular the ban on arbitrating any dispute that may arise out of an employment contract, is in line with the most recent and prevailing decisions of the Jordanian courts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Tribunal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces provisions relating to the number of arbitrators, their appointment and the designation of the presiding tribunal member in events where the disputing parties are 3 or more. According to Article (16) of the Amended Law, an agreement on the appointment and number of arbitrators as well as on the mechanism of appointing of the presiding member by the disputing parties shall always take precedence and prevail however, in absence of any such agreement: (i) the Competent Judge will appoint the arbitrators if their number was agreed upon between the disputing parties and will also name the presiding tribunal member and; (ii) Where the number of arbitrators and their method of appointment is not agreed upon by the disputing parties, the arbitral tribunal must then be comprised of 3 members appointed by the Competent Judge who will also name the presiding tribunal member and; (iii) if the number of arbitrators and their method of appointment was known, the appointed arbitrators must select the presiding member by a majority decision, if the majority was not achieved, the Competent Judge will name the presiding member pursuant to a request by any of the disputing parties. The Amended Law grants any of the disputing parties the right to resort to the Competent Judge in event of a disagreement as to any of the matters pertaining to the appointment of arbitrators who, in turn, must rule as necessary to resolve such disagreement. Finally in this regard, the Amended Law placed a duty on the Competent Judge, when selecting an arbitrator, (i) to consider the requirements of the law and the parties’ pre-set conditions in this regard and; (ii) to accelerate the process of decision making when selecting an arbitrator. Under the previous regime, decisions by the Competent Court appointing an arbitrator(s) were not subject to appeal before a higher court and were to be considered final. The Amended Law, in this regard, implicitly allows for an appeal of the Competent Judge’s decision by deleting, from the amended relevant article, the previous explicit text on the appeal constraints.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the challenge of arbitrators, the Amended Law placed a duty on both the prospective and appointed arbitrators to be impartial and independent. The Amended Law, in line with the UNCITRAL Model Law, places a continuing duty on the arbitrators to remain impartial and independent throughout the arbitral proceedings and imposes a duty on the arbitrators to disclose any such circumstances that may cause their impartiality or independence to be impaired.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Amended Law, the application for the disqualification of an arbitrator by a party must be based on serious grounds. In addition, the procedures for requesting an arbitrator to be recused have been amended. Under the previous law, a request challenging the impartiality and independence of an arbitrator was to be submitted to the court of appeal; however, under the regime, the same request must now be submitted to the arbitral tribunal itself, which, in turn, must refer the request along with the challenged arbitrator’s response to the court of appeal if the challenged arbitrator does not recuse himself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the UNCITRAL Model Law, the Amended Law contains a special provision with regards to placing an obligation on the arbitral tribunal to act fairly and impartially and ensure that parties have an equal opportunity to present their case. The arbitral tribunal must also avoid any unjustified delay or unnecessary expenses in order to resolve the dispute in a timely manner \"<em>for the sake of achieving a fair and urgent means for dispute resolution.</em>\"</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the arbitral tribunal’s fees, the Amended Law introduced a new provision regarding the fees of the arbitral tribunal. Pursuant to such a provision, and in absence of an agreement between the disputing parties and the arbitral tribunal on the fees, the arbitral tribunal shall determine its own fees and order the disputing parties to each pay their share equally. A very important, yet lopsided addition under the Amended Law lies in a clause granting the arbitral tribunal the right to order the compliant party to pay the defaulting party’s share of the arbitral tribunal fees in events where a disputing party defaults in paying their share of the tribunal fees or any expenses of arbitration. Any decision issued by the arbitral tribunal concerning its fees may now be challenged through an appeal before the court of appeal within (15) days from the date of notification of the parties of the same.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Proceedings</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law now allows Jordanian lawyers to \"<em>engage any non-Jordanian lawyer or any other professional and experienced person, if the contract subject matter of the dispute referred to arbitration is subject to the provisions of a foreign law.</em>\" Such an addition on the recourse to foreign legal counsel, as well as other relevant professionals to instances where the contract at issue in an arbitration is governed by the provisions of a foreign law, and by a means of assistance to the Jordanian lawyer, is favorable. It is regrettable, however, that the Amended Law did not make any provisions as to permitting non-Jordanian representation in arbitral proceedings where the underlying contract is governed by Jordanian law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law reconfirmed that Arabic shall be the default language applicable to the arbitral proceedings unless the parties agree otherwise. The arbitral tribunal is also entrusted with the power to determine the application of another language.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that the Amended Law now allows the parties, at any time during the arbitral proceedings, to submit additional evidence to support their claim/defense unless the arbitral tribunal disapproves such submission. This new addition to the Amended Law was not provided for under the previous regime as the parties were only allowed to amend their grounds of defense and their final requests but were not permitted to submit any additional evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also introduces major and welcomed changes to the means through which arbitration hearings and proceedings can now be conducted. Under the Amended Law, the arbitral tribunal is granted greater leeway in holding the hearings in a manner the tribunal sees fit so long as the hearings and the meetings can be documented in writing. The Amended Law introduced various provisions recognizing contemporary means of communication as it now permitted the arbitral tribunal to use any new method of communication to conduct any arbitration procedure, including the use of different telecommunication technological methods, such as videoconferencing for the purpose of hearing witness testimony. Such cost and time effective measures will undoubtedly contribute to the efficiency of the proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also reiterated the acceptance of affidavits, i.e., sworn statements of testimony, as evidence in arbitral proceedings. However, the Amended Law provided that should the opponent wish to cross examine the witness and the latter fails to appear before the arbitral tribunal, the entire affidavit must be ruled out as evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for experts, the Amended Law sets new conditions for the admission of expert reports where any of the parties to the arbitration submits such reports with their documentary evidence. For the expert report to be admissible under the Amended Law, the submitting party must disclose the expert appointment letter, the scope of work/assignment of the expert, and the fees that were paid to them. It is mandatory, under the Amended Law, to call the expert for questioning at the request of a party or should the tribunal so decide. As for the appointment of the expert, the Amended Law introduces an option for the appointment of a juristic person (company) as an expert as opposed to solely an individual as was the case under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interim and Conservatory Measures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where either party wishes to apply for interim or conservatory measures, the Amended Law, like the previous law, allows the arbitrating parties to do so prior to the commencement of arbitral proceedings or during such proceedings in accordance with the relevant articles of the Jordanian Law of Civil Procedures No. (24) for the year 1988.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Jordanian Law of Civil Procedures No. (24) for the year 1988 provides that a claimant may apply to the judge of summary proceedings for a motion to attach and/or freeze property of the defendant party as a precautionary measure either prior to the filing of the substantive lawsuit or along with it. Where the motion is made prior to filing the substantive lawsuit, the Jordanian Law of Civil Procedures stipulates that the substantive lawsuit must be filed within a period of eight (8) days after procuring the decision to attach/freeze the properties of the defendant, otherwise any or all (where applicable) attached properties will be released.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For the purpose of upholding the attachment of property after the (8) day period, the Amended Law now considers a notice to appoint an arbitrator served by the claimant upon the respondent along with the appointed arbitrator’s written confirmation of acceptance to be sufficient as a time barring event for the running of the (8) day period mentioned under the Jordanian Law of Civil Procedures. Such a trigger event to the confirmation of the attachment may cause some practical challenges as often the appointment of an arbitrator comes at a later stage in the proceedings, after the request for arbitration. In some urgent cases, the need to sustain the attachment would have to occur prior to the appointment of an arbitrator. Also, in some instances, the power to appoint an arbitrator, and depending on the agreement among the parties, lies outside of the parties, through for example an appointing authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Award</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the time limit within which the arbitral tribunal must render its final award, the previous regime provides that such time limit shall start to run from the date of the commencement of the arbitral proceedings until the lapse of a twelve (12) month period. The extension provided for was for only another six (6) months. The Amended Law provides for the same period; however, the time limit shall start to run from the date of the constitution of the arbitral tribunal. The arbitral tribunal may in any event extend the time limit for a period of twelve (12) months or as otherwise agreed by the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the final arbitration award, the Amended Law provides that the final award must be issued unanimously or by a majority decision. In the absence of a majority, the parties may agree that the award be made by the president of the arbitral tribunal alone. If the parties do not agree as to how the award will be issued when a majority is not reached the arbitral proceedings shall cease and terminate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where any part of the claim was acknowledged by the opponent, the claimant may procure a final award for the acknowledged part of the claim. This provision was not provided for under the previous law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While the Amended Law did not introduce significant changes to the interpretation and correction of the final award, it provides that the explanatory award and the corrected award must be presented to the court before which a party files for a set aside action. The Amended Law also provides for the possibility to submit the correction or interpretation application to the court of appeal in the event that it is not possible for the arbitral tribunal to convene for making that correction or interpretation. Also, with regards to any additional awards made by the arbitral tribunal in connection with any missed part of the claim, the additional award shall take the form of an addendum and shall constitute part of the award. The additional award must also be submitted to court where a party files for a set aside action.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Award Set Aside and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces a major significant change with regards to set aside actions. Under the previous regime, a set aside action could only be submitted to the court of appeal and its decision to set aside could be appealed before the cassation court. However, in the event that the court of appeal dismissed the set aside action and decided to uphold the arbitration award, such a decision could not be appealed against. The Amended Law stipulates that the only competent court for the purpose of filing a set aside action is now the cassation court, thereby reducing the stages of appeal to only one in the event that the cassation court rules to set aside the arbitration award. Therefore, should the cassation court rule to set aside the award, neither party further may appeal the decision. This is in contrast to the previous law under which there were two steps to an appeal since a set aside order by the court of appeal was subject to appeal before the cassation court.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Previously, the arbitration law provided that a decision to set aside an arbitration award would consequently render the arbitration agreement nullified as it results in litigation unless both parties agree on further arbitration. The Amended Law however provides that a decision to set aside an arbitration award does not affect the arbitration agreement unless such an agreement was in itself null void. This consequently means that the disputing parties, in the event an arbitration award is set aside, must resort again to arbitration as a method of dispute resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also transferred the role of examining enforcement applications to the sole jurisdiction of the cassation court as opposed to the court of appeal as was the case under the previous law. The Amended Law has withdrawn a party’s right to appeal the court’s decision rejecting enforcement due to incorrect service of summons or due to impossibility of enforcement when the award itself contravenes with public order.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As part of Jordan’s efforts to stimulate its economy and attract foreign investments, the Amended Law provides a comprehensive reform to the legislative framework of arbitration in Jordan. It undoubtedly provides a more modern and secure means of dispute resolution through arbitration in line with most internationally recognised arbitration guidelines and practices. With the Amended Law, arbitrating in Jordan is expected to gain new traction.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<em>For further information please contact Sara Koleilat-Aranjo (s.aranjo@tamimi.com) or Dana Al Shawa (d.alshawwa@tamimi.com).</em>'),
	(251481,24526,'MetaLink','content'),
	(251482,24526,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7958&amp;action=edit'),
	(251483,24526,'ReportText','<p dir=\"LTR\" align=\"LEFT\">On 29 March 2018, His Highness King Abdullah Al Thani Ibn Al Hussein promulgated Law No. (16) for the year 2018, a law amending the Jordanian Arbitration Law No. (31) for the year 2001 (the \"Amended Law\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces new and anticipated changes to the procedural framework of arbitrations seated in Jordan, many of which can be traced in the UNCITRAL Model Law as amended in 2006. Further, the Amended Law provides for much needed clarity on some of the ambiguities witnessed under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we highlight the key features of the Amended Law and discuss some of their practical implications on the conduct of arbitral proceedings in Jordan.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Scope of Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law came into force thirty (30) days after its publication in the Official Gazette No. 5513/2018 dated 2 May 2018. The Amended Law will apply to arbitrations seated in Jordan, as well as arbitrations in which the parties agree to subject such arbitration proceedings to the Amended Law, and irrespective of the nature of the legal relationship giving rise to the dispute.</p>\r\nTo this end, the Amended Law defines the \"<em>Seat of Arbitration</em>\" as \"<em>the country agreed upon by the parties to the arbitration to be the seat of the arbitral proceedings, the country whose applicable arbitration law is agreed upon by the parties to apply to the arbitral proceedings or the country selected by the arbitral tribunal as its seat in the absence of an agreement.</em>\"\r\n\r\nThe Amended Law further defines the \"Competent Judge\" as \"<em> The head of the Competent Court or any of its judges as authorized by the head of the Competent Court in writing</em>.