	(187249,4695,'core_values',''),
	(187250,4695,'_core_values','field_59b64ab071de4'),
	(187251,4695,'file',''),
	(187252,4695,'_file','field_59b64c10f6600'),
	(187253,4695,'orderValue4','4'),
	(187254,4695,'_orderValue4','field_59d2096a8ff34'),
	(86224,4695,'_content','field_59b649b5c8b2b'),
	(86225,4695,'lawUpdateArticleMonth','4682'),
	(86226,4695,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(86227,4695,'content_description','Globalization is no longer the exclusive province of Multi National Companies. Companies large or small or anyone with a commercially attractive product should consider international markets and in doing so, seek patent protection in multiple countries.'),
	(86228,4695,'_content_description','field_59b641c07f473'),
	(86229,4695,'pageSummary','Globalization is no longer the exclusive province of Multi National Companies. Companies large or small or anyone with a commercially attractive product should consider international markets and in doing so, seek patent protection in multiple countries.'),
	(86230,4695,'_pageSummary','field_59e59b307dec8'),
	(86231,4695,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/april-5/international-patent-filing-systems-pct-gcc-patents.html'),
	(86232,4695,'_currentURL','field_59d35123ab1e7'),
	(86233,4695,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','926'),
	(86234,4695,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(86235,4695,'lawUpdateArticleWriters','1'),
	(86236,4695,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(86237,4695,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','634'),
	(86238,4695,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(86239,4695,'lawUpdateArticlePractices','1'),
	(86240,4695,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(86241,4695,'_yoast_wpseo_metadesc','Globalization is no longer the exclusive province of Multi National Companies. Companies large or small or anyone with a commercially attractive product should consider international markets and in doing so, seek patent protection in multiple countries.'),
	(86242,4696,'content','April 2013\r\n\r\n<hr />\r\n\r\nIn many cases the IP subsisting in for example marketing properties, products, materials, processes and know-how is what gives a business its competitive advantage – whether through protected patents, extensive brand recognition or internal procedures. It is critical for all businesses relying on such IP rights to ensure that they adequately manage the creation, ownership, maintenance and exploitation of their IP.  There is no single formula that will provide businesses with an appropriate IP Management Program, but there are some basic steps that can be followed in developing such a program.\r\n\r\nA possible approach to the development of an appropriate IP Management Program could include:\r\n<ul>\r\n 	<li>Identifying IP Assets;</li>\r\n 	<li>Gathering and Evaluating Company Policies, Procedures and Commitments; and</li>\r\n 	<li>Developing and Implementing an IP Management Program.</li>\r\n</ul>\r\n<strong>1.  Identifying IP Assets</strong>\r\n\r\nThe point of departure in identifying IP assets is to follow an approach exactly like would be followed in a due diligence related to the sale or purchase of a business.  As part of this process, all existing IP generated within the business and / or used by the business (whether owned or licenced) and licenced to third parties must be identified.  In many instances this is a simple process of identifying for example important trade marks used, but the due diligence must also include details of those process manuals, reports, data tables, customer lists, supply chain data and the like that may not immediately be considered as IP assets, but in respect of which a management policy is equally critical.\r\n\r\nAnother key consideration in such a due diligence is the identification of IP asset that are in use, but that are not necessarily protected. For example, a bank may consider the name of the bank to be a critical trade mark asset and focus only on this assets, but it should give equal consideration to the trade marks it uses to identify its various products and for example loyalty programs.  A key feature of an IP due diligence accordingly is identifying unregistered IP assets.\r\n\r\nIn addition to identifying IP assets, the IP due diligence must also include consideration of the following:\r\n\r\nA. IP Ownership\r\n\r\nThe ownership of IP rights must be a key consideration for any business as it forms the basis on which that business can exploit the relevant rights and prevent third parties from doing so. An important aspect of the ownership of IP rights relates to the employer/employee relationship and the relationship with independent contractors.  Multi-national corporations with operations in various jurisdictions must take the nuances of local laws into careful consideration in the assessment of their stocks of IP rights, as in a jurisdiction such as the United Arab Emirates (“UAE”) the ownership of IP rights may be regulated very differently from the way such rights are regulated in for example common law jurisdictions.  The examples below illustrate some considerations that may be relevant.\r\n\r\nPatents – In principle, the inventor is the owner of his/her invention, unless he/she is an employee hired to invent.  Even in the case where an invention is made without the job responsibility to invent, the employer may still be the owner of the invention if the invention was developed using company resources and tools. The purpose of an audit is to scrutinize the ownership trail of IP rights in order to remedy any discrepancies in the business’ ownership of IP right, but also to identify specific IP right identification and assignment requirements, if any.\r\n\r\nCopyright – The point of departure generally is that ownership vests in the author of a work and a written assignment agreement will in most cases be required in the UAE in order to vest ownership of copyright in the employer.  An appropriate due diligence should identify key properties in which copyright subsists in order to ensure that a system is in place to record and document ownership and ownership changes.\r\n\r\nTrademarks – Ownership  generally vests in the first party to apply for the registration of a trade mark, but where trade mark right disputes arise in respect of the ownership of a particular mark details related to the creation of the mark and first use thereof could be critical.  A full IP due diligence may highlight trade marks that may be vulnerable to cancellation based on local law and in particular trade marks that may be vulnerable to non-use.\r\n\r\nTrade Secrets – Trade secrets are developed and used by businesses on a daily basis and remain protected as long as they remain secret.  In the UAE for example a trade secret may be any formula, pattern, device, or compilation of information which is used in a business and that gives the business an opportunity to obtain an advantage over competitors who do not know or use that secret.\r\n\r\nTrade secrets are protected in different ways, but as part of the due diligence process, the question must be whether appropriate mechanism are in place to protect those trade secrets.  For example, what form of confidentiality agreements are in place with employees and contractors and what kind of information security policies are in place, what kind of communication monitoring policies and consent procedures (if required) are in place.\r\n\r\nB. Liabilities\r\n\r\nOnce IP assets have been identified and the ownership of those assets reviewed, the due diligence process should also analyze any liabilities related to those assets. These liabilities could include for example a right that will expire shortly, licences that may not be renewed, claims of infringement by third parties, ongoing cases of infringement against third parties and disputes related to the ownership of rights.  These possible liabilities could impact the business’ ability to exploit the relevant IP rights.  Defending potential IP infringement claims could also pose a significant burden on the resources of a business which may mean that the relevant asset could instead be a liability to a business.\r\n\r\n<strong>2.   Gathering and Evaluating Company</strong>\r\n\r\n&nbsp;\r\n\r\n<strong>Policies, Procedures and Commitments</strong>\r\n\r\n&nbsp;\r\n\r\nThis is the fact finding process that is very closely related to the identification of IP assets.  In this process it is important to identify what policies and procedure the business has in place to govern the creation, exploitation and maintenance of IP rights.  In addition to a review of these documents, it is also important to identify and consider the kind of IP exploitation agreements that may be in place with third parties to identify any limitations on the further exploitation of those rights (for example if an exclusive licence was granted in respect of a particular patent).\r\n\r\nExamples of the subject matter with respect to which policies, procedures and agreements should be considered include:\r\n<ul>\r\n 	<li>IP right record keeping and inventory management;</li>\r\n 	<li>Identifying and creating new IP rights;</li>\r\n 	<li>Ownership of IP rights;</li>\r\n 	<li>Renewing / maintaining IP rights;</li>\r\n 	<li>Use of IP rights internally, externally and by third parties;</li>\r\n 	<li>Enforcement of IP rights;</li>\r\n 	<li>Protection of trade secrets and confidential information;</li>\r\n 	<li>Information security; and</li>\r\n 	<li>Communication monitoring.</li>\r\n</ul>\r\n<strong>3.  Developing and Implementing an IP Management Program</strong>\r\n\r\n&nbsp;\r\n\r\nAfter the completion of the above steps, the next stage in the IP Management Program development process is actually putting in place such policies and procedures identified as lacking through the above steps. This IP Management Program must be tailored to the business’ needs and must aim to provide an efficient, effective and optimal strategy for the management of the business’ IP assets.\r\n\r\nFinally, having gone through all three steps discussed above to develop an appropriate IP Management Program, the implementation of that program must be a key priority.  In this regard, clear communication of the new IP Management Program within the business will be required with a strong commitment flowing from the very top of the leadership structure to the implementation and enforcement of the new IP Management Program.'),
	(187218,4696,'core_values',''),
	(187219,4696,'_core_values','field_59b64ab071de4'),
	(187220,4696,'file',''),
	(187221,4696,'_file','field_59b64c10f6600'),
	(187222,4696,'orderValue4','4'),
	(187223,4696,'_orderValue4','field_59d2096a8ff34'),
	(187224,4696,'related_pages_header',''),
	(187225,4696,'_related_pages_header','field_59b6441e3cc94'),
	(187226,4696,'related_pages',''),
	(86243,4696,'_content','field_59b649b5c8b2b'),
	(86244,4696,'lawUpdateArticleMonth','4682'),
	(86245,4696,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(86246,4696,'content_description','Are you deriving the most value out of your Intellectual Property (“IP”) assets? Unless you have implemented an effective IP Management Program, the answer will most likely be in the negative.\r\n'),
	(86247,4696,'_content_description','field_59b641c07f473'),
	(86248,4696,'pageSummary','Are you deriving the most value out of your Intellectual Property (“IP”) assets? Unless you have implemented an effective IP Management Program, the answer will most likely be in the negative.'),
	(86249,4696,'_pageSummary','field_59e59b307dec8'),
	(86250,4696,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/april-5/internal-intellectual-property-management.html'),
	(86251,4696,'_currentURL','field_59d35123ab1e7'),
	(86252,4696,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','878'),
	(86253,4696,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(86254,4696,'lawUpdateArticleWriters','1'),
	(86255,4696,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(86256,4696,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','634'),
	(86257,4696,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(86258,4696,'lawUpdateArticlePractices','1'),
	(86259,4696,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(86260,4696,'_yoast_wpseo_metadesc','Are you deriving the most value out of your Intellectual Property (“IP”) assets? Unless you have implemented an effective IP Management Program, the answer will most likely be in the negative.'),
	(86261,4697,'content','April 2013\r\n\r\n<hr />\r\n\r\nThe history of this case goes back to 2009 when the Al Tamimi &amp; Company IP enforcement team received information in relation to a container imported into Dubai from Port Saeed in Egypt, through the Jabel Ali Free Zone Seaport.\r\n\r\nThe container contained approximately 420 master cases of branded cigarettes for a line of products that was no longer manufactured by the client.  In fact, the client stopped producing this brand of cigarettes as long back as 2003.\r\n\r\nAfter investigating the goods and conducting a forensic examination, it was confirmed that the imported products were genuine – but old – products produced and distributed by a licensed manufacturer. Based on this information, the Customs Authorities issued an administrative decision to release the shipment of cigarettes due to lack of power to sustain the seizure. However, the brand owner needed to prevent the sale of these old products in the market and therefore we moved to file an urgent application with Dubai Court for expedited matters seeking issuance of preliminary attachment order to seize and further inspect the goods. The application was based on the client’s interest to prevent trade in expired products carrying its trade marks and the protection of the health and safety of consumers as protected by both federal and Dubai laws. Therefore, the Dubai Court granted the ordered directing the Customs Authorities to maintain the detention of the goods for further inspection products.\r\n\r\nThe case against the importer went through all levels of appeal up to the Court of Cassation and ultimately reversed to the Dubai Appeal Court for proceeding.  In the end, the Appeal court issued a judgment to confiscate and destroy the products based on the interest of the client in preventing trade of products that lack of conformity conditions and the protection of consumers in the UAE.  The court also ordered the owner of the imported goods to cover the court legal fees and ordered that its decision be published in one of the local newspapers (at the expenses of the owner of the imported goods).\r\n\r\nSimultaneously while pursuing the civil action, a criminal complaint was filed against the importer of the goods. Dubai public prosecution office accepted the complaint in formalities and interrogated the manager of the importing company for importing illegitimate goods to UAE Territory. Therefore, an accusation order was issued and the case was transferred to the criminal court for further proceedings. The Criminal Court found the accused (the manager of the importing company) guilty and issued a fine of AED 100,000.00 (USD 27,250.00) with seizure and destruction of goods. The case was appealed to the Dubai Criminal Court of Appeal, who affirmed the judgment of the lower court, but amended the fine to AED 50,000.00 (USD 13,625) in according to the discretion of appeal court to review the imposed fines.\r\n\r\nIn addition to the civil and criminal proceedings, a complaint was also filed with the Dubai Municipality, the Public Health and Safety Department also issued a nominal administrative fine to the importer with order to seize and destruct the goods.\r\n\r\nIn conclusion, the expired products were destroyed and the importer was found guilty of contravening the UAE’s laws in civil, criminal and administrative proceedings.  What is of particular importance in this matter is that this matter establishes that trade mark owners remain entitled to defend the reputation and goodwill of their trade marks in cases where their required product standards are not maintained.\r\n\r\nThe legal grounds used to pursue this matter were not the traditional trademark infringement grounds.  Rather, this matter illustrates how important considerations such as for example product and label regulation, product standards and consumer protection can be in assuring the protection of valuable trade mark assets.  This matter also illustrates how trade mark owners may address the unauthorized importation of genuine goods in circumstances where such goods may prejudice the relevant brands and importantly - consumers.\r\n\r\nWe shall leverage this important precedent in order to assist our clients to protect their trade marks in the UAE, even in circumstances where the traditional rules of trade mark infringement do not apply.'),
	(187187,4697,'core_values',''),
	(187188,4697,'_core_values','field_59b64ab071de4'),
	(187189,4697,'file',''),
	(187190,4697,'_file','field_59b64c10f6600'),
	(86262,4697,'_content','field_59b649b5c8b2b'),
	(86263,4697,'lawUpdateArticleMonth','4682'),
	(86264,4697,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(86265,4697,'content_description','Al Tamimi & Company successfully represented a multi-national tobacco brands owner before the Dubai Courts in one of the most controversial cases in recent years.\r\n'),
	(86266,4697,'_content_description','field_59b641c07f473'),
	(86267,4697,'pageSummary','Al Tamimi &amp; Company successfully represented a multi-national tobacco brands owner before the Dubai Courts in one of the most controversial cases in recent years.'),
	(86268,4697,'_pageSummary','field_59e59b307dec8'),
	(86269,4697,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/april-5/pursuing-genuine-goods-how-far-can-you-go-to-protect-your-brand.html'),
	(86270,4697,'_currentURL','field_59d35123ab1e7'),
	(86271,4697,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Munir Suboh'),
	(86272,4697,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(86273,4697,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','m.suboh@tamimi.com'),
	(86274,4697,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(86275,4697,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(86276,4697,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(86277,4697,'lawUpdateArticleNoWriters','1'),
	(86278,4697,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(86279,4697,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','634'),
	(86280,4697,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(86281,4697,'lawUpdateArticlePractices','1'),
	(86282,4697,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(86283,4697,'_yoast_wpseo_metadesc','Al Tamimi & Company successfully represented a multi-national tobacco brands owner before the Dubai Courts in one of the most controversial cases in recent years.'),
	(86284,4698,'content','April 2013\r\n\r\n<hr />\r\n\r\nUnfortunately these procedures have not been available to prospective applications during the past years for many reasons, including the lack of the necessary competencies to carry out the examinations.\r\n\r\nIn the past, the Patent Office would accept applications and provide filing receipts, but no further action was taken in respect of such applications.  The result was that prospective applicants started excluding Kuwait from their protection strategies and more importantly business models related to key inventions.  The risks associate with the infringement of key patents in Kuwait resulting from the absence of adequate protection for patents and the ability to prevent such infringement became a critical risk factor for assessment in deciding whether to enter the Kuwaiti market for certain business.\r\n\r\nThis situation has changed to some extent and the good news is that the Kuwaiti Patent Office has started examining industrial design applications and publishing them for opposition purposes. Once the period of opposition expires, the Patent Office will issue a registration certificate in compliance with the above mentioned law.\r\n\r\nIt is hoped that this is a possible first step for the Kuwaiti Patent Office to begin the examination of patents and complete the registration process for the grant of patent protection in the state of Kuwait. Many countries have cooperated well with the European Patent Office (EPO), United States Patent &amp; Trademark Office (USPTO) and The World Intellectual Property Organization (WIPO) in respect of the functioning of their patent systems and collaboration with these offices may also be valuable to the Kuwaiti Government to ensure that Kuwait’s patent system becomes fully functional.\r\n\r\nThe next important question for design right owners is going to be how effective the enforcement of design rights will be in Kuwait.'),
	(187156,4698,'core_values',''),
	(86285,4698,'_content','field_59b649b5c8b2b'),
	(86286,4698,'lawUpdateArticleMonth','4682'),
	(86287,4698,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(86288,4698,'content_description','The Kuwaiti Law number 4 in respect of Patents and Industrial Drawing & Designs and Integrated Circuits issued on 15 April 1962 provided the procedures for the application for registration of patents and designs, including in respect of examination and publication. '),
	(86289,4698,'_content_description','field_59b641c07f473'),
	(86290,4698,'pageSummary','The Kuwaiti Law number 4 in respect of Patents and Industrial Drawing &amp; Designs and Integrated Circuits issued on 15 April 1962 provided the procedures for the application for registration of patents and designs, including in respect of examination and publication.'),
	(86291,4698,'_pageSummary','field_59e59b307dec8'),
	(86292,4698,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/april-5/kuwait-industrial-design-applications-being-processed.html'),
	(86293,4698,'_currentURL','field_59d35123ab1e7'),
	(86294,4698,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','730'),
	(86295,4698,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(86296,4698,'lawUpdateArticleWriters','1'),
	(86297,4698,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(86298,4698,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','634'),
	(86299,4698,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(86300,4698,'lawUpdateArticlePractices','1'),
	(86301,4698,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(86302,4698,'_yoast_wpseo_metadesc','The Kuwaiti Law number 4 in respect of Patents and Industrial Drawing & Designs and Integrated Circuits issued on 15 April 1962 provided the procedures for the application for registration of patents and designs, including in respect of examination and publication.'),
	(86303,4699,'content','April 2013\r\n\r\n<hr />\r\n\r\nThis area – Al Karama – is in fact so well known that it is referenced in a number of travel publications as a place of interest for visitors to Dubai.\r\n\r\nAt the end of 2012 it came to the attention of the legal team of world famous French designer Mr. Christian Louboutin that his distinctive Red Sole shoes have not been spared the interest of counterfeit traders in Dubai and specifically the Al Karama market.  Developing and executing a strategy to understand the extent of the problem and addressing the sale of counterfeit goods in the Dubai market was critical to Mr. Christian Louboutin\r\n\r\nThe first step taken in this matter was to conduct an extensive market investigation in Dubai in order to begin to develop an understanding of the extent of the availability of counterfeit products in the market.  Once the investigation was completed, a view of the extent of the problem could be formed which assisted in identifying key target areas and specific individual targets. The information obtained through this investigation also provided a basis upon which to consider the most appropriate course of action to take the fight to the more than forty counterfeit vendors identified by the market investigation.\r\n\r\nChristian Louboutin carefully considered the various legal options through which actions can be taken against counterfeit goods vendors in Dubai and after considering the spread of vendors in especially the Al Karama market and with a focus on addressing the availability of counterfeit products in the market – he elected to follow an administrative procedure through the Dubai Department of Economic Development (the “DED”).\r\n\r\nThe DED is currently one of the most active law enforcement agencies in Dubai with respect to anti-counterfeiting actions and has its own inspectors who act ex officio monitoring markets and undertaking inspections on behalf of brands owners.  Accordingly, an official complaint was filed with the DED including details of the CHRISTIAN LOUBOUTIN trade marks registered in the UAE.  Along with the complaint, the DED was provided with samples of counterfeit products obtained from the market, samples of authentic products and all details of targets offering counterfeit goods for sale (as obtained through the market investigation).\r\n\r\nChristian Louboutin’s in-house counsels also met with DED officials in Dubai explaining the extent of the counterfeiting problem globally, the impact of this trade on the brand and the value of the brand and specifically Christian Louboutin’s commitment to fighting the trade in counterfeit goods.\r\n\r\nTo date, the DED, with the support of Al Tamimi &amp; Company, had seized thousands of pairs of counterfeit shoes from numerous targets in Dubai.\r\n\r\nThe majority of inspections conducted by the DED focused on targets identified through Al Tamimi &amp; Company’s enforcement team, but in some cases, the DED seized goods during inspections focused on other brands.  Raising the profile of the brand with the DED and showing Christian Louboutin’s commitment to addressing the problem of counterfeit goods in Dubai by taking the time to meet with officials and through the ongoing interaction of Al Tamimi &amp; Company’s team with the DED has clearly played an important role in the success achieved by the DED.\r\n\r\nThe complaint with the DED remains open and Al Tamimi &amp; Company’s enforcement team continues to work very closely with the DED in order to identify new targets and to ensure that the brand remains at the top of the minds of DED inspectors. Protecting the valuable CHRISTIAN LOUBOUTIN brand in Dubai is an ongoing process, but the commitment of Christian Louboutin and the DED to take action in this market has already sent a very strong message to counterfeit traders in Dubai.\r\n\r\nIn addition to the complaint filed with the DED, Christian Louboutin’s trade marks are now also recorded with the Customs Authorities. Accordingly Christian Louboutin’s in-house counsels also met with the Customs Authorities, explaining the extent of the challenges faced by the brand, the impact of the trade in counterfeit goods on the reputation of the brand and their commitment to working with the Customs Authorities in protecting the brand.\r\n\r\nThis matter is a good example of the effectiveness of the administrative actions taken through the DED and the importance of ongoing collaboration with the DED to fight counterfeit trade in Dubai.  At the same time, the importance of working with the Customs Authorities in identifying and pursuing the importation of counterfeit goods cannot be overstated.\r\n\r\nThe first battles in this war against counterfeit goods in Dubai have been won by Christian Louboutin, the DED and Al Tamimi &amp; Company and this constitutes a clear message to the counterfeit traders in the city - the war may be ongoing, but this battle group is mobilised to take aggressive and effective action as and when required.\r\n\r\nFor any assistance in respect of anti-counterfeiting action in the UAE, please contact Waldo Steyn at <a href=\"mailto:w.steyn@tamimi.com\">w.steyn@tamimi.com</a>.'),
	(187125,4699,'core_values',''),
	(187126,4699,'_core_values','field_59b64ab071de4'),
	(187127,4699,'file',''),
	(187128,4699,'_file','field_59b64c10f6600'),
	(86304,4699,'_content','field_59b649b5c8b2b'),
	(86305,4699,'lawUpdateArticleMonth','4682'),
	(86306,4699,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(86307,4699,'content_description','There is an area in one of the older districts in the Emirate of Dubai that is well known for the abundance of “genuine fakes” (as the vendors refer to it) ranging from Swiss watches and smart phones to practically all conceivable brands of high-end fashion goods. '),
	(86308,4699,'_content_description','field_59b641c07f473'),
	(86309,4699,'pageSummary','There is an area in one of the older districts in the Emirate of Dubai that is well known for the abundance of “genuine fakes” (as the vendors refer to it) ranging from Swiss watches and smart phones to practically all conceivable brands of high-end fashion goods.'),
	(86310,4699,'_pageSummary','field_59e59b307dec8'),
	(86311,4699,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/april-5/fighting-counterfeit-trade-in-dubai.html'),
	(86312,4699,'_currentURL','field_59d35123ab1e7'),
	(86313,4699,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Waldo Steyn'),
	(86314,4699,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(86315,4699,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','w.steyn@tamimi.com'),
	(86316,4699,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(86317,4699,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(86318,4699,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(86319,4699,'lawUpdateArticleNoWriters','1'),
	(86320,4699,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(86321,4699,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','634'),
	(86322,4699,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(86323,4699,'lawUpdateArticlePractices','1'),
	(86324,4699,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(86325,4699,'_yoast_wpseo_metadesc','There is an area in one of the older districts in the Emirate of Dubai that is well known for the abundance of “genuine fakes” (as the vendors refer to it) ranging from Swiss watches and smart phones to practically all conceivable brands of high-end fashion goods.'),