\"\r\n<p dir=\"LTR\" align=\"LEFT\">It is worth noting that the Amended Law will not have a retroactive effect. As such, it will only apply to arbitral proceedings and/or court cases that have commenced or are currently ongoing and/or being examined before arbitral tribunals and/or courts. For purposes of determining the commencement date of arbitral proceedings, the Amended law, under article 26, considers the date of the formal constitution of the arbitral tribunal as the date of commencement of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interpretation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important addition reflected in the Amended Law is the explicit reference to legal principles and guidelines of international arbitration, as well as international trade customs, as sources of interpretation of the provisions of the Jordan Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitration Agreement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law has brings changes to the rules governing arbitration agreements. While the Amended Law has reconfirmed the writing requirement for the validity of arbitration agreements, it specified that the writing requirement can be satisfied through any form, including electronic correspondence. A welcome change in the Amended Law lies in the explicit admission of arbitration agreements incorporated by reference. There are indeed instances where an arbitration agreement may be incorporated by reference to an arbitration agreement contained in another document. Under the previous regime, an arbitration agreement incorporated by reference was regarded as valid provided the reference itself clearly considered the arbitration agreement to form part of the main agreement entered into between the parties. The Amended Law eases the conditions of validity of arbitration agreements by removing the requirement for an explicit acknowledgment that the arbitration agreement incorporated by reference forms part of the main agreement. Under the regime of the Amended Law, any reference or indication contained in the main agreement concluded between the parties to another document containing an arbitration agreement is deemed to be analogous to a written arbitration clause under the original agreement. This is particularly useful in instances where parties sign specific terms and conditions which contain a reference to general terms and conditions containing an arbitration agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also stipulates that prior arbitration agreements in employment contracts and consumer contracts concluded on preprinted forms shall be null and void. This amendment, in particular the ban on arbitrating any dispute that may arise out of an employment contract, is in line with the most recent and prevailing decisions of the Jordanian courts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Tribunal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces provisions relating to the number of arbitrators, their appointment and the designation of the presiding tribunal member in events where the disputing parties are 3 or more. According to Article (16) of the Amended Law, an agreement on the appointment and number of arbitrators as well as on the mechanism of appointing of the presiding member by the disputing parties shall always take precedence and prevail however, in absence of any such agreement: (i) the Competent Judge will appoint the arbitrators if their number was agreed upon between the disputing parties and will also name the presiding tribunal member and; (ii) Where the number of arbitrators and their method of appointment is not agreed upon by the disputing parties, the arbitral tribunal must then be comprised of 3 members appointed by the Competent Judge who will also name the presiding tribunal member and; (iii) if the number of arbitrators and their method of appointment was known, the appointed arbitrators must select the presiding member by a majority decision, if the majority was not achieved, the Competent Judge will name the presiding member pursuant to a request by any of the disputing parties. The Amended Law grants any of the disputing parties the right to resort to the Competent Judge in event of a disagreement as to any of the matters pertaining to the appointment of arbitrators who, in turn, must rule as necessary to resolve such disagreement. Finally in this regard, the Amended Law placed a duty on the Competent Judge, when selecting an arbitrator, (i) to consider the requirements of the law and the parties’ pre-set conditions in this regard and; (ii) to accelerate the process of decision making when selecting an arbitrator. Under the previous regime, decisions by the Competent Court appointing an arbitrator(s) were not subject to appeal before a higher court and were to be considered final. The Amended Law, in this regard, implicitly allows for an appeal of the Competent Judge’s decision by deleting, from the amended relevant article, the previous explicit text on the appeal constraints.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the challenge of arbitrators, the Amended Law placed a duty on both the prospective and appointed arbitrators to be impartial and independent. The Amended Law, in line with the UNCITRAL Model Law, places a continuing duty on the arbitrators to remain impartial and independent throughout the arbitral proceedings and imposes a duty on the arbitrators to disclose any such circumstances that may cause their impartiality or independence to be impaired.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Amended Law, the application for the disqualification of an arbitrator by a party must be based on serious grounds. In addition, the procedures for requesting an arbitrator to be recused have been amended. Under the previous law, a request challenging the impartiality and independence of an arbitrator was to be submitted to the court of appeal; however, under the regime, the same request must now be submitted to the arbitral tribunal itself, which, in turn, must refer the request along with the challenged arbitrator’s response to the court of appeal if the challenged arbitrator does not recuse himself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the UNCITRAL Model Law, the Amended Law contains a special provision with regards to placing an obligation on the arbitral tribunal to act fairly and impartially and ensure that parties have an equal opportunity to present their case. The arbitral tribunal must also avoid any unjustified delay or unnecessary expenses in order to resolve the dispute in a timely manner \"<em>for the sake of achieving a fair and urgent means for dispute resolution.</em>\"</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the arbitral tribunal’s fees, the Amended Law introduced a new provision regarding the fees of the arbitral tribunal. Pursuant to such a provision, and in absence of an agreement between the disputing parties and the arbitral tribunal on the fees, the arbitral tribunal shall determine its own fees and order the disputing parties to each pay their share equally. A very important, yet lopsided addition under the Amended Law lies in a clause granting the arbitral tribunal the right to order the compliant party to pay the defaulting party’s share of the arbitral tribunal fees in events where a disputing party defaults in paying their share of the tribunal fees or any expenses of arbitration. Any decision issued by the arbitral tribunal concerning its fees may now be challenged through an appeal before the court of appeal within (15) days from the date of notification of the parties of the same.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Proceedings</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law now allows Jordanian lawyers to \"<em>engage any non-Jordanian lawyer or any other professional and experienced person, if the contract subject matter of the dispute referred to arbitration is subject to the provisions of a foreign law.</em>\" Such an addition on the recourse to foreign legal counsel, as well as other relevant professionals to instances where the contract at issue in an arbitration is governed by the provisions of a foreign law, and by a means of assistance to the Jordanian lawyer, is favorable. It is regrettable, however, that the Amended Law did not make any provisions as to permitting non-Jordanian representation in arbitral proceedings where the underlying contract is governed by Jordanian law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law reconfirmed that Arabic shall be the default language applicable to the arbitral proceedings unless the parties agree otherwise. The arbitral tribunal is also entrusted with the power to determine the application of another language.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that the Amended Law now allows the parties, at any time during the arbitral proceedings, to submit additional evidence to support their claim/defense unless the arbitral tribunal disapproves such submission. This new addition to the Amended Law was not provided for under the previous regime as the parties were only allowed to amend their grounds of defense and their final requests but were not permitted to submit any additional evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also introduces major and welcomed changes to the means through which arbitration hearings and proceedings can now be conducted. Under the Amended Law, the arbitral tribunal is granted greater leeway in holding the hearings in a manner the tribunal sees fit so long as the hearings and the meetings can be documented in writing. The Amended Law introduced various provisions recognizing contemporary means of communication as it now permitted the arbitral tribunal to use any new method of communication to conduct any arbitration procedure, including the use of different telecommunication technological methods, such as videoconferencing for the purpose of hearing witness testimony. Such cost and time effective measures will undoubtedly contribute to the efficiency of the proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also reiterated the acceptance of affidavits, i.e., sworn statements of testimony, as evidence in arbitral proceedings. However, the Amended Law provided that should the opponent wish to cross examine the witness and the latter fails to appear before the arbitral tribunal, the entire affidavit must be ruled out as evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for experts, the Amended Law sets new conditions for the admission of expert reports where any of the parties to the arbitration submits such reports with their documentary evidence. For the expert report to be admissible under the Amended Law, the submitting party must disclose the expert appointment letter, the scope of work/assignment of the expert, and the fees that were paid to them. It is mandatory, under the Amended Law, to call the expert for questioning at the request of a party or should the tribunal so decide. As for the appointment of the expert, the Amended Law introduces an option for the appointment of a juristic person (company) as an expert as opposed to solely an individual as was the case under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interim and Conservatory Measures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where either party wishes to apply for interim or conservatory measures, the Amended Law, like the previous law, allows the arbitrating parties to do so prior to the commencement of arbitral proceedings or during such proceedings in accordance with the relevant articles of the Jordanian Law of Civil Procedures No. (24) for the year 1988.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Jordanian Law of Civil Procedures No. (24) for the year 1988 provides that a claimant may apply to the judge of summary proceedings for a motion to attach and/or freeze property of the defendant party as a precautionary measure either prior to the filing of the substantive lawsuit or along with it. Where the motion is made prior to filing the substantive lawsuit, the Jordanian Law of Civil Procedures stipulates that the substantive lawsuit must be filed within a period of eight (8) days after procuring the decision to attach/freeze the properties of the defendant, otherwise any or all (where applicable) attached properties will be released.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For the purpose of upholding the attachment of property after the (8) day period, the Amended Law now considers a notice to appoint an arbitrator served by the claimant upon the respondent along with the appointed arbitrator’s written confirmation of acceptance to be sufficient as a time barring event for the running of the (8) day period mentioned under the Jordanian Law of Civil Procedures. Such a trigger event to the confirmation of the attachment may cause some practical challenges as often the appointment of an arbitrator comes at a later stage in the proceedings, after the request for arbitration. In some urgent cases, the need to sustain the attachment would have to occur prior to the appointment of an arbitrator. Also, in some instances, the power to appoint an arbitrator, and depending on the agreement among the parties, lies outside of the parties, through for example an appointing authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Award</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the time limit within which the arbitral tribunal must render its final award, the previous regime provides that such time limit shall start to run from the date of the commencement of the arbitral proceedings until the lapse of a twelve (12) month period. The extension provided for was for only another six (6) months. The Amended Law provides for the same period; however, the time limit shall start to run from the date of the constitution of the arbitral tribunal. The arbitral tribunal may in any event extend the time limit for a period of twelve (12) months or as otherwise agreed by the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the final arbitration award, the Amended Law provides that the final award must be issued unanimously or by a majority decision. In the absence of a majority, the parties may agree that the award be made by the president of the arbitral tribunal alone. If the parties do not agree as to how the award will be issued when a majority is not reached the arbitral proceedings shall cease and terminate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where any part of the claim was acknowledged by the opponent, the claimant may procure a final award for the acknowledged part of the claim. This provision was not provided for under the previous law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While the Amended Law did not introduce significant changes to the interpretation and correction of the final award, it provides that the explanatory award and the corrected award must be presented to the court before which a party files for a set aside action. The Amended Law also provides for the possibility to submit the correction or interpretation application to the court of appeal in the event that it is not possible for the arbitral tribunal to convene for making that correction or interpretation. Also, with regards to any additional awards made by the arbitral tribunal in connection with any missed part of the claim, the additional award shall take the form of an addendum and shall constitute part of the award. The additional award must also be submitted to court where a party files for a set aside action.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Award Set Aside and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces a major significant change with regards to set aside actions. Under the previous regime, a set aside action could only be submitted to the court of appeal and its decision to set aside could be appealed before the cassation court. However, in the event that the court of appeal dismissed the set aside action and decided to uphold the arbitration award, such a decision could not be appealed against. The Amended Law stipulates that the only competent court for the purpose of filing a set aside action is now the cassation court, thereby reducing the stages of appeal to only one in the event that the cassation court rules to set aside the arbitration award. Therefore, should the cassation court rule to set aside the award, neither party further may appeal the decision. This is in contrast to the previous law under which there were two steps to an appeal since a set aside order by the court of appeal was subject to appeal before the cassation court.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Previously, the arbitration law provided that a decision to set aside an arbitration award would consequently render the arbitration agreement nullified as it results in litigation unless both parties agree on further arbitration. The Amended Law however provides that a decision to set aside an arbitration award does not affect the arbitration agreement unless such an agreement was in itself null void. This consequently means that the disputing parties, in the event an arbitration award is set aside, must resort again to arbitration as a method of dispute resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also transferred the role of examining enforcement applications to the sole jurisdiction of the cassation court as opposed to the court of appeal as was the case under the previous law. The Amended Law has withdrawn a party’s right to appeal the court’s decision rejecting enforcement due to incorrect service of summons or due to impossibility of enforcement when the award itself contravenes with public order.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As part of Jordan’s efforts to stimulate its economy and attract foreign investments, the Amended Law provides a comprehensive reform to the legislative framework of arbitration in Jordan. It undoubtedly provides a more modern and secure means of dispute resolution through arbitration in line with most internationally recognised arbitration guidelines and practices. With the Amended Law, arbitrating in Jordan is expected to gain new traction.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<em>For further information please contact Sara Koleilat-Aranjo (s.aranjo@tamimi.com) or Dana Al Shawa (d.alshawwa@tamimi.com).</em>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8039 size-large\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_1032816913-1024x683.jpg\" alt=\"\" width=\"640\" height=\"427\" />On 29 March 2018, His Highness King Abdullah Al Thani Ibn Al Hussein promulgated Law No. (16) for the year 2018, a law amending the Jordanian Arbitration Law No. (31) for the year 2001 (the \"Amended Law\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces new and anticipated changes to the procedural framework of arbitrations seated in Jordan, many of which can be traced in the UNCITRAL Model Law as amended in 2006. Further, the Amended Law provides for much needed clarity on some of the ambiguities witnessed under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we highlight the key features of the Amended Law and discuss some of their practical implications on the conduct of arbitral proceedings in Jordan.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Scope of Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law came into force thirty (30) days after its publication in the Official Gazette No. 5513/2018 dated 2 May 2018. The Amended Law will apply to arbitrations seated in Jordan, as well as arbitrations in which the parties agree to subject such arbitration proceedings to the Amended Law, and irrespective of the nature of the legal relationship giving rise to the dispute.</p>\r\nTo this end, the Amended Law defines the \"<em>Seat of Arbitration</em>\" as \"<em>the country agreed upon by the parties to the arbitration to be the seat of the arbitral proceedings, the country whose applicable arbitration law is agreed upon by the parties to apply to the arbitral proceedings or the country selected by the arbitral tribunal as its seat in the absence of an agreement.</em>\"\r\n\r\nThe Amended Law further defines the \"Competent Judge\" as \"<em> The head of the Competent Court or any of its judges as authorized by the head of the Competent Court in writing</em>.