	(86326,4700,'content','April 2013\r\n\r\n<hr />\r\n\r\nOnce registration requirements have been satisfied, the next concern for developers is taking the project to market.  On the back of an apparently recovering property market, many developers in Dubai are forging ahead with the marketing and sale of their new projects.  Other developers are looking to revive and re-launch existing or stalled projects.\r\n\r\nIn this article, we consider the legal requirements and documents required to take a project to market in Dubai and highlight some of the potential issues arising.  These requirements and issues will be discussed under the following headings:\r\n<ol>\r\n 	<li>Requirements and issues regarding Sale and Purchase Agreements (“SPAs”);</li>\r\n 	<li>Developer’s disclosure obligations;</li>\r\n 	<li>Jointly Owned Property considerations; and</li>\r\n 	<li>Additional matters for off plan sales.</li>\r\n</ol>\r\n<strong>1. Requirements and issues regarding SPAs\r\n</strong>\r\n\r\nThere has been a great deal of legislative change since the property boom of 2007-2008, and developers should think twice before recycling old sale and purchase documentation.\r\n\r\nIn general terms, SPAs need to be up-to-date and in line with the current legislation.  Relying on out of date documentation can create confusion or, in the worst case, result in the validity of the SPA being challenged.  Below we highlight some aspects of the SPA in relation to which there has been legislative developments and where issues may arise.\r\n\r\n<strong>1.1 Description of unit areas</strong>\r\n\r\nPrior to 2008 there were no particular provisions regarding how unit areas had to be shown or described in SPAs and developers employed a range of different standards and practices.  Since 2008, however, there have been a number of legislative developments in this regard, the latest of which is Executive Council Resolution No. 6 of 2010 (“ECR 6”).\r\n\r\nArticle 13 (1) of ECR 6 states that the “net area” of the unit is the effective area for the purposes of registration and that such area is calculated as determined by the Dubai Land Department (“Land Department”). Article 13 (2) further states any increase in net unit area shall not be taken into account and, unless agreed otherwise, the developer may not claim the value of any such extra areas.  Finally, Article 13 (3) provides “developers must compensate purchasers for any shortfall in the area of the real estate unit if such shortfall exceeds 5% of the net area of the unit.”\r\nThe overall effect of Article 13 is that developers must ensure net unit areas are calculated in accordance with requirements of the Land Department and that net unit areas are accurately stated in the SPAs.  Pursuant to Article 13 (2), it appears that developers are not permitted to sell areas outside of the net unit area, though this could arguably be possible if there is express agreement to acquire such areas and pay for the same.  Developers looking to include areas other than net unit areas in their SPAs should seek professional advice in this regard before proceeding.\r\n\r\n<strong>1.2 Termination\r\n</strong>\r\nECR 6 confirmed the processes established in Law 9 of 2009, allowing developers to terminate off plan SPAs in the event of purchaser payment default.  Furthermore, the measure of compensation available to developers in the event of such termination was linked to the stage of construction reached on the relevant project.\r\n\r\nArticle 20 of ECR 6 established grounds upon which purchasers could seek termination of SPAs due to the developer’s breach.  The specified grounds for termination in Article 20 are:\r\n\r\n(i) if the developer refuses, without a justifiable reason accepted by the Land Department, to deliver the SPA to the purchaser;\r\n\r\n(ii) if the developer has not linked the payments to be made with the construction milestones approved by the Real Estate Regulatory Authority (“RERA”);\r\n\r\n(iii) if the developer significantly changes the specifications agreed upon in the SPA;\r\n\r\n(iv) if the real estate unit is proved to be unusable due to major construction defects; or\r\n\r\n(v) for any other reason which entitles cancellation of the SPA in accordance with the general legal rules.\r\n\r\nAs a result, developers should ensure payment schedules included in SPAs for off plan sales are properly linked to construction milestone as approved by RERA.\r\n\r\nIt is unclear what would constitute a significant change in “specifications” and allow the Purchaser to terminate the SPA under Article 20 (iii), however it does highlight the need to be careful that matters disclosed in the SPA are as accurate as possible.  The developer’s disclosure obligations are further considered below.\r\n\r\n<strong>2. Developer’s disclosure obligations\r\n</strong>\r\nIn 2010, the implementing regulations of Law 27 of 2007 Concerning Ownership of Jointly Owned Properties in the Emirate of Dubai (“JOP Law”) were published and collectively known as the “Directions”.\r\n\r\nThe Direction for General Regulation Concerning Jointly Owned Properties (“General Direction”) established a new disclosure regime for developers selling jointly owned units in a project under construction or in a completed project for which titles are not yet available.\r\n\r\nArticle 4 of the General Regulation stipulates that before the SPA is signed, the developer must give to the purchaser a signed Disclosure Statement setting out certain information about the unit and project, including:\r\n<ul>\r\n 	<li>a description of the building or project of which the unit will be part;</li>\r\n 	<li>the intended uses within the project (e.g. residential, hotel apartments, retail, offices, mixed use);</li>\r\n 	<li>a description of the features pertaining to ecological sustainability;</li>\r\n 	<li>any special use that applies to the unit (e.g. furnished or hotel apartment);</li>\r\n 	<li>facilities on the proposed Common Areas that will be available for use by owners as of right;</li>\r\n 	<li>facilities within the project available for use on a user- pays basis;</li>\r\n 	<li>a draft unit plan prepared in accordance with the (Survey) Directions;</li>\r\n 	<li>a schedule of materials and finishes for both the proposed Common Areas and the unit;</li>\r\n 	<li>items of furniture and furnishings (if any) for the project Common Areas and/or the unit that the developer commits to make available without</li>\r\n</ul>\r\nadditional charge;\r\n<ul>\r\n 	<li>Arrangements for the supply of Utility Services to the unit and Common Areas;</li>\r\n 	<li>whether construction has commenced and, if not, specifying the estimated date for completion of construction;</li>\r\n 	<li>the estimated date on which the property will be handed over to the purchaser;</li>\r\n 	<li>a statement directing the purchaser’s attention to their obligation to register the contract in the interim or permanent real estate register, as applicable, in accordance with the related laws.</li>\r\n</ul>\r\nIn addition, a developer must disclose information and documents relating to the jointly owned property scheme of the project.  These include:\r\n<ul>\r\n 	<li>a copy of the proposed Jointly Owned Property Declaration;</li>\r\n 	<li>a copy of any proposed Building Management Statement;</li>\r\n 	<li>a copy of any Supply Agreement to be entered into by the proposed Owners Association;</li>\r\n 	<li>a budget prepared on a reasonable basis having regard to the Directions for both the general fund and reserve fund for the first two financial years of operation of the proposed Owners Association;</li>\r\n 	<li>an estimate, based on that budget, of the service charges payable in respect of the Proposed Unit to each of those funds during those two financial years.</li>\r\n</ul>\r\nThe consequence of not providing a Disclosure Statement is that the SPA, in relation to which the Disclosure Statement should have been given, may be deemed void and of no effect (Article 5, General Direction).\r\n\r\nArticle 5 further provides that the developer warrants the information in the Disclosure Statement for a period of two years, from the date the unit is transferred from the developer.  If within this warranty period any information in the Disclosure Statement is found to be inaccurate or incomplete in a material way, the developer is liable to the purchaser (and any subsequent purchasers) for damages.\r\n\r\nA common misconception is that Disclosure Statements are only required in relation to under construction projects.  Developers should be mindful, however, that Article 4 of the General Direction applies to sale of units in any completed jointly owned property project for which titles are not yet available - irrespective of when the project was completed.\r\n\r\nAnother challenging area is the nature and scope information that must be provided in a Disclosure Statement to comply with Article 4 of the General Direction.  For example, it may be difficult to provide comprehensive information in relation to the jointly owned property scheme because these matters have not been finalised.  In other cases, a draft Jointly Owned Property Declaration may have been prepared but could be subject to amendment after consultation with the interim Owners Association Board or as may be required by RERA.\r\n\r\nAs at the date of this article, we are not aware of any court cases or decisions dealing with the issues around accuracy and completeness of Disclosure Statements.  It should be noted however that the Disclosure Statement must be found incomplete or inaccurate “in a material way”, and accordingly this may exclude minor or inconsequential missing information and inaccuracies.  Moreover, pursuant to Article 5 of the General Direction, purchasers would likely have to show that the incompleteness or inaccuracy of the Disclosure Statement resulted in quantifiable losses, before purchasers can claim damages from the developer.  In any event, developers would appear to be running a greater risk by not providing a Disclosure Statement at all, which may result in the SPA being declared void.\r\n\r\nAs a general matter, SPAs should be consistent with the information provided in a Disclosure Statement.\r\n\r\n<strong>3. Jointly Owned Property considerations</strong>\r\n\r\nThough the JOP Law was enacted in 2007, there is still some lack of clarity around the implementation and regulatory aspects of the JOP Law and the Directions.  Ongoing developments in this regard may affect what is required of developers and impact the jointly owned property structure eventually adopted for a particular project.  It may also affect arrangements at the Master Community level.\r\n\r\nThese are important matters for developers, not only for SPA and disclosure purposes but also in terms of developers’ ongoing involvement and obligations in relation to their projects.\r\n\r\nThe Al Tamimi Property team will in the near future be completing a comprehensive article detailing developments, current issues and other matters regarding the implementation of the JOP Law and the Directions.\r\n\r\n<strong>4. Additional matters for off plan sales\r\n</strong>\r\nThe regulatory requirements for developers wishing to sell off plan have already been covered in detail in the February 2013 edition of Law Update; however it is worthwhile noting developers’ obligations in relation to escrow funds and registration.\r\n\r\nPursuant to Law 8 of 2007, developers must ensure all proceeds of sale of units sold off plan are deposited into an escrow account opened by application to RERA.  Funds deposited in the escrow account must be used solely for the purposes of construction of the project.\r\n\r\nOnce off plan sales commence, developers must also ensure they comply with the registration requirements pursuant to Law 13 of 2008 Regulating the Interim Real Estate Register in the Emirate of Dubai as amended (“Pre-registration Law”).  Article 3 of the Pre-registration Law provides that no sale of any off plan property will be valid, unless recorded in the Interim Real Estate Register (known as the “Oqood” system).  Registration in Oqood must be completed in accordance with the Land Department’s rules and procedures.  Currently Oqood registration can be completed online via the Land Department’s website.\r\n\r\n<strong>5. Conclusion</strong>\r\n\r\nLegislative developments over recent years have significantly changed the requirements for developers taking their projects to market in Dubai.  In particular, requirements have changed in relation to disclosure obligations, jointly owned property and off plan sales, with the emphasis moving towards greater transparency and consumer protection.\r\n\r\nDevelopers should take care to ensure that all sales documentation is up to date and compliant with the most recent legal requirements before going to market.'),
	(187094,4700,'core_values',''),
	(187095,4700,'_core_values','field_59b64ab071de4'),
	(187096,4700,'file',''),
	(187097,4700,'_file','field_59b64c10f6600'),
	(187098,4700,'orderValue4','4'),
	(187099,4700,'_orderValue4','field_59d2096a8ff34'),
	(187100,4700,'related_pages_header',''),
	(187101,4700,'_related_pages_header','field_59b6441e3cc94'),
	(187102,4700,'related_pages',''),
	(187103,4700,'_related_pages','field_59b6434af4880'),
	(187104,4700,'relatedArticles',''),
	(187105,4700,'_relatedArticles','field_59d349d04107c'),
	(86327,4700,'_content','field_59b649b5c8b2b'),
	(86328,4700,'lawUpdateArticleMonth','4682'),
	(86329,4700,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(86330,4700,'content_description','Recent articles by the Al Tamimi Property team explored the regulatory requirements for registering as a developer in the United Arab Emirates and the Middle East region.'),
	(86331,4700,'_content_description','field_59b641c07f473'),
	(86332,4700,'pageSummary','Recent articles by the Al Tamimi Property team explored the regulatory requirements for registering as a developer in the United Arab Emirates and the Middle East region.'),
	(86333,4700,'_pageSummary','field_59e59b307dec8'),
	(86334,4700,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/april-5/taking-your-project-to-market.html'),
	(86335,4700,'_currentURL','field_59d35123ab1e7'),
	(86336,4700,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Katrine Kofoed'),
	(86337,4700,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(86338,4700,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','k.kofoed@tamimi.com'),
	(86339,4700,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(86340,4700,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(86341,4700,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(86342,4700,'lawUpdateArticleNoWriters','1'),
	(86343,4700,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(86344,4700,'_yoast_wpseo_metadesc','Recent articles by the Al Tamimi Property team explored the regulatory requirements for registering as a developer in the United Arab Emirates and the Middle East region.'),
	(86345,4702,'_wp_attached_file','uploads2/media-4701.jpg'),
	(86346,4702,'_wp_attachment_metadata','a:5:{s:5:\"width\";i:100;s:6:\"height\";i:133;s:4:\"file\";s:23:\"uploads2/media-4701.jpg\";s:5:\"sizes\";a:0:{}s:10:\"image_meta\";a:12:{s:8:\"aperture\";s:1:\"0\";s:6:\"credit\";s:0:\"\";s:6:\"camera\";s:0:\"\";s:7:\"caption\";s:0:\"\";s:17:\"created_timestamp\";s:1:\"0\";s:9:\"copyright\";s:0:\"\";s:12:\"focal_length\";s:1:\"0\";s:3:\"iso\";s:1:\"0\";s:13:\"shutter_speed\";s:1:\"0\";s:5:\"title\";s:0:\"\";s:11:\"orientation\";s:1:\"0\";s:8:\"keywords\";a:0:{}}}'),
	(86347,4701,'lawUpdateImageURL','5907'),
	(86348,4701,'_lawUpdateImageURL','field_59c8deca117cd'),
	(86349,4701,'lawUpdateDesc',''),
	(86350,4701,'_lawUpdateDesc','field_59da24cd91f17'),
	(86351,4701,'lawUpdateYear','2013'),
	(86352,4701,'_lawUpdateYear','field_59da245091f13'),
	(86353,4701,'pageSummary',''),
	(86354,4701,'_pageSummary','field_59e59b307dec8'),
	(86355,4701,'lawUpdateStartMonth','May'),
	(86356,4701,'_lawUpdateStartMonth','field_59da247791f14'),
	(86357,4701,'currentURL','http://localhost:8888/tamimi/en/section/law-update/section-5/may-5'),
	(86358,4701,'_currentURL','field_59d35123ab1e7'),
	(86359,4703,'content','<p>The extent of this liability has been examined in a recent Abu Dhabi Supreme Court judgment as detailed here below.&nbsp;</p>\r\n<p><strong>Facts of the case</strong></p>\r\n<p>An insurance company (the Claimant) filed for legal action before Sharjah Court of First Instance against another insurance Company (the First Respondent) and an Oil Company (the Second Respondent) seeking a court order for damages. The Claimant brought proceedings on the basis that a fire broke out at the storehouses owned by the Oil Company and caused damages to&nbsp; nearby warehouses. The Claimant, as the insurer for the affected neighboring warehouses, indemnified its owners. The Claimant consequently pursued a subrogated claim against the First and the Second Respondents seeking a court order against the Respondents with an amount exceeding AED 40 millions and interest.&nbsp;</p>\r\n<p>The Claimant relied in its action on provisions of Article 316 of the UAE Civil Code&nbsp; (&ldquo;the Law&rdquo;) which provides &ldquo;Any person who has things under his control which require special care in order to prevent their causing harm, or mechanical equipment, shall be liable for any harm done by such things or equipment, save to the extent that harm could not have been averted, without prejudice to any special provisions in this regard&rdquo;&nbsp;</p>\r\n<p><strong>Procedural History</strong></p>\r\n<p>The Court of First Instance issued a decision dismissing the case. The Claimant appealed before the Court of Appeal which was affirmed the lower court&rsquo;s decision. The case was then appealed to the Abu Dhabi Supreme Court.&nbsp;</p>\r\n<p><strong>The Supreme Court</strong></p>\r\n<p>The Supreme Court held that the effect of Article 316,as supported bythe explanatory memo of the Law, is that the custodian of the thing that requires special care (whether such person is the owner or not), is liable for harm caused from said thing. The custodian&rsquo;s liability here is not on the basis of the presumed fault but on the basis of the rule that the burden accompanies the benefit.&nbsp; However, the custodian of the thing can avoid liability by negating one of the elements of the cause of action by proving:</p>\r\n<ul>\r\n<li>that the thing which caused the harm did not require special care to prevent its causing harm;&nbsp;</li>\r\n<li>proving that the custodian did not have actual control over the thing at the time the harm occurred;&nbsp;</li>\r\n<li>that the custodian had taken all the precautions necessary to prevent the thing causing harm;&nbsp;</li>\r\n<li>that the harm could not have been prevented because a person is bound to do only that which is within his capability; or</li>\r\n<li>under the general rules, that the harm did not result from the thing but was due to an external factor over which the custodian had no control.&nbsp;</li>\r\n</ul>\r\n<p>On the other hand, Article 282 of the Civil Code provides that &ldquo;Any harm done to another shall render the doer thereof, even though not a person of discretion, liable to make good the harm&rdquo;. This means according to the explanatory memo of the Civil Code that Article 282 establishes the elements of a tort claim as fault, harm, and a causal link between them. The term harm is used instead of various other terms that describe fault such as &ldquo;unlawful act&rdquo;, &ldquo;act contrary to the law&rdquo; or &ldquo;act prohibited by law&rdquo;.&nbsp;</p>\r\n<p>Also, Article 283 of the same code provides that &ldquo;(1) harm may be direct or by causation (2) If the harm is direct, it must unconditionally be made good, and if it is consequential there must be a wrongdoing or a deliberate act or the act must have led to the harm.&rdquo; This indicates, according to the explanatory memo of the Civil Code, that damage is direct if the act causing the loss is done directly on the thing itself, and such a person is called the direct actor; as where for example when one breaks a pot.Whereas causation is established if the actor does an act on something else which leads to the damaging of the thing; as for example where one cuts a rope from which a lantern is hanging and the lantern falls and breaks. The actor directly caused of damage to the rope, and&nbsp; indirectly caused the damage of the lantern, or as in the case where a fire broke out at a certain location and spread elsewhere causing fire damage at the other location. A direct actor is liable even if he has not acted deliberately or wrongfully, whereas an indirect actor is liable only if he has acted deliberately or wrongfully. The issue of liability in tort or for things lies in the sound discretion of the trial court as finder of fact and weigher of evidence.&rdquo;</p>\r\n<p>In light of the above law provisions, the Abu Dhabi Supreme Court rendered its judgment upholding the Sharjah Appeal Court and held that the lower court&rsquo;s decision was in accordance with the provisions of the law:&nbsp;</p>\r\n<p>&ldquo;The lower court dismissed the Claimant&rsquo;s insurer&rsquo;s subrogation claim on behalf of the insured seeking a recovery against the oil company for damages caused to the insured by the fire that had spread to their premises from the oil company&rsquo;s premises. The lower court reasoned its dismissal on the basis that the case documents and the reports of technical experts, including those from forensic laboratories in Sharjah, Abu Dhabi and Dubai, did not conclusively pinpoint the cause of the damage that destroyed the oil company and its contents and the source of the flames to confirm that the fire and the damage sustained by the insured were caused by things under the oil company&rsquo;s control in terms of the building and its contents (oil, storage facilities, vehicles) and, in turn, its liability as one liable for things. The lower court held that the oil company should not be made to bear the burden of negating its ability to avert the damage by proving that the damage was due to external factors or an act of the aggrieved party, as this would require knowledge of the cause of the fire and proof that the fire was caused by things under its control. If, however, the cause is unknown, and not conclusively shown to be due to those things, then there can be no obligation to do what is not possible since liability for damage caused by things cannot be made to rest on presumed fault. The lower court accordingly found the oil company not liable for damages as one liable for things under Article 316 of the Law and not liable in tort under Article 282 of said Law because there was no proof of its fault. The oil company was also found no to be liable under Article 283 of said Law as a direct actor in the sense of having done the act causing the fire directly.&rdquo;</p>\r\n<p><strong>Practice Note</strong></p>\r\n<p>There are several key and important points noted from the Abu Dhabi Supreme Court judgment above:</p>\r\n<p>In order to prove damages and its source, it is pertinent to identify its cause. No liability can be imposed on the defendant in the absence of one of the key elements of a cause of action, in this case, the cause.&nbsp;</p>\r\n<p>Justice necessitates that the defendant&rsquo;s liability be determined to arise in contract or in tort while allowing the defendant the opportunity to dispute said liability. A defendant will not be liable for damages if the claimant has not established a statutory basis for liability. Hence, the Court&rsquo;s finding that the defendant cannot disprove liability if the claimant has not identified a statutory basis for liability in the first place.&nbsp;</p>\r\n<p>The above ruling is an invitation to owners of companies, factories and warehouses to ensure safety of their establishments by exercising the necessary level of care towards the maintenance of their establishments. Equipping their establishments with sufficient risk detection devices that are provided by specialized companies which can provide a record of evidence, in cases where damage occurs, is an essential tool that business owners can use to dispute liability for damages caused by things under their custody.&nbsp;</p>'),
	(86360,4703,'_content','field_59b649b5c8b2b'),
	(86361,4703,'lawUpdateArticleMonth','4701'),
	(86362,4703,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(86363,4703,'content_description','The responsibility for objects which need special care or sophisticated mechanical equipment lies with the person who is in control of said objects. This responsibility could, if the needed care is not exercised, make the person whose controlling said objects be liable for direct damages caused by the objects and perhaps even indirect damages.'),
	(86364,4703,'_content_description','field_59b641c07f473'),
	(86365,4703,'pageSummary','The responsibility for objects which need special care or sophisticated mechanical equipment lies with the person who is in control of said objects. This responsibility could, if the needed care is not exercised, make the person whose controlling said objects be liable for direct damages caused by the objects and perhaps even indirect damages.'),
	(86366,4703,'_pageSummary','field_59e59b307dec8'),
	(86367,4703,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/may-5/uae-the-standard-of-care-for-special-care-objects-and-equipment-and-the-extent-of-liability-of-its-c.html'),
	(86368,4703,'_currentURL','field_59d35123ab1e7'),
	(86369,4703,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Zafer Oghli'),
	(86370,4703,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(86371,4703,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','z.oghli@tamimi.com'),
	(86372,4703,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(86373,4703,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(86374,4703,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(86375,4703,'lawUpdateArticleNoWriters','1'),
	(86376,4703,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(86377,4703,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','410'),
	(86378,4703,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(86379,4703,'lawUpdateArticlePractices','1'),
	(86380,4703,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(86381,4703,'_yoast_wpseo_metadesc','The responsibility for objects which need special care or sophisticated mechanical equipment lies with the person who is in control of said objects. This responsibility could, if the needed care is not exercised, make the person whose controlling said objects be liable for direct damages caused by the objects and perhaps even indirect damages.'),
	(86382,4704,'content','May 2013\r\n\r\n<hr />\r\n\r\nExamples of significant developments include Abu Dhabi’s introduction of compulsory health insurance for all residents, and the development of Dubai Healthcare City, which will serve as home to world class health facilities, and research and education facilities. This article sets out the background to the regulation of medical advertising in the UAE.\r\n\r\nArticle 83 of Federal Law No. 15 of 1980 Regarding Printed Matters and Publications prohibits the publication of advertisements about medicines or pharmaceutical products except with special permission from the Ministry of Health. Cabinet Resolution No. 7 of 2007 Regarding Health Advertisements Regulation (the “Cabinet Resolution”) provides more specific detail. A related Ministerial Resolution sets out further detailed controls and mechanisms relating to the implementation of the regulations set out in the Cabinet Resolution.\r\n\r\nThe licensing conditions set out in the Cabinet Resolution may be broadly categorized as prohibitions on advertisements in poor taste, prohibitions on misleading statements of a medical nature, prohibitions on misleading statements of a comparative nature, and prohibitions on misleading statements of a general nature, as well as prohibitions on sales incentives directed to certain persons.\r\n\r\nThe prohibitions of advertisements that breach good taste are basically couched in terms of prejudice to public morals, and violation of the customs and traditions of UAE society or Islamic values. In a related vein, there is also a prohibition on healthcare advertising that targets minors.\r\n\r\nWith regard to misleading statements of a medical nature, the licensing conditions prohibit advertisements likely to result in self-diagnosis or the improper treatment of potentially serious diseases. Advertisements must not be likely to mislead consumers to believe that they have a serious medical condition, or (with limited exceptions) that grave consequences may result if they do not use the advertised products. Advertisements which basically guarantee the effectiveness of a medication, or which indicate that the use of a product is safe or has no side-effects, are also prohibited.\r\n\r\nStatements of a comparative nature, which have a tendency to mislead consumers, are prohibited. This prohibition relates to advertisements which mislead directly, or indirectly, including by incomplete comparisons and contrasts with other products. Language which includes false facts are specifically prohibited, as are advertisements which are ambiguous to the extent that more than one construction or interpretation could be drawn with regard to the factual content of the advertisement.\r\n\r\nGeneral puffery in the context of health advertisements is prohibited. Terms such as “unique”, “incomparable”, “beware of imitation”, etc., are to be avoided. Similarly, language such as “limited quantity”, “don’t miss it” are also to be avoided. Advertisements are to contain correct and sound statements only, and must not make untrue claims about the effectiveness of the product.\r\n\r\nSales incentives to certain healthcare workers are not permitted in any healthcare advertisement. The type of worker is specifically identified as pharmacy assistant and other retail sales persons with no specialty in healthcare. The prohibition relates to advertisements that state, or imply, a personal incentive to recommend or sell a particular pharmaceutical product. This provision is not clearly aimed at preventing incentives to medical professionals, such as pharmacists and doctors, although provisions of law such as the Federal Law No. 6 of 1983 on the Pharmaceutical Profession and Institutions prohibit pharmacists from entering into secret deals with third parties that encourage certain types of sale.\r\n\r\nThere is a specific approval regime for advertisements relating to healthcare, and anyone planning to market healthcare products, including pharmaceuticals, in the  UAE would be well-advised to familiarize themselves with the process, and penalties, before committing to any marketing activity.\r\n\r\nAl Tamimi &amp; Company’s Technology, Media &amp; Telecommunications team regularly advises clients in respect of advertising in the UAE, for more information, please contact Nick O’Connell n.oconnell@tamimi.com.'),
	(186566,4704,'core_values',''),
	(186567,4704,'_core_values','field_59b64ab071de4'),
	(86383,4704,'_content','field_59b649b5c8b2b'),
	(86384,4704,'lawUpdateArticleMonth','4701'),
	(86385,4704,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(86386,4704,'content_description','Many changes are afoot in respect of healthcare and pharmaceuticals in the UAE. There is a real push to improve standards relating to health and medicine across the board. '),
	(86387,4704,'_content_description','field_59b641c07f473'),
	(86388,4704,'pageSummary','Many changes are afoot in respect of healthcare and pharmaceuticals in the UAE. There is a real push to improve standards relating to health and medicine across the board.'),
	(86389,4704,'_pageSummary','field_59e59b307dec8'),
	(86390,4704,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/may-5/healthcare-advertising-in-the-uae.html'),
	(86391,4704,'_currentURL','field_59d35123ab1e7'),
	(86392,4704,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','918'),
	(86393,4704,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(86394,4704,'lawUpdateArticleWriters','2'),
	(86395,4704,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(186559,4704,'_timeline_header','field_59b63de5b74bf'),
	(186558,4704,'timeline_header',''),
	(186556,4704,'orderValue2','2'),
	(186557,4704,'_orderValue2','field_59d0c6f6175b8'),
	(186555,4704,'_stats_list','field_59b6372466bcc'),
	(186554,4704,'stats_list',''),
	(186552,4704,'orderValue1','1'),
	(186553,4704,'_orderValue1','field_59d0c6e5175b5'),
	(86402,4704,'lawUpdateArticleNoWriters',''),
	(86403,4704,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(86404,4704,'_yoast_wpseo_metadesc','Many changes are afoot in respect of healthcare and pharmaceuticals in the UAE. There is a real push to improve standards relating to health and medicine across the board.'),
	(86405,4705,'content','May 2013\r\n\r\n<hr />\r\n\r\nThe Cyber Crimes Law 2012 provides for a range of new offences, including offences intended to address the UAE’s obligations pursuant to international treaties. Additionally, the Cyber Crimes Law sets out significantly higher penalties than those found in the 2006 law.\r\n\r\n<strong>General themes</strong>\r\n\r\nThe general themes of the provisions of the Cyber Crimes Law can be broadly categorised as follows:\r\n<ul>\r\n 	<li>IT security</li>\r\n 	<li>State security and political stability</li>\r\n 	<li>Morality and proper conduct</li>\r\n 	<li>Financial and commercial issues</li>\r\n 	<li>“Miscellaneous”</li>\r\n</ul>\r\n<strong>IT security</strong>\r\n\r\nThe provisions that relate to IT security address issues like hacking IT networks to steal data, change websites, interrupt service, distribute viruses, and the like. More specifically, the provisions in this category can be summarised as follows.\r\n<ul>\r\n 	<li>Accessing an IT System (“IT System”) without authorisation. (Greater penalties are provided where the subject data was personal data, or when the perpetrator commits the offence in the course of his or her employment.)</li>\r\n 	<li>Unauthorised access to an IT System to obtain government or commercial information. (This provision specifically references government information, but also refers to information relating to financial, trade or economic establishments licensed in the UAE.)</li>\r\n 	<li>Accessing a website without permission to damage, delete or change its content.</li>\r\n 	<li>Disabling access to an IT System.</li>\r\n 	<li>Circumventing an IP address for the purpose of committing or concealing a crime. (The scope of application of this provision is – potentially – very broad. On the one hand, it could refer to masking the IP address from which a major hacking attack is launched; on the other hand, it could potentially extend to the likes of use of an off-shore VPN in order to access pirated/unlicensed content from abroad. This latter example may be of much less interest to the authorities on a day-to-day basis, although it would still appear to be captured by the prohibition.)</li>\r\n 	<li>Introducing virus programmes to an IT System; and spam emails. (This provision provides significant penalties for the introduction of computer viruses, being either or both of five or more years imprisonment and AED500,000 to AED3,000,000 fine, with imprisonment and a fine of up to AED500,000 being available for unsuccessful attempts.)</li>\r\n 	<li>Obtaining, without authorisation, passwords to an IT System.  (This provision does not specify that the act of obtaining such password/code need occur via an IT System, and the language appears broad enough to cover obtaining by way of IT System, or otherwise. Additionally, this provision includes a broad prohibition on making available (whether by making directly or procuring; and including by way of importation, sale, etc.) any means or information designed to commit/facilitate/incite others to commit crimes specified under the law.)</li>\r\n 	<li>Unauthorised interception of communications via an IT System. (This provision seems to mirror the prohibition on intercepting communications (ie. eavesdropping on phone calls and intercepting mail) found in the Penal Code and (in the case of phone calls) the Telecommunications Law. Additionally, the act of disclosing information so gathered is also captured by this provision.)</li>\r\n 	<li>Unauthorised disclosure of confidential information via an IT System. (This provision appears to be designed to capture ‘Wikileaks’ type situations, namely, situations where workers who obtain confidential information in the course of their employment release such confidential information without authority.)</li>\r\n</ul>\r\nBasically, these provisions are all targeted at the integrity of the IT System, and data held or transmitted over such IT System.\r\n\r\n<strong>State security and political stability</strong>\r\n\r\nA number of provisions are specifically pointed at state security and dignity, and political stability. The provisions in this category can be summarised as follows.\r\n<ul>\r\n 	<li>Unauthorised access to an IT System to obtain government or commercial information.</li>\r\n 	<li>Operating a site, or posting information online, that stirs sedition, hatred, racism or sectarianism, or hurts national unity or social peace or prejudices public order or public morals.</li>\r\n 	<li>Operating a site, or posting information, for a terrorist group or illegal organisation.</li>\r\n 	<li>Operating a site, or posting information online, that exposes the State’s security and interests to danger and prejudice public order.</li>\r\n 	<li>Publishing information/news/rumours online for the purpose of harming the status of the State.</li>\r\n 	<li>Operating a site, or posting information online, for overthrowing the government of the State, or undermining the Constitution.</li>\r\n 	<li>Publishing information online to incite non-compliance with laws.</li>\r\n 	<li>Using an IT System to provide others with information that harms the interests of the state or offending its dignity.</li>\r\n</ul>\r\nThese provisions set-out a range of prohibitions designed to manage security threats, such as terrorism and organised crime, as well as to protect the system of government.\r\n\r\n<strong>Morality and proper conduct</strong>\r\n\r\nA number of provisions are pointed at proper conduct. These include sanctions on using the internet for conduct that is disrespectful to Islam, as well as prohibitions on the use of the internet for activities that are otherwise inconsistent with public morals and good conduct. In summary, these include using an IT System to:\r\n<ul>\r\n 	<li>offend religious sanctities or encourage sins,</li>\r\n 	<li>provide pornography, gambling activities, and other materials prejudicial to public morals,</li>\r\n 	<li>promote prostitution/debauchery,</li>\r\n 	<li>slander another person, and</li>\r\n 	<li>breach the privacy of another (eg. by intercepting communications, taking photographs, publishing information, etc.).</li>\r\n</ul>\r\n<strong>Financial and commercial issues</strong>\r\n\r\nThere are a number of provisions that can broadly be understood as relating to ecommerce and online financial activity. These include:\r\n<ul>\r\n 	<li>Forging electronic documents or knowingly using forged electronic documents,</li>\r\n 	<li>Using an IT System to obtain goods fraudulently  and without legal right,</li>\r\n 	<li>Using an IT System to unlawfully access bank account details, and</li>\r\n 	<li>Producing credit / debit cards without legal right or knowingly using and/or dealing with such illegal cards.</li>\r\n</ul>\r\n<strong>Miscellaneous</strong>\r\n\r\nThere are a number of other provisions of interest that do not neatly fall into the categories outlined above.\r\n\r\nArticles 23, 25, 33 and 36 appear to be aimed directly at addressing international obligations as specified in related treaties. These provisions relate to human trafficking and trafficking in human organs, trading in weapons, ammunition and explosives, trading in antiquities and trading or promoting narcotics.\r\n\r\nOf the other ‘miscellaneous’ offences, there are prohibitions on:\r\n<ul>\r\n 	<li>Using an IT System to blackmail someone into committing an offence or doing something that would prejudice honour,</li>\r\n 	<li>Operating a site, or posting information online, for the purpose of gathering donations without a licence, and</li>\r\n 	<li>Using an IT System to unlawfully benefit from, or facilitate the use by others of, communications services.</li>\r\n</ul>\r\n<strong>Mechanical provisions of note</strong>\r\n\r\nThere are a number of important ‘mechanical’ provisions, including provisions that provide for the extra-territorial application of the Cyber Crimes Law, and the liability of site owners for failure to remove offending content.\r\n\r\n<strong>Penalties</strong>\r\n\r\nBesides providing for significant financial penalties and custodial sentences, and the deportation of foreigners convicted of any offence under the law, the Cyber Crimes Law empowers the authorities to seize and destroy equipment used in the commission of the offence.\r\n\r\nAl Tamimi &amp; Company’s Technology, Media &amp; Telecommunications team regularly advises clients on how to work within the law on the types of matters covered by the Cyber Crimes Law.  We work closely with colleagues in other departments to assist clients with issues arising from apparent breaches of prohibitions found in the Cyber Crimes Law.  For further information on Cyber Crimes Law matters, please contact Nick O’Connell (n.oconnell@tamimi.com).'),
	(186603,4705,'core_values',''),
	(186604,4705,'_core_values','field_59b64ab071de4'),
	(186605,4705,'file',''),
	(186606,4705,'_file','field_59b64c10f6600'),
	(55925,3337,'_wp_attached_file','uploads/media-3336.jpg'),
	(55926,3337,'_wp_attachment_metadata','a:5:{s:5:\"width\";i:100;s:6:\"height\";i:133;s:4:\"file\";s:22:\"uploads/media-3336.jpg\";s:5:\"sizes\";a:0:{}s:10:\"image_meta\";a:12:{s:8:\"aperture\";s:1:\"0\";s:6:\"credit\";s:0:\"\";s:6:\"camera\";s:0:\"\";s:7:\"caption\";s:0:\"\";s:17:\"created_timestamp\";s:1:\"0\";s:9:\"copyright\";s:0:\"\";s:12:\"focal_length\";s:1:\"0\";s:3:\"iso\";s:1:\"0\";s:13:\"shutter_speed\";s:1:\"0\";s:5:\"title\";s:0:\"\";s:11:\"orientation\";s:1:\"0\";s:8:\"keywords\";a:0:{}}}'),
	(85314,4649,'_content','field_59b649b5c8b2b'),
	(85315,4649,'lawUpdateArticleMonth','4640'),
	(85316,4649,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85317,4649,'content_description','As recently demonstrated, local and international companies in the Middle East must be compliant with several jurisdictions at the same time and keep abreast of legislative changes from the United Nations (UN), European Union (EU) and United States of America (US) that affect Iran and other sanctioned countries. The ultimate defense in protecting yourself from the possibility of infringing any of the existing sanctions remains preventive action.'),
	(85318,4649,'_content_description','field_59b641c07f473'),
	(85319,4649,'pageSummary','As recently demonstrated, local and international companies in the Middle East must be compliant with several jurisdictions at the same time and keep abreast of legislative changes from the United Nations (UN), European Union (EU) and United States of America (US) that affect Iran and other sanctioned countries. The ultimate defense in protecting yourself from the possibility of infringing any of the existing sanctions remains preventive action.'),
	(85320,4649,'_pageSummary','field_59e59b307dec8'),
	(85321,4649,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/march-4/economic-sanctions-against-iran.html'),
	(85322,4649,'_currentURL','field_59d35123ab1e7'),
	(85323,4649,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','946'),
	(85324,4649,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(85325,4649,'lawUpdateArticleWriters','1'),
	(85326,4649,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(85327,4649,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','631'),
	(85328,4649,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85329,4649,'lawUpdateArticlePractices','1'),
	(85330,4649,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85331,4649,'_yoast_wpseo_metadesc','As recently demonstrated, local and international companies in the Middle East must be compliant with several jurisdictions at the same time and keep abreast of legislative changes from the United Nations (UN), European Union (EU) and United States of America (US) that affect Iran and other sanctioned countries. The ultimate defense in protecting yourself from the possibility of infringing any of the existing sanctions remains preventive action.'),
	(85332,4650,'content','<p>In communicating with consumers in advertising there may accordingly be some advantage in providing comparative - scientifically supported - infoxrmation on the benefits or performance of one product as compared to the products of others.&nbsp; The key question however, is whether this practice is lawful in the UAE and for the purpose of this article in particular, whether the practice is lawful in respect of medical products?</p>\r\n<p>There are a range of laws in the UAE that deal with advertising and in order to consider the extent to which comparative advertising may be lawful in the UAE, a number of different laws and regulations need to be considered.</p>\r\n<p>In general terms the Commercial Transactions Law regulates unfair competition which has direct implications for what would constitute appropriate content for advertisements.&nbsp; The Commercial Transactions Law provides for example that a trader may not resort to fraud and cheating when marketing his goods, nor may he spread or publish false particulars that are prejudicial to the interests of a competitor.&nbsp; With respect to advertising specifically, this law provides that a trader may not publish matter that is inconsistent with reality regarding the goods, including their origin, description or importance. A trader may also not resort to any other misleading means, with the intent thereby to usurp the customers of a competitor.&nbsp;</p>\r\n<p>An advertisement containing false information either about the advertised product or about a product possibly being compared therewith will amount to a form of unfair competition and in terms of the Commercial Transactions Law, such advertisements will expose the advertiser to claims for damages.</p>\r\n<p>Other laws that address advertising include the Suppression of Fraud Executive Regulations providing that commercial statements contained in advertisements must be accurate in all respects.&nbsp; These regulations further provide specifically that a trader may not publish false information concerning the importance of goods, or make false representations as to rank, medal or reward. The Consumer Protection Law further provides that a supplier may not display, offer, promote or advertise any misleading goods that would harm the interests or health of consumers, which may include information about goods that may be misleading. &nbsp;</p>\r\n<p>Based on the above it can be concluded that comparative advertising as such is not prohibited by law, provided that the content of a proposed advertisement complies with the various requirements set by laws such as the Commercial Transactions Law, the Suppression of Fraud Executive Regulations and the Consumer Protection Law.</p>\r\n<p>With respect to health advertisements, the Health Advertisements Regulations deal with the advertising of medical products. In these regulations the term &ldquo;medical products&rdquo; is widely defined including a wide range of matter that is related to the human health such as:</p>\r\n<ul>\r\n<li>pharmaceuticals (as well as herbal medicine, health food, nutritional supplements and beauty centres);</li>\r\n<li>medical apparatus;</li>\r\n<li>medical institutions;</li>\r\n<li>persons practicing a medical profession; and</li>\r\n<li>methods of medical treatment.</li>\r\n</ul>\r\n<p>Both the Law Concerning Publications and Publishing and the Health Advertisements Regulations provide that the Ministry of Health is the only authority that may license advertisements of pharmaceutical and medical products.&nbsp; It is to be noted that the Health Advertisements Regulations define &ldquo;advertisement&rdquo; widely including &ndash;</p>\r\n<p><em>&ldquo;any information about a medical product in written, photographic and broadcasting form&hellip;&rdquo;</em></p>\r\n<p>The Health Advertisements Regulations provide an extensive list of conditions that advertising of medical products needs to comply with in order to be licensed by the Ministry of Health.&nbsp; These conditions include that the relevant advertising shall not:</p>\r\n<ul>\r\n<li>contravene the applicable laws and regulations in the UAE in general and particularly the laws relating to publications and publishing;</li>\r\n<li>be prejudicial to third parties&rsquo; products and institutions;</li>\r\n<li>contain false statements that deceive the public, and shall not be subject to interpretations;</li>\r\n<li>mislead directly, or by means of indication, confirmation, comparison, contradictions, or omissions; and</li>\r\n<li>warn against or cause harm to an alternative to the medical product advertised.</li>\r\n</ul>\r\n<p>Comparative advertising is not prohibited by the Health Advertisements Regulations, but must be well-balanced and not misleading whether with regard to the pharmaceutical products advertised, the relevant medical products or categories of medical products with which they are compared. The Health Advertisements Regulations specifically requires that any points of comparison in comparative advertising must be real and must be scientifically substantiated.&nbsp; Dealing with scientific information specifically, the regulations provide that such information must be presented in an accurate, well-balanced and non-fallacious fashion and the scientific terms used must be appropriate, informative and easily understandable by the targeted consumers.&nbsp;</p>\r\n<p>Importantly, if any comparison is made, the comparisons may not prove that another medical product or category of medical products is harmful or ineffective.</p>\r\n<p>In summary, the position in the UAE is that comparative advertising is lawful provided that such advertising does not amount to unfair competition, contravene provisions of relevant legislation related to the protection of consumers or the prevention of fraud or, in the case of pharmaceuticals and medical products, the regulations related to advertisements of medical products.&nbsp; In all instances of advertising related to the medical products, the approval of the Ministry of Health will be required and it will be at the discretion of the Ministry which advertising content it will approve.</p>'),
	(85333,4650,'_content','field_59b649b5c8b2b'),
	(85334,4650,'lawUpdateArticleMonth','4640'),
	(85335,4650,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85336,4650,'content_description','In an ever increasingly competitive world, the differentiation of products from those of competitors is not only important, but essential. '),
	(85337,4650,'_content_description','field_59b641c07f473'),
	(85338,4650,'pageSummary','In an ever increasingly competitive world, the differentiation of products from those of competitors is not only important, but essential. '),
	(85339,4650,'_pageSummary','field_59e59b307dec8'),
	(85340,4650,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/march-4/comparative-advertising-and-medical-products.html'),
	(85341,4650,'_currentURL','field_59d35123ab1e7'),
	(85342,4650,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Waldo Steyn'),
	(85343,4650,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85344,4650,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','w.steyn@tamimi.com'),
	(85345,4650,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85346,4650,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85347,4650,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85348,4650,'lawUpdateArticleNoWriters','1'),
	(85349,4650,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85350,4650,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','634'),
	(85351,4650,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85352,4650,'lawUpdateArticlePractices','1'),
	(85353,4650,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85354,4650,'_yoast_wpseo_metadesc','In an ever increasingly competitive world, the differentiation of products from those of competitors is not only important, but essential.'),
	(85355,4651,'content','<p>International Convention on the Carriage of Goods by Sea (&ldquo;Hamburg Rules&rdquo;), UN Convention Rotterdam Rules (&ldquo;RR&rdquo;), Budapest Convention on the Contract for the Carriage of Goods by Inland Waterway (&ldquo;CMNI&rdquo;), Convention for the Unification of Certain Rules Relating to International Carriage by Air (&ldquo;Warsaw&rdquo;) and Convention for the Unification of Certain Rules for International Carriage by Air (&ldquo;Montreal&rdquo;).</p>\r\n<p>These conventions apply contractually or if the country is a signatory to them.&nbsp; If so, they apply to every contract for international carriage of goods either by road, sea or air. For instance, CMR applies to contracts for the international carriage of goods by road in vehicles for reward, when the place of taking over of the goods and the place designated for delivery, as specified in the contract, are situated in two different countries, of which at least one is a contracting country. However, HVR applies only to contracts of carriage covered by a bill of lading or any similar document of title, in so far as such document relates to the carriage of goods by sea, including any bill of lading or any similar document as aforesaid issued under or pursuant to a charter party from the moment at which such bill of lading or similar document of title regulates the relations between a carrier and a holder of the same.&nbsp;</p>\r\n<p>Moreover, RR will apply to contracts of carriage in which the place of receipt and the place of delivery are in different States, and the port of loading of a sea carriage and the port of discharge of the same sea carriage are in different States. At least one of the above mentioned ports or places shall be located in a Contracting State. Also RR (which are not yet in force) would apply to the carriage of goods by sea which involves other modes, meaning that other modes of transportation, such as carriage by air and road, can be subject to the Rotterdam Rules. However, the RR are not applicable in the event of a multimodal contract limited to air and road carriage, with no sea leg.&nbsp;</p>\r\n<p>Since there are many conventions that deal with the carrier&rsquo;s responsibility in international carriage of goods, this article will examine only the carrier&rsquo;s responsibly under &nbsp; CMR, HVR and RR Conventions.&nbsp; &nbsp;</p>\r\n<p>The main obligations of the carrier under international carriage of goods conventions are:&nbsp;</p>\r\n<ol>\r\n<li>Taking over the goods;&nbsp;</li>\r\n<li>Preserving the goods during the voyage;&nbsp;</li>\r\n<li>Carrying the goods to their destination by a suitable means of transport &amp; deliver the goods to the holder of the bill of lading.&nbsp;</li>\r\n</ol>\r\n<p>Thus, the carrier shall properly and carefully receive, load, handle, stow, carry, keep, care for, unload and deliver goods.&nbsp; The carrier must also carry the goods to the place of delivery within the specified time and deliver them to the consignee in the condition in which they were handed over to him by the shipper or his agent. &nbsp;</p>\r\n<p>In general, the carrier is not an expert in nature and peculiarities of cargo. Therefore, the shipper has the duty to inform, to give proper instructions and to package the goods properly, otherwise the carrier will not be responsible. However, if the carrier specializes in transport of specific cargoes, then the carrier must generally have knowledge and skill required for that particular trade.</p>\r\n<p>Most international transport laws and conventions allow parties to a carriage of goods to decide for themselves whether the carrier or shipper/con-signee shall perform the loading, stowage and discharge operations. And yet, if the carrier performs these operations himself, he will generally be responsible even if it has been agreed that the shipper or consignee shall load or discharge.</p>\r\n<p>Under the carriage of goods the carrier must provide a suitable means of transport and he shall not be relieved of liability by reason of the defective condition of the vehicle used by him in order to perform the carriage. Such liability is called absolute responsibility of the carrier which is set out in CMR Convention Article (17.3). However, Article (III.1) of HVR states that &ldquo;The carrier shall be bound before and at the beginning of the voyage to exercise due diligence to: (a) Make the ship seaworthy; (b) Properly man, equip and supply the ship; (c) Make the holds, refrigerating and cool chambers, and all other parts of the ship in which goods are carried, fit and safe for their reception, carriage and preservation duty of care upon carrier.&rdquo; Interestingly, RR impose a continuous duty to exercise due diligence to make and keep the ship seaworthy by virtue of Article (14) of RR.&nbsp;</p>\r\n<p>Accordingly, if a transport&nbsp; vehicle becomes defective during transport the carrier is required to repair the defect without delay as set out in Article (17) of CMR. However, only under HVR is the carrier&rsquo;s duty is to exercise due diligence to make the ship seaworthy, restricted to the period before and at the beginning of the voyage as per Article (III.1). Furthermore, the carrier under HVR must exercise due diligence to avoid not only occurrence, but also its consequences. Unlike RR which impose a continuous duty to exercise due diligence to make and keep the ship seaworthy by virtue of Article (14). Additionally, the carrier must show:</p>\r\n<ol>\r\n<li>the damage was caused by circumstances (i.e. a hidden defect) which he could not avoid and consequences of which he was unable to prevent; or&nbsp;</li>\r\n<li>that he, his servants or agents took all measures that could reasonably be required to avoid the occurrence and its consequences;&nbsp;</li>\r\n</ol>\r\n<p>otherwise his liability will be unlimited.&nbsp;</p>\r\n<p>Whilst the carrier uses employees, agents or sub-contractors to perform any obligations under the contract of carriage on his behalf, he is liable for any breach of his obligations caused by their acts or omissions. However, some conventions limit the carrier&rsquo;s responsibility for acts or omissions of his performance agents to when they are acting within the scope of their employment as per Articles (3) CMR, (18) RR and (IV.2) (q) HVR.&nbsp;</p>\r\n<p>The responsibility period of the carrier in international carriage of goods, in principle, is between the time of taking over the goods until their delivery as per Articles (4.1) of HVR, (12) of RR, and (17.1) of CMR.&nbsp; Such liability is mandatory, in other words, any clause decreasing the carrier&rsquo;s liability is null and void. The important exception can be found in HVR under Article (I) (e) that states the carriage of goods covers the period from time when goods are loaded on to the time they are discharged from the ship.&rdquo; This implies that mandatory liability rules as set out in Article (III.8) of HVR apply only to the &ldquo;tackle-to-tackle&rdquo; period, in other words from the beginning of loading until the end of discharging. Therefore, under HVR, the carriers can validly exclude liability for the period before (loading) and after (discharge) of goods by incorporating a Period of Responsibility Clause into the carriage of goods contract.&nbsp;</p>\r\n<p>Scandinavian countries, although (still) a party to HVR, have extended the carrier&rsquo;s period of mandatory liability to the period from taking over until delivery of the goods. This is not considered a violation of mandatory law, because it only increases carrier&rsquo;s liability, which is not prohibited by Article (III.8) of HVR.</p>\r\n<p>It can be concluded that the main obligation of the carrier under international contract of carriage is to deliver the goods to their destination in the condition in which they were handed over to him by the shipper or his agent, otherwise he will breach the contract of carriage. Also, it must be noted that the RR has not yet come into effect, it will enter into force when it has been ratified by twenty countries as per Article (94) of RR.&nbsp;</p>'),
	(85356,4651,'_content','field_59b649b5c8b2b'),
	(85357,4651,'lawUpdateArticleMonth','4640'),
	(85358,4651,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85359,4651,'content_description','The most well known international carriage of goods conventions are: Convention on the Contract for the International Carriage of Goods by Road (“CMR”), International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading (“HVR”),'),
	(85360,4651,'_content_description','field_59b641c07f473'),
	(85361,4651,'pageSummary','The most well known international carriage of goods conventions are: Convention on the Contract for the International Carriage of Goods by Road (“CMR”), International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading (“HVR”),'),
	(85362,4651,'_pageSummary','field_59e59b307dec8'),
	(85363,4651,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/march-4/carriers-responsibilit-undere-international-conventions.html'),
	(85364,4651,'_currentURL','field_59d35123ab1e7'),
	(85365,4651,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Tarek Idais'),
	(85366,4651,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85367,4651,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','t.idais@tamimi.com'),
	(85368,4651,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85369,4651,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85370,4651,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85371,4651,'lawUpdateArticleNoWriters','1'),
	(85372,4651,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85373,4651,'_yoast_wpseo_metadesc','The most well known international carriage of goods conventions are: Convention on the Contract for the International Carriage of Goods by Road (“CMR”), International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading (“HVR”),'),