\"\r\n<p dir=\"LTR\" align=\"LEFT\">It is worth noting that the Amended Law will not have a retroactive effect. As such, it will only apply to arbitral proceedings and/or court cases that have commenced or are currently ongoing and/or being examined before arbitral tribunals and/or courts. For purposes of determining the commencement date of arbitral proceedings, the Amended law, under article 26, considers the date of the formal constitution of the arbitral tribunal as the date of commencement of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interpretation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important addition reflected in the Amended Law is the explicit reference to legal principles and guidelines of international arbitration, as well as international trade customs, as sources of interpretation of the provisions of the Jordan Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitration Agreement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law has brings changes to the rules governing arbitration agreements. While the Amended Law has reconfirmed the writing requirement for the validity of arbitration agreements, it specified that the writing requirement can be satisfied through any form, including electronic correspondence. A welcome change in the Amended Law lies in the explicit admission of arbitration agreements incorporated by reference. There are indeed instances where an arbitration agreement may be incorporated by reference to an arbitration agreement contained in another document. Under the previous regime, an arbitration agreement incorporated by reference was regarded as valid provided the reference itself clearly considered the arbitration agreement to form part of the main agreement entered into between the parties. The Amended Law eases the conditions of validity of arbitration agreements by removing the requirement for an explicit acknowledgment that the arbitration agreement incorporated by reference forms part of the main agreement. Under the regime of the Amended Law, any reference or indication contained in the main agreement concluded between the parties to another document containing an arbitration agreement is deemed to be analogous to a written arbitration clause under the original agreement. This is particularly useful in instances where parties sign specific terms and conditions which contain a reference to general terms and conditions containing an arbitration agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also stipulates that prior arbitration agreements in employment contracts and consumer contracts concluded on preprinted forms shall be null and void. This amendment, in particular the ban on arbitrating any dispute that may arise out of an employment contract, is in line with the most recent and prevailing decisions of the Jordanian courts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Tribunal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces provisions relating to the number of arbitrators, their appointment and the designation of the presiding tribunal member in events where the disputing parties are 3 or more. According to Article (16) of the Amended Law, an agreement on the appointment and number of arbitrators as well as on the mechanism of appointing of the presiding member by the disputing parties shall always take precedence and prevail however, in absence of any such agreement: (i) the Competent Judge will appoint the arbitrators if their number was agreed upon between the disputing parties and will also name the presiding tribunal member and; (ii) Where the number of arbitrators and their method of appointment is not agreed upon by the disputing parties, the arbitral tribunal must then be comprised of 3 members appointed by the Competent Judge who will also name the presiding tribunal member and; (iii) if the number of arbitrators and their method of appointment was known, the appointed arbitrators must select the presiding member by a majority decision, if the majority was not achieved, the Competent Judge will name the presiding member pursuant to a request by any of the disputing parties. The Amended Law grants any of the disputing parties the right to resort to the Competent Judge in event of a disagreement as to any of the matters pertaining to the appointment of arbitrators who, in turn, must rule as necessary to resolve such disagreement. Finally in this regard, the Amended Law placed a duty on the Competent Judge, when selecting an arbitrator, (i) to consider the requirements of the law and the parties’ pre-set conditions in this regard and; (ii) to accelerate the process of decision making when selecting an arbitrator. Under the previous regime, decisions by the Competent Court appointing an arbitrator(s) were not subject to appeal before a higher court and were to be considered final. The Amended Law, in this regard, implicitly allows for an appeal of the Competent Judge’s decision by deleting, from the amended relevant article, the previous explicit text on the appeal constraints.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the challenge of arbitrators, the Amended Law placed a duty on both the prospective and appointed arbitrators to be impartial and independent. The Amended Law, in line with the UNCITRAL Model Law, places a continuing duty on the arbitrators to remain impartial and independent throughout the arbitral proceedings and imposes a duty on the arbitrators to disclose any such circumstances that may cause their impartiality or independence to be impaired.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Amended Law, the application for the disqualification of an arbitrator by a party must be based on serious grounds. In addition, the procedures for requesting an arbitrator to be recused have been amended. Under the previous law, a request challenging the impartiality and independence of an arbitrator was to be submitted to the court of appeal; however, under the regime, the same request must now be submitted to the arbitral tribunal itself, which, in turn, must refer the request along with the challenged arbitrator’s response to the court of appeal if the challenged arbitrator does not recuse himself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the UNCITRAL Model Law, the Amended Law contains a special provision with regards to placing an obligation on the arbitral tribunal to act fairly and impartially and ensure that parties have an equal opportunity to present their case. The arbitral tribunal must also avoid any unjustified delay or unnecessary expenses in order to resolve the dispute in a timely manner \"<em>for the sake of achieving a fair and urgent means for dispute resolution.</em>\"</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the arbitral tribunal’s fees, the Amended Law introduced a new provision regarding the fees of the arbitral tribunal. Pursuant to such a provision, and in absence of an agreement between the disputing parties and the arbitral tribunal on the fees, the arbitral tribunal shall determine its own fees and order the disputing parties to each pay their share equally. A very important, yet lopsided addition under the Amended Law lies in a clause granting the arbitral tribunal the right to order the compliant party to pay the defaulting party’s share of the arbitral tribunal fees in events where a disputing party defaults in paying their share of the tribunal fees or any expenses of arbitration. Any decision issued by the arbitral tribunal concerning its fees may now be challenged through an appeal before the court of appeal within (15) days from the date of notification of the parties of the same.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Proceedings</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law now allows Jordanian lawyers to \"<em>engage any non-Jordanian lawyer or any other professional and experienced person, if the contract subject matter of the dispute referred to arbitration is subject to the provisions of a foreign law.</em>\" Such an addition on the recourse to foreign legal counsel, as well as other relevant professionals to instances where the contract at issue in an arbitration is governed by the provisions of a foreign law, and by a means of assistance to the Jordanian lawyer, is favorable. It is regrettable, however, that the Amended Law did not make any provisions as to permitting non-Jordanian representation in arbitral proceedings where the underlying contract is governed by Jordanian law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law reconfirmed that Arabic shall be the default language applicable to the arbitral proceedings unless the parties agree otherwise. The arbitral tribunal is also entrusted with the power to determine the application of another language.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that the Amended Law now allows the parties, at any time during the arbitral proceedings, to submit additional evidence to support their claim/defense unless the arbitral tribunal disapproves such submission. This new addition to the Amended Law was not provided for under the previous regime as the parties were only allowed to amend their grounds of defense and their final requests but were not permitted to submit any additional evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also introduces major and welcomed changes to the means through which arbitration hearings and proceedings can now be conducted. Under the Amended Law, the arbitral tribunal is granted greater leeway in holding the hearings in a manner the tribunal sees fit so long as the hearings and the meetings can be documented in writing. The Amended Law introduced various provisions recognizing contemporary means of communication as it now permitted the arbitral tribunal to use any new method of communication to conduct any arbitration procedure, including the use of different telecommunication technological methods, such as videoconferencing for the purpose of hearing witness testimony. Such cost and time effective measures will undoubtedly contribute to the efficiency of the proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also reiterated the acceptance of affidavits, i.e., sworn statements of testimony, as evidence in arbitral proceedings. However, the Amended Law provided that should the opponent wish to cross examine the witness and the latter fails to appear before the arbitral tribunal, the entire affidavit must be ruled out as evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for experts, the Amended Law sets new conditions for the admission of expert reports where any of the parties to the arbitration submits such reports with their documentary evidence. For the expert report to be admissible under the Amended Law, the submitting party must disclose the expert appointment letter, the scope of work/assignment of the expert, and the fees that were paid to them. It is mandatory, under the Amended Law, to call the expert for questioning at the request of a party or should the tribunal so decide. As for the appointment of the expert, the Amended Law introduces an option for the appointment of a juristic person (company) as an expert as opposed to solely an individual as was the case under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interim and Conservatory Measures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where either party wishes to apply for interim or conservatory measures, the Amended Law, like the previous law, allows the arbitrating parties to do so prior to the commencement of arbitral proceedings or during such proceedings in accordance with the relevant articles of the Jordanian Law of Civil Procedures No. (24) for the year 1988.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Jordanian Law of Civil Procedures No. (24) for the year 1988 provides that a claimant may apply to the judge of summary proceedings for a motion to attach and/or freeze property of the defendant party as a precautionary measure either prior to the filing of the substantive lawsuit or along with it. Where the motion is made prior to filing the substantive lawsuit, the Jordanian Law of Civil Procedures stipulates that the substantive lawsuit must be filed within a period of eight (8) days after procuring the decision to attach/freeze the properties of the defendant, otherwise any or all (where applicable) attached properties will be released.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For the purpose of upholding the attachment of property after the (8) day period, the Amended Law now considers a notice to appoint an arbitrator served by the claimant upon the respondent along with the appointed arbitrator’s written confirmation of acceptance to be sufficient as a time barring event for the running of the (8) day period mentioned under the Jordanian Law of Civil Procedures. Such a trigger event to the confirmation of the attachment may cause some practical challenges as often the appointment of an arbitrator comes at a later stage in the proceedings, after the request for arbitration. In some urgent cases, the need to sustain the attachment would have to occur prior to the appointment of an arbitrator. Also, in some instances, the power to appoint an arbitrator, and depending on the agreement among the parties, lies outside of the parties, through for example an appointing authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Award</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the time limit within which the arbitral tribunal must render its final award, the previous regime provides that such time limit shall start to run from the date of the commencement of the arbitral proceedings until the lapse of a twelve (12) month period. The extension provided for was for only another six (6) months. The Amended Law provides for the same period; however, the time limit shall start to run from the date of the constitution of the arbitral tribunal. The arbitral tribunal may in any event extend the time limit for a period of twelve (12) months or as otherwise agreed by the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the final arbitration award, the Amended Law provides that the final award must be issued unanimously or by a majority decision. In the absence of a majority, the parties may agree that the award be made by the president of the arbitral tribunal alone. If the parties do not agree as to how the award will be issued when a majority is not reached the arbitral proceedings shall cease and terminate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where any part of the claim was acknowledged by the opponent, the claimant may procure a final award for the acknowledged part of the claim. This provision was not provided for under the previous law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While the Amended Law did not introduce significant changes to the interpretation and correction of the final award, it provides that the explanatory award and the corrected award must be presented to the court before which a party files for a set aside action. The Amended Law also provides for the possibility to submit the correction or interpretation application to the court of appeal in the event that it is not possible for the arbitral tribunal to convene for making that correction or interpretation. Also, with regards to any additional awards made by the arbitral tribunal in connection with any missed part of the claim, the additional award shall take the form of an addendum and shall constitute part of the award. The additional award must also be submitted to court where a party files for a set aside action.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Award Set Aside and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces a major significant change with regards to set aside actions. Under the previous regime, a set aside action could only be submitted to the court of appeal and its decision to set aside could be appealed before the cassation court. However, in the event that the court of appeal dismissed the set aside action and decided to uphold the arbitration award, such a decision could not be appealed against. The Amended Law stipulates that the only competent court for the purpose of filing a set aside action is now the cassation court, thereby reducing the stages of appeal to only one in the event that the cassation court rules to set aside the arbitration award. Therefore, should the cassation court rule to set aside the award, neither party further may appeal the decision. This is in contrast to the previous law under which there were two steps to an appeal since a set aside order by the court of appeal was subject to appeal before the cassation court.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Previously, the arbitration law provided that a decision to set aside an arbitration award would consequently render the arbitration agreement nullified as it results in litigation unless both parties agree on further arbitration. The Amended Law however provides that a decision to set aside an arbitration award does not affect the arbitration agreement unless such an agreement was in itself null void. This consequently means that the disputing parties, in the event an arbitration award is set aside, must resort again to arbitration as a method of dispute resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also transferred the role of examining enforcement applications to the sole jurisdiction of the cassation court as opposed to the court of appeal as was the case under the previous law. The Amended Law has withdrawn a party’s right to appeal the court’s decision rejecting enforcement due to incorrect service of summons or due to impossibility of enforcement when the award itself contravenes with public order.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As part of Jordan’s efforts to stimulate its economy and attract foreign investments, the Amended Law provides a comprehensive reform to the legislative framework of arbitration in Jordan. It undoubtedly provides a more modern and secure means of dispute resolution through arbitration in line with most internationally recognised arbitration guidelines and practices. With the Amended Law, arbitrating in Jordan is expected to gain new traction.</p>\r\n&nbsp;\r\n\r\n<em><img class=\"alignleft size-full wp-image-8043\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/Screen-Shot-2018-07-31-at-6.31.28-PM.png\" alt=\"\" width=\"3994\" height=\"1378\" />For further information please contact Sara Koleilat-Aranjo (s.aranjo@tamimi.com) or Dana Al Shawa (d.alshawwa@tamimi.com).</em>'),
	(251484,24526,'ClientIP','86.98.5.18'),
	(251485,24526,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251486,24526,'CurrentUserID','8'),
	(251487,24526,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251488,24527,'PostID','7958'),
	(251489,24527,'PostType','law_update_articles'),
	(251490,24527,'PostTitle','Amended Arbitration Legislative Framework in Jordan'),
	(251491,24527,'PostStatus','draft'),
	(251492,24527,'PostDate','2018-07-31 18:33:08'),
	(251493,24527,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7958'),
	(251494,24527,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7958&amp;action=edit'),
	(251495,24527,'ClientIP','86.98.5.18'),
	(251496,24527,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251497,24527,'CurrentUserID','8'),
	(251498,24527,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251499,24528,'PostID','7957'),
	(251500,24528,'PostType','law_update_articles'),
	(251501,24528,'PostTitle','Catching the wave: New Data Protection Law in Bahrain'),
	(251502,24528,'PostStatus','draft'),
	(251503,24528,'PostDate','2018-07-31 18:30:41'),
	(251504,24528,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7957'),
	(251505,24528,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7957&amp;action=edit'),
	(251506,24528,'ClientIP','86.98.5.18'),
	(251507,24528,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251508,24528,'CurrentUserID','8'),
	(251509,24528,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251510,24529,'PostID','7957'),
	(251511,24529,'PostTitle','Catching the wave: New Data Protection Law in Bahrain'),
	(251512,24529,'PostStatus','draft'),
	(251513,24529,'PostType','law_update_articles'),
	(251514,24529,'PostDate','2018-07-31 18:33:18'),
	(251515,24529,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7957'),
	(251516,24529,'MetaID','224072'),
	(251517,24529,'MetaKey','content'),
	(251518,24529,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8044\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/cvdfd.jpg\" alt=\"\" width=\"6000\" height=\"2401\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes 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 BHD1,000 and BHD20,000 (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:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">processing personal data without notifying the 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 dir=\"LTR\">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 dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There 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 the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. 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 will result in some degree of a 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.</p>'),
	(251519,24529,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8040 size-large\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_733922404-1024x683.jpg\" alt=\"\" width=\"640\" height=\"427\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes 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 BHD1,000 and BHD20,000 (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:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">processing personal data without notifying the 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 dir=\"LTR\">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 dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There 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 the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. 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 will result in some degree of a 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.</p>');

INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`)
VALUES
	(251520,24529,'MetaLink','content'),
	(251521,24529,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7957&amp;action=edit'),
	(251522,24529,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8040 size-large\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_733922404-1024x683.jpg\" alt=\"\" width=\"640\" height=\"427\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes 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 BHD1,000 and BHD20,000 (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:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">processing personal data without notifying the 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 dir=\"LTR\">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 dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There 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 the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. 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 will result in some degree of a 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.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8044\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/cvdfd.jpg\" alt=\"\" width=\"6000\" height=\"2401\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes 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 BHD1,000 and BHD20,000 (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:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">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 dir=\"LTR\">processing personal data without notifying the 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 dir=\"LTR\">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 dir=\"LTR\">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 dir=\"LTR\">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<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There 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 the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">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. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The 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.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. 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 will result in some degree of a 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.</p>'),
	(251523,24529,'ClientIP','86.98.5.18'),
	(251524,24529,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251525,24529,'CurrentUserID','8'),
	(251526,24529,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251527,24530,'PostID','7958'),
	(251528,24530,'PostType','law_update_articles'),
	(251529,24530,'PostTitle','Amended Arbitration Legislative Framework in Jordan'),
	(251530,24530,'PostStatus','draft'),
	(251531,24530,'PostDate','2018-07-31 18:33:20'),
	(251532,24530,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7958'),
	(251533,24530,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7958&amp;action=edit'),
	(251534,24530,'ClientIP','86.98.5.18'),
	(251535,24530,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251536,24530,'CurrentUserID','8'),
	(251537,24530,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251538,24531,'PostID','7957'),
	(251539,24531,'PostType','law_update_articles'),
	(251540,24531,'PostTitle','Catching the wave: New Data Protection Law in Bahrain'),
	(251541,24531,'PostStatus','draft'),
	(251542,24531,'PostDate','2018-07-31 18:33:18'),
	(251543,24531,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7957'),
	(251544,24531,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7957&amp;action=edit'),
	(251545,24531,'ClientIP','86.98.5.18'),
	(251546,24531,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251547,24531,'CurrentUserID','8'),
	(251548,24531,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251549,24532,'PostID','7959'),
	(251550,24532,'PostType','law_update_articles'),
	(251551,24532,'PostTitle','Seeking your rights under a commercial mortgage? Do NOT file a case!'),
	(251552,24532,'PostStatus','draft'),
	(251553,24532,'PostDate','2018-07-31 18:33:33'),
	(251554,24532,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7959'),
	(251555,24532,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(251556,24532,'ClientIP','86.98.5.18'),
	(251557,24532,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251558,24532,'CurrentUserID','8'),
	(251559,24532,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251560,24533,'PostID','7959'),
	(251561,24533,'PostType','law_update_articles'),
	(251562,24533,'PostTitle','Seeking your rights under a commercial mortgage? Do NOT file a case!'),
	(251563,24533,'PostStatus','draft'),
	(251564,24533,'PostDate','2018-07-31 16:46:26'),
	(251565,24533,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7959'),
	(251566,24533,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(251567,24533,'ClientIP','86.98.5.18'),
	(251568,24533,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251569,24533,'CurrentUserID','8'),
	(251570,24533,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251571,24534,'PostID','7959'),
	(251572,24534,'PostTitle','Seeking your rights under a commercial mortgage? Do NOT file a case!'),
	(251573,24534,'PostStatus','draft'),
	(251574,24534,'PostType','law_update_articles'),
	(251575,24534,'PostDate','2018-07-31 18:33:34'),
	(251576,24534,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7959'),
	(251577,24534,'MetaID','224178'),
	(251578,24534,'MetaKey','content'),
	(251579,24534,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8042\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_272116580.jpg\" alt=\"\" width=\"4288\" height=\"2311\" />Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(251580,24534,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n\r\n<dir>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n\r\n</dir>\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n\r\n<dir>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n\r\n</dir>\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(251581,24534,'MetaLink','content'),
	(251582,24534,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(251583,24534,'ReportText','<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n\r\n<dir>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n\r\n</dir>\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n\r\n<dir>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n\r\n</dir>\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8042\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_272116580.jpg\" alt=\"\" width=\"4288\" height=\"2311\" />Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(251584,24534,'ClientIP','86.98.5.18'),
	(251585,24534,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251586,24534,'CurrentUserID','8'),
	(251587,24534,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251588,24535,'PostID','7958'),
	(251589,24535,'PostType','law_update_articles'),
	(251590,24535,'PostTitle','Amended Arbitration Legislative Framework in Jordan'),
	(251591,24535,'PostStatus','draft'),
	(251592,24535,'PostDate','2018-07-31 18:33:36'),
	(251593,24535,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7958'),
	(251594,24535,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7958&amp;action=edit'),
	(251595,24535,'ClientIP','86.98.5.18'),
	(251596,24535,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251597,24535,'CurrentUserID','8'),
	(251598,24535,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251599,24536,'PostID','7959'),
	(251600,24536,'PostType','law_update_articles'),
	(251601,24536,'PostTitle','Seeking your rights under a commercial mortgage? Do NOT file a case!'),
	(251602,24536,'PostStatus','draft'),
	(251603,24536,'PostDate','2018-07-31 18:33:34'),
	(251604,24536,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7959'),
	(251605,24536,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(251606,24536,'ClientIP','86.98.5.18'),
	(251607,24536,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251608,24536,'CurrentUserID','8'),
	(251609,24536,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251610,24537,'PostID','7957'),
	(251611,24537,'PostType','law_update_articles'),
	(251612,24537,'PostTitle','Catching the wave: New Data Protection Law in Bahrain'),
	(251613,24537,'PostStatus','draft'),
	(251614,24537,'PostDate','2018-07-31 18:33:38'),
	(251615,24537,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7957'),
	(251616,24537,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7957&amp;action=edit'),
	(251617,24537,'ClientIP','86.98.5.18'),
	(251618,24537,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251619,24537,'CurrentUserID','8'),
	(251620,24537,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251621,24538,'PostID','7958'),
	(251622,24538,'PostType','law_update_articles'),
	(251623,24538,'PostTitle','Amended Arbitration Legislative Framework in Jordan'),
	(251624,24538,'PostStatus','draft'),
	(251625,24538,'PostDate','2018-07-31 18:33:08'),
	(251626,24538,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7958'),
	(251627,24538,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7958&amp;action=edit'),
	(251628,24538,'ClientIP','86.98.5.18'),
	(251629,24538,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251630,24538,'CurrentUserID','8'),
	(251631,24538,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251632,24539,'PostID','7958'),
	(251633,24539,'PostTitle','Amended Arbitration Legislative Framework in Jordan'),
	(251634,24539,'PostStatus','draft'),
	(251635,24539,'PostType','law_update_articles'),
	(251636,24539,'PostDate','2018-07-31 18:34:20'),
	(251637,24539,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7958'),
	(251638,24539,'MetaID','224124'),
	(251639,24539,'MetaKey','content'),
	(251640,24539,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8039 \" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_1032816913-1024x683.jpg\" alt=\"\" width=\"447\" height=\"298\" />On 29 March 2018, His Highness King Abdullah Al Thani Ibn Al Hussein promulgated Law No. (16) for the year 2018, a law amending the Jordanian Arbitration Law No. (31) for the year 2001 (the \"Amended Law\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces new and anticipated changes to the procedural framework of arbitrations seated in Jordan, many of which can be traced in the UNCITRAL Model Law as amended in 2006. Further, the Amended Law provides for much needed clarity on some of the ambiguities witnessed under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we highlight the key features of the Amended Law and discuss some of their practical implications on the conduct of arbitral proceedings in Jordan.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Scope of Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law came into force thirty (30) days after its publication in the Official Gazette No. 5513/2018 dated 2 May 2018. The Amended Law will apply to arbitrations seated in Jordan, as well as arbitrations in which the parties agree to subject such arbitration proceedings to the Amended Law, and irrespective of the nature of the legal relationship giving rise to the dispute.</p>\r\nTo this end, the Amended Law defines the \"<em>Seat of Arbitration</em>\" as \"<em>the country agreed upon by the parties to the arbitration to be the seat of the arbitral proceedings, the country whose applicable arbitration law is agreed upon by the parties to apply to the arbitral proceedings or the country selected by the arbitral tribunal as its seat in the absence of an agreement.</em>\"\r\n\r\nThe Amended Law further defines the \"Competent Judge\" as \"<em> The head of the Competent Court or any of its judges as authorized by the head of the Competent Court in writing</em>.\"\r\n<p dir=\"LTR\" align=\"LEFT\">It is worth noting that the Amended Law will not have a retroactive effect. As such, it will only apply to arbitral proceedings and/or court cases that have commenced or are currently ongoing and/or being examined before arbitral tribunals and/or courts. For purposes of determining the commencement date of arbitral proceedings, the Amended law, under article 26, considers the date of the formal constitution of the arbitral tribunal as the date of commencement of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interpretation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important addition reflected in the Amended Law is the explicit reference to legal principles and guidelines of international arbitration, as well as international trade customs, as sources of interpretation of the provisions of the Jordan Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitration Agreement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law has brings changes to the rules governing arbitration agreements. While the Amended Law has reconfirmed the writing requirement for the validity of arbitration agreements, it specified that the writing requirement can be satisfied through any form, including electronic correspondence. A welcome change in the Amended Law lies in the explicit admission of arbitration agreements incorporated by reference. There are indeed instances where an arbitration agreement may be incorporated by reference to an arbitration agreement contained in another document. Under the previous regime, an arbitration agreement incorporated by reference was regarded as valid provided the reference itself clearly considered the arbitration agreement to form part of the main agreement entered into between the parties. The Amended Law eases the conditions of validity of arbitration agreements by removing the requirement for an explicit acknowledgment that the arbitration agreement incorporated by reference forms part of the main agreement. Under the regime of the Amended Law, any reference or indication contained in the main agreement concluded between the parties to another document containing an arbitration agreement is deemed to be analogous to a written arbitration clause under the original agreement. This is particularly useful in instances where parties sign specific terms and conditions which contain a reference to general terms and conditions containing an arbitration agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also stipulates that prior arbitration agreements in employment contracts and consumer contracts concluded on preprinted forms shall be null and void. This amendment, in particular the ban on arbitrating any dispute that may arise out of an employment contract, is in line with the most recent and prevailing decisions of the Jordanian courts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Tribunal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces provisions relating to the number of arbitrators, their appointment and the designation of the presiding tribunal member in events where the disputing parties are 3 or more. According to Article (16) of the Amended Law, an agreement on the appointment and number of arbitrators as well as on the mechanism of appointing of the presiding member by the disputing parties shall always take precedence and prevail however, in absence of any such agreement: (i) the Competent Judge will appoint the arbitrators if their number was agreed upon between the disputing parties and will also name the presiding tribunal member and; (ii) Where the number of arbitrators and their method of appointment is not agreed upon by the disputing parties, the arbitral tribunal must then be comprised of 3 members appointed by the Competent Judge who will also name the presiding tribunal member and; (iii) if the number of arbitrators and their method of appointment was known, the appointed arbitrators must select the presiding member by a majority decision, if the majority was not achieved, the Competent Judge will name the presiding member pursuant to a request by any of the disputing parties. The Amended Law grants any of the disputing parties the right to resort to the Competent Judge in event of a disagreement as to any of the matters pertaining to the appointment of arbitrators who, in turn, must rule as necessary to resolve such disagreement. Finally in this regard, the Amended Law placed a duty on the Competent Judge, when selecting an arbitrator, (i) to consider the requirements of the law and the parties’ pre-set conditions in this regard and; (ii) to accelerate the process of decision making when selecting an arbitrator. Under the previous regime, decisions by the Competent Court appointing an arbitrator(s) were not subject to appeal before a higher court and were to be considered final. The Amended Law, in this regard, implicitly allows for an appeal of the Competent Judge’s decision by deleting, from the amended relevant article, the previous explicit text on the appeal constraints.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the challenge of arbitrators, the Amended Law placed a duty on both the prospective and appointed arbitrators to be impartial and independent. The Amended Law, in line with the UNCITRAL Model Law, places a continuing duty on the arbitrators to remain impartial and independent throughout the arbitral proceedings and imposes a duty on the arbitrators to disclose any such circumstances that may cause their impartiality or independence to be impaired.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Amended Law, the application for the disqualification of an arbitrator by a party must be based on serious grounds. In addition, the procedures for requesting an arbitrator to be recused have been amended. Under the previous law, a request challenging the impartiality and independence of an arbitrator was to be submitted to the court of appeal; however, under the regime, the same request must now be submitted to the arbitral tribunal itself, which, in turn, must refer the request along with the challenged arbitrator’s response to the court of appeal if the challenged arbitrator does not recuse himself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the UNCITRAL Model Law, the Amended Law contains a special provision with regards to placing an obligation on the arbitral tribunal to act fairly and impartially and ensure that parties have an equal opportunity to present their case. The arbitral tribunal must also avoid any unjustified delay or unnecessary expenses in order to resolve the dispute in a timely manner \"<em>for the sake of achieving a fair and urgent means for dispute resolution.</em>\"</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the arbitral tribunal’s fees, the Amended Law introduced a new provision regarding the fees of the arbitral tribunal. Pursuant to such a provision, and in absence of an agreement between the disputing parties and the arbitral tribunal on the fees, the arbitral tribunal shall determine its own fees and order the disputing parties to each pay their share equally. A very important, yet lopsided addition under the Amended Law lies in a clause granting the arbitral tribunal the right to order the compliant party to pay the defaulting party’s share of the arbitral tribunal fees in events where a disputing party defaults in paying their share of the tribunal fees or any expenses of arbitration. Any decision issued by the arbitral tribunal concerning its fees may now be challenged through an appeal before the court of appeal within (15) days from the date of notification of the parties of the same.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Proceedings</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law now allows Jordanian lawyers to \"<em>engage any non-Jordanian lawyer or any other professional and experienced person, if the contract subject matter of the dispute referred to arbitration is subject to the provisions of a foreign law.</em>\" Such an addition on the recourse to foreign legal counsel, as well as other relevant professionals to instances where the contract at issue in an arbitration is governed by the provisions of a foreign law, and by a means of assistance to the Jordanian lawyer, is favorable. It is regrettable, however, that the Amended Law did not make any provisions as to permitting non-Jordanian representation in arbitral proceedings where the underlying contract is governed by Jordanian law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law reconfirmed that Arabic shall be the default language applicable to the arbitral proceedings unless the parties agree otherwise. The arbitral tribunal is also entrusted with the power to determine the application of another language.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that the Amended Law now allows the parties, at any time during the arbitral proceedings, to submit additional evidence to support their claim/defense unless the arbitral tribunal disapproves such submission. This new addition to the Amended Law was not provided for under the previous regime as the parties were only allowed to amend their grounds of defense and their final requests but were not permitted to submit any additional evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also introduces major and welcomed changes to the means through which arbitration hearings and proceedings can now be conducted. Under the Amended Law, the arbitral tribunal is granted greater leeway in holding the hearings in a manner the tribunal sees fit so long as the hearings and the meetings can be documented in writing. The Amended Law introduced various provisions recognizing contemporary means of communication as it now permitted the arbitral tribunal to use any new method of communication to conduct any arbitration procedure, including the use of different telecommunication technological methods, such as videoconferencing for the purpose of hearing witness testimony. Such cost and time effective measures will undoubtedly contribute to the efficiency of the proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also reiterated the acceptance of affidavits, i.e., sworn statements of testimony, as evidence in arbitral proceedings. However, the Amended Law provided that should the opponent wish to cross examine the witness and the latter fails to appear before the arbitral tribunal, the entire affidavit must be ruled out as evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for experts, the Amended Law sets new conditions for the admission of expert reports where any of the parties to the arbitration submits such reports with their documentary evidence. For the expert report to be admissible under the Amended Law, the submitting party must disclose the expert appointment letter, the scope of work/assignment of the expert, and the fees that were paid to them. It is mandatory, under the Amended Law, to call the expert for questioning at the request of a party or should the tribunal so decide. As for the appointment of the expert, the Amended Law introduces an option for the appointment of a juristic person (company) as an expert as opposed to solely an individual as was the case under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interim and Conservatory Measures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where either party wishes to apply for interim or conservatory measures, the Amended Law, like the previous law, allows the arbitrating parties to do so prior to the commencement of arbitral proceedings or during such proceedings in accordance with the relevant articles of the Jordanian Law of Civil Procedures No. (24) for the year 1988.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Jordanian Law of Civil Procedures No. (24) for the year 1988 provides that a claimant may apply to the judge of summary proceedings for a motion to attach and/or freeze property of the defendant party as a precautionary measure either prior to the filing of the substantive lawsuit or along with it. Where the motion is made prior to filing the substantive lawsuit, the Jordanian Law of Civil Procedures stipulates that the substantive lawsuit must be filed within a period of eight (8) days after procuring the decision to attach/freeze the properties of the defendant, otherwise any or all (where applicable) attached properties will be released.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For the purpose of upholding the attachment of property after the (8) day period, the Amended Law now considers a notice to appoint an arbitrator served by the claimant upon the respondent along with the appointed arbitrator’s written confirmation of acceptance to be sufficient as a time barring event for the running of the (8) day period mentioned under the Jordanian Law of Civil Procedures. Such a trigger event to the confirmation of the attachment may cause some practical challenges as often the appointment of an arbitrator comes at a later stage in the proceedings, after the request for arbitration. In some urgent cases, the need to sustain the attachment would have to occur prior to the appointment of an arbitrator. Also, in some instances, the power to appoint an arbitrator, and depending on the agreement among the parties, lies outside of the parties, through for example an appointing authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Award</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the time limit within which the arbitral tribunal must render its final award, the previous regime provides that such time limit shall start to run from the date of the commencement of the arbitral proceedings until the lapse of a twelve (12) month period. The extension provided for was for only another six (6) months. The Amended Law provides for the same period; however, the time limit shall start to run from the date of the constitution of the arbitral tribunal. The arbitral tribunal may in any event extend the time limit for a period of twelve (12) months or as otherwise agreed by the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the final arbitration award, the Amended Law provides that the final award must be issued unanimously or by a majority decision. In the absence of a majority, the parties may agree that the award be made by the president of the arbitral tribunal alone. If the parties do not agree as to how the award will be issued when a majority is not reached the arbitral proceedings shall cease and terminate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where any part of the claim was acknowledged by the opponent, the claimant may procure a final award for the acknowledged part of the claim. This provision was not provided for under the previous law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While the Amended Law did not introduce significant changes to the interpretation and correction of the final award, it provides that the explanatory award and the corrected award must be presented to the court before which a party files for a set aside action. The Amended Law also provides for the possibility to submit the correction or interpretation application to the court of appeal in the event that it is not possible for the arbitral tribunal to convene for making that correction or interpretation. Also, with regards to any additional awards made by the arbitral tribunal in connection with any missed part of the claim, the additional award shall take the form of an addendum and shall constitute part of the award. The additional award must also be submitted to court where a party files for a set aside action.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Award Set Aside and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces a major significant change with regards to set aside actions. Under the previous regime, a set aside action could only be submitted to the court of appeal and its decision to set aside could be appealed before the cassation court. However, in the event that the court of appeal dismissed the set aside action and decided to uphold the arbitration award, such a decision could not be appealed against. The Amended Law stipulates that the only competent court for the purpose of filing a set aside action is now the cassation court, thereby reducing the stages of appeal to only one in the event that the cassation court rules to set aside the arbitration award. Therefore, should the cassation court rule to set aside the award, neither party further may appeal the decision. This is in contrast to the previous law under which there were two steps to an appeal since a set aside order by the court of appeal was subject to appeal before the cassation court.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Previously, the arbitration law provided that a decision to set aside an arbitration award would consequently render the arbitration agreement nullified as it results in litigation unless both parties agree on further arbitration. The Amended Law however provides that a decision to set aside an arbitration award does not affect the arbitration agreement unless such an agreement was in itself null void. This consequently means that the disputing parties, in the event an arbitration award is set aside, must resort again to arbitration as a method of dispute resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also transferred the role of examining enforcement applications to the sole jurisdiction of the cassation court as opposed to the court of appeal as was the case under the previous law. The Amended Law has withdrawn a party’s right to appeal the court’s decision rejecting enforcement due to incorrect service of summons or due to impossibility of enforcement when the award itself contravenes with public order.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As part of Jordan’s efforts to stimulate its economy and attract foreign investments, the Amended Law provides a comprehensive reform to the legislative framework of arbitration in Jordan. It undoubtedly provides a more modern and secure means of dispute resolution through arbitration in line with most internationally recognised arbitration guidelines and practices. With the Amended Law, arbitrating in Jordan is expected to gain new traction.</p>\r\n&nbsp;\r\n\r\n<em><img class=\"alignleft size-full wp-image-8043\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/Screen-Shot-2018-07-31-at-6.31.28-PM.png\" alt=\"\" width=\"3994\" height=\"1378\" />For further information please contact Sara Koleilat-Aranjo (s.aranjo@tamimi.com) or Dana Al Shawa (d.alshawwa@tamimi.com).</em>'),
	(251641,24539,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8039 size-large\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_1032816913-1024x683.jpg\" alt=\"\" width=\"640\" height=\"427\" />On 29 March 2018, His Highness King Abdullah Al Thani Ibn Al Hussein promulgated Law No. (16) for the year 2018, a law amending the Jordanian Arbitration Law No. (31) for the year 2001 (the \"Amended Law\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces new and anticipated changes to the procedural framework of arbitrations seated in Jordan, many of which can be traced in the UNCITRAL Model Law as amended in 2006. Further, the Amended Law provides for much needed clarity on some of the ambiguities witnessed under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we highlight the key features of the Amended Law and discuss some of their practical implications on the conduct of arbitral proceedings in Jordan.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Scope of Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law came into force thirty (30) days after its publication in the Official Gazette No. 5513/2018 dated 2 May 2018. The Amended Law will apply to arbitrations seated in Jordan, as well as arbitrations in which the parties agree to subject such arbitration proceedings to the Amended Law, and irrespective of the nature of the legal relationship giving rise to the dispute.</p>\r\nTo this end, the Amended Law defines the \"<em>Seat of Arbitration</em>\" as \"<em>the country agreed upon by the parties to the arbitration to be the seat of the arbitral proceedings, the country whose applicable arbitration law is agreed upon by the parties to apply to the arbitral proceedings or the country selected by the arbitral tribunal as its seat in the absence of an agreement.</em>\"\r\n\r\nThe Amended Law further defines the \"Competent Judge\" as \"<em> The head of the Competent Court or any of its judges as authorized by the head of the Competent Court in writing</em>.\"\r\n<p dir=\"LTR\" align=\"LEFT\">It is worth noting that the Amended Law will not have a retroactive effect. As such, it will only apply to arbitral proceedings and/or court cases that have commenced or are currently ongoing and/or being examined before arbitral tribunals and/or courts. For purposes of determining the commencement date of arbitral proceedings, the Amended law, under article 26, considers the date of the formal constitution of the arbitral tribunal as the date of commencement of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interpretation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important addition reflected in the Amended Law is the explicit reference to legal principles and guidelines of international arbitration, as well as international trade customs, as sources of interpretation of the provisions of the Jordan Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitration Agreement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law has brings changes to the rules governing arbitration agreements. While the Amended Law has reconfirmed the writing requirement for the validity of arbitration agreements, it specified that the writing requirement can be satisfied through any form, including electronic correspondence. A welcome change in the Amended Law lies in the explicit admission of arbitration agreements incorporated by reference. There are indeed instances where an arbitration agreement may be incorporated by reference to an arbitration agreement contained in another document. Under the previous regime, an arbitration agreement incorporated by reference was regarded as valid provided the reference itself clearly considered the arbitration agreement to form part of the main agreement entered into between the parties. The Amended Law eases the conditions of validity of arbitration agreements by removing the requirement for an explicit acknowledgment that the arbitration agreement incorporated by reference forms part of the main agreement. Under the regime of the Amended Law, any reference or indication contained in the main agreement concluded between the parties to another document containing an arbitration agreement is deemed to be analogous to a written arbitration clause under the original agreement. This is particularly useful in instances where parties sign specific terms and conditions which contain a reference to general terms and conditions containing an arbitration agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also stipulates that prior arbitration agreements in employment contracts and consumer contracts concluded on preprinted forms shall be null and void. This amendment, in particular the ban on arbitrating any dispute that may arise out of an employment contract, is in line with the most recent and prevailing decisions of the Jordanian courts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Tribunal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces provisions relating to the number of arbitrators, their appointment and the designation of the presiding tribunal member in events where the disputing parties are 3 or more. According to Article (16) of the Amended Law, an agreement on the appointment and number of arbitrators as well as on the mechanism of appointing of the presiding member by the disputing parties shall always take precedence and prevail however, in absence of any such agreement: (i) the Competent Judge will appoint the arbitrators if their number was agreed upon between the disputing parties and will also name the presiding tribunal member and; (ii) Where the number of arbitrators and their method of appointment is not agreed upon by the disputing parties, the arbitral tribunal must then be comprised of 3 members appointed by the Competent Judge who will also name the presiding tribunal member and; (iii) if the number of arbitrators and their method of appointment was known, the appointed arbitrators must select the presiding member by a majority decision, if the majority was not achieved, the Competent Judge will name the presiding member pursuant to a request by any of the disputing parties. The Amended Law grants any of the disputing parties the right to resort to the Competent Judge in event of a disagreement as to any of the matters pertaining to the appointment of arbitrators who, in turn, must rule as necessary to resolve such disagreement. Finally in this regard, the Amended Law placed a duty on the Competent Judge, when selecting an arbitrator, (i) to consider the requirements of the law and the parties’ pre-set conditions in this regard and; (ii) to accelerate the process of decision making when selecting an arbitrator. Under the previous regime, decisions by the Competent Court appointing an arbitrator(s) were not subject to appeal before a higher court and were to be considered final. The Amended Law, in this regard, implicitly allows for an appeal of the Competent Judge’s decision by deleting, from the amended relevant article, the previous explicit text on the appeal constraints.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the challenge of arbitrators, the Amended Law placed a duty on both the prospective and appointed arbitrators to be impartial and independent. The Amended Law, in line with the UNCITRAL Model Law, places a continuing duty on the arbitrators to remain impartial and independent throughout the arbitral proceedings and imposes a duty on the arbitrators to disclose any such circumstances that may cause their impartiality or independence to be impaired.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Amended Law, the application for the disqualification of an arbitrator by a party must be based on serious grounds. In addition, the procedures for requesting an arbitrator to be recused have been amended. Under the previous law, a request challenging the impartiality and independence of an arbitrator was to be submitted to the court of appeal; however, under the regime, the same request must now be submitted to the arbitral tribunal itself, which, in turn, must refer the request along with the challenged arbitrator’s response to the court of appeal if the challenged arbitrator does not recuse himself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the UNCITRAL Model Law, the Amended Law contains a special provision with regards to placing an obligation on the arbitral tribunal to act fairly and impartially and ensure that parties have an equal opportunity to present their case. The arbitral tribunal must also avoid any unjustified delay or unnecessary expenses in order to resolve the dispute in a timely manner \"<em>for the sake of achieving a fair and urgent means for dispute resolution.</em>\"</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the arbitral tribunal’s fees, the Amended Law introduced a new provision regarding the fees of the arbitral tribunal. Pursuant to such a provision, and in absence of an agreement between the disputing parties and the arbitral tribunal on the fees, the arbitral tribunal shall determine its own fees and order the disputing parties to each pay their share equally. A very important, yet lopsided addition under the Amended Law lies in a clause granting the arbitral tribunal the right to order the compliant party to pay the defaulting party’s share of the arbitral tribunal fees in events where a disputing party defaults in paying their share of the tribunal fees or any expenses of arbitration. Any decision issued by the arbitral tribunal concerning its fees may now be challenged through an appeal before the court of appeal within (15) days from the date of notification of the parties of the same.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Proceedings</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law now allows Jordanian lawyers to \"<em>engage any non-Jordanian lawyer or any other professional and experienced person, if the contract subject matter of the dispute referred to arbitration is subject to the provisions of a foreign law.</em>\" Such an addition on the recourse to foreign legal counsel, as well as other relevant professionals to instances where the contract at issue in an arbitration is governed by the provisions of a foreign law, and by a means of assistance to the Jordanian lawyer, is favorable. It is regrettable, however, that the Amended Law did not make any provisions as to permitting non-Jordanian representation in arbitral proceedings where the underlying contract is governed by Jordanian law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law reconfirmed that Arabic shall be the default language applicable to the arbitral proceedings unless the parties agree otherwise. The arbitral tribunal is also entrusted with the power to determine the application of another language.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that the Amended Law now allows the parties, at any time during the arbitral proceedings, to submit additional evidence to support their claim/defense unless the arbitral tribunal disapproves such submission. This new addition to the Amended Law was not provided for under the previous regime as the parties were only allowed to amend their grounds of defense and their final requests but were not permitted to submit any additional evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also introduces major and welcomed changes to the means through which arbitration hearings and proceedings can now be conducted. Under the Amended Law, the arbitral tribunal is granted greater leeway in holding the hearings in a manner the tribunal sees fit so long as the hearings and the meetings can be documented in writing. The Amended Law introduced various provisions recognizing contemporary means of communication as it now permitted the arbitral tribunal to use any new method of communication to conduct any arbitration procedure, including the use of different telecommunication technological methods, such as videoconferencing for the purpose of hearing witness testimony. Such cost and time effective measures will undoubtedly contribute to the efficiency of the proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also reiterated the acceptance of affidavits, i.e., sworn statements of testimony, as evidence in arbitral proceedings. However, the Amended Law provided that should the opponent wish to cross examine the witness and the latter fails to appear before the arbitral tribunal, the entire affidavit must be ruled out as evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for experts, the Amended Law sets new conditions for the admission of expert reports where any of the parties to the arbitration submits such reports with their documentary evidence. For the expert report to be admissible under the Amended Law, the submitting party must disclose the expert appointment letter, the scope of work/assignment of the expert, and the fees that were paid to them. It is mandatory, under the Amended Law, to call the expert for questioning at the request of a party or should the tribunal so decide. As for the appointment of the expert, the Amended Law introduces an option for the appointment of a juristic person (company) as an expert as opposed to solely an individual as was the case under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interim and Conservatory Measures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where either party wishes to apply for interim or conservatory measures, the Amended Law, like the previous law, allows the arbitrating parties to do so prior to the commencement of arbitral proceedings or during such proceedings in accordance with the relevant articles of the Jordanian Law of Civil Procedures No. (24) for the year 1988.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Jordanian Law of Civil Procedures No. (24) for the year 1988 provides that a claimant may apply to the judge of summary proceedings for a motion to attach and/or freeze property of the defendant party as a precautionary measure either prior to the filing of the substantive lawsuit or along with it. Where the motion is made prior to filing the substantive lawsuit, the Jordanian Law of Civil Procedures stipulates that the substantive lawsuit must be filed within a period of eight (8) days after procuring the decision to attach/freeze the properties of the defendant, otherwise any or all (where applicable) attached properties will be released.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For the purpose of upholding the attachment of property after the (8) day period, the Amended Law now considers a notice to appoint an arbitrator served by the claimant upon the respondent along with the appointed arbitrator’s written confirmation of acceptance to be sufficient as a time barring event for the running of the (8) day period mentioned under the Jordanian Law of Civil Procedures. Such a trigger event to the confirmation of the attachment may cause some practical challenges as often the appointment of an arbitrator comes at a later stage in the proceedings, after the request for arbitration. In some urgent cases, the need to sustain the attachment would have to occur prior to the appointment of an arbitrator. Also, in some instances, the power to appoint an arbitrator, and depending on the agreement among the parties, lies outside of the parties, through for example an appointing authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Award</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the time limit within which the arbitral tribunal must render its final award, the previous regime provides that such time limit shall start to run from the date of the commencement of the arbitral proceedings until the lapse of a twelve (12) month period. The extension provided for was for only another six (6) months. The Amended Law provides for the same period; however, the time limit shall start to run from the date of the constitution of the arbitral tribunal. The arbitral tribunal may in any event extend the time limit for a period of twelve (12) months or as otherwise agreed by the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the final arbitration award, the Amended Law provides that the final award must be issued unanimously or by a majority decision. In the absence of a majority, the parties may agree that the award be made by the president of the arbitral tribunal alone. If the parties do not agree as to how the award will be issued when a majority is not reached the arbitral proceedings shall cease and terminate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where any part of the claim was acknowledged by the opponent, the claimant may procure a final award for the acknowledged part of the claim. This provision was not provided for under the previous law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While the Amended Law did not introduce significant changes to the interpretation and correction of the final award, it provides that the explanatory award and the corrected award must be presented to the court before which a party files for a set aside action. The Amended Law also provides for the possibility to submit the correction or interpretation application to the court of appeal in the event that it is not possible for the arbitral tribunal to convene for making that correction or interpretation. Also, with regards to any additional awards made by the arbitral tribunal in connection with any missed part of the claim, the additional award shall take the form of an addendum and shall constitute part of the award. The additional award must also be submitted to court where a party files for a set aside action.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Award Set Aside and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces a major significant change with regards to set aside actions. Under the previous regime, a set aside action could only be submitted to the court of appeal and its decision to set aside could be appealed before the cassation court. However, in the event that the court of appeal dismissed the set aside action and decided to uphold the arbitration award, such a decision could not be appealed against. The Amended Law stipulates that the only competent court for the purpose of filing a set aside action is now the cassation court, thereby reducing the stages of appeal to only one in the event that the cassation court rules to set aside the arbitration award. Therefore, should the cassation court rule to set aside the award, neither party further may appeal the decision. This is in contrast to the previous law under which there were two steps to an appeal since a set aside order by the court of appeal was subject to appeal before the cassation court.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Previously, the arbitration law provided that a decision to set aside an arbitration award would consequently render the arbitration agreement nullified as it results in litigation unless both parties agree on further arbitration. The Amended Law however provides that a decision to set aside an arbitration award does not affect the arbitration agreement unless such an agreement was in itself null void. This consequently means that the disputing parties, in the event an arbitration award is set aside, must resort again to arbitration as a method of dispute resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also transferred the role of examining enforcement applications to the sole jurisdiction of the cassation court as opposed to the court of appeal as was the case under the previous law. The Amended Law has withdrawn a party’s right to appeal the court’s decision rejecting enforcement due to incorrect service of summons or due to impossibility of enforcement when the award itself contravenes with public order.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As part of Jordan’s efforts to stimulate its economy and attract foreign investments, the Amended Law provides a comprehensive reform to the legislative framework of arbitration in Jordan. It undoubtedly provides a more modern and secure means of dispute resolution through arbitration in line with most internationally recognised arbitration guidelines and practices. With the Amended Law, arbitrating in Jordan is expected to gain new traction.</p>\r\n&nbsp;\r\n\r\n<em><img class=\"alignleft size-full wp-image-8043\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/Screen-Shot-2018-07-31-at-6.31.28-PM.png\" alt=\"\" width=\"3994\" height=\"1378\" />For further information please contact Sara Koleilat-Aranjo (s.aranjo@tamimi.com) or Dana Al Shawa (d.alshawwa@tamimi.com).</em>'),
	(251642,24539,'MetaLink','content'),
	(251643,24539,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7958&amp;action=edit'),
	(251644,24539,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8039 size-large\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_1032816913-1024x683.jpg\" alt=\"\" width=\"640\" height=\"427\" />On 29 March 2018, His Highness King Abdullah Al Thani Ibn Al Hussein promulgated Law No. (16) for the year 2018, a law amending the Jordanian Arbitration Law No. (31) for the year 2001 (the \"Amended Law\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces new and anticipated changes to the procedural framework of arbitrations seated in Jordan, many of which can be traced in the UNCITRAL Model Law as amended in 2006. Further, the Amended Law provides for much needed clarity on some of the ambiguities witnessed under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we highlight the key features of the Amended Law and discuss some of their practical implications on the conduct of arbitral proceedings in Jordan.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Scope of Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law came into force thirty (30) days after its publication in the Official Gazette No. 5513/2018 dated 2 May 2018. The Amended Law will apply to arbitrations seated in Jordan, as well as arbitrations in which the parties agree to subject such arbitration proceedings to the Amended Law, and irrespective of the nature of the legal relationship giving rise to the dispute.</p>\r\nTo this end, the Amended Law defines the \"<em>Seat of Arbitration</em>\" as \"<em>the country agreed upon by the parties to the arbitration to be the seat of the arbitral proceedings, the country whose applicable arbitration law is agreed upon by the parties to apply to the arbitral proceedings or the country selected by the arbitral tribunal as its seat in the absence of an agreement.</em>\"\r\n\r\nThe Amended Law further defines the \"Competent Judge\" as \"<em> The head of the Competent Court or any of its judges as authorized by the head of the Competent Court in writing</em>.\"\r\n<p dir=\"LTR\" align=\"LEFT\">It is worth noting that the Amended Law will not have a retroactive effect. As such, it will only apply to arbitral proceedings and/or court cases that have commenced or are currently ongoing and/or being examined before arbitral tribunals and/or courts. For purposes of determining the commencement date of arbitral proceedings, the Amended law, under article 26, considers the date of the formal constitution of the arbitral tribunal as the date of commencement of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interpretation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important addition reflected in the Amended Law is the explicit reference to legal principles and guidelines of international arbitration, as well as international trade customs, as sources of interpretation of the provisions of the Jordan Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitration Agreement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law has brings changes to the rules governing arbitration agreements. While the Amended Law has reconfirmed the writing requirement for the validity of arbitration agreements, it specified that the writing requirement can be satisfied through any form, including electronic correspondence. A welcome change in the Amended Law lies in the explicit admission of arbitration agreements incorporated by reference. There are indeed instances where an arbitration agreement may be incorporated by reference to an arbitration agreement contained in another document. Under the previous regime, an arbitration agreement incorporated by reference was regarded as valid provided the reference itself clearly considered the arbitration agreement to form part of the main agreement entered into between the parties. The Amended Law eases the conditions of validity of arbitration agreements by removing the requirement for an explicit acknowledgment that the arbitration agreement incorporated by reference forms part of the main agreement. Under the regime of the Amended Law, any reference or indication contained in the main agreement concluded between the parties to another document containing an arbitration agreement is deemed to be analogous to a written arbitration clause under the original agreement. This is particularly useful in instances where parties sign specific terms and conditions which contain a reference to general terms and conditions containing an arbitration agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also stipulates that prior arbitration agreements in employment contracts and consumer contracts concluded on preprinted forms shall be null and void. This amendment, in particular the ban on arbitrating any dispute that may arise out of an employment contract, is in line with the most recent and prevailing decisions of the Jordanian courts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Tribunal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces provisions relating to the number of arbitrators, their appointment and the designation of the presiding tribunal member in events where the disputing parties are 3 or more. According to Article (16) of the Amended Law, an agreement on the appointment and number of arbitrators as well as on the mechanism of appointing of the presiding member by the disputing parties shall always take precedence and prevail however, in absence of any such agreement: (i) the Competent Judge will appoint the arbitrators if their number was agreed upon between the disputing parties and will also name the presiding tribunal member and; (ii) Where the number of arbitrators and their method of appointment is not agreed upon by the disputing parties, the arbitral tribunal must then be comprised of 3 members appointed by the Competent Judge who will also name the presiding tribunal member and; (iii) if the number of arbitrators and their method of appointment was known, the appointed arbitrators must select the presiding member by a majority decision, if the majority was not achieved, the Competent Judge will name the presiding member pursuant to a request by any of the disputing parties. The Amended Law grants any of the disputing parties the right to resort to the Competent Judge in event of a disagreement as to any of the matters pertaining to the appointment of arbitrators who, in turn, must rule as necessary to resolve such disagreement. Finally in this regard, the Amended Law placed a duty on the Competent Judge, when selecting an arbitrator, (i) to consider the requirements of the law and the parties’ pre-set conditions in this regard and; (ii) to accelerate the process of decision making when selecting an arbitrator. Under the previous regime, decisions by the Competent Court appointing an arbitrator(s) were not subject to appeal before a higher court and were to be considered final. The Amended Law, in this regard, implicitly allows for an appeal of the Competent Judge’s decision by deleting, from the amended relevant article, the previous explicit text on the appeal constraints.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the challenge of arbitrators, the Amended Law placed a duty on both the prospective and appointed arbitrators to be impartial and independent. The Amended Law, in line with the UNCITRAL Model Law, places a continuing duty on the arbitrators to remain impartial and independent throughout the arbitral proceedings and imposes a duty on the arbitrators to disclose any such circumstances that may cause their impartiality or independence to be impaired.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Amended Law, the application for the disqualification of an arbitrator by a party must be based on serious grounds. In addition, the procedures for requesting an arbitrator to be recused have been amended. Under the previous law, a request challenging the impartiality and independence of an arbitrator was to be submitted to the court of appeal; however, under the regime, the same request must now be submitted to the arbitral tribunal itself, which, in turn, must refer the request along with the challenged arbitrator’s response to the court of appeal if the challenged arbitrator does not recuse himself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the UNCITRAL Model Law, the Amended Law contains a special provision with regards to placing an obligation on the arbitral tribunal to act fairly and impartially and ensure that parties have an equal opportunity to present their case. The arbitral tribunal must also avoid any unjustified delay or unnecessary expenses in order to resolve the dispute in a timely manner \"<em>for the sake of achieving a fair and urgent means for dispute resolution.</em>\"</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the arbitral tribunal’s fees, the Amended Law introduced a new provision regarding the fees of the arbitral tribunal. Pursuant to such a provision, and in absence of an agreement between the disputing parties and the arbitral tribunal on the fees, the arbitral tribunal shall determine its own fees and order the disputing parties to each pay their share equally. A very important, yet lopsided addition under the Amended Law lies in a clause granting the arbitral tribunal the right to order the compliant party to pay the defaulting party’s share of the arbitral tribunal fees in events where a disputing party defaults in paying their share of the tribunal fees or any expenses of arbitration. Any decision issued by the arbitral tribunal concerning its fees may now be challenged through an appeal before the court of appeal within (15) days from the date of notification of the parties of the same.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Proceedings</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law now allows Jordanian lawyers to \"<em>engage any non-Jordanian lawyer or any other professional and experienced person, if the contract subject matter of the dispute referred to arbitration is subject to the provisions of a foreign law.</em>\" Such an addition on the recourse to foreign legal counsel, as well as other relevant professionals to instances where the contract at issue in an arbitration is governed by the provisions of a foreign law, and by a means of assistance to the Jordanian lawyer, is favorable. It is regrettable, however, that the Amended Law did not make any provisions as to permitting non-Jordanian representation in arbitral proceedings where the underlying contract is governed by Jordanian law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law reconfirmed that Arabic shall be the default language applicable to the arbitral proceedings unless the parties agree otherwise. The arbitral tribunal is also entrusted with the power to determine the application of another language.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that the Amended Law now allows the parties, at any time during the arbitral proceedings, to submit additional evidence to support their claim/defense unless the arbitral tribunal disapproves such submission. This new addition to the Amended Law was not provided for under the previous regime as the parties were only allowed to amend their grounds of defense and their final requests but were not permitted to submit any additional evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also introduces major and welcomed changes to the means through which arbitration hearings and proceedings can now be conducted. Under the Amended Law, the arbitral tribunal is granted greater leeway in holding the hearings in a manner the tribunal sees fit so long as the hearings and the meetings can be documented in writing. The Amended Law introduced various provisions recognizing contemporary means of communication as it now permitted the arbitral tribunal to use any new method of communication to conduct any arbitration procedure, including the use of different telecommunication technological methods, such as videoconferencing for the purpose of hearing witness testimony. Such cost and time effective measures will undoubtedly contribute to the efficiency of the proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also reiterated the acceptance of affidavits, i.e., sworn statements of testimony, as evidence in arbitral proceedings. However, the Amended Law provided that should the opponent wish to cross examine the witness and the latter fails to appear before the arbitral tribunal, the entire affidavit must be ruled out as evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for experts, the Amended Law sets new conditions for the admission of expert reports where any of the parties to the arbitration submits such reports with their documentary evidence. For the expert report to be admissible under the Amended Law, the submitting party must disclose the expert appointment letter, the scope of work/assignment of the expert, and the fees that were paid to them. It is mandatory, under the Amended Law, to call the expert for questioning at the request of a party or should the tribunal so decide. As for the appointment of the expert, the Amended Law introduces an option for the appointment of a juristic person (company) as an expert as opposed to solely an individual as was the case under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interim and Conservatory Measures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where either party wishes to apply for interim or conservatory measures, the Amended Law, like the previous law, allows the arbitrating parties to do so prior to the commencement of arbitral proceedings or during such proceedings in accordance with the relevant articles of the Jordanian Law of Civil Procedures No. (24) for the year 1988.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Jordanian Law of Civil Procedures No. (24) for the year 1988 provides that a claimant may apply to the judge of summary proceedings for a motion to attach and/or freeze property of the defendant party as a precautionary measure either prior to the filing of the substantive lawsuit or along with it. Where the motion is made prior to filing the substantive lawsuit, the Jordanian Law of Civil Procedures stipulates that the substantive lawsuit must be filed within a period of eight (8) days after procuring the decision to attach/freeze the properties of the defendant, otherwise any or all (where applicable) attached properties will be released.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For the purpose of upholding the attachment of property after the (8) day period, the Amended Law now considers a notice to appoint an arbitrator served by the claimant upon the respondent along with the appointed arbitrator’s written confirmation of acceptance to be sufficient as a time barring event for the running of the (8) day period mentioned under the Jordanian Law of Civil Procedures. Such a trigger event to the confirmation of the attachment may cause some practical challenges as often the appointment of an arbitrator comes at a later stage in the proceedings, after the request for arbitration. In some urgent cases, the need to sustain the attachment would have to occur prior to the appointment of an arbitrator. Also, in some instances, the power to appoint an arbitrator, and depending on the agreement among the parties, lies outside of the parties, through for example an appointing authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Award</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the time limit within which the arbitral tribunal must render its final award, the previous regime provides that such time limit shall start to run from the date of the commencement of the arbitral proceedings until the lapse of a twelve (12) month period. The extension provided for was for only another six (6) months. The Amended Law provides for the same period; however, the time limit shall start to run from the date of the constitution of the arbitral tribunal. The arbitral tribunal may in any event extend the time limit for a period of twelve (12) months or as otherwise agreed by the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the final arbitration award, the Amended Law provides that the final award must be issued unanimously or by a majority decision. In the absence of a majority, the parties may agree that the award be made by the president of the arbitral tribunal alone. If the parties do not agree as to how the award will be issued when a majority is not reached the arbitral proceedings shall cease and terminate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where any part of the claim was acknowledged by the opponent, the claimant may procure a final award for the acknowledged part of the claim. This provision was not provided for under the previous law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While the Amended Law did not introduce significant changes to the interpretation and correction of the final award, it provides that the explanatory award and the corrected award must be presented to the court before which a party files for a set aside action. The Amended Law also provides for the possibility to submit the correction or interpretation application to the court of appeal in the event that it is not possible for the arbitral tribunal to convene for making that correction or interpretation. Also, with regards to any additional awards made by the arbitral tribunal in connection with any missed part of the claim, the additional award shall take the form of an addendum and shall constitute part of the award. The additional award must also be submitted to court where a party files for a set aside action.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Award Set Aside and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces a major significant change with regards to set aside actions. Under the previous regime, a set aside action could only be submitted to the court of appeal and its decision to set aside could be appealed before the cassation court. However, in the event that the court of appeal dismissed the set aside action and decided to uphold the arbitration award, such a decision could not be appealed against. The Amended Law stipulates that the only competent court for the purpose of filing a set aside action is now the cassation court, thereby reducing the stages of appeal to only one in the event that the cassation court rules to set aside the arbitration award. Therefore, should the cassation court rule to set aside the award, neither party further may appeal the decision. This is in contrast to the previous law under which there were two steps to an appeal since a set aside order by the court of appeal was subject to appeal before the cassation court.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Previously, the arbitration law provided that a decision to set aside an arbitration award would consequently render the arbitration agreement nullified as it results in litigation unless both parties agree on further arbitration. The Amended Law however provides that a decision to set aside an arbitration award does not affect the arbitration agreement unless such an agreement was in itself null void. This consequently means that the disputing parties, in the event an arbitration award is set aside, must resort again to arbitration as a method of dispute resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also transferred the role of examining enforcement applications to the sole jurisdiction of the cassation court as opposed to the court of appeal as was the case under the previous law. The Amended Law has withdrawn a party’s right to appeal the court’s decision rejecting enforcement due to incorrect service of summons or due to impossibility of enforcement when the award itself contravenes with public order.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As part of Jordan’s efforts to stimulate its economy and attract foreign investments, the Amended Law provides a comprehensive reform to the legislative framework of arbitration in Jordan. It undoubtedly provides a more modern and secure means of dispute resolution through arbitration in line with most internationally recognised arbitration guidelines and practices. With the Amended Law, arbitrating in Jordan is expected to gain new traction.</p>\r\n&nbsp;\r\n\r\n<em><img class=\"alignleft size-full wp-image-8043\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/Screen-Shot-2018-07-31-at-6.31.28-PM.png\" alt=\"\" width=\"3994\" height=\"1378\" />For further information please contact Sara Koleilat-Aranjo (s.aranjo@tamimi.com) or Dana Al Shawa (d.alshawwa@tamimi.com).</em>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8039 \" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_1032816913-1024x683.jpg\" alt=\"\" width=\"447\" height=\"298\" />On 29 March 2018, His Highness King Abdullah Al Thani Ibn Al Hussein promulgated Law No. (16) for the year 2018, a law amending the Jordanian Arbitration Law No. (31) for the year 2001 (the \"Amended Law\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces new and anticipated changes to the procedural framework of arbitrations seated in Jordan, many of which can be traced in the UNCITRAL Model Law as amended in 2006. Further, the Amended Law provides for much needed clarity on some of the ambiguities witnessed under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we highlight the key features of the Amended Law and discuss some of their practical implications on the conduct of arbitral proceedings in Jordan.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Scope of Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law came into force thirty (30) days after its publication in the Official Gazette No. 5513/2018 dated 2 May 2018. The Amended Law will apply to arbitrations seated in Jordan, as well as arbitrations in which the parties agree to subject such arbitration proceedings to the Amended Law, and irrespective of the nature of the legal relationship giving rise to the dispute.</p>\r\nTo this end, the Amended Law defines the \"<em>Seat of Arbitration</em>\" as \"<em>the country agreed upon by the parties to the arbitration to be the seat of the arbitral proceedings, the country whose applicable arbitration law is agreed upon by the parties to apply to the arbitral proceedings or the country selected by the arbitral tribunal as its seat in the absence of an agreement.</em>\"\r\n\r\nThe Amended Law further defines the \"Competent Judge\" as \"<em> The head of the Competent Court or any of its judges as authorized by the head of the Competent Court in writing</em>.\"\r\n<p dir=\"LTR\" align=\"LEFT\">It is worth noting that the Amended Law will not have a retroactive effect. As such, it will only apply to arbitral proceedings and/or court cases that have commenced or are currently ongoing and/or being examined before arbitral tribunals and/or courts. For purposes of determining the commencement date of arbitral proceedings, the Amended law, under article 26, considers the date of the formal constitution of the arbitral tribunal as the date of commencement of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interpretation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important addition reflected in the Amended Law is the explicit reference to legal principles and guidelines of international arbitration, as well as international trade customs, as sources of interpretation of the provisions of the Jordan Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitration Agreement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law has brings changes to the rules governing arbitration agreements. While the Amended Law has reconfirmed the writing requirement for the validity of arbitration agreements, it specified that the writing requirement can be satisfied through any form, including electronic correspondence. A welcome change in the Amended Law lies in the explicit admission of arbitration agreements incorporated by reference. There are indeed instances where an arbitration agreement may be incorporated by reference to an arbitration agreement contained in another document. Under the previous regime, an arbitration agreement incorporated by reference was regarded as valid provided the reference itself clearly considered the arbitration agreement to form part of the main agreement entered into between the parties. The Amended Law eases the conditions of validity of arbitration agreements by removing the requirement for an explicit acknowledgment that the arbitration agreement incorporated by reference forms part of the main agreement. Under the regime of the Amended Law, any reference or indication contained in the main agreement concluded between the parties to another document containing an arbitration agreement is deemed to be analogous to a written arbitration clause under the original agreement. This is particularly useful in instances where parties sign specific terms and conditions which contain a reference to general terms and conditions containing an arbitration agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also stipulates that prior arbitration agreements in employment contracts and consumer contracts concluded on preprinted forms shall be null and void. This amendment, in particular the ban on arbitrating any dispute that may arise out of an employment contract, is in line with the most recent and prevailing decisions of the Jordanian courts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Tribunal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces provisions relating to the number of arbitrators, their appointment and the designation of the presiding tribunal member in events where the disputing parties are 3 or more. According to Article (16) of the Amended Law, an agreement on the appointment and number of arbitrators as well as on the mechanism of appointing of the presiding member by the disputing parties shall always take precedence and prevail however, in absence of any such agreement: (i) the Competent Judge will appoint the arbitrators if their number was agreed upon between the disputing parties and will also name the presiding tribunal member and; (ii) Where the number of arbitrators and their method of appointment is not agreed upon by the disputing parties, the arbitral tribunal must then be comprised of 3 members appointed by the Competent Judge who will also name the presiding tribunal member and; (iii) if the number of arbitrators and their method of appointment was known, the appointed arbitrators must select the presiding member by a majority decision, if the majority was not achieved, the Competent Judge will name the presiding member pursuant to a request by any of the disputing parties. The Amended Law grants any of the disputing parties the right to resort to the Competent Judge in event of a disagreement as to any of the matters pertaining to the appointment of arbitrators who, in turn, must rule as necessary to resolve such disagreement. Finally in this regard, the Amended Law placed a duty on the Competent Judge, when selecting an arbitrator, (i) to consider the requirements of the law and the parties’ pre-set conditions in this regard and; (ii) to accelerate the process of decision making when selecting an arbitrator. Under the previous regime, decisions by the Competent Court appointing an arbitrator(s) were not subject to appeal before a higher court and were to be considered final. The Amended Law, in this regard, implicitly allows for an appeal of the Competent Judge’s decision by deleting, from the amended relevant article, the previous explicit text on the appeal constraints.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the challenge of arbitrators, the Amended Law placed a duty on both the prospective and appointed arbitrators to be impartial and independent. The Amended Law, in line with the UNCITRAL Model Law, places a continuing duty on the arbitrators to remain impartial and independent throughout the arbitral proceedings and imposes a duty on the arbitrators to disclose any such circumstances that may cause their impartiality or independence to be impaired.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Amended Law, the application for the disqualification of an arbitrator by a party must be based on serious grounds. In addition, the procedures for requesting an arbitrator to be recused have been amended. Under the previous law, a request challenging the impartiality and independence of an arbitrator was to be submitted to the court of appeal; however, under the regime, the same request must now be submitted to the arbitral tribunal itself, which, in turn, must refer the request along with the challenged arbitrator’s response to the court of appeal if the challenged arbitrator does not recuse himself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the UNCITRAL Model Law, the Amended Law contains a special provision with regards to placing an obligation on the arbitral tribunal to act fairly and impartially and ensure that parties have an equal opportunity to present their case. The arbitral tribunal must also avoid any unjustified delay or unnecessary expenses in order to resolve the dispute in a timely manner \"<em>for the sake of achieving a fair and urgent means for dispute resolution.</em>\"</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the arbitral tribunal’s fees, the Amended Law introduced a new provision regarding the fees of the arbitral tribunal. Pursuant to such a provision, and in absence of an agreement between the disputing parties and the arbitral tribunal on the fees, the arbitral tribunal shall determine its own fees and order the disputing parties to each pay their share equally. A very important, yet lopsided addition under the Amended Law lies in a clause granting the arbitral tribunal the right to order the compliant party to pay the defaulting party’s share of the arbitral tribunal fees in events where a disputing party defaults in paying their share of the tribunal fees or any expenses of arbitration. Any decision issued by the arbitral tribunal concerning its fees may now be challenged through an appeal before the court of appeal within (15) days from the date of notification of the parties of the same.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Proceedings</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law now allows Jordanian lawyers to \"<em>engage any non-Jordanian lawyer or any other professional and experienced person, if the contract subject matter of the dispute referred to arbitration is subject to the provisions of a foreign law.</em>\" Such an addition on the recourse to foreign legal counsel, as well as other relevant professionals to instances where the contract at issue in an arbitration is governed by the provisions of a foreign law, and by a means of assistance to the Jordanian lawyer, is favorable. It is regrettable, however, that the Amended Law did not make any provisions as to permitting non-Jordanian representation in arbitral proceedings where the underlying contract is governed by Jordanian law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law reconfirmed that Arabic shall be the default language applicable to the arbitral proceedings unless the parties agree otherwise. The arbitral tribunal is also entrusted with the power to determine the application of another language.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that the Amended Law now allows the parties, at any time during the arbitral proceedings, to submit additional evidence to support their claim/defense unless the arbitral tribunal disapproves such submission. This new addition to the Amended Law was not provided for under the previous regime as the parties were only allowed to amend their grounds of defense and their final requests but were not permitted to submit any additional evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also introduces major and welcomed changes to the means through which arbitration hearings and proceedings can now be conducted. Under the Amended Law, the arbitral tribunal is granted greater leeway in holding the hearings in a manner the tribunal sees fit so long as the hearings and the meetings can be documented in writing. The Amended Law introduced various provisions recognizing contemporary means of communication as it now permitted the arbitral tribunal to use any new method of communication to conduct any arbitration procedure, including the use of different telecommunication technological methods, such as videoconferencing for the purpose of hearing witness testimony. Such cost and time effective measures will undoubtedly contribute to the efficiency of the proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also reiterated the acceptance of affidavits, i.e., sworn statements of testimony, as evidence in arbitral proceedings. However, the Amended Law provided that should the opponent wish to cross examine the witness and the latter fails to appear before the arbitral tribunal, the entire affidavit must be ruled out as evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for experts, the Amended Law sets new conditions for the admission of expert reports where any of the parties to the arbitration submits such reports with their documentary evidence. For the expert report to be admissible under the Amended Law, the submitting party must disclose the expert appointment letter, the scope of work/assignment of the expert, and the fees that were paid to them. It is mandatory, under the Amended Law, to call the expert for questioning at the request of a party or should the tribunal so decide. As for the appointment of the expert, the Amended Law introduces an option for the appointment of a juristic person (company) as an expert as opposed to solely an individual as was the case under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interim and Conservatory Measures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where either party wishes to apply for interim or conservatory measures, the Amended Law, like the previous law, allows the arbitrating parties to do so prior to the commencement of arbitral proceedings or during such proceedings in accordance with the relevant articles of the Jordanian Law of Civil Procedures No. (24) for the year 1988.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Jordanian Law of Civil Procedures No. (24) for the year 1988 provides that a claimant may apply to the judge of summary proceedings for a motion to attach and/or freeze property of the defendant party as a precautionary measure either prior to the filing of the substantive lawsuit or along with it. Where the motion is made prior to filing the substantive lawsuit, the Jordanian Law of Civil Procedures stipulates that the substantive lawsuit must be filed within a period of eight (8) days after procuring the decision to attach/freeze the properties of the defendant, otherwise any or all (where applicable) attached properties will be released.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For the purpose of upholding the attachment of property after the (8) day period, the Amended Law now considers a notice to appoint an arbitrator served by the claimant upon the respondent along with the appointed arbitrator’s written confirmation of acceptance to be sufficient as a time barring event for the running of the (8) day period mentioned under the Jordanian Law of Civil Procedures. Such a trigger event to the confirmation of the attachment may cause some practical challenges as often the appointment of an arbitrator comes at a later stage in the proceedings, after the request for arbitration. In some urgent cases, the need to sustain the attachment would have to occur prior to the appointment of an arbitrator. Also, in some instances, the power to appoint an arbitrator, and depending on the agreement among the parties, lies outside of the parties, through for example an appointing authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Award</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the time limit within which the arbitral tribunal must render its final award, the previous regime provides that such time limit shall start to run from the date of the commencement of the arbitral proceedings until the lapse of a twelve (12) month period. The extension provided for was for only another six (6) months. The Amended Law provides for the same period; however, the time limit shall start to run from the date of the constitution of the arbitral tribunal. The arbitral tribunal may in any event extend the time limit for a period of twelve (12) months or as otherwise agreed by the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the final arbitration award, the Amended Law provides that the final award must be issued unanimously or by a majority decision. In the absence of a majority, the parties may agree that the award be made by the president of the arbitral tribunal alone. If the parties do not agree as to how the award will be issued when a majority is not reached the arbitral proceedings shall cease and terminate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where any part of the claim was acknowledged by the opponent, the claimant may procure a final award for the acknowledged part of the claim. This provision was not provided for under the previous law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While the Amended Law did not introduce significant changes to the interpretation and correction of the final award, it provides that the explanatory award and the corrected award must be presented to the court before which a party files for a set aside action. The Amended Law also provides for the possibility to submit the correction or interpretation application to the court of appeal in the event that it is not possible for the arbitral tribunal to convene for making that correction or interpretation. Also, with regards to any additional awards made by the arbitral tribunal in connection with any missed part of the claim, the additional award shall take the form of an addendum and shall constitute part of the award. The additional award must also be submitted to court where a party files for a set aside action.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Award Set Aside and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces a major significant change with regards to set aside actions. Under the previous regime, a set aside action could only be submitted to the court of appeal and its decision to set aside could be appealed before the cassation court. However, in the event that the court of appeal dismissed the set aside action and decided to uphold the arbitration award, such a decision could not be appealed against. The Amended Law stipulates that the only competent court for the purpose of filing a set aside action is now the cassation court, thereby reducing the stages of appeal to only one in the event that the cassation court rules to set aside the arbitration award. Therefore, should the cassation court rule to set aside the award, neither party further may appeal the decision. This is in contrast to the previous law under which there were two steps to an appeal since a set aside order by the court of appeal was subject to appeal before the cassation court.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Previously, the arbitration law provided that a decision to set aside an arbitration award would consequently render the arbitration agreement nullified as it results in litigation unless both parties agree on further arbitration. The Amended Law however provides that a decision to set aside an arbitration award does not affect the arbitration agreement unless such an agreement was in itself null void. This consequently means that the disputing parties, in the event an arbitration award is set aside, must resort again to arbitration as a method of dispute resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also transferred the role of examining enforcement applications to the sole jurisdiction of the cassation court as opposed to the court of appeal as was the case under the previous law. The Amended Law has withdrawn a party’s right to appeal the court’s decision rejecting enforcement due to incorrect service of summons or due to impossibility of enforcement when the award itself contravenes with public order.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As part of Jordan’s efforts to stimulate its economy and attract foreign investments, the Amended Law provides a comprehensive reform to the legislative framework of arbitration in Jordan. It undoubtedly provides a more modern and secure means of dispute resolution through arbitration in line with most internationally recognised arbitration guidelines and practices. With the Amended Law, arbitrating in Jordan is expected to gain new traction.</p>\r\n&nbsp;\r\n\r\n<em><img class=\"alignleft size-full wp-image-8043\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/Screen-Shot-2018-07-31-at-6.31.28-PM.png\" alt=\"\" width=\"3994\" height=\"1378\" />For further information please contact Sara Koleilat-Aranjo (s.aranjo@tamimi.com) or Dana Al Shawa (d.alshawwa@tamimi.com).</em>'),
	(251645,24539,'ClientIP','86.98.5.18'),
	(251646,24539,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251647,24539,'CurrentUserID','8'),
	(251648,24539,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251649,24540,'PostID','7959'),
	(251650,24540,'PostType','law_update_articles'),
	(251651,24540,'PostTitle','Seeking your rights under a commercial mortgage? Do NOT file a case!'),
	(251652,24540,'PostStatus','draft'),
	(251653,24540,'PostDate','2018-07-31 18:34:22'),
	(251654,24540,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7959'),
	(251655,24540,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(251656,24540,'ClientIP','86.98.5.18'),
	(251657,24540,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251658,24540,'CurrentUserID','8'),
	(251659,24540,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251660,24541,'PostID','7958'),
	(251661,24541,'PostType','law_update_articles'),
	(251662,24541,'PostTitle','Amended Arbitration Legislative Framework in Jordan'),
	(251663,24541,'PostStatus','draft'),
	(251664,24541,'PostDate','2018-07-31 18:34:20'),
	(251665,24541,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7958'),
	(251666,24541,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7958&amp;action=edit'),
	(251667,24541,'ClientIP','86.98.5.18'),
	(251668,24541,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251669,24541,'CurrentUserID','8'),
	(251670,24541,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251671,24542,'AttachmentID','8045'),
	(251672,24542,'FileName','lnkl.jpg'),
	(251673,24542,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251674,24542,'ClientIP','86.98.5.18'),
	(251675,24542,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251676,24542,'CurrentUserID','8'),
	(251677,24542,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251678,24543,'PostID','7958'),
	(251679,24543,'PostType','law_update_articles'),
	(251680,24543,'PostTitle','Amended Arbitration Legislative Framework in Jordan'),
	(251681,24543,'PostStatus','draft'),
	(251682,24543,'PostDate','2018-07-31 18:35:25'),
	(251683,24543,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7958'),
	(251684,24543,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7958&amp;action=edit'),
	(251685,24543,'ClientIP','86.98.5.18'),
	(251686,24543,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251687,24543,'CurrentUserID','8'),
	(251688,24543,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251689,24544,'PostID','7959'),
	(251690,24544,'PostType','law_update_articles'),
	(251691,24544,'PostTitle','Seeking your rights under a commercial mortgage? Do NOT file a case!'),
	(251692,24544,'PostStatus','draft'),
	(251693,24544,'PostDate','2018-07-31 18:33:34'),
	(251694,24544,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7959'),
	(251695,24544,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(251696,24544,'ClientIP','86.98.5.18'),
	(251697,24544,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251698,24544,'CurrentUserID','8'),
	(251699,24544,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251700,24545,'PostID','7959'),
	(251701,24545,'PostTitle','Seeking your rights under a commercial mortgage? Do NOT file a case!'),
	(251702,24545,'PostStatus','draft'),
	(251703,24545,'PostType','law_update_articles'),
	(251704,24545,'PostDate','2018-07-31 18:35:40'),
	(251705,24545,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7959'),
	(251706,24545,'MetaID','224178'),
	(251707,24545,'MetaKey','content'),
	(251708,24545,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" />Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(251709,24545,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8042\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_272116580.jpg\" alt=\"\" width=\"4288\" height=\"2311\" />Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(251710,24545,'MetaLink','content'),
	(251711,24545,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(251712,24545,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8042\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_272116580.jpg\" alt=\"\" width=\"4288\" height=\"2311\" />Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" />Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(251713,24545,'ClientIP','86.98.5.18'),
	(251714,24545,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251715,24545,'CurrentUserID','8'),
	(251716,24545,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251717,24546,'PostID','7959'),
	(251718,24546,'PostType','law_update_articles'),
	(251719,24546,'PostTitle','Seeking your rights under a commercial mortgage? Do NOT file a case!'),
	(251720,24546,'PostStatus','draft'),
	(251721,24546,'PostDate','2018-07-31 18:35:40'),
	(251722,24546,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7959'),
	(251723,24546,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(251724,24546,'ClientIP','86.98.5.18'),
	(251725,24546,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251726,24546,'CurrentUserID','8'),
	(251727,24546,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251728,24547,'AttachmentID','8046'),
	(251729,24547,'FileName','shutterstock_641258596.jpg'),
	(251730,24547,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251731,24547,'ClientIP','86.98.5.18'),
	(251732,24547,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251733,24547,'CurrentUserID','8'),
	(251734,24547,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251735,24548,'PostID','7959'),
	(251736,24548,'PostType','law_update_articles'),
	(251737,24548,'PostTitle','Seeking your rights under a commercial mortgage? Do NOT file a case!'),
	(251738,24548,'PostStatus','draft'),
	(251739,24548,'PostDate','2018-07-31 18:36:15'),
	(251740,24548,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7959'),
	(251741,24548,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(251742,24548,'ClientIP','86.98.5.18'),
	(251743,24548,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251744,24548,'CurrentUserID','8'),
	(251745,24548,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251746,24549,'AttachmentID','8047'),
	(251747,24549,'FileName','shutterstock_737881615-Converted-01.jpg'),
	(251748,24549,'FilePath','/home/tamimnew/public_html/wp-content/uploads/2018/07'),
	(251749,24549,'ClientIP','86.98.5.18'),
	(251750,24549,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251751,24549,'CurrentUserID','8'),
	(251752,24549,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251753,24550,'PostID','7960'),
	(251754,24550,'PostType','law_update_articles'),
	(251755,24550,'PostTitle','Guiding Charter for Family Owned Businesses in Saudi Arabia'),
	(251756,24550,'PostStatus','draft'),
	(251757,24550,'PostDate','2018-07-31 18:37:53'),
	(251758,24550,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7960'),
	(251759,24550,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7960&amp;action=edit'),
	(251760,24550,'ClientIP','86.98.5.18'),
	(251761,24550,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251762,24550,'CurrentUserID','8'),
	(251763,24550,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251764,24551,'PostID','7960'),
	(251765,24551,'PostType','law_update_articles'),
	(251766,24551,'PostTitle','Guiding Charter for Family Owned Businesses in Saudi Arabia'),
	(251767,24551,'PostStatus','draft'),
	(251768,24551,'PostDate','2018-07-31 16:49:28'),
	(251769,24551,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7960'),
	(251770,24551,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7960&amp;action=edit'),
	(251771,24551,'ClientIP','86.98.5.18'),
	(251772,24551,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(251773,24551,'CurrentUserID','8'),
	(251774,24551,'CurrentUserRoles','a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
	(251775,24552,'PostID','7960'),
	(251776,24552,'PostTitle','Guiding Charter for Family Owned Businesses in Saudi Arabia'),
	(251777,24552,'PostStatus','draft'),
	(251778,24552,'PostType','law_update_articles'),
	(251779,24552,'PostDate','2018-07-31 18:37:55'),
	(251780,24552,'PostUrl','http://localhost:8888/tamimi/?post_type=law_update_articles&p=7960'),
	(251781,24552,'MetaID','224226'),
	(251782,24552,'MetaKey','content'),
	(251783,24552,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" />The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" />Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;'),
	(251784,24552,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.'),