	(85374,4652,'content','<p>Financial consultants provide a wide range of services to businesses ranging from small companies through to large global corporations. Globally, part of the financial consultants&rsquo; primary services include budgeting, debt management, fundraising, and even in the role of financial advisor to companies&rsquo; employees. Financial consultants are especially important during the planning stages, often helping the business develop the right strategy and a business plan. The financial consultant is also a crucial component in pitching the business plan to prospective investors.&nbsp;<br /><br />In the UAE historically, the UAE Central Bank has regulated the activity of financial consultation as part of the financial investment business. Most of the licensed financial consultants are also regulated as investment companies under the Central Bank Board of Directors regulation number 164/8/94. As of December 2008, UAE Security &amp; Commodity Authority (&ldquo;SCA&rdquo;) issued regulation no. 48/R of 2008 to regulate the activity of Financial Consultation and Financial Analysis (the &ldquo;Regulation&rdquo;). As of that date, the UAE Central Bank stopped issuing new licenses or renewing the current licenses for the activity. The transfer of the responsibility to SCA was pursuant to the memorandum of understanding signed by and between the UAE Central Bank and SCA, which specifically determines responsibility of each party in relation to legislation, licensing, supervision and inspection on activities concerned with the financial services sector &ndash; the aim being to enhance, where it control on risks that may be encountered by the sector.<br /><br />Since 2008, SCA has granted many companies the Financial Consultation and Financial Analysis licenses and until now, SCA continue to receive applications to license such activity. We aim in this article, to outline the basic requirements and procedures to obtain the Financial Consultation and Financial Analysis license.&nbsp;<br /><br /><strong>The Scope of Business, the Capital and Legal Form:</strong>&nbsp;<br /><br />As defined by the Regulation, Financial Consultation means the opinions and recommendations based on economic and financial research, studies and analysis concerning the feasibility studies and determining the anticipated current or future values of the securities, commodities, commodity contracts and companies to be provided to clients or published to the public in any of the various means of publication and communication.&nbsp;<br /><br />Similarly, Financial Analysis means the scientific systematic processing of data in connection with the position and performance of the companies in the past and at present, and future forecasts of the results of their business, the securities, commodities, commodity contracts, price trends and the trading volumes for the purpose of obtaining information used to take decision at the time of providing a financial consultation;<br /><br />The capital of the UAE formed company to undertake Financial Consultation and Financial Analysis should not be less than one million Dirhams.&nbsp;<br /><br />The legal persons that are permitted to apply for the license are:&nbsp;</p>\r\n<ol>\r\n<li>A judicial person established in the UAE that has one of the forms as set forth in Federal Law No. 8 of 1984 pertaining to Commercial Companies, and at least 51% of its share capital is held by natural or juristic persons who are UAE nationals or GCC nationals, subject to the principle of reciprocal treatment; or&nbsp;</li>\r\n<li>A branch of a foreign company licensed by similar regulatory authority in their own country that may practice the business of financial consultation and financial analysis, provided that such companies should have at least five years of experience and that they satisfy certain other conditions.&nbsp;</li>\r\n</ol>\r\n<p>It is important to point out that a branch of a foreign company that seeks to obtain the license of Financial Consultation and Financial Analysis is required at the licensing stage with the local licensing authority in the respective Emirate to appoint a local agent. This was not the case for the financial institutions that are granted a branch license by the UAE Central Bank. The UAE Central Bank, through an arrangement with the licensing authority, used to play the role of the local agent and thus such branches were not required to appoint a local agent.&nbsp;<br /><br />Further, UAE companies operating in the field of securities such as brokerage companies may obtain an additional license from SCA to practice the business of Financial Consultation and Financial Analysis in the UAE in addition to their other activities in accordance with the criteria set by SCA from time to time.&nbsp;</p>\r\n<p><strong>The Application and Required Documents by SCA&nbsp;<br /></strong><br />SCA has a set application form that should be filled in Arabic and submitted along with the required documents. The information includes name of applicant, type of the applicant&rsquo;s company, date of incorporation, place of incorporation, the registration number, the capital, the names of the shareholders, the regulator at the home country in the case of branch of a foreign company, date of registration, the directors and so on.&nbsp;<br /><br />The required documents are:&nbsp;</p>\r\n<ol>\r\n<li>A valid copy of the Commercial License and the Certificate of Membership with the Chamber of Commerce;</li>\r\n<li>The Memorandum and Articles of Association of the Applicant in Arabic indicating the objects of the Applicant which shall include the activity of financial consultation and financial analysis;</li>\r\n<li>The license issued by the foreign regulator for the branch of a foreign company confirming that the foreign company is licensed to undertake the activity of financial consultancy and financial analysis.</li>\r\n<li>A statement indicating that the company has a minimum of five-year experience in the field of financial consultancy and financial analysis for the foreign company to open a branch. &nbsp;</li>\r\n<li>Evidence proving the internal control and periodic audit in a manner guaranteeing the proper application of the Law and the rules and decisions issued by SCA.</li>\r\n<li>A statement showing that the firm operating in the securities industry is committed to a full separation, administratively, systemically and technically, between the licensed activities in order to avert any conflicts of interest.&nbsp;</li>\r\n<li>A copy of the title-deed or lease contract for the premises in which the activity will be practiced.</li>\r\n<li>An approved copy of the financial statements if the company is already existent, for the last three years or at least as from the date of incorporation.</li>\r\n<li>A statement naming the General Manager or Chief Executive Officer, Financial Analysts, officials in charge of internal audit and control and officials providing financial consultancy and financial analysis services along with a statement of job description for each.</li>\r\n<li>Resume and certificates of work experience for all employees who will work for the applicant in providing the financial consultancy and financial analysis services, and the person in charge of the internal audit and control (and the declaration form).</li>\r\n<li>The Academic qualifications and work experiences of the General Manager or Chief Executive Officer and Financial Analysts.&nbsp;</li>\r\n<li>A passport copy of the General Manager or Chief Executive Officer and Financial Analysts.</li>\r\n<li>Agreement form for the transaction to be concluded with the client.</li>\r\n<li>A statement indicating whether the Applicant or any of (its subsidiaries/ sister companies/ allied companies) has been subject to any adjudications, disciplinary or punitive measures by any regulatory bodies or markets.</li>\r\n<li>A statement indicating the method of archiving and storing documents and studies and naming the person in charge thereof.</li>\r\n<li>A statement indicating the following:-</li>\r\n</ol> \r\n<ul>\r\n<li>Whether the Financial Analyst conducts research that is to be widely published or not.&nbsp;</li>\r\n<li>The targeted clients and the means of communication used for conducting Financial Analyst&rsquo;s research in the UAE.&nbsp;</li>\r\n</ul>\r\n<p><br />Whether the Financial Analyst will appear before the public information authorities on behalf of the Applicant.&nbsp;&nbsp;</p>\r\n<p>17. Signing a declaration to state that the submitted information and documents are true and complete and undertake to comply with the applicable laws and regulations.</p>\r\n<p>If any of the above documents are issued from outside the UAE, it should be duly legalized and authenticated.&nbsp;<br /><br /><strong>The Staff Qualifications and Requirements&nbsp;<br /></strong><br />The licensed companies must provide the administrative and technical personnel needed to exercise the activity. Such personnel must include a General Manager or Chief Executive Officer assisted by an adequate number of certified Financial Analysts, researchers and technicians according to the following conditions:<br /><br />The General Manager or Chief Executive Officer and certified Financial Analysts, researchers and technicians appointed by the licensed firm must be:-</p>\r\n<p>A.Natural person(s).</p>\r\n<p>B.Fully competent.</p>\r\n<p>C.Be of good conduct and behavior and never been sentenced by a freedom restraining penalty in any crime against honor or honesty, unless rehabilitated.&nbsp;<br />D.Has never been declared bankrupt by a final court ruling, unless rehabilitated.&nbsp;</p>\r\n<p>E.Such person must be entirely dedicated to work on full time basis. This condition applies only to the General Manager or Chief Executive Officer if and when the firm is licensed to practice only the financial consultancy and financial analysis activity.&nbsp;</p>\r\n<p>F.The Academic qualifications and work experience for the General Manager or Chief Executive Officer and financial analyst must be as follows:&nbsp;</p>\r\n<p>i.The General Manager or Chief Executive Officer: must hold a university degree or an accredited professional certificate and a minimum of five years of experience in the economic or financial field.</p>\r\n<p>ii.The Financial Analyst: must hold a university degree or an accredited professional certificate and a minimum of three years of experience in the financial analysis field.&nbsp;<br /><br />G.Financial Analyst must also pass the prescribed tests in accordance with the rules set by SCA.&nbsp;&nbsp;&nbsp;&nbsp;<br /><br />The licensed company must appoint an internal auditor also, and such auditor should be duly qualified and have at least three years experience in the field of internal auditing. From our experience with SCA, they typically accept a dedicated internal auditor and are also comfortable with outsourcing this responsibility with certain conditions.&nbsp;<br /><strong><br />Licensing with Local Authorities&nbsp;<br /></strong><br />Licensing largely depends on the legal form of the UAE company, but in general, the application would start by obtaining SCA initial approval and then completing the registration with the relevant Department of Economic Development until the issuance of the commercial license and thereafter, return to SCA to complete the staff and other regulatory requirements until the issuance of SCA license.&nbsp;</p>'),
	(85375,4652,'_content','field_59b649b5c8b2b'),
	(85376,4652,'lawUpdateArticleMonth','4640'),
	(85377,4652,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85378,4652,'content_description','Financial consultation is one of the most prevalent types of consulting throughout the world because the services that it provides are of particular interest to individuals as well as businesses.'),
	(85379,4652,'_content_description','field_59b641c07f473'),
	(85380,4652,'pageSummary','Financial consultation is one of the most prevalent types of consulting throughout the world because the services that it provides are of particular interest to individuals as well as businesses.'),
	(85381,4652,'_pageSummary','field_59e59b307dec8'),
	(85382,4652,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/march-4/the-financial-consultation-and-financial-analysis-license.html'),
	(85383,4652,'_currentURL','field_59d35123ab1e7'),
	(85384,4652,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','817'),
	(85385,4652,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(85386,4652,'lawUpdateArticleWriters','1'),
	(85387,4652,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(85388,4652,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','411'),
	(85389,4652,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85390,4652,'lawUpdateArticlePractices','1'),
	(85391,4652,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85392,4652,'_yoast_wpseo_metadesc','Financial consultation is one of the most prevalent types of consulting throughout the world because the services that it provides are of particular interest to individuals as well as businesses.'),
	(85393,4653,'content','<p><strong>1. General Rule for foreign Investment in the State of Qatar</strong>: The creation of, or investing in any commercial establishment in Qatar is primarily governed by the Foreign Investment Law No (13) of 2000 as amended (the &ldquo;Foreign Investment Law&rdquo;).</p>\r\n<p>The general rule under Article (2)1 of the Foreign Investment Law is that non-Qataris, whether natural or juristic persons, may invest in all sectors of the national economy, only through the medium of a company incorporated in Qatar in which one or more Qatari persons and/or 100% Qatari entities hold not less than 51% of the share capital.&nbsp; However, where the non-Qatari element consists wholly of Gulf Cooperation Council (&ldquo;GCC&rdquo;) persons or entities, the 51% can be read as 50%.<br /><br /><strong>2.&nbsp;</strong><strong>Exceptions under Foreign Investment&nbsp;Law&nbsp;<br /><br /></strong>2.1&nbsp; Notwithstanding the above, Article (2)2 of the Foreign Investment Law does indeed provide that non-Qataris may, subject to an exemption from the Minister of Business and Trade (the &ldquo;Minister&rdquo;), own up to 100% of the share capital of projects in the fields of agriculture, industry, health, education, tourism, development and utilisation of natural resources, energy and mining, consultancy services, technical services, information technology services, cultural, sport and entertainment services and distribution services.&nbsp; Preference is to be given to projects, which would achieve optimum utilisation of locally-available raw materials, and industries intended for export of products, for introducing new products or employing modern technologies, as well as projects which aim at localising world-famous industries and projects which train and qualify Qatari nationals.&nbsp;<br /><br />2.2 &nbsp;Moreover, Article (3) of the Foreign Investment Law contains a second exception from the general rule which, subject to an exemption from the Minister allow a branch/temporary registration of a foreign company to be registered in Qatar.&nbsp; The key conditions required for such registration, are for the foreign company to have a contract or sub-contract in Qatar which results in facilitating the rendering of a service or implies public benefit.&nbsp; This usually means it is a contract/sub-contract with the Government of the State of Qatar or a quasi-governmental body.<br /><br /><strong>3. Exceptions for Nationals of the GCC in Economic Activities in the State of Qatar<br /><br /></strong>In addition to the exceptions stipulated above for foreign investment, Qatar has also issued law No. 6 of 1988 Regarding Restriction of the Practicing of the Nationals of the GCC in Economic Activities.&nbsp; Qatar has also ratified GCC Economic Agreement by Decree No. 81 of 2003 organising the general rules of practicing the economic activities by GCC nationals in Qatar.<br /><br />The aforementioned provisions, prescribe for open foreign investment tools in Qatar.&nbsp; To address the key challenge, the process adopted by the Ministry is currently under review and update to facilitate an expedited avenue for awarding approvals for actual projects, if conditions are met.<br /><br />3.1 Activities Permitted for natural GCC persons and juristic GCC persons fully owned by GCC nationals&nbsp;<br /><br />By virtue of law No. 6 of 1988 and Decree No. 81 of 2003, the following activities shall be permitted to be practiced in the State of Qatar by GCC nationals (natural GCC nationals and juristic GCC nationals fully owned by GCC nationals):</p>\r\n<ul>\r\n<li>Free Professions&nbsp;</li>\r\n<li>Testing and Inspection</li>\r\n<li>Operating and maintenance of Mechanical, electrical equipments and machines, factories and stations</li>\r\n<li>Translations services</li>\r\n<li>Survey</li>\r\n<li>Soil Inspection</li>\r\n<li>Computer programming, analysis and operation</li>\r\n<li>Supplying Services</li>\r\n<li>Marketing Services for third parties</li>\r\n<li>Weighing and measuring services</li>\r\n<li>Cleaning Services</li>\r\n<li>Insurance Services</li>\r\n<li>Opening restaurant and hotels</li>\r\n<li>Transportation Services</li>\r\n<li>Air Shipping Services</li>\r\n<li>Recruitment Agencies</li>\r\n<li>Car Rental Services</li>\r\n<li>Cultural Service excluding printing establishments and publication establishments, newspapers and magazines.</li>\r\n</ul>\r\n<p>3.2 &nbsp;Activities Permitted only for natural GCC persons<br /><br />Natural GCC nationals may invest in all sectors of the national economy in the State of Qatar including retail and wholesale trading, provided that they have maintained residence permits in the State of Qatar.<br /><br />The aforementioned provisions are now being adopted more openly and rigorously by the Ministry.&nbsp; Such practice will assist in opening up more cross GCC business opportunities.<br /><br /><strong>Conclusion<br /></strong><br />The Ministry&rsquo;s initiatives to expand the reach of application of the Foreign Investment Law, is obviously in line with Qatar&rsquo;s approach to attract even more investment required for Qatar&rsquo;s vision.&nbsp; Similar steps will support boosting this approach going forward.</p>'),
	(85394,4653,'_content','field_59b649b5c8b2b'),
	(85395,4653,'lawUpdateArticleMonth','4640'),
	(85396,4653,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85397,4653,'content_description','The Ministry’s initiatives to expand the reach of application of the Foreign Investment Law, is obviously in line with Qatar’s approach to attract even more investment required for Qatar’s vision.  Similar steps will support boosting this approach going forward.'),
	(85398,4653,'_content_description','field_59b641c07f473');

INSERT INTO `tm_postmeta` (`meta_id`, `post_id`, `meta_key`, `meta_value`)
VALUES
	(85399,4653,'pageSummary','The Ministry’s initiatives to expand the reach of application of the Foreign Investment Law, is obviously in line with Qatar’s approach to attract even more investment required for Qatar’s vision.  Similar steps will support boosting this approach going forward.'),
	(85400,4653,'_pageSummary','field_59e59b307dec8'),
	(85401,4653,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/march-4/equity-gcc-investment-regime-in-qatar.html'),
	(85402,4653,'_currentURL','field_59d35123ab1e7'),
	(85403,4653,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','692'),
	(85404,4653,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(85405,4653,'lawUpdateArticleWriters','1'),
	(85406,4653,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(85407,4653,'_yoast_wpseo_metadesc','The Ministry’s initiatives to expand the reach of application of the Foreign Investment Law, is obviously in line with Qatar’s approach to attract even more investment required for Qatar’s vision. Similar steps will support boosting this approach going forward.'),
	(85408,4654,'content','<p>provided the Kuwaiti economy with new commercial vehicles allowing local, Gulf Cooperation Council (GCC) and foreign investors to &ldquo;customize&rdquo; the legal structure of the commercial vehicle for the purposes of the intended commercial activities to be conducted thereto. This new positive step has been recently taken by the Parliament of Kuwait to reflect the changes which have occurred over the past years concerning commerce and industry in the GCC region and in various economies throughout the globe.<br /><br />In such respect, a variety of new forms of companies have been made available to the investors under the Companies Law, such as sole person companies and the professional companies as mentioned below:<br /><strong><br />Sole Proprietorship Companies&nbsp;<br /></strong></p>\r\n<p>The Companies Law introduced a new type of companies referred to as &ldquo;Sole Proprietorship Companies&rdquo; which was non-existent under the previous companies law. The Companies Law provides that these types of companies may have a capital fully owned by one person, whether natural or legal. The relevant provisions specified that such person shall be a Kuwaiti person. However, pursuant to several previous ministerial resolutions, GCC natural or legal persons are to be treated as Kuwaiti persons for the purposes of applying several commercial regulations. Nonetheless, and given that the new Companies Law is still untested with regards to the Ministry of Commerce and Industry&rsquo;s position and practice in applying the new provisions there under, it is unclear at present whether the GCC nationals will be able to establish a Sole Proprietorship Company under the new Companies Law.</p>\r\n<p>With respect to the structuring of the Sole Proprietorship Company, the Companies Law provides that the objects of the company, the minimum capital and numbers of parts, the term of the company, its management and other necessary details, shall be specified within the Executive Bylaws (still not released to date). The Companies Law further provides that the company shall be managed by its owner (by default). However, the owner is entitled to appoint a Manager, subject to registering this Manager&rsquo;s name and authorities within the company&rsquo;s file at the MOCI.</p>\r\n<p>The owner of the Sole Proprietorship Company is entitled to dispose of his parts in the capital by any means, including pledging the parts. However, a transfer of ownership of any number of parts in the capital of the company will entail, by force of law, changing the legal status of the company from a Sole Proprietorship to the form of a limited liability company.</p>\r\n<p><strong>Professional Companies</strong></p>\r\n<p>The Companies Law introduced a new type of companies referred to as &ldquo;Professional Companies&rdquo; which was non-existent under the previous companies law. The Companies Law provides that the Professional Company may be established under the legal status of any of the following: Shareholding companies, With Limited Liability, Simple Commandite and Joint Liability Company. However, under any of the aforementioned legal status form, none of the shareholders of the Professional Company shall be deemed as merchants under the definition of the Commercial Law.</p>\r\n<p>The incorporation of the Professional Company must be by two or more natural persons in the same &ldquo;liberal&rdquo; profession (i.e. doctors, lawyers, architects&hellip;) and the objects of the company must be consistent with the profession of the incorporators. Nonetheless, establishing such company is subject to the MOCI&rsquo;s approval based on its discussion with the relevant supervisory body of the relevant profession and having oversight on the professional conduct of the contemplated incorporators.&nbsp;</p>\r\n<p>The partners in the Professional Company are entitled to dispose of their parts/shares by any means, including pledging such parts/shares. However, any disposal of these parts/shares (even by means of a judicial procedure) shall be restricted to natural persons belonging to the same profession under which the company has been established. &nbsp;</p>\r\n<p><strong>Holding Companies</strong></p>\r\n<p>Although Holding companies existed under the previous companies law, the newly promulgated Companies Law is certainly a departure from the previous regulations governing the legal form and requirements (from a legal and business perspective as well) to establish a holding company. Under the Companies Law, the commercial and licensed objects of the holding company are still the exact objects specified in the previous law. However, the new Companies Law provides that a holding company can be established under any of the following legal forms: Shareholding Companies, With Limited Liability Companies and Sole Proprietorship Companies.&nbsp;</p>\r\n<p>Further, the Companies Law introduced a new liability on the shareholders/partners/owner of the holding company which was inexistent under the previous law. The Companies Law provides that the holding company shall be deemed as a joint guarantor of the liabilities of any of its subsidiaries towards such subsidiary creditors, if such subsidiary and the holding company are conducting their respective activities as &ldquo;one commercial unit&rdquo; (subject to further clarification upon issuance of the Executive Regulations). Also in this respect, the holding company shall be deemed as a joint guarantor of the following companies: (i) a subsidiary of the holding acting as a &ldquo;screen&rdquo; for the holding (as described under the Companies Law); and (ii) a subsidiary conducting the activities of a commercial agent of the holding company.</p>\r\n<p>Notwithstanding the positive effect of introducing new forms of companies under the recently promulgated Companies Law, it appears that whether dealing with the incorporation procedures or monitoring the activities of the aforementioned new types of companies, it will be practical at this point of time to wait for the issuance of the Executive Bylaws as intended for providing specific regulations affecting the applicability of certain provisions within the Companies Law.&nbsp;</p>'),
	(85409,4654,'_content','field_59b649b5c8b2b'),
	(85410,4654,'lawUpdateArticleMonth','4640'),
	(85411,4654,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85412,4654,'content_description','A new companies law has been recently promulgated in Kuwait, providing a more realistic and practical perspective than the previous companies law. The issuance of Law No. 25 of 2012 Promulgating the Companies Law (the “Companies Law”), '),
	(85413,4654,'_content_description','field_59b641c07f473'),
	(85414,4654,'pageSummary','A new companies law has been recently promulgated in Kuwait, providing a more realistic and practical perspective than the previous companies law. The issuance of Law No. 25 of 2012 Promulgating the Companies Law (the “Companies Law”), '),
	(85415,4654,'_pageSummary','field_59e59b307dec8'),
	(85416,4654,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/march-4/the-new-kuwaiti-companies-law.html'),
	(85417,4654,'_currentURL','field_59d35123ab1e7'),
	(85418,4654,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Jade Al Araoui'),
	(85419,4654,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85420,4654,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','j.alaraoui@tamimi.com'),
	(85421,4654,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85422,4654,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85423,4654,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85424,4654,'lawUpdateArticleNoWriters','1'),
	(85425,4654,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85426,4654,'_yoast_wpseo_metadesc','A new companies law has been recently promulgated in Kuwait, providing a more realistic and practical perspective than the previous companies law. The issuance of Law No. 25 of 2012 Promulgating the Companies Law (the “Companies Law”),'),
	(85427,4655,'content','<p><strong>Background to the new Authority</strong></p>\r\n<p>The first radio broadcast in the Kingdom is reported to have occurred around 1931. In 1955 the first television broadcast <br />occurred in the Kingdom, when US programs were broadcast for the personnel of the USAF Dhahran Airfield. This was followed in 1965 with the first state approved national television broadcast. The first program broadcast was a recital of the Quran.&nbsp;<br /><br />Today in the Kingdom the state-run Broadcasting Service of the Kingdom of Saudi Arabia operates almost all domestic television broadcasting, namely the four state television channels and the Kingdom&rsquo;s state radio channels.&nbsp;</p>\r\n<p>Historically, however, there were few new licenses issued to broadcast in the Kingdom, which has led to a stagnation of the market and a number of Saudi owned broadcasters operating from outside the Kingdom. The Ministry for Culture and Information, however, hope that the establishment of the new Authority will change this.&nbsp;<br /><br /><strong>The new Authority&nbsp;</strong></p>\r\n<p>The new Authority is an independent legal entity, with independent finance and administration, albeit, however, one that reports to the Minster of Culture and Information. It is charged with the regulation, supervision and development of audio-visual media transmission. As such, it will serve as an authority to regulate and supervise the audio and visual media outlets operating from inside the Kingdom, and issue licenses to radio and television stations to operate from the Kingdom.&nbsp;</p>\r\n<p>It is worth noting that enacting legislation does not specifically refer to the online sector, but seemingly aims at its provisions at the traditional broadcast media. That said; the provisions are drafted with sufficient breadth to permit the remit of the Authority to extend online.&nbsp;<br /><strong><br />How will the Authority Regulate?</strong></p>\r\n<p>As mentioned above, the Authority&rsquo;s remit is broad; however, the enacting legislation provides a number of rules by which the Authority will perform its obligations.&nbsp;<br /><br />These rules provide that the Authority will regulate in accordance with the Kingdom&rsquo;s &ldquo;media policy&rdquo; and the following rules/mandate:</p>\r\n<ol>\r\n<li>Reinforcing the religious, social and cultural values of the Kingdom;</li>\r\n<li>Ensuring that the public are provided with a high quality collection of entertainment;</li>\r\n<li>Setting-up flexible and clear mechanisms for licensing the audio-visual media transmission, in a way which keeps abreast with the advanced commercial and technological trends;</li>\r\n<li>Ensuring that equal opportunities are provided in the markets and securing fair competition, in the area of the Authority&rsquo;s activity;&nbsp;</li>\r\n<li>Supporting the development of audio-visual media transmission and content in the Kingdom;</li>\r\n<li>Supporting and implementing the objectives of Kingdom&rsquo;s media policy and national plans through audio-visual media transmission and content.</li>\r\n</ol>\r\n<p>(together the &ldquo;Rules&rdquo;)</p>\r\n<p><strong>What will the Authority Regulate?</strong></p>\r\n<p>The enacting legislation provides that the Authority will regulate the following areas, and shall apply the Rules while exercising its authority: &nbsp;</p>\r\n<ol>\r\n<li>Managing the licensing procedures for all activities of audio-visual media transmission and content;</li>\r\n<li>Proposing the licensing fees for audio-visual media transmission and content, suggesting the amendment thereof, and submitting the same to the competent authorities for approval.</li>\r\n<li>Coordinating with the Communication and Information Technology Commission in respect of the frequency spectrum for audio-visual media transmission, in accordance with the communications law;</li>\r\n<li>Coordinating with the Communication and Information Technology Commission on the technical specifications of audio-visual media transmission devices, and issuing the approvals for importing and distributing the same;</li>\r\n<li>Monitoring all audio-visual media transmission and content services providers, to ensure that they conform strictly to the laws and implement the conditions of their respective licenses;</li>\r\n<li>Receiving and investigating the complaints related to audio-visual media transmission and content;</li>\r\n<li>Supporting and conducting research and studies, organizing conferences and meetings associated with audio-visual media transmission and content, whether solely or in cooperation with other similar institutions;</li>\r\n<li>Setting-up a mechanism to resolve disputes arising between the Authority and the audio-visual media transmission and content outlets (which we interpret to mean &ldquo;broadcasters&rdquo;)&nbsp; as prescribed by the law; and</li>\r\n<li>Performing further tasks as dictated or required by the nature of its functions or prescribed by the applicable laws.&nbsp;</li>\r\n</ol>\r\n<p><strong>Things to consider and likely implications<br /></strong><br />The creation of the Authority is intended to facilitate the establishment of Saudi television and radio stations, and the Authority certainly has the power to do that. While it is clear, that those Saudi television and radio stations will need to conduct business according to certain conditions and rules what those conditions and rules are is unclear. If a business is considering making an application for a license from the Authority, then this ought to be considered from the outset. &nbsp;</p>\r\n<p>While it is likely that the incorporation of the Authority will result in an expansion and development of the broadcast media in the Kingdom, and it is the Authority&rsquo;s responsibility to regulate this expansion, it is not yet clear how this will be managed. &nbsp;</p>\r\n<p>Al Tamimi &amp; Company&rsquo;s Technology, Media &amp; Telecommunications team regularly deals with media regulatory issues in the region. For further information please contact the author of the article.</p>'),
	(85428,4655,'_content','field_59b649b5c8b2b'),
	(85429,4655,'lawUpdateArticleMonth','4640'),
	(85430,4655,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85431,4655,'content_description','The Kingdom of Saudi Arabia has restructured its state media, and in doing so has established a new authority to regulate audiovisual broadcasters. The new authority, known as the General Authority for Audio and Visual Media (the “Authority”), is charged with regulating and developing the audio-visual media transmission and content. \r\n'),
	(85432,4655,'_content_description','field_59b641c07f473'),
	(85433,4655,'pageSummary','The Kingdom of Saudi Arabia has restructured its state media, and in doing so has established a new authority to regulate audiovisual broadcasters. The new authority, known as the General Authority for Audio and Visual Media (the “Authority”), is charged with regulating and developing the audio-visual media transmission and content. \r\n'),
	(85434,4655,'_pageSummary','field_59e59b307dec8'),
	(85435,4655,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/march-4/new-saudi-authority-for-the-regulation-of-audio-and-visual-media.html'),
	(85436,4655,'_currentURL','field_59d35123ab1e7'),
	(85437,4655,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Emile Saadi'),
	(85438,4655,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85439,4655,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','e.saadi@tamimi.com'),
	(85440,4655,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85441,4655,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85442,4655,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85443,4655,'lawUpdateArticleNoWriters','1'),
	(85444,4655,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85445,4655,'_yoast_wpseo_metadesc','The Kingdom of Saudi Arabia has restructured its state media, and in doing so has established a new authority to regulate audiovisual broadcasters. The new authority, known as the General Authority for Audio and Visual Media (the “Authority”), is charged with regulating and developing the audio-visual media transmission and content.'),
	(85446,4656,'content','<p>The law provided in article 50 that it shall enter into force on the date of its publication in the federal gazette, but in the absence of the proclamation of the implementing regulations to the law, there was some uncertainty with respect to its application during the past number of years.</p>\r\n<p>On 24 December 2012, Council of Ministers Regulation No. 273/2012 was published, providing the implementing regulations to the Trademark Registration and Protection Proclamation No. 501/2006.</p>\r\n<p>It is important to note that trademarks protected in Ethiopia based on applications filed prior to 7 July 2006 has to be refilled under the 2006 law. The refilling of these trademarks will be the same as fresh applications and unlike previously, will be subject to examination on absolute and relative grounds.&nbsp; There is a grace period of 18 months as from the date of the publication of the Council of Ministers Regulation - expiring on 24 June 2014 &ndash; during which such applications should be filed.&nbsp; Indications are that the original date of filing of such trademarks will be recognised.</p>\r\n<p>With respect to trademarks that were filed and registered after 7 July 2006, applications will have to be submitted in order to obtain new certificates of registration.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>\r\n<p>The Ethiopian Intellectual Property Office has clarified a number of points related to the new trademark regulations which include the following:&nbsp;</p>\r\n<ol>\r\n<li>Trademarks that were registered before the Trademark Registration and Protection Proclamation was issued - 7 July 2006 - must be re-registered.&nbsp; For a trademark to be re-registered, a new application for registration has to be filed in accordance with the requirements set forth in the Trademark Registration and Protection Proclamation and the new regulations.&nbsp;</li>\r\n<li>Trademarks that were registered after the issuance of the Trademark Registration and Protection Proclamation &ndash; 7 July 2006 - must be resubmitted to the Ethiopian Intellectual Property Office for the issuance of a new certificate of registration related to the relevant period of protection (seven years).&nbsp;</li>\r\n</ol>\r\n<p>The re-registration and amendment of post 7 July 2006 trademark registrations will be carried out in accordance with a schedule to be issued by the Ethiopian Intellectual Property Office.&nbsp; Proprietors of trade mark registrations under either the old pre-7 July 2006 or post-7 July 2006 systems must ensure that they provide instructions to their legal representative in a timely manner in order to ensure the adequate protection of their valuable trademark assets in Ethiopia.&nbsp;<br /><br />If you have any questions regarding the protection of trademark in Ethiopia, please contact the author.</p>'),
	(85447,4656,'_content','field_59b649b5c8b2b'),
	(85448,4656,'lawUpdateArticleMonth','4640'),
	(85449,4656,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85450,4656,'content_description','The Ethiopian Trademark Registration and Protection Proclamation No. 501/2006 dealing with the protection of trademarks in Ethiopia was published on 7 July 2006. '),
	(85451,4656,'_content_description','field_59b641c07f473'),
	(85452,4656,'pageSummary','The Ethiopian Trademark Registration and Protection Proclamation No. 501/2006 dealing with the protection of trademarks in Ethiopia was published on 7 July 2006. '),
	(85453,4656,'_pageSummary','field_59e59b307dec8'),
	(85454,4656,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/march-4/trademark-protection-in-ethiopia.html'),
	(85455,4656,'_currentURL','field_59d35123ab1e7'),
	(85456,4656,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Shernaz Desa'),
	(85457,4656,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85458,4656,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','s.desa@tamimi.com'),
	(85459,4656,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85460,4656,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85461,4656,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85462,4656,'lawUpdateArticleNoWriters','1'),
	(85463,4656,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85464,4656,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','634'),
	(85465,4656,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85466,4656,'lawUpdateArticlePractices','1'),
	(85467,4656,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85468,4656,'_yoast_wpseo_metadesc','The Ethiopian Trademark Registration and Protection Proclamation No. 501/2006 dealing with the protection of trademarks in Ethiopia was published on 7 July 2006.'),
	(85469,4657,'content','<p>&nbsp;With effect from this date, the Iranian Trademark Registry will accept only trademark applications filed electronically. All other filing procedures, formality requirements and documentary requirements remain unchanged. The hard copies of the required supporting documents in original (i.e., power of attorney, incorporation certificate for the applicant) must still be submitted to the Trademark Registry.<br /><br />Under the new system, trademark examination, notifications to applicants, publication and registration of trademarks are all dealt with electronically. Oppositions, hearings, renewals, the recordal of the transfer of rights and licenses are all still handled as before.&nbsp;<br /><br />The electronic application and workflow system is available at the portal http://iripo.ssaa.ir which is currently in Persian language.&nbsp;<br /><strong><br />IRAQ:&nbsp; New Timeline for Submission of PoA</strong><br /><br />By a regulation issued by the Trademarks Registrar of Iraq on 17 November 2012, a legalized power of attorney (PoA) in support of trademark applications in Iraq can be submitted within six months from the date of filing of the trademark. There is no further grace period available to submit this basic document and if this six month deadline is not met, an application will be considered abandoned.&nbsp;&nbsp;<br /><br />In order for a PoA to be accepted, the PoA must be super legalized by the Ministry of Foreign Affairs, the Central Bank of Iraq and the Ministry of Justice in Iraq.&nbsp; As this super legalization process may take approximately three months to complete, applicants are urged to provide us with powers legalized up to the Iraqi Consulate in the country of the applicant within three months from the date of a new application.&nbsp;&nbsp;<br /><br />Further, it should be noted that at the time of filing a new trademark application, the application should be accompanied by a copy of the signed PoA, to be placed on the official file.<strong><br /><br />Saudi Arabia: Amendments to the Implementing Regulations<br /></strong><br />The Minister of Commerce and Industry in Saudi Arabia issued a Ministerial Decree concerning trademark registration procedures under No. 1147 on 16 October, 2012, amending 13 articles of the Implementing Regulations to the Saudi Arabian Trademark Law (Law No. M/21).&nbsp;<br /><br />It is widely believed that the new reforms under the above ministerial decree will shorten the time required to complete the trademark registration process by almost half (5 to 8 months).&nbsp; The new reforms make it imperative for the trademark applicant or its representatives to be present at the Trademark Office to follow up on its applications at each stage of the prosecution process, or the registration process may take longer.<br /><br />The main features of the new reforms are as follow:<br /><br />It is the duty of the applicant or its legal representative to follow up its applications on a stage by stage basis.&nbsp; The Saudi Trademark Office (STMO) will issue notifications to the applicant only with refusal decisions or with conditions or requirements for accepting a trademark.&nbsp; The acceptance decision will only be mentioned in the examination forms for the trademark, and it is the applicant&rsquo;s responsibility to seek notification of acceptance.&nbsp; It is required that the applicant or its legal representative must receive the Notice of Acceptance from STMO within 90 days from the date of acceptance.&nbsp;&nbsp;&nbsp;<br /><br />Publication must be made within 30 days from the date of reciept of acceptance notifications.&nbsp; The existing period for publication was within six months from the date of acceptance.<br /><br />Failing to fulfill the above two requirements&nbsp; regarding acceptance of a trademark application will cause the application to lapse.<br /><br />Accepted applications are now published online on the website of the Ministry of Commerce and Industry (MOCI) or on the website specified by the MOCI instead of official gazettes (http://eservices.mci.gov.sa/Eservices/Commerce/Trademarks.aspx).<br /><br />No new trademark will be published in the official gazette, except those pending publications that have already been sent and paid for publication before the issuance of the ministerial decree.<br /><br />In case of any opposition, the opponent must notify the STMO to avoid issuance of a registration certificate while the decision is pending in respect of the opposition. &nbsp; Previously, the claimant/opponent was not required to notify the STMO about oppositions.&nbsp;<br /><br />Temporary protection is granted to trademarks in respect of goods exhibited in national or international exhibitions if the owner of the trademark presents the temporary protection application at least one month before the date of the exhibition.&nbsp;</p>'),
	(85470,4657,'_content','field_59b649b5c8b2b'),
	(85471,4657,'lawUpdateArticleMonth','4640'),
	(85472,4657,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85473,4657,'content_description','The Iranian Trademark Registry has launched a new electronic trademark application and workflow system.  The new application and workflow system came into effect on November 18, 2012. '),
	(85474,4657,'_content_description','field_59b641c07f473'),
	(85475,4657,'pageSummary','The Iranian Trademark Registry has launched a new electronic trademark application and workflow system.  The new application and workflow system came into effect on November 18, 2012. '),
	(85476,4657,'_pageSummary','field_59e59b307dec8'),
	(85477,4657,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/march-4/trademark-prosecution-in-the-middle-east.html'),
	(85478,4657,'_currentURL','field_59d35123ab1e7'),
	(85479,4657,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','884'),
	(85480,4657,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(85481,4657,'lawUpdateArticleWriters','1'),
	(85482,4657,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(85483,4657,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','634'),
	(85484,4657,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85485,4657,'lawUpdateArticlePractices','1'),
	(85486,4657,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85487,4657,'_yoast_wpseo_metadesc','The Iranian Trademark Registry has launched a new electronic trademark application and workflow system. The new application and workflow system came into effect on November 18, 2012.'),
	(85488,4658,'content','<p><strong>Requirements to Register a Real Estate Development Company in Kuwait<br /><br /></strong>A prerequisite for a company to register as a real estate developer in Kuwait is that it must be 100% owned by Kuwaiti or GCC nationals or companies wholly owned by them. &nbsp; A company established for real estate development purposes must obtain approval from the Ministry of Commerce and Industry (&ldquo;MOCI&rdquo;) to engage in real estate development activities.&nbsp; Once this approval has been obtained the company must also obtain approval from the Kuwait Municipality and the Kuwait Ministry of Interiors prior to commencing real estate development activities.<br /><br />Real estate development companies may be established in Kuwait either as a joint stock company, limited liability company or a branch of a GCC company.<br /><br /><strong>Joint Stock Company (&ldquo;KSC&rdquo;)<br /></strong><br />The MOCI specifies three categories for establishing a KSC for the purpose of real estate development. Each category has a minimum issued capital depending upon the objectives of the KSC.</p>\r\n<ul>\r\n<li>The first category of KSC (&ldquo;First Category&rdquo;) has a minimum capital of KD 2,000,000 and is entitled to undertake the following activities:</li>\r\n</ul>\r\n<p>- Owning, purchasing and selling real estate and development of real estate for its own account inside and outside of Kuwait, in addition to management of real estate owned by third parties in accordance with the applicable laws and regulations.</p>\r\n<p>- Owning, purchasing and selling on its behalf shares and bonds of real estate companies for account of the KSC in Kuwait or abroad.</p>\r\n<p>- Preparing evaluations and studies on the real estate market, provided the KSC has suitably qualified employees to provide this service.</p>\r\n<p>- Undertaking services to maintain buildings and projects owned by the KSC or third parties, including management, civil, electrical and mechanical services, elevator and air conditioning services.</p>\r\n<p>- Organizing real estate exhibitions for projects of the KSC.</p>\r\n<p>- Investment in portfolios managed by licensed companies.</p>\r\n<p>- Engaging in build-operate-transfer projects related to residential, commercial and industrial projects.<br /><br /></p>\r\n<ul>\r\n<li>The second category of KSC (&ldquo;Second Category&rdquo;) has a minimum capital of KD 4,000,000 and is entitled to undertake the activities of the First Category in addition to the following:</li>\r\n</ul>\r\n<p>- Organising real estate auctions.</p>\r\n<p>- Owning and managing commercial and residential real estate.<br /><br /></p>\r\n<ul>\r\n<li>The third category of KSC Development (&ldquo;Third Category&rdquo;) has a minimum capital of KD 10,000,000 and is entitled to undertake the activities of the First Category and Second Category in addition to the following:</li>\r\n</ul>\r\n<p>- Owning and management of hotels and resorts for tourism purposes.</p>\r\n<p>- Operation, management and leasing of hotels, clubs, motels, guest houses, residential complexes, rest houses, parks, gardens, exhibitions, restaurants, cafeterias, health resorts, marketing and athletic projects.&nbsp;<br /><br /><strong>Limited Liability Company (&ldquo;LLC&rdquo;)<br /><br /></strong>A real estate development company can be established as an LLC for the purpose of management and development of a real estate project. The minimum capital required to establish a LLC is KD 20,000.&nbsp;<br /><br />Upon establishment of the LLC further activities may also be added by paying an additional KD 20,000 for each activity as mentioned below:<br /><br />- Sale and purchase of real estate.</p>\r\n<p>- Leasing real estate.</p>\r\n<p>- Sale, purchase and leasing of property used for tourism purposes.<br /><br /><strong>Branch of&nbsp; a GCC company (&ldquo;Branch&rdquo;)</strong><br /><br />Law No. 237 of 2011 (&ldquo;GCC Company Branch Law&rdquo;) permits the establishment of a branch of a GCC company in Kuwait for real estate development purposes.&nbsp; To qualify to open a Branch the company must be registered for at least three years in the home GCC country, be fully owned and managed by GCC nationals and the company objectives must not conflict with Kuwaiti laws.<br /><br /><strong>Documents required<br /><br /></strong>The following documents are required to open a real estate development company in Kuwait.</p>\r\n<ol>\r\n<li>An application form that states the names of the owners, the purpose, capital and directors of the proposed company.</li>\r\n<li>A copy of the Memorandum and Articles of Association of the proposed company.</li>\r\n<li>A power of attorney issued by the proposed owners authorizing an individual to sign all documentation relating to the formation of the company.&nbsp;</li>\r\n<li>A bank statement from each proposed owner showing an amount equal to or greater than the owner&rsquo;s capital contribution. Such statement should be issued by a Kuwaiti bank, however, recently the MOCI has accepted bank statements issued by GCC banks and foreign banks provided that a certified translation is provided.</li>\r\n<li>A copy of the office lease agreement of the proposed company in the name of one of the owners.</li>\r\n</ol>\r\n<p>Once the documents mentioned above have been obtained the following procedure must be followed to establish the company:</p>\r\n<ol>\r\n<li>The application form (plus the additional information and documents mentioned above) must be submitted to the MOCI.</li>\r\n<li>Previously there has been a requirement that an announcement appear in the Kuwaiti Official Gazette regarding the proposed formation of a company, following which, if no objection is raised within 15 days, the procedure would continue. However this does not apply to every company and remains at the discretion of the MOCI</li>\r\n<li>The MOCI will provide a letter of request to be delivered to the proposed company&rsquo;s bank to confirm the deposit of the capital of the project by each proposed owner. The MOCI will also provide a letter of request to be delivered to the Kuwait Municipality to examine and approve the proposed office premises.&nbsp;</li>\r\n<li>A draft Memorandum of Association of the company (which should be consistent with the standard form issued by the Ministry of Justice (&ldquo;MOJ&rdquo;) should then be submitted to the MOCI for preliminary approval. The Memorandum of Association is then delivered to the MOJ to be typed on official letterhead.&nbsp;</li>\r\n<li>The proposed owner should then attend at the MOJ to sign the Memorandum of Association. Thereafter the company is formed and a certificate of incorporation of the company from the MOCI&rsquo;s Commercial Registry can be obtained.</li>\r\n</ol>\r\n<p>The main regulatory authorities that govern real estate development projects in Kuwait are the Kuwait Municipality and Real Estate Registry Circuit.&nbsp; The Kuwait Municipality is authorised to approve a real estate development project. The Real Estate Registry Circuit is responsible for registering the transfer of ownership of real estate.<br /><br /><strong>Requirements to Register a Real Estate Development Company in Qatar<br /><br /></strong>Generally, only a company incorporated in Qatar (&ldquo;Qatari LLC&rdquo;) can engage in real estate development activities. The Qatari LLC is required to register with the Ministry of Business and Trade in Qatar (&ldquo;Qatar MBT&rdquo;) and must obtain a commercial registration certificate that includes the activity to engage in real estate development.&nbsp; At least 51% of the shares in the Qatari LLC must be owned by a Qatari national or a company wholly owned by a Qatari national.&nbsp; However if the proposed developer is a GCC national or a company owned 100% by a GCC national the shareholding by a Qatari national or company in the Qatari LLC can be reduced to 50%.&nbsp;&nbsp;<br /><br />The minimum capital required to establish the Qatari LLC is QAR 200,000.&nbsp; If a foreign registered developer has been awarded a Qatari government contract then the developer can apply for a ministerial resolution permitting the developer to establish a branch office in Qatar to perform real estate development activities awarded under the contract.&nbsp; The branch office of the developer would be 100% owned by the foreign developer without the need to establish a Qatari LLC.&nbsp; There is no specific regulatory authority governing real estate developments in Qatar and the Qatar MBT governs the activities of the developer.&nbsp; There is no requirement for developers to open escrow accounts for real estate development projects in Qatar.<br /><br /><strong>Requirements to Register a Real Estate Development Company in Jordan<br /><br /></strong>At present Jordan does not have any specific legislation or authority that deals exclusively with real estate development.&nbsp; Real estate development activities are governed by contractual arrangements between the parties.<br /><br />Foreign developers wishing to engage in real estate development activities in Jordan must register with the Jordanian Ministry of Industry and Trade. There are a number of different methods in which a company can be registered in Jordan that include both local and foreign companies.<br /><br />Regulation No.54 of 2000 Regulating Non-Jordanian Investments (&ldquo;Regulation&rdquo;) determines the limit placed on foreign ownership of real estate in Jordan.&nbsp; Article 2 of the Regulation provides that in areas not specifically mentioned in the Regulation foreign investors may own any project wholly or partially.&nbsp; If the company intends to carry out activities which could be construed as construction or engineering activities, the Regulation provides that such activities can only be carried out by a company with a minimum of 50% ownership by a Jordanian national or company wholly owned by Jordanian nationals. In accordance with Article 7 of the Regulation foreign investors are required to invest a minimum of JOD 50,000 when registering a company in Jordan.<br /><br />The Jordanian Companies Law No.22 of 1997 (as amended) (&ldquo;Law&rdquo;), recognizes two types of company that can be established for real estate development activities; a limited liability company (&ldquo;LLC&rdquo;) and a private shareholding company (&ldquo;PSC&rdquo;).&nbsp;&nbsp;<br /><br />The Law also provides two types of branch of a foreign company that can be established for real estate development, namely a &ldquo;performing branch&rdquo; and a &ldquo;non-performing branch&rdquo;.&nbsp; The performing branch can be divided into two separate branches in accordance with Article 240 of the Law:</p>\r\n<ol>\r\n<li>A branch that operates for a limited period that is awarded a short term contract. The registration of such a branch shall cease upon the expiry of the contract.</li>\r\n<li>A branch operating permanently in Jordan under license by the competent official authorities, such as the branch of a foreign bank.</li>\r\n</ol>\r\n<p>A non-performing branch is a representative office of a foreign company that is registered in Jordan but cannot engage in commercial activities.</p>\r\n<p>Requirements to Register a Real Estate Development Company in the Kingdom of Saudi Arabia (KSA)</p>\r\n<p>KSA has a high local and expat population leading to sustainable demand for real estate. In common with other GCC states, there is now increasing interest in real estate as an area of investment to encourage the development of other industries such as hospitality, education and healthcare, as well as to serve the housing needs of the population.&nbsp;<br /><br />In order to meet the high demand for real estate the government of KSA has introduced a number of laws which are set to increase the role of the private sector in the KSA real estate market.&nbsp;&nbsp;<br /><br /><strong>KSA Real Estate Laws</strong></p>\r\n<p>The KSA real estate regime includes the following laws and regulations:</p>\r\n<ol>\r\n<li>The Realty in Kind Registration Law (&ldquo;Land Registration Law&rdquo;)</li>\r\n<li>The System of Ownership of Unit Estates and their Sorting (&ldquo;Strata Law&rdquo;)</li>\r\n<li>Law of Non Saudis Proprietorship and Investment of Real Estate issued No 3806 (&ldquo;Foreign Ownership Law&rdquo;)</li>\r\n</ol>\r\n<p>In addition, a number of financing laws impact real estate in KSA:</p>\r\n<ol>\r\n<li>The Execution Law</li>\r\n<li>The Law on Supervision of Finance Companies</li>\r\n<li>The Lease Finance Law</li>\r\n<li>The Real Estate Finance Law</li>\r\n<li>The Mortgage Law</li>\r\n</ol>\r\n<p>Finally, there are Ministerial Resolutions relating to &ldquo;Off Plan&rdquo; real estate sales and form part of the &ldquo;financial&rdquo; legal frame work for real estate development.&nbsp;<br /><br />It is beyond the scope of this article to consider in depth these laws and their implementation, but suffice to say, they show a serious commitment by the government of KSA to involve the private sector in real estate development.&nbsp;<br /><br /><strong>Setting up as a Developer in KSA</strong></p>\r\n<p>KSA nationals face very few barriers to set up as a real estate developer in KSA. A KSA national has the right to own real estate and develop this in accordance the rules of the relevant Municipality relating to the sub division of land. Stringent licensing rules do apply to the engineering and construction industries, however real estate developers generally sub-contract such activities. KSA nationals will however be required to comply with the Ministerial Resolutions if they wish to sell &ldquo;Off Plan&rdquo; (see below). Brokers must also be licensed appropriately.<br /><br />Developers other than KSA nationals are entitled to become real estate developers pursuant to the Foreign Ownership Law.&nbsp;</p>\r\n<p>Article 1 of the Foreign Ownership Law states:<br /><br />&ldquo;(a) Non Saudi investors of natural or corporate capacity licensed to practice any economic, vocational or professional activity may appropriate [an] estate necessary for practicing such activity, including the estate necessary for his domicile and the domicile of his employees with the consent of the authority which issues the license&hellip; (b) if the mentioned license includes the purchase of buildings or lands to erect buildings thereon and invested through sale or lease, the total cost of the project, including the cost of land and the cost of building, shall not be less than thirty million Saudi Riyals and the Council of Ministers may modify such amount. The said estate shall be invested within five years of its proprietorship.&rdquo;<br /><br />A foreign investor license (as referred to in Article 1) can be obtained from the Saudi Arabian General Investment Agency (&ldquo;SAGIA&rdquo;). Whilst SAGIA has discretion to require a certain amount of KSA national ownership of shares in the development company, foreign real estate developers, provided they meet the requirements of Article 1(b) of the Foreign Ownership Law are entitled to full foreign ownership.<br /><br /><strong>Conducting &ldquo;Off Plan&rdquo; sales<br /><br /></strong>Irrespective of whether a developer is a KSA national or a foreign national, it is illegal to sell real estate &ldquo;Off Plan&rdquo; except pursuant to the Ministerial Resolutions pertaining to &ldquo;Off Plan&rdquo; sales. Offenders may face criminal sanctions. The Ministerial Resolution sets out a regime regulating off plan sales and requires the following to be submitted to the committee formed by the Ministry of Commerce concerned with real estate development (&ldquo;Committee&rdquo;):</p>\r\n<ol>\r\n<li>an application form</li>\r\n<li>a credit report</li>\r\n<li>a copy of the title deed for the development land</li>\r\n<li>building approvals for the project</li>\r\n<li>details of all brokers and contracts</li>\r\n<li>details of all units to be sold off plan in the project</li>\r\n<li>a project feasibility study</li>\r\n<li>the commercial license of the developer</li>\r\n<li>the articles of association of the developer company</li>\r\n<li>identification details of all owners of the company</li>\r\n<li>a resolution for the formation of the Board of directors and identification of the Board</li>\r\n<li>a license from the Committee</li>\r\n<li>details of the escrow trustee who must be a registered bank in KSA</li>\r\n<li>a copy of the escrow agreement between the developer and the escrow trustee</li>\r\n<li>a copy of the agreement between an auditor and the developer for the audit of the escrow account</li>\r\n<li>a copy of the contract between the developer and engineering consultant.</li>\r\n</ol>\r\n<p>The role of the escrow trustee, engineering consultant and auditor are clearly defined in the Ministerial Resolutions, which require the supervision of the escrow account and payments from it.&nbsp; All sales of units in a project must be notified to the Committee.&nbsp;</p>'),
	(85489,4658,'_content','field_59b649b5c8b2b'),
	(85490,4658,'lawUpdateArticleMonth','4640'),
	(85491,4658,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85492,4658,'content_description','This month the Al Tamimi property team shall focus upon the requirements to register as a developer for real estate projects in Kuwait, Qatar, Jordan and the Kingdom of Saudi Arabia.'),
	(85493,4658,'_content_description','field_59b641c07f473'),
	(85494,4658,'pageSummary','This month the Al Tamimi property team shall focus upon the requirements to register as a developer for real estate projects in Kuwait, Qatar, Jordan and the Kingdom of Saudi Arabia.'),
	(85495,4658,'_pageSummary','field_59e59b307dec8'),
	(85496,4658,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/march-4/built-it-and-they-will-come-part-2.html'),
	(85497,4658,'_currentURL','field_59d35123ab1e7'),
	(85498,4658,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','666'),
	(85499,4658,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(85500,4658,'lawUpdateArticleWriters_1_lawUpdateArticleWriter','692'),
	(85501,4658,'_lawUpdateArticleWriters_1_lawUpdateArticleWriter','field_59da2ac06b065'),
	(85502,4658,'lawUpdateArticleWriters','2'),
	(85503,4658,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(85504,4658,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Hassan Abdel Razak'),
	(85505,4658,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85506,4658,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','j.scott@tamimi.com'),
	(85507,4658,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85508,4658,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85509,4658,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85510,4658,'lawUpdateArticleNoWriters','1'),
	(85511,4658,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85512,4658,'_yoast_wpseo_metadesc','This month the Al Tamimi property team shall focus upon the requirements to register as a developer for real estate projects in Kuwait, Qatar, Jordan and the Kingdom of Saudi Arabia.'),
	(85513,4659,'content','<p>In February this year the largest IPO in the Middle East since 2008 took place - not in the UAE, Saudi Arabia or Qatar - but Iraq. 70% of the shares were bought by foreign investors. The IMF predicts that in the next two years the Iraqi economy will grow faster than any other Middle Eastern country bar Libya.&nbsp;</p>\r\n<p>This is largely due to the country&rsquo;s rapidly rising oil production. For the first time in 30 years Iraq&rsquo;s oil production has surpassed 3 million barrels-per-day, and the International Energy Agency believes that in less than 20 years the country will overtake Russia as the world&rsquo;s second largest oil exporter. Iraq also has huge gas fields and mineral deposits, as well as a rich agricultural tradition due to the fertile lands watered by the two great rivers, the Tigris and the Euphrates.&nbsp;</p>\r\n<p>Iraq is therefore not a country that can be ignored by international and regional companies, despite its ongoing political and security issues. A key concern for foreign companies when considering doing business in Iraq is whether disputes can be settled in an efficient, fair and final manner. Arbitration can satisfy these needs, and although in Iraq it has its challenges, arbitration is possible and is getting easier.&nbsp;</p>\r\n<p>ARBITRATION UNDER IRAQI LAW&nbsp;</p>\r\n<p>Iraq is a civil law system and its laws have been subject to constant and significant change in recent years. Many laws and regulations have been issued which have relaxed the legal environment and made it easier for foreigners to invest and operate in the country. Iraq has explicitly endorsed the use or arbitration by investors (see article 27 of Investment Law 2006), as well as the use of arbitration in relation to government contracts (see article 11 of Regulation No.1 of 2008 &lsquo;Regulations for Implementing Government Contracts).</p>\r\n<p>The law relating to arbitration however has remained largely untouched. It does not exist as a free-standing law but can be found in articles 251 &ndash; 276 of the Code of Civil and Commercial Procedure 1969. The arbitration law is not modern and in parts is very different to the UNCITRAL Model Law on International Commercial Arbitration which is used in many countries around the world. However provided caution is used and expert legal advice sought, it is just as possible to conduct successful arbitrations under the law as it is in other Middle Eastern countries.&nbsp;</p>\r\n<p>A detailed discussion of the Iraqi arbitration law is outside the scope of this article, but some of its key aspects are:</p>\r\n<ol>\r\n<li>Arbitration agreements must be in writing (article 252).</li>\r\n<li>The Iraqi courts must stay a court action if an arbitration clause exists, provided the party wishing to rely on the clause makes its objection as early as possible (article 253).</li>\r\n<li>There are no restrictions on who may sit as an arbitrator.</li>\r\n<li>There are no restrictions on who may represent a party.</li>\r\n<li>There are no provisions allowing or forbidding a tribunal from making orders for interim measures.</li>\r\n<li>Unless the parties agree otherwise, a tribunal has six months from accepting its appointment to render its award (article 262). A party can apply to court for an extension of this time (article 263).</li>\r\n<li>Unless the parties agree otherwise, a tribunal must comply with the procedures set out in the Civil Actions Law (article 265). Provided the agreement is clear parties can therefore choose to apply the ICC Rules or any other arbitral rules they wish.</li>\r\n<li>A tribunal must give reasons for its award (article 270).</li>\r\n</ol>\r\n<p>ARBITRATION CENTRES&nbsp;</p>\r\n<p>Parties do not have to use an arbitration centre to assist with the arbitral process, but it is recommended. In Iraq there are no restrictions on which centre can be used, so parties can choose international centres (ICC, LCIA) or regional ones (DIFC-LCIA, BCDR-AAA, CRCICA).&nbsp;</p>\r\n<p>Iraq does have two national centres: the Federation of the Chambers of Commerce Arbitration Centre and The International Commercial Arbitration Centre Najaf. Both centres will accept international as well as domestic disputes, although at present neither centre has any cases. Until these centres have a regular caseload of complex cases and a track record, it is unlikely that they will be used by non-Iraqi parties.</p>\r\n<p>ENFORCING AN AWARD IN IRAQ&nbsp;</p>\r\n<p>Most arbitral awards are either complied with or form the basis of an amicable settlement between the parties. However there will be times when enforcement action is necessary.</p>\r\n<p>A domestic Iraqi award cannot be enforced unless the supervising court approves it (article 272). The court may decide to annul an award where, pursuant to Article 273, it is found that:&nbsp;</p>\r\n<p>i.<span> </span>The arbitral agreement was invalid.</p>\r\n<p>ii.<span> </span>The award was not made in writing, or the tribunal acted beyond its powers.</p>\r\n<p>iii.<span> </span>The award does not comply with the Iraqi arbitration law, or contradicts public policy (Iraqi law does not distinguish between national and international public policy).</p>\r\n<p>iv.<span> </span>There are grounds for a retrial (such as forged evidence).&nbsp;</p>\r\n<p>v.<span> </span>There was a substantial error in the award or in any of the proceedings that might influence the validity of the award.</p>\r\n<p>When deciding whether to approve or annul an award it is not the practice of the court to reopen the substantive issues. Any decision made by the court can be appealed.</p>\r\n<p>ENFORCING AN IRAQI AWARD ABROAD</p>\r\n<p>Iraq is one of the few countries which is not a signatory to the New York Convention. This means that enforcing an Iraqi award outside Iraq will depend on whether the country where enforcement is sought has a treaty with Iraq on judicial matters; has some other special relationship; or is willing to enforce foreign awards regardless of their origin.&nbsp;</p>\r\n<p>Within the Middle East enforcement is made easier by the fact that Iraq is a signatory to the Riyadh Convention on Judicial Cooperation 1983. This treaty specifically provides for the reciprocal enforcement of arbitral awards. One of the conditions is that the party seeking enforcement must produce a statement from the local judicial authority certifying that the award has become finally binding, which in Iraq means the award must have been approved by the Iraqi courts. The Riyadh Convention will not however assist if the party against whom enforcement is sought is an Iraqi government entity.</p>\r\n<p>THE PRESENT SITUATION AND THE FUTURE&nbsp;</p>\r\n<p>It is likely that as Iraq&rsquo;s economy grows and attracts more international businesses, the role of arbitration in the country will become more important. At present the Iraqi arbitration law is flexible enough that parties can choose any arbitral institution they wish, and can choose their arbitrators and representatives. The courts will respect arbitral agreements and have the power to assist the process if necessary (such as by appointing an arbitrator where one party fails to do so, or granting more time for the issuing of an award).</p>\r\n<p>The courts do however have more powers to annul an award than would be the case under most modern arbitral laws (especially those based on the UNCITRAL Model Law).&nbsp;</p>\r\n<p>The shortcomings in Iraq&rsquo;s current approach to arbitration have been recognized and there are reports of a new arbitration law being drafted. It is unclear when this law will be enacted and whether it will be based on the UNCITRAL Model Law. Since the aim of the law will be to attract international trade and investment it seems likely that it will be comprehensive and robust.</p>\r\n<p>Iraq&rsquo;s High Judicial Council has also stated that Iraq is keen to join the New York Convention. Again, it is not clear how soon this will happen, but when it does it will be a crucial step in encouraging further foreign investment into the country.</p>'),
	(85514,4659,'_content','field_59b649b5c8b2b'),
	(85515,4659,'lawUpdateArticleMonth','4640'),
	(85516,4659,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85517,4659,'content_description','After decades of war, dictatorship, sanctions, and occupation, Iraq is emerging as one of the region’s most important economies. '),
	(85518,4659,'_content_description','field_59b641c07f473'),
	(85519,4659,'pageSummary','After decades of war, dictatorship, sanctions, and occupation, Iraq is emerging as one of the region’s most important economies. '),
	(85520,4659,'_pageSummary','field_59e59b307dec8'),
	(85521,4659,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/march-4/arbitration-in-iraq-what-you-need-to-know.html'),
	(85522,4659,'_currentURL','field_59d35123ab1e7'),
	(85523,4659,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','619'),
	(85524,4659,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(85525,4659,'lawUpdateArticleWriters','1'),
	(85526,4659,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(85527,4659,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Robert Karrar-Lawsley'),
	(85528,4659,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85529,4659,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','r.lewsley@tamimi.com'),
	(85530,4659,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85531,4659,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85532,4659,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85533,4659,'lawUpdateArticleNoWriters','1'),
	(85534,4659,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85535,4659,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','410'),
	(85536,4659,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85537,4659,'lawUpdateArticlePractices','1'),
	(85538,4659,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85539,4659,'_yoast_wpseo_metadesc','After decades of war, dictatorship, sanctions, and occupation, Iraq is emerging as one of the region’s most important economies.'),
	(85540,4660,'content','<p>Cloud computing allows businesses to convert capital expenses associated with IT systems and infrastructure into operating expenses associated with platforms, capacity and applications. For many companies the business case is compelling. As with any business decision, it is important to be fully informed, and aware of the risks.&nbsp; In this article, the second in a series of two, we look at some further core legal considerations associated with cloud computing. (Part 1 may be found in the December/January edition of Law Update.)</p>\r\n<p><strong>Service levels and service level credits</strong></p>\r\n<p>As with most IT services agreements, service levels - which provide objective and measurable standards and help manage performance and quality - are also relevant to cloud services. One key difference, however, is that Cloud Service Providers will typically set service levels that are applicable to all their customers, and there will be little scope to negotiate. (The situation may be different if the cloud is a private cloud, or if the client is procuring a large volume of services.)&nbsp;</p>\r\n<p>When negotiating service level credits, the CSP will typically seek to use their own servers as the point of measurement for service availability. In contrast, from the client&rsquo;s perspective, availability at the client&rsquo;s own computer is the natural point to assess availability.&nbsp; In practical terms, it is not always technically possible to use the client&rsquo;s computer as the point of measurement, although it may be possible to use the cloud termination point at the client&rsquo;s premises. If it can be justified by the business need, then a leased line connection to the CSP would provide a reliable connection, as well as scope for the client to argue that availability should be calculated on an end-to-end basis.</p>\r\n<p>Another important point relates to the time period over which availability is calculated. For example, calculating availability on a 24/7 basis seems appealing, although if the real business need for the service is during business hours, then it would be prudent to calculate availability based on the hours of business. For example, 98% availability on a 24/7 basis over a period of a month would mean that up to 15 hours of down-time would be permitted; whereas the same level of availability calculated with reference to business hours on week days over the same period would mean only 4 hours of down-time would be permitted.</p>\r\n<p>The use of service level credits as a means of addressing service failure is not uncommon. Clients should ensure, however, that sufficient details of the reasons for non-compliance with service levels is provided to them, and that recurring issues provide a basis for termination. Otherwise, there is a risk that the CSP will simply see service level credits as the &lsquo;price&rsquo; of failing to provide a reliable service &ndash; and there will be little incentive for them to strive to meet the agreed service levels.&nbsp;</p>\r\n<p>Some CSPs will try to include provisions whereby a service level bonus is paid if certain service levels are exceeded. Clients should consider the extent to which the marginal benefit of excess up-time over an already high up-time level is really a benefit worth paying for. For example, if the CSP offers 98% up-time as standard, is there really any value to the client in paying a bonus for 99% up-time?</p>\r\n<p><strong>Limits on liability</strong></p>\r\n<p>CSPs will typically try to limit liability. They may disclaim any warranties and describe their services as being offered &lsquo;as is&rsquo;, and they may seek to exclude direct, indirect and consequential damages. If they do not exclude direct damages entirely, they may seek to limit damages to a specific amount, such as the amount paid by the client for the services during a specific period of time.</p>\r\n<p>When considering provisions relating to limitations of liability, it is important to review these in detail. The client should specifically consider whether the types of events giving rise to what the CSP has described as indirect damages are, in fact, indirect &ndash; or whether they are exactly the types of damages that are likely to arise if the CSP fails to adequately perform its obligations. (A good example is &lsquo;loss of data&rsquo;, and costs associated with manually inputting any lost data, both of which would seem to be obvious losses resulting from a failure on the part of a CSP.) Similar considerations arise in the context of force majeure provisions, which are typically used to provide for natural disaster type occurrences. Some CSPs may attempt to include events for which it is reasonable to expect them to bear the risk directly.&nbsp;</p>\r\n<p>Seeking to agree an increased cap, or seeking to specify certain losses as direct losses is a reasonable approach for a client to take. Additionally, were a dispute to come before the courts in the UAE, there is some consolation in knowing that pursuant to Article 390 of the Civil Code, &ldquo;The contracting parties may fix the amount of compensation in advance by making a provision therefore in the contract [&hellip;], subject to the provisions of the law. The judge may, in all cases, upon the application of either party, vary such agreement so as to make the compensation equal to the harm, and any agreement to the contrary shall be void.&rdquo; Additionally, Article 296 of the Civil Code provides, &ldquo;Any condition purporting to provide exemption from responsibility for a harmful act shall be void.&rdquo;&nbsp; &nbsp;</p>\r\n<p><strong>Lock-in and transition</strong></p>\r\n<p>The risk of technical or commercial lock-in needs to be considered at the outset. Technical lock-in refers to the risk that the manner in which the cloud services are provided means that it would be technically difficulty and/or costly for the client to migrate to an alternative provider. Commercial lock-in refers to contractual restrictions on the ability of the client to terminate; the absence of a right to terminate for convenience, for failure to comply with agreed service levels, or other reasons. When engaging a CSP, the client should ensure that the risk of lock-in is properly understood and addressed. Technology develops quickly, so the benefits of a long term engagement with a CSP may be short-lived, so the ability to move promptly to another service provider is valuable.&nbsp;</p>\r\n<p>Business continuity is always a major consideration in the cloud, as failure of the services can significantly impact on business. Many clients seek to establish an exit strategy at the outset, and verify that the CSP is able to implement its part of the exit strategy, such as by locating, isolating and extracting the client&rsquo;s data. The exit plan should specify the CSP&rsquo;s responsibilities in the event that the client wishes to exit the CSP&rsquo;s cloud, the format in which the client&rsquo;s data needs to be delivered, and the timeframe in which the transition needs to be completed. It is also prudent to require the CSP to formally confirm that all the client&rsquo;s data has been removed from the CSP&rsquo;s system.</p>\r\n<p>Al Tamimi &amp; Company&rsquo;s Technology, Media &amp; Telecommunications team regularly advises on IT service agreements, including in a cloud context, as well as related issues such as data protection, document retention and confidentiality provisions. For further information, please contact Nick O&rsquo;Connell n.oconnell@tamimi.com</p>'),
	(85541,4660,'_content','field_59b649b5c8b2b'),
	(85542,4660,'lawUpdateArticleMonth','4640'),
	(85543,4660,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85544,4660,'content_description','Remote access computing services, whereby software applications, databases, data storage, network configuration and programming tools are made available to clients as a service, are becoming increasingly popular. '),
	(85545,4660,'_content_description','field_59b641c07f473'),
	(85546,4660,'pageSummary','Remote access computing services, whereby software applications, databases, data storage, network configuration and programming tools are made available to clients as a service, are becoming increasingly popular. '),
	(85547,4660,'_pageSummary','field_59e59b307dec8'),
	(85548,4660,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/march-4/legal-issues-in-cloud-computing-part-2.html'),
	(85549,4660,'_currentURL','field_59d35123ab1e7'),
	(85550,4660,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Nick O\' Connell'),
	(85551,4660,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85552,4660,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','N.oconnell@tamimi.com'),
	(85553,4660,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85554,4660,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85555,4660,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85556,4660,'lawUpdateArticleNoWriters','1'),
	(85557,4660,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85558,4660,'_yoast_wpseo_metadesc','Remote access computing services, whereby software applications, databases, data storage, network configuration and programming tools are made available to clients as a service, are becoming increasingly popular.'),
	(85559,4662,'_wp_attached_file','uploads2/media-4661.jpg'),
	(85560,4662,'_wp_attachment_metadata','a:5:{s:5:\"width\";i:100;s:6:\"height\";i:133;s:4:\"file\";s:23:\"uploads2/media-4661.jpg\";s:5:\"sizes\";a:0:{}s:10:\"image_meta\";a:12:{s:8:\"aperture\";s:1:\"0\";s:6:\"credit\";s:0:\"\";s:6:\"camera\";s:0:\"\";s:7:\"caption\";s:0:\"\";s:17:\"created_timestamp\";s:1:\"0\";s:9:\"copyright\";s:0:\"\";s:12:\"focal_length\";s:1:\"0\";s:3:\"iso\";s:1:\"0\";s:13:\"shutter_speed\";s:1:\"0\";s:5:\"title\";s:0:\"\";s:11:\"orientation\";s:1:\"0\";s:8:\"keywords\";a:0:{}}}'),
	(85561,4661,'lawUpdateImageURL','5903'),
	(85562,4661,'_lawUpdateImageURL','field_59c8deca117cd'),
	(85563,4661,'lawUpdateDesc',''),
	(85564,4661,'_lawUpdateDesc','field_59da24cd91f17'),
	(85565,4661,'lawUpdateYear','2013'),
	(85566,4661,'_lawUpdateYear','field_59da245091f13'),
	(85567,4661,'pageSummary',''),
	(85568,4661,'_pageSummary','field_59e59b307dec8'),
	(85569,4661,'lawUpdateStartMonth','February'),
	(85570,4661,'_lawUpdateStartMonth','field_59da247791f14'),
	(85571,4661,'currentURL','http://localhost:8888/tamimi/en/section/law-update/section-5/february-4'),
	(85572,4661,'_currentURL','field_59d35123ab1e7'),
	(85573,4663,'content','<p>When registering a domain name, there is an option to make the  registrant&rsquo;s personal information private by registering the domain name  through the name Domains By Proxy.&nbsp; This practice is called ID Protect  and the result is that details of the domain name owner will not be  revealed in searches through &ldquo;Whois&rdquo; domain name search providers. &nbsp;</p>\r\n<p>ID Protect was originally designed to protect the privacy of domain  name owners as it avoided having personal information such as names,  addresses, phone numbers and email addresses published online 24 hours a  day on the internet.&nbsp; However, the ID Protect system has occasionally  been misused by cybersquatters or domain owners who commit various  violations, such as merchandizing counterfeit and/or infringing and/or  otherwise unlawful products and materials. Such domain name owners may  have been under the impression that ID Protect gives some &ldquo;protection&rdquo;  to them to freely act without having to expose their identities and  resulting in practical difficulties on the part of intellectual property  rights owners to establish their identities and to take legal action in  the UAE.</p>\r\n<p>In a recent court case which involved a person who was associated  with a domain name operating under the gTLD (.com), the defendant denied  any association or ownership of a particular domain name before the  Dubai Court of First Instance. Al Tamimi &amp; Company represented the  plaintiff in this proceeding and sought from the Court to serve a  subpoena on the domain name registration provider (one of the largest  hosting and domain registration providers) located in the USA.&nbsp; The  Dubai Court of First Instance approved the request and an official  letter was served by the Court, addressed to the registry to disclose  details of the domain name owners and history.&nbsp;</p>\r\n<p>Al Tamimi &amp; Company supervised the process and the results of the  request were received though a very efficient process and on an  expedited basis. In this case the process was completed within a two  week period from the date of requesting the information and at a minimal  administrative fee.&nbsp;</p>\r\n<p>It is important to note that the benefits of this procedure include to:</p>\r\n<ol>\r\n<li>overcome the challenges created by ID Protect and to be able to  determine the identity of the domain name registration owner(s);&nbsp;</li>\r\n<li>obtain information on the history of a domain name (if it has been modified, assigned, etc);&nbsp;</li>\r\n<li>expedite the litigation process as it is a fast procedure, and&nbsp;</li>\r\n<li>illuminate the shadow of uncertainty that individuals or entities  can establish through ID Protect to escape legal liability in respect of  their unlawful activities.</li>\r\n</ol>\r\n<p>Al Tamimi &amp; Company&rsquo;s IP practice is capable to assist on various  online and domain names issues, such as due diligence, fighting online  infringements and most significantly, anti-cybersquatting cases. Our  lawyers handle UDRP complaints before WIPO and hadve successfully  disputed cases on behalf of IP owners. Outstanding results are typically  achieved and a transfer of domain names to legitimate owners was  successfully accomplished in the vast majority of cases.</p>'),
	(85574,4663,'_content','field_59b649b5c8b2b'),
	(85575,4663,'lawUpdateArticleMonth','4661'),
	(85576,4663,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85577,4663,'content_description','Identity Protection in respect of the ownership of domain names is no longer an obstacle in litigation before the Dubai Courts.  '),
	(85578,4663,'_content_description','field_59b641c07f473'),
	(85579,4663,'pageSummary','Identity Protection in respect of the ownership of domain names is no longer an obstacle in litigation before the Dubai Courts.  '),
	(85580,4663,'_pageSummary','field_59e59b307dec8'),
	(85581,4663,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/february-4/dubai-court-subpoena-recognised-by-a-us-domain-names-registry.html'),
	(85582,4663,'_currentURL','field_59d35123ab1e7'),
	(85583,4663,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Munir Suboh'),
	(85584,4663,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85585,4663,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','m.suboh@tamimi.com'),
	(85586,4663,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85587,4663,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85588,4663,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85589,4663,'lawUpdateArticleNoWriters_1_lawUpdateAuthorName','Manal Bin Said'),
	(85590,4663,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85591,4663,'lawUpdateArticleNoWriters_1_lawUpdateAuthorEmail','m.bensaid@tamimi.com'),
	(85592,4663,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85593,4663,'lawUpdateArticleNoWriters_1_lawUpdateAuthorLocation',''),
	(85594,4663,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85595,4663,'lawUpdateArticleNoWriters','2'),
	(85596,4663,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85597,4663,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','634'),
	(85598,4663,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85599,4663,'lawUpdateArticlePractices','1'),
	(85600,4663,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85601,4663,'_yoast_wpseo_metadesc','Identity Protection in respect of the ownership of domain names is no longer an obstacle in litigation before the Dubai Courts.'),
	(85602,4664,'content','<p>The UAE has witnessed an exponential growth in the development of  building and infrastructure projects over the past decade. New  communities have developed across the UAE for residential, commercial  and leisure purposes.&nbsp; Although construction of certain projects were  placed on hold or cancelled as a result of the global financial crisis,  recent announcements of further &ldquo;mega&rdquo; projects in Dubai and continuing  development in other Emirates show a clear revival of the property  market generally in the UAE.&nbsp; The general sentiment amongst developers  is to recommence construction activities and to strive forward with  completion of stalled projects and the development of new ones.</p>\r\n<p>Given the recent impetus on development, and following various  legislative and regulatory changes, we thought it appropriate to focus  on the regulatory requirements to register as a developer in the  Emirates of Dubai, Abu Dhabi, Ajman, Sharjah and Ras Al Khaimah. &nbsp;</p>\r\n<p><strong>Registering as a Developer for Projects in the Emirate of Dubai</strong></p>\r\n<p>The registration of&nbsp; developers in the Emirate of Dubai is governed  by the Real Estate Regulatory Agency (RERA).&nbsp; The registration  requirements have evolved over the past few years through various laws,  regulations and policies of RERA.</p>\r\n<p>At present RERA only allows companies registered with the Dubai  Department of Economic Development (Dubai DED), with real estate  development activities noted in their trade licence, to engage in  development activities. Such Dubai DED companies must be owned 100% by  UAE nationals or companies wholly owned by them. The registration fee to  establish a Dubai DED is currently AED 37,000 plus 5% of the office  lease rent of the Dubai DED AED 25,000 of this amount is paid to RERA by  Dubai DED as the developer registration fee.</p>\r\n<p>The following documents must be submitted to RERA in order to apply for a developer registration certificate:</p>\r\n<ul>\r\n<li>Developer registration and project application form</li>\r\n<li>Copy trade licence from Dubai DED</li>\r\n<li>Title deed of land to be developed</li>\r\n<li>Unconditional performance guarantee from a UAE bank for 20% of the  project construction costs to be issued in favour of RERA if units are  to be sold prior to completion of 20% of construction of the project</li>\r\n<li>Units registration certificate from Dubai Land Department (DLD)</li>\r\n<li>No Objection Certificate (NOC) from master developer of the project sales and marketing plan</li>\r\n<li>Letter from the project consultant stating the following:</li>\r\n</ul>\r\n<p>- Main contractor name<br />- Project name<br />- Project value<br />- Start date<br />- End date</p>\r\n<ul>\r\n<li>Payment plan linked to construction milestones of project</li>\r\n<li>Financial report (RT01)</li>\r\n<li>Project timeline per floor</li>\r\n<li>Dubai Chamber of Commerce &amp; Industry membership certificate</li>\r\n<li>Final building permit</li>\r\n<li>Contact details of project manager</li>\r\n</ul>\r\n<p>It follows from the above requirements that RERA requires that the  land subject to development should be fully paid and a title deed should  be issued in the name of the owner. &nbsp;</p>\r\n<p>Where the owner of the land cannot register as a developer, RERA  permits the land owner to enter into a property development contract  with an existing registered developer to develop the project on behalf  of the land owner.&nbsp; The property development contract however must be  approved by the senior legal adviser of DLD, to validate such an  arrangement and to be accepted by RERA. &nbsp;</p>\r\n<p><strong>Developer wishing to sell units off plan</strong></p>\r\n<p>Pursuant to Law No 8 of 2007 (&ldquo;Escrow Law&rdquo;), where a developer wishes  to sell units off plan, the developer must be a registered developer  with RERA (as mentioned above) and apply to RERA to open an escrow  account.&nbsp; The developer must ensure all proceeds of sale of the units  sold off plan are deposited into the escrow account, and are used solely  for the purposes of construction of the project.&nbsp; Failure to comply  with the Escrow Law can lead to a fine of AED 100,000 or criminal  sanctions resulting in a prison sentence (Article 16 Escrow Law).</p>\r\n<p>Once the developer has submitted all the required documents to RERA  and the developer is granted the authority to sell units off plan RERA  will issue an NOC to allow the developer to open an escrow account with  an authorized bank in the UAE.&nbsp; The following documents are required to  open an escrow account:</p>\r\n<ul>\r\n<li>Dubai Chamber of Commerce and Industry membership certificate</li>\r\n<li>Trade License</li>\r\n<li>Title deed of the land to be developed</li>\r\n<li>Copy of the contract executed by the master developer and the sub-developer</li>\r\n<li>Architectural designs and layouts approved by concerned authorities and the master developer</li>\r\n<li>A financial statement certified by a certified legal accountant, containing the revenues and expenses of the project&nbsp;</li>\r\n<li>An undertaking by the sub-developer to commence the project  construction after obtaining the master developer&rsquo;s approval to sell off  plan or an undertaking from the master developer in case a  sub-developer does not exist</li>\r\n<li>A sample sale contract between the developer and a buyer</li>\r\n</ul>\r\n<p>In addition to the above requirements, pursuant to Law No 13 of 2008  Regulating the Interim Real Estate Register in the Emirate of Dubai as  amended (&ldquo;Pre-registration Law&rdquo;), Article 3 provides that no sale of any  off plan property shall be valid if not recorded on the Interim Real  Estate Register, known as the &ldquo;Oqood&rdquo; system.&nbsp; Failure to register a  contract by the developer could incur a fine of AED 10,000.&nbsp; Article 4  of the Pre-registration Law also states that a developer shall not  commence the sale of off plan units unless the developer has possession  of the land to be developed and has obtained all necessary approvals  from the competent authorities. &nbsp;</p>\r\n<p>The Pre-registration Law has been further clarified by the Executive  Council Resolution No. 6 of 2010 approving the executive regulation of  Law No 13 of 2008 concerning the regulation of the Interim Real Estate  Register in the Emirate of Dubai (&ldquo;Resolution&rdquo;).&nbsp; Pursuant to Article 4  of the Resolution, no developer may commence construction or sell units  off plan unless:</p>\r\n<ul>\r\n<li>possession of the land has been taken and the demarcation certificate is received;</li>\r\n<li>the developer has actual control of the land where the project is proposed to be constructed;</li>\r\n<li>the developer has obtained the required approvals from the relevant authorities to commence the construction of the project.</li>\r\n</ul>\r\n<p>The owner of the land is entitled to mortgage the land, however all  mortgage funds received by the owner must be paid into the escrow  account of the project and used towards the construction costs of the  project only as a measure to safeguard investors.</p>\r\n<p><strong>Registering as a Developer for Projects in the Emirate of Abu Dhabi</strong></p>\r\n<p>The registration of a developer in the Emirate of Abu Dhabi is  governed by the Department of Economic Development (&ldquo;Abu Dhabi DED&rdquo;).&nbsp; A  company intending to carry out real estate development should apply to  the Abu Dhabi DED for a commercial licence which lists &ldquo;real estate  enterprises, investments and management&rdquo; as one of its authorised  activities.&nbsp; It is usually relatively straightforward for prospective  developers to obtain a licence from the Abu Dhabi DED for this activity.  There is no restriction for foreigners/GCC nationals or owned by them  companies to apply for a license to engage in development activities  with Abu Dhabi DED.</p>\r\n<p>The developer will need to provide various documents to the Abu Dhabi  DED in support of its application for a commercial licence.&nbsp; These  documents will include a copy of its memorandum of association, its  lease and passport copies for its shareholders and signatories.&nbsp; The  developer will also need to supply an undertaking in a prescribed format  confirming that the shareholding in the company does not comprise any  third party monies.</p>\r\n<p>At present there are no laws restricting off plan sales or imposing escrow account requirements in Abu Dhabi.</p>\r\n<p><strong>Registering as a Developer for Projects in the Emirate of Ajman</strong></p>\r\n<p>The registration of developers and real estate projects in the  Emirate of Ajman is governed by the Ajman Real Estate Regulatory  Authority (ARRA) pursuant to Amiri Decree No 11 of 2008 regarding the  establishment of ARRA and Amiri Decree No 8 of 2008 as amended by Amiri  Decree No 12 of 2008.</p>\r\n<p>The required documents to register as a developer are as follows:</p>\r\n<ul>\r\n<li>Official request from the company to register with ARRA as a real estate developer</li>\r\n<li>Company profile</li>\r\n<li>Copy Trade License</li>\r\n<li>Company&rsquo;s Memorandum of Association (MOA) and the last Addendums (if applicable)</li>\r\n<li>A Board resolution for the authorized signatory</li>\r\n<li>Valid passport copy of all partners along with &ldquo;Kholaset Al-Qaid&rdquo; for U.A.E. nationals and residency visa for expatriates</li>\r\n<li>The company should have an office licensed by Ajman Municipality  &amp; Planning Dept, or an on-site office licensed by ARRA to represent  the company and communicate with ARRA</li>\r\n<li><span>Six months bank statements for all the company&rsquo;s bank accounts (original or stamped copies)</span></li>\r\n<li><span>Audited financial report (for the last financial year) from an approved auditing firm in the U.A.E</span></li>\r\n<li><span>Affection plan from Ajman Municipality &amp; Planning</span></li>\r\n<li><span>Project feasibility study from an approved consultant in the U.A.E.</span></li>\r\n<li><span>Sales &amp; marketing plan for the project</span></li>\r\n<li><span>Undertaking from the company that all submitted documents are  accurate and that it will submit any additional documents requested by  ARRA</span></li>\r\n<li><span>Developer registration fee (AED 100,000)</span></li>\r\n</ul>\r\n<p>The required documents for registration of a real estate project are as follows:</p>\r\n<ul>\r\n<li>Land registration certificate from Ajman Land Department or affection plan from Ajman Municipality &amp; Planning Department</li>\r\n<li>Approved plans from the master developer, Ajman Municipality &amp; Planning Department and project consultant</li>\r\n<li>Feasibility study from the project consultant</li>\r\n<li>A sample of the property reservation form</li>\r\n<li>A sample of the sale and purchase agreement</li>\r\n<li>A detailed list of all units to be sold including names of purchasers unit details and amounts received to be provided on CD</li>\r\n<li>SPA for the land purchase</li>\r\n<li>NOC from the project master developer, including payments received to date</li>\r\n<li>Project completion timeline from project consultant</li>\r\n<li>Contractor agreement approved by consultant</li>\r\n<li>Project name registration with Ajman Municipality &amp; Planning Department</li>\r\n<li>Project registration fee (AED 50,000)</li>\r\n</ul>\r\n<p><strong>Registering as a Developer for Projects in the Emirate of Sharjah</strong></p>\r\n<p>The registration of real estate projects and the issue of permission  for the sale of units in jointly owned buildings in the Emirate of  Sharjah is governed by the Department of Real Estate Registration  (DRER). Executive Council Decision No 25 of 2011 regarding the sale of  units in the Emirate of Sharjah defines the rules and requirements for  the registration of real estate projects and the issue of permission for  the sale of units. &nbsp;</p>\r\n<p>Article 4 of Decision No.25 of 2011 provides the requirements for the licensing of developers:&nbsp;</p>\r\n<ul>\r\n<li>The developer must own the project land and there can be no restrictions on the disposition of the land</li>\r\n<li>The developer must be licensed to undertake the activity of sales and marketing of real estate units&nbsp;</li>\r\n<li>Licenses may be issued to UAE and GCC nationals only unless the Ruler gives an exemption</li>\r\n<li>The developer must sign the undertaking provided by DRER</li>\r\n<li>The developer must obtain a report from the Planning and Surveying  Department confirming the project&rsquo;s compliance with the rules and  requirements of the sale of units</li>\r\n<li>The developer must provide DRER with a bank guarantee equal to 20%  of the construction value if the project is to be sold off plan</li>\r\n</ul>\r\n<p>DRER has the authority to exempt any developer from the 20% bank  guarantee requirement provided that 15% of the project is completed, in  which case a bank guarantee for 5% of the construction value of the  project is required by DRER.</p>\r\n<p>DRER issues a standard form of agreement for the sale and purchase of  units in the Emirate of Sharjah and developers must link the payment of  the purchase price with the progress of construction if selling off  plan.&nbsp;</p>\r\n<p><strong>Registering as a Developer for Projects in the Emirate of Ras Al Khaimah</strong></p>\r\n<p>The registration of developers and real estate projects in the  Emirate of Ras Al Khaimah is governed by Ras Al Khaimah Investment  Authority (RAKIA) pursuant to Amiri Decree No 22 of 2008 concerning  Guarantee Accounts of Real Estate Developments in the Emirate of Ras Al  Khaimah. This is applicable to all developers who sell units off plan in  real estate development projects in Al Jazeera, Al Hamra or in any  other part of the Emirate supervised by RAKIA.</p>\r\n<p>A developer wishing to sell units off plan must apply to RAKIA to  open a guarantee account. The application should be accompanied by the  following documents:&nbsp;</p>\r\n<ul>\r\n<li>Trade License issued by RAKIA or Ras Al Khaimah Department of Economic Development</li>\r\n<li>Membership Certificate from Ras Al Khaimah Chamber of Commerce and Industry (if applicable)</li>\r\n</ul>\r\n<p>A special register called the &ldquo;Register of Developers&rdquo; (Register) is  maintained by RAKIA which records names of developers licensed to carry  out real estate development activities in the Emirate.&nbsp; No developer may  carry out real estate development activities unless it is registered in  the Register and licensed by the competent authorities. The Register is  reviewed and updated periodically by RAKIA.&nbsp;</p>\r\n<p><em>Next month we shall focus on the requirements to register as a developer in Jordan, Kuwait, Kingdom of Saudi Arabia and Qatar.</em></p>'),
	(85603,4664,'_content','field_59b649b5c8b2b'),
	(85604,4664,'lawUpdateArticleMonth','4661'),
	(85605,4664,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85606,4664,'content_description','Developer registration requirements in the UAE'),
	(85607,4664,'_content_description','field_59b641c07f473'),
	(85608,4664,'pageSummary','Developer registration requirements in the UAE'),
	(85609,4664,'_pageSummary','field_59e59b307dec8'),
	(85610,4664,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/february-4/build-it-and-they-will-come-part-1.html'),
	(85611,4664,'_currentURL','field_59d35123ab1e7'),
	(85612,4664,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Mohammmed Kawasmi, David Bowman'),
	(85613,4664,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85614,4664,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','m.kawasmi@tamimi.com'),
	(85615,4664,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85616,4664,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85617,4664,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85618,4664,'lawUpdateArticleNoWriters_1_lawUpdateAuthorName','Mohammmed Kamran Tahir'),
	(85619,4664,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85620,4664,'lawUpdateArticleNoWriters_1_lawUpdateAuthorEmail','d.bowman@tamimi.com'),
	(85621,4664,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85622,4664,'lawUpdateArticleNoWriters_1_lawUpdateAuthorLocation',''),
	(85623,4664,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85624,4664,'lawUpdateArticleNoWriters','2'),
	(85625,4664,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85626,4664,'_yoast_wpseo_metadesc','Developer registration requirements in the UAE'),
	(85627,4665,'content','This decision is considered controversial particularly as the Civil Code provides that the principal’s express notification to the agent/third party is required to revoke a power of attorney.\r\n\r\n<strong>Background</strong>\r\n\r\nThe Bank (the First Defendant) in this case was held liable for unauthorized transactions and was ordered to pay damages in the amount of AED 3.2 million (the Claim amount was AED 8.3 million) representing the loss suffered as a result of the unauthorized transactions.  The Bank’s alleged error was that it allowed the Second Defendant (an individual) to unilaterally withdraw funds from the account despite the existence of the last power of attorney requiring the joint signatures of the Claimant and the Third Defendant (another individual) to manage the account.\r\n\r\nThree powers of attorneys were submitted to the Bank in total, the first power of attorney authorized only the Second Defendant to manage the account, the second power of attorney authorized the Second Defendant and the Claimant jointly and the third power of attorney authorized the Claimant and the Third Defendant jointly.\r\n\r\nThe Court of First Instance and Court of Appeal rejected the Claimant’s case on the basis that the Bank had the discretion to accept any transaction based on any signature of the authorized attorneys together as long as the Bank had not been notified of the revocation of the power of attorney. In these circumstances, the Bank had not been notified of any revocation and as a result, all the powers of attorneys submitted to the Bank were binding.\r\n\r\nThe Federal Supreme Court’s decision and its reliance on 933 (2) of the Civil Code\r\n\r\nThe argument by the Bank, although successful at the lower two levels, failed at the final level.  The Federal Supreme Court rejected the Bank’s argument and ruled that the bank was mistaken in accepting transactions based on the first power of attorney as the last power of attorney issued, provides very clearly that two people should sign together.\r\n\r\nThe court relied on Article 933(2) of the Civil Code, which provides:\r\n\r\n<em>“if the attorneys are appointed in one contract without any of them being given the power to act individually, they must act jointly unless the work is such that it cannot be done jointly with another such as legal representation, but provided that (the person acting on his own) must consult the others appointed with him, or unless it is a matter which does not require the exchange of views such as the collection or payment of a debt.” </em>\r\n\r\nThe Federal Supreme Court therefore overruled the Court of Appeal judgment and sent the matter back for retrial.  Upon retrial, the Court of Appeal ruled in favour of the Claimant and ordered the bank to pay AED 2.7 million plus 5% interest in compensation for unauthorized transactions.\r\n\r\n<strong>Recommendations to banks in light of Supreme Court decision</strong>\r\n\r\nThe Supreme Court overruled the Court of Appeal’s decision and held that if a number of attorneys are appointed in one power of attorney they have to act jointly, irrespective of the fact that one of them has been appointed to act individually in a separate previous power of attorney. In the event there is a material difference in either the terms of authorisation or the names of the individual attorneys in the powers of attorney submitted, the court will only look at the last power of attorney.\r\n\r\nAs a result of this decision, it is recommended that banks carefully check the wording of powers of attorneys particularly when several powers of attorneys are submitted at different times since it can be argued that the later power of attorney amends the former one even though the former has not been expressly revoked.\r\n\r\nNotwithstanding the above and pursuant to Article 954 of the Civil Code, a power of attorney still needs to be expressly revoked.'),
	(147278,4665,'core_values',''),
	(147279,4665,'_core_values','field_59b64ab071de4'),
	(147280,4665,'file',''),
	(147281,4665,'_file','field_59b64c10f6600'),
	(85628,4665,'_content','field_59b649b5c8b2b'),
	(85629,4665,'lawUpdateArticleMonth','4661'),
	(85630,4665,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85631,4665,'content_description','In a recent and unusual Supreme Court decision, it was held that where several power of attorneys (giving authority to different individuals) are submitted to a bank at different times, the last power of attorney submitted to the bank would automatically revoke all previous powers of attorneys regardless of whether or not the bank was notified of the revocation.'),
	(85632,4665,'_content_description','field_59b641c07f473'),
	(85633,4665,'pageSummary','In a recent and unusual Supreme Court decision, it was held that where several power of attorneys (giving authority to different individuals) are submitted to a bank at different times, the last power of attorney submitted to the bank would automatically revoke all previous powers of attorneys regardless of whether or not the bank was notified of the revocation.'),
	(85634,4665,'_pageSummary','field_59e59b307dec8'),
	(85635,4665,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/february-4/supreme-court-decision-powers-of-attorneys-submitted-to-banks.html'),
	(85636,4665,'_currentURL','field_59d35123ab1e7'),
	(85637,4665,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Zane Anani'),
	(85638,4665,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85639,4665,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','z.anani@tamimi.com'),
	(85640,4665,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85641,4665,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85642,4665,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(147271,4665,'_timeline_header','field_59b63de5b74bf'),
	(147270,4665,'timeline_header',''),
	(147268,4665,'orderValue2','2'),
	(147269,4665,'_orderValue2','field_59d0c6f6175b8'),
	(147267,4665,'_stats_list','field_59b6372466bcc'),
	(147266,4665,'stats_list',''),
	(147264,4665,'orderValue1','1'),
	(147265,4665,'_orderValue1','field_59d0c6e5175b5'),
	(85649,4665,'lawUpdateArticleNoWriters','1'),
	(85650,4665,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85651,4665,'_yoast_wpseo_metadesc','In a recent and unusual Supreme Court decision, it was held that where several power of attorneys (giving authority to different individuals) are submitted to a bank at different times, the last power of attorney submitted to the bank would automatically revoke all previous powers of attorneys regardless of whether or not the bank was notified of the revocation.'),
	(85652,4666,'content','<p>However, if either party decided to proceed in court despite the  presence of the arbitration clause and the other party does not object  at the first hearing, the action may be heard, and the arbitration  clause shall be deemed inoperative. The UAE Legislator applied certain  restrictions on the parties&rsquo; freedom to agree to arbitrate when entering  into Commercial Agency Agreements.</p>\r\n<p>We will address this exception below in light of a judgment rendered  by Dubai Court of Cassation; the highest court in the Emirate of Dubai,  whose judgments interprets the application of the law to lower courts.</p>\r\n<p><strong>SUMMARY OF FACTS:</strong></p>\r\n<p>The Claimant (a commercial agent registered with the UAE commercial  agents register) entered into an agency agreement with the Respondent.  The parties agreed that the Claimant will market, distribute and sell  the Respondent&rsquo;s products within the UAE.&nbsp;</p>\r\n<p>The agreement was duly registered in the commercial agencies  register, according to their agreement the parties agreed to refer any  disputes arising thereof to arbitration.</p>\r\n<p>The Claimant commenced performing its obligations set forth in the  agreement; however the Respondent abstained from providing the required  documents and further unilaterally affected deletion of the commercial  agency agreement from the commercial register.</p>\r\n<p>The Claimant therefore requested appointing an arbitrator who issued  his arbitral award obligating the Respondent to pay a sum of AED 328,850  with damages and arbitration costs. Consequently, the Claimant filed a  commercial action against the Respondent before the Dubai Court of First  Instance requesting the court to ratify and authenticate the arbitral  award.&nbsp;</p>\r\n<p><strong>PROCEDURAL HISTORY:</strong></p>\r\n<p>The First Instance Court rendered its judgment ratifying the arbitral  award; the Respondent appealed the judgment before the Court of Appeals  which in turn upheld the judgment. The Respondent challenged the  Appeals Court Judgment before the Court of Cassation.&nbsp;</p>\r\n<p><strong>COURT OF CASSATION:</strong></p>\r\n<p>The Respondent argued that the lower court&rsquo;s decision contradicted provisions of Article 6 of the Commercial Agency Law.&nbsp;</p>\r\n<p>Article 6 provides that in Commercial Agency Agreements the State&rsquo;s  Courts shall rule in any disputes which may arise between the  Principaland the Agentdue to its implementation. Any agreement to the  contrary shall be void.&nbsp;</p>\r\n<p>Application of Article 6 to the case before hand renders the  arbitration agreement void and consequently the court&rsquo;s judgment issued  ratifying the arbitral award is in contradiction with the law.&nbsp;</p>\r\n<p>The Court held that the Respondent&rsquo;s argument was with grounds,  according to Article 6 &ldquo;The Commercial Agency agreement shall be deemed  to be for the joint interest of the contracting parties and the State&rsquo;s  Courts shall rule in any disputes which may arise between the Principal  and the Agent due to its implementation. Any agreement to the contrary  shall be void.&rdquo; Article 3 of the same law provides that &ldquo;Trade agency  activities are not permitted to be practiced inside the state except by  such commercial agents registered in the Specified register maintained  for this purpose by the ministry (the Ministry of Economy and Commerce).  Any trade agency not registered in the above register shall not be  considered, nor legal cases there for shall be heard&rdquo;.&nbsp;&nbsp;</p>\r\n<p>It is construed from the above two articles that the legislator held  the jurisdiction for the UAE Courts to hear disputes arising from the  performance of commercial agency agreements between the agent and the  principle and to vitiate any agreement otherwise. This includes the  parties&rsquo; agreement to arbitrate so long as the commercial agency  agreement is registered in the commercial agencies register.</p>\r\n<p>Whereas the appealed judgment construed that the Commercial Agency  Law no. 18 permitted the parties to the agreement to agree to arbitrate,  which contradicts with provisions of Article 6 of the same law and the  court therefore erred in its reasoning of that article.</p>\r\n<p>The court further held that the commercial agency was registered in  the commercial agencies register and the fact that the Claimant  unilaterally deleted/canceled the agreement does not impact the former  legal existence and registry of the agreement in the Commercial Agencies  Register. Moreover the Claimant in his action requested appointing the  requisite number of arbitrators to hear its claim to continue existence  of the commercial agency between the parties thereto and to demand the  principal for the commission and damages suffered from striking the  commercial agency unilaterally by the Respondent. Thus, Article 6 of the  aforementioned law is applicable and the appealed judgment therefore  contradicted the law and therefore the court overturned the lower  court&rsquo;s judgment.&nbsp;</p>\r\n<p><em><strong>Practice Note:</strong></em>&nbsp;</p>\r\n<p>Based on the above, it is crucial for the contracting parties in a  commercial agency relationship to be aware that they may not resolve  their dispute through arbitration. Due to the sensitivity of the  commercial agencies contracts and their effect on the economy and the  trade, the legislator reserved the jurisdiction solely to the national  courts.</p>'),
	(85653,4666,'_content','field_59b649b5c8b2b'),
	(85654,4666,'lawUpdateArticleMonth','4661'),
	(85655,4666,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85656,4666,'content_description','When it comes to Arbitration in the UAE, the general rule and practice of UAE Courts is that courts would not entertain any action related to a dispute arising from the execution of an agreement in which the parties have agreed to arbitrate. '),
	(85657,4666,'_content_description','field_59b641c07f473'),
	(85658,4666,'pageSummary','When it comes to Arbitration in the UAE, the general rule and practice of UAE Courts is that courts would not entertain any action related to a dispute arising from the execution of an agreement in which the parties have agreed to arbitrate. '),
	(85659,4666,'_pageSummary','field_59e59b307dec8'),
	(85660,4666,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/february-4/uae-courts-jurisdiction-in-commercial-agency-agreements.html'),
	(85661,4666,'_currentURL','field_59d35123ab1e7'),
	(85662,4666,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','866'),
	(85663,4666,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(85664,4666,'lawUpdateArticleWriters','1'),
	(85665,4666,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(85666,4666,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Marwa El Mahdy'),
	(85667,4666,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85668,4666,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','m.elmahdy@tamimi.com'),
	(85669,4666,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85670,4666,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85671,4666,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85672,4666,'lawUpdateArticleNoWriters','1'),
	(85673,4666,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85674,4666,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','410'),
	(85675,4666,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85676,4666,'lawUpdateArticlePractices','1'),
	(85677,4666,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85678,4666,'_yoast_wpseo_metadesc','When it comes to Arbitration in the UAE, the general rule and practice of UAE Courts is that courts would not entertain any action related to a dispute arising from the execution of an agreement in which the parties have agreed to arbitrate.'),
	(85679,4667,'content','<p>The ruling is the latest in a series of positive decisions rendered  pursuant to the UAE acceding to the New York Convention in November  2006. It tackles different arguments relating to the scope of  jurisdiction of local courts with respect to foreign awards, the burden  of proof for setting aside the award and the scope of review allowed  from the lower courts.</p>\r\n<p>Summary of facts: &nbsp;</p>\r\n<p>The Claimant (an international steel trader) entered into a purchase  agreement with the Respondent (a contractor domiciled in Dubai) under  which the Respondent purchased a consignment of steel sheeting from the  Claimant.</p>\r\n<p>The Parties agreed to refer any dispute arising from their agreement  to be resolved by way of DIFC-LCIA arbitration seated in London.&nbsp;</p>\r\n<p>A payment dispute arose between the parties which was referred to  arbitration according to their agreement. The arbitration tribunal  rendered two awards for the Claimant, the first award concerned damages  under the agreement and the second award concerned arbitration and legal  costs. Consequently, the Claimant initiated legal action before Dubai  Court of First Instance seeking enforcement of the two arbitral awards  issued against the Respondent, and requested that the precautionary  attachment be confirmed as enforceable.&nbsp; &nbsp;</p>\r\n<p>Procedural History</p>\r\n<p>- First Instance Court:</p>\r\n<p>The Respondent for the court to set aside the two arbitral awards&nbsp; on the following grounds:</p>\r\n<p>a- The signatory of the arbitration agreement did not posses required  authority to agree to arbitrate on behalf of the Respondent nor the  authority required to dispose of the right which is the subject of the  dispute.&nbsp;</p>\r\n<p>b- Procedures of appointing the arbitrator were invalid.&nbsp;</p>\r\n<p>c- The two arbitral awards were issued without an arbitration deed as  required by Article 216 of the UAE Civil Procedures Law (CPL) and  Article 5 (c) of the New York Convention.&nbsp;</p>\r\n<p>d- The arbitration proceedings were invalid as the arbitral awards  were rendered by application of the English law in contradiction with  the parties&rsquo; agreement to arbitrate under DIFC rules. &nbsp;</p>\r\n<p>e- The Arbitrator failed to administer the oath to the witnesses as required by Article 211 of CPL.&nbsp;</p>\r\n<p>The Court of First Instance ruled the following:</p>\r\n<p>- In the main action: to recognise the two arbitral awards subject of  dispute and to confirm the precautionary attachment filed by the  Claimant.&nbsp;</p>\r\n<p>- In the counter action: to dismiss the counter claim filed by the Respondent for lack of jurisdiction.&nbsp;</p>\r\n<p>The Respondent appealed to the Court of Appeal which upheld the lower  court&rsquo;s judgment; consequently the Respondent challenged the judgment  before the Court of Cassation.&nbsp;</p>\r\n<p>Judgment: &nbsp;</p>\r\n<p>The appeal is based on five grounds.</p>\r\n<p>The agreement between the parties was invalid, it was not signed by  the manager of the company who is the authorised signatory. The  Respondent, during proceedings before the lower court, requested that  the Claimant produces original of the agreement, however the latter  failed to produce the original and merely submitted a faxed copy  alleging that the agreement was concluded via fax.&nbsp;</p>\r\n<p>The Court of Cassation rejected this argument. The lower courts  allowed the Respondent to realise its defence by identifying its  employee who signed the contract in order to determine whether or not  such employee was granted the authority to sign agreements on behalf of  the manager. However, the Respondent denied knowing the identity of the  employee and denied having concluded the agreement contrary to its  admissions in its memorandum before the lower courts in which the  Respondent admitted having concluded the agreement and only concerned  its defence around irregularity in the arbitration proceedings.  Furthermore, Article 5 of the New York Convention of 1958 placed the  burden of proof on the party claiming nullity of an arbitration award in  this case the Respondent who merely denied the documents without  furnishing any evidence supporting its allegations.&nbsp;</p>\r\n<p>The First Instance Court dismissed the Respondent&rsquo;s counter claim for  lack of jurisdiction on grounds that such jurisdiction belonged to the  arbitrator who issued the two arbitral awards and that the court&rsquo;s  supervision is limited to ensuring that the arbitral awards were issued  in compliance with Federal Decree no. 43 of 2006 (by which the UAE  acceded to the New York Convention of 1958 on the recognition and  enforcement of foreign arbitral awards). The Respondent further stated  that the New York Convention provisions do not preclude an action for  setting aside an arbitral award. The Respondent requested setting aside  the arbitral awards as per Article 206 of the CPL which states that it  is permissible for parties to request setting aside arbitral awards  while the action to ratify such award is being heard before courts.&nbsp;</p>\r\n<p>The Court of Cassation rejected this argument. It is concluded from  provisions of the CPL in relation to arbitration and the procedures to  be followed by the court when ratifying arbitral awards, in particular  articles 212, 213 and 215 that the national courts have the jurisdiction  to either ratify/recognise or set aside an arbitral award that was  issued within the UAE, otherwise the court is compelled to apply rules  concerning arbitral awards issued in a foreign state.&nbsp;</p>\r\n<p>It is also construed from Article 238 of CPL that rules of  international conventions which were ratified by the UAE are considered  as internal legislation within the UAE and it is compulsory for the  national courts to apply such rules to all disputes arising in relation  to the execution of foreign arbitral awards and foreign judgments. &nbsp;</p>\r\n<p>The two arbitral awards subject of dispute were issued in London in  accordance to the New York Convention on recognition and execution of  foreign arbitral awards, therefore the UAE courts jurisdiction in  relation to foreign arbitral awards is only limited to ensuring they do  not contravene the required procedural and substantive forms for awards  as per articles 4 and 5 of the New York Convention. The Court of  Cassation confirmed that the two arbitral awards fulfilled these  requirements.</p>\r\n<p>The Respondent argued the invalidity of the arbitration clause  included in the agreement as well as the invalidity of the procedures by  which the arbitrator was appointed in accordance to Article 44/7 of the  DIFC arbitration rules. Furthermore, The Arbitrator failed to  administer the oath to the witnesses as per Article 211 of CPL.&nbsp;</p>\r\n<p>The Court of Cassation rejected this argument. As mentioned above,  Article 5 of the New York Convention placed the burden of proof on the  party claiming nullity of an arbitration award. The Respondent in this  case requested to set aside the arbitral award failed to produce any  evidence to support the above allegations.&nbsp;</p>\r\n<p>The Respondent further claimed that the jurisdiction to hear this case was for the DIFC courts as per the parties&rsquo; agreement.&nbsp;</p>\r\n<p>The Court of Cassation held that these arguments were inadmissible.  The effect of Federal Decree no. 43 of 2006, is that all UAE courts have  the jurisdiction to recognise and enforce foreign arbitral awards which  means that parties can resolve to any court in the UAE to request  enforcing a foreign arbitral award.</p>\r\n<p>The arbitral awards were issued in contradiction to Islamic Sharia  and public policy in the UAE as it awarded usurious interests.&nbsp;</p>\r\n<p>The Court of Cassation rejected this argument. Prohibition on  agreeing to usurious interest in any type of civil or commercial  transaction under Article 409 of the Penal Law and Article 714 of the  Civil Transactions Law is limited to transactions between individuals  without extending to transactions between individuals and corporate  entities which can agree with other corporate entities or individuals on  conventional interest. As per the documents, the parties to the  agreement subject of dispute in question are corporate entities;  therefore any interest awarded is permissible.&nbsp;</p>\r\n<p>Accordingly, the petition to cassation was dismissed.</p>\r\n<p><em>Practice Note</em></p>\r\n<p>The judgment in study has affirmed several important principals  concerning commercial international arbitration. At the international  level, the judgment as mentioned earlier confirmed the UAE Courts&rsquo;  determination to comply with the New York Convention. On the domestic  level, the judgment confirmed the&nbsp; principle that all UAE courts shall  have the jurisdiction to hear actions in relation to confirmation and  enforcement of foreign arbitral awards.</p>'),
	(85680,4667,'_content','field_59b649b5c8b2b'),
	(85681,4667,'lawUpdateArticleMonth','4661'),
	(85682,4667,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85683,4667,'content_description','In a recent judgment issued on 18 September 2012, Dubai Court of Cassation confirmed to the international society its determination and commitment to strictly complying with the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards.'),
	(85684,4667,'_content_description','field_59b641c07f473'),
	(85685,4667,'pageSummary','In a recent judgment issued on 18 September 2012, Dubai Court of Cassation confirmed to the international society its determination and commitment to strictly complying with the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards.'),
	(85686,4667,'_pageSummary','field_59e59b307dec8'),
	(85687,4667,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/february-4/dubai-cassation-court-emphasises-its-strict-compliance-to-the-new-york-convention.html'),
	(85688,4667,'_currentURL','field_59d35123ab1e7'),
	(85689,4667,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','848'),
	(85690,4667,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(85691,4667,'lawUpdateArticleWriters','1'),
	(85692,4667,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(85693,4667,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Marwa El Mahdy'),
	(85694,4667,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85695,4667,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','m.elmahdy@tamimi.com'),
	(85696,4667,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85697,4667,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85698,4667,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85699,4667,'lawUpdateArticleNoWriters','1'),
	(85700,4667,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85701,4667,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','410'),
	(85702,4667,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85703,4667,'lawUpdateArticlePractices','1'),
	(85704,4667,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85705,4667,'_yoast_wpseo_metadesc','In a recent judgment issued on 18 September 2012, Dubai Court of Cassation confirmed to the international society its determination and commitment to strictly complying with the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards.'),
	(85706,4668,'content','<p><strong>Background</strong></p>\r\n<ol>\r\n<li>The Branch Manager received a request from an unlisted client  (&ldquo;Branch Manager&rdquo;), for a bankers draft for 236,000,000 Indian Rupees  (&ldquo;Draft&rdquo;) to be made out to an Official Receiver. &nbsp;&nbsp;</li>\r\n<li>Despite the Claimant protocols and the Foreign Exchange and Cheque  Expectance Procedure, requiring confirmation from the bank that proceeds  of cheques are received and credited to the Claimant account prior to  the bank drafts being delivered, the Branch Manager drew the drafts in  excess of his personal limit and did not wait until the cheque cleared  prior to forwarding the drafts to the receiver.&nbsp;</li>\r\n<li>The Branch Manager drew 20 bank drafts for a total sum of AED  21,320,340 and increased his own personal authorization by instructing  another employee to change his authorization level on the allegation  that he was authorized to do so by head office, presumably to get over  the individual authorization limit for a draft for an unapproved  customer.&nbsp; The drafts were signed by another employee and counter-signed  by the Branch Manager. The drafts were presented and the Claimant  account has been debited accordingly.&nbsp;</li>\r\n<li>The cheque bounced when presented due to insufficient funds.&nbsp;</li>\r\n<li>The Branch Manager jumped off a tower building killing himself and  on the same day the Claimant reported the bounced cheque to the police.&nbsp;</li>\r\n</ol>\r\n<p><strong>Court of first Instance</strong></p>\r\n<p>The Claimant filed a claim against the Defendant to claim the limit  of the insurance policy, due to the fact that the Claimant is entitled  to indemnity under the policy, up to the policy limit for employee  infidelity. &nbsp; As the Branch Manager breached the trust by not following  established procedures and transferred the money before confirming with  the bank that there was money in the account. &nbsp;</p>\r\n<p>The court has decided to refer the matter to an expert in order to: &nbsp;</p>\r\n<ol>\r\n<li>Review and consider the memos and the supporting documents which were submitted by both parties.&nbsp;</li>\r\n<li>The court allowed the expert to attend the Claimant premises to check the original documents related to this matter.&nbsp;</li>\r\n<li>To determine whether the Branch Manager made a mistake or exceeded  his authority and if he did make a mistake to clarify the type of  mistake, determine the damage and the value of the compensation.&nbsp;</li>\r\n<li>The court allowed the expert to attend at any governmental authority to check documents if need be.</li>\r\n</ol>\r\n<p>The expert reached the following conclusions:</p>\r\n<ol>\r\n<li>Beneficiary received an amount of 236,000,000 Indian rupees from the Claimant bank account.</li>\r\n<li>The Claimant suffered losses from the transaction performed by the Branch Manager.&nbsp;</li>\r\n<li>The Branch Manager did not follow the normal procedures in  transferring the amount, since he issued 20 draws and transferred the  amount to the beneficiary before receiving the funds.</li>\r\n</ol>\r\n<p>The expert did not reply to the court query of whether he  deliberately performed the transaction or not. The expert left this  point to the court to consider because it is a legal point.&nbsp;</p>\r\n<p>The Claimant confirmed to the court that the Branch Manager committed  an intentional mistake to benefit from the funds, which is apparent  from the following facts:&nbsp; &nbsp;</p>\r\n<ol>\r\n<li>The Branch Manager had transferred the money in 20 drafts.</li>\r\n<li>The Branch Manager had instructed one of the employees to increase his authority to transfer the amount to the beneficiary. &nbsp;</li>\r\n<li>The Branch Manager should have followed the strict procedures before transferring the amount.&nbsp;</li>\r\n<li>The Branch Manager had not informed the Claimant that the cheques have bounced.&nbsp;</li>\r\n<li>The Branch Manager had very good experience regarding following the  correct procedures before transferring the amount, being a Branch  Manager. &nbsp;</li>\r\n<li>The Branch Manager&rsquo;s suicide when he failed to obtain his passport and leave the country.&nbsp;</li>\r\n<li>The Branch Manager had used fraudulent methods to conclude the  transaction; despite the fact that the Claimant has a very good security  system.</li>\r\n</ol>\r\n<p>The Court of First Instance rendered&nbsp; its&nbsp; judgment&nbsp; in&nbsp; favor&nbsp; of&nbsp;  Claimant by ordering the Defendant to&nbsp; pay&nbsp; the Claimant the amount of  USD $ 1,975,000 with&nbsp; 9%&nbsp; interest from the date of filing the claim  until the full payment, in addition to all expenses and fees.&nbsp;</p>\r\n<p>The Defendant has filed an appeal before the Court of Appeal to  challenge the Court of First Instance judgment. The Court of Appeal has  not rendered a judgment yet.&nbsp;</p>\r\n<p>The abovementioned judgment is currently under the appeal, and we  will publish a further article once we receive the outcome of the appeal  court judgment.</p>'),
	(85707,4668,'_content','field_59b649b5c8b2b'),
	(85708,4668,'lawUpdateArticleMonth','4661'),
	(85709,4668,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85710,4668,'content_description','The Claimant is a money exchange company (“Claimant”) and the Defendant, an insurance company (“Defendant”). The Claimant signed an insurance policy with the Defendant to cover any loss resulting solely and directly from dishonest or fraudulent acts by employees;'),
	(85711,4668,'_content_description','field_59b641c07f473'),
	(85712,4668,'pageSummary','The Claimant is a money exchange company (“Claimant”) and the Defendant, an insurance company (“Defendant”). The Claimant signed an insurance policy with the Defendant to cover any loss resulting solely and directly from dishonest or fraudulent acts by employees;'),
	(85713,4668,'_pageSummary','field_59e59b307dec8'),
	(85714,4668,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/february-4/fidelity-policy.html'),
	(85715,4668,'_currentURL','field_59d35123ab1e7'),
	(85716,4668,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Rami Al Tal'),
	(85717,4668,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85718,4668,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','r.altal@tamimi.com'),
	(85719,4668,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85720,4668,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85721,4668,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85722,4668,'lawUpdateArticleNoWriters','1'),
	(85723,4668,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85724,4668,'_yoast_wpseo_metadesc','The Claimant is a money exchange company (“Claimant”) and the Defendant, an insurance company (“Defendant”). The Claimant signed an insurance policy with the Defendant to cover any loss resulting solely and directly from dishonest or fraudulent acts by employees;'),
	(85725,4669,'content','<p>The inauguration of the Centre for Amicable Resolution of Disputes in  April 2012 has proven to be a great success so far.&nbsp; The Centre was  launched by the Department of Economic Development in co-operation with  the Dubai Courts to provide a mediation alternative to the judicial  process.&nbsp; The Centre aims to facilitate the amicable and affordable  settlement of disputes via mediation within a period of one month before  referring the matters to the courts to proceed via the usual court  process. &nbsp;&nbsp;</p>\r\n<p>Mediation is a voluntary process. It is therefore not possible  without full participation and commitment from all parties.&nbsp; All parties  must therefore agree to enter into the process with the right mindset,  although in some jurisdictions this may only be after judicial  recommendation with associated risks of costs sanctions against the  party who refused to mediate.</p>\r\n<p>The opening of the Centre demonstrates the government&rsquo;s commitment to  encourage and increase the use of mediation in Dubai, by making it  available a part of the court process.&nbsp; The Centre is currently able to  consider the following disputes:</p>\r\n<ol>\r\n<li>Commonly-owned property;</li>\r\n<li>Debt of a maximum value of AED 50,000;</li>\r\n<li>Disputes agreed to be settled before the centre by virtue of an agreement entered into between the parties</li>\r\n</ol>\r\n<p>All disputes of this nature must now be reviewed by members of the  Centre before they may be filed as law suits before the relevant Dubai  courts. If the dispute is referred to the Centre then the facts of the  dispute will be reviewed and handled by a number of mediators under the  direct supervision of the concerned judge. &nbsp;</p>\r\n<p>It is important to mention that all limitation periods and  prescription periods for the claim will be put on hold until the Centre  issues its verdict to transfer the claim to the relevant court. This  provides an invaluable incentive for those who may be worried about  impending time bars, due to the expiration of limitation periods, to  explore mediation before instigating legal proceedings.&nbsp;</p>\r\n<p>The Centre provides an alternative avenue for the resolution of  disputes which will save time and costs.&nbsp; It also shows judicial  pioneering and an innovative attitude in light of global developments.&nbsp;  In recent years, the use of mediation has increased exponentially in  common law jurisdictions and the inauguration of the Centre shows an  important development within the civil law jurisdiction.</p>\r\n<p>The Centre presently has limited application and the following disputes are excluded from the Centre&rsquo;s jurisdiction:</p>\r\n<ol>\r\n<li>Urgent claims;</li>\r\n<li>Claims where the Government is one of the parties;</li>\r\n<li>Claims which are not subject to the jurisdiction of the courts;</li>\r\n<li>Claims which were registered in the courts before this law came into force;</li>\r\n<li>Labour disputes;</li>\r\n<li>Family disputes.</li>\r\n</ol>\r\n<p>The benefits of the work carried out by the Centre are significant.&nbsp;  Disputes which are referred for amicable settlement are usually mediated  and settled within a maximum period of one month from the date when the  parties first appear before the Centre, opposed to the 3 staged Dubai  Court system which can see disputes in the courts for 18 to 24 months.&nbsp;  Mediation is a process which allows the parties to focus on the  commercial aspects of their dispute rather than the legal issues which  can sometimes take the parties focus away from the real cause of the  dispute. &nbsp;</p>\r\n<p>The one month resolution period for the centre may be extended for a  further month by court order if required but if settlement is reached a  settlement agreement will be prepared by the Centre signed by the  parties.&nbsp; This signed settlement agreement will be attested by a Dubai  Court judge and can be enforced immediately.&nbsp; The Centre provides a very  quick route to obtain an enforceable judgment in the UAE.</p>\r\n<p>If settlement is achieved, 50% of the paid court fees will be  returned to the parties.&nbsp; If settlement is not achieved however, the  dispute will be referred to the relevant court and will proceed as a  normal court case.</p>\r\n<p>The terms of any settlement achieved during the mediation process are  confidential, however the parties are free to agree to an alternative  agreement if they so wish. Mediation aims to resolve a dispute by  maximizing all parties&rsquo; interests and achieving a &ldquo;win-win&rdquo; outcome so  that the parties do not feel compromised.&nbsp; It aims to resolve a dispute  swiftly so that parties can move on from the dispute and preserve  commercial relationships which the court process so often destroys.&nbsp; The  parties get to agree the terms of the settlement themselves and hence  the results achieved are such that they may never be considered or  imposed by a court.&nbsp; The mediation process enables the parties to agree  their own terms of settlement and this allows for ingenuity and extra  legal solutions.</p>\r\n<p><strong>Registering a dispute at the Centre</strong></p>\r\n<ol>\r\n<li>The claimant must submit two copies of a request in writing to the  court including, names of claimant and defendant, email addresses for  all parties, postal address and subject of the claim.&nbsp; The requesting  party must pay all registration fees.</li>\r\n<li>The court will refer the request to the Centre. The dispute will be  reviewed and considered by the Centre.&nbsp; Once completed, the Centre will  either issue a decision of approval to mediate or refer the matter to  the relevant court.&nbsp;</li>\r\n<li>A hearing session will be scheduled for first deliberation of the  claim and the claimant will be notified of the date and time for  attendance.</li>\r\n<li>The defendant will be notified of the first hearing session via the usual court notification procedures.</li>\r\n<li>Parties may attend by themselves or they may send a representative duly authorised by Power of Attorney.</li>\r\n</ol>\r\n<p><strong>Collaboration with the Royal Institute of Chartered Surveyors (&ldquo;RICS&rdquo;) Mediation Panel</strong></p>\r\n<p>Since its official UAE launch in October 2012, the RICS Mediation  Panel has been collaborating with the Dubai Courts and the Dubai Land  Department in order to promote further public understanding of the  advantages of the mediation process as alternative dispute resolution. &nbsp;</p>\r\n<p>The meeting of minds by these highly respected government departments  and the globally respected RICS has enabled many experienced parties to  work together and discuss the evolution of mediation and the Centre for  Amicable Resolution of Disputes in the region.&nbsp; The Centre has already  demonstrated an unrivalled success in achieving settlement of a large  percentage of disputes that have been referred to it so far by the Dubai  Court.</p>\r\n<p>The Centre is currently working with the RICS to implement further  training from the RICS Mediation Panel in order that the already  experienced mediators from the Centre may benefit from training in the  standard model of mediation which is so regularly used in the global  arena.</p>'),
	(85726,4669,'_content','field_59b649b5c8b2b'),
	(85727,4669,'lawUpdateArticleMonth','4661'),
	(85728,4669,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85729,4669,'content_description','His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, created the Centre for Amicable Settlement of Disputes in Dubai (the “Centre”) under Dubai  law Number 16 of 2009.'),
	(85730,4669,'_content_description','field_59b641c07f473'),
	(85731,4669,'pageSummary','His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, created the Centre for Amicable Settlement of Disputes in Dubai (the “Centre”) under Dubai  law Number 16 of 2009.'),
	(85732,4669,'_pageSummary','field_59e59b307dec8'),
	(85733,4669,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/february-4/the-centre-for-amicable-resolution-of-disputes-in-dubai.html'),
	(85734,4669,'_currentURL','field_59d35123ab1e7'),
	(85735,4669,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Abigail Powell'),
	(85736,4669,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85737,4669,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','a.powell@tamimi.com'),
	(85738,4669,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85739,4669,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85740,4669,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85741,4669,'lawUpdateArticleNoWriters','1'),
	(85742,4669,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85743,4669,'_yoast_wpseo_metadesc','His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, created the Centre for Amicable Settlement of Disputes in Dubai (the “Centre”) under Dubai law Number 16 of 2009.'),
	(85744,4670,'content','<p>As well as increased activity in the private sector, governments  across the region are recognising an urgent need for updated social and  economic infrastructure in sectors including health, housing, transport,  water/wastewater, hospitality and tourism and energy.</p>\r\n<p>Against this backdrop, this article briefly considers some of the key  legal characteristics of the Middle East construction market.</p>\r\n<p>Apart from a few exceptions (such as Saudi Arabia and Oman), Middle  Eastern legal systems are founded upon principles of civil law  (primarily derived from Egyptian law which, in turn, was heavily  influenced by the French legal system) and are therefore codified.&nbsp; In  the UAE, for example, the UAE Civil Code has a specific chapter entitled  &ldquo;Muqawala&rdquo;, which contains provisions governing the relationships  between the participants in a construction project.&nbsp;</p>\r\n<p>Projects across the Middle East are procured on a variety of bases,  including lump sum turnkey, construction management and management  contracting variants, EPCM and traditional direct contracting.&nbsp; FIDIC  forms of contract (the standard developed by the International  Federation of Consulting Engineers) are commonly used as the base  project documents but are usually heavily amended to favour the  Employer.&nbsp; Additionally, as there are a large number of common law  trained lawyers practising in the Middle East, contracts are  significantly influenced by common law principles.&nbsp; This creates  difficulties as, unless used so widely as to constitute local custom or  practice, certain common law principles do not fit neatly under local  law and may be unworkable or ultimately, unenforceable.&nbsp;</p>\r\n<p>A good example of this is liquidated damages. In common law  jurisdictions, parties are free to commercially agree rates of  liquidated damages and the courts will enforce whatever is agreed  provided that it is loosely a genuine pre-estimate of the loss  suffered.&nbsp; However, in most Middle East jurisdictions, parties may  petition the court to either increase or decrease the agreed liquidated  damages so as to accurately reflect the true extent of any loss or harm  suffered. &nbsp;</p>\r\n<p>The concept of &ldquo;good faith&rdquo; is a key area of difference.&nbsp; Although  &ldquo;good faith&rdquo; has doubtful legal meaning in a common law setting, it is  an important codified principle in Middle Eastern civil codes and courts  have the power (which they frequently use) to prohibit conduct they  consider falls short of the standards imposed by this far-reaching  principle of law.</p>\r\n<p>An equivalent remedy to damages in tort for economic loss is  generally available while serious complications can arise if a contract  is terminated other than by mutual consent, by court order or at law.  This has obvious implications for some customary clauses like  termination for convenience.&nbsp; There are, of course, many other features  of the law in Middle Eastern countries that have an important bearing on  matters of contract and law to parties involved in construction  projects that we have not touched on this short note.</p>\r\n<p>Differences in concept and approach may come as a surprise to those  unfamiliar with the nuances of the Middle East.&nbsp; When things go wrong,  how are disputes resolved?&nbsp; Arbitration is the most common form of  dispute resolution in contracts involving international parties (Saudi  Arabia is a notable exception to this for a number of reasons) and, as  well as arbitration pursuant to international rules of arbitration,  there are a number of well respected local arbitral bodies including the  Dubai International Arbitration Centre and the DIFC/LCIA Arbitration  Centre.&nbsp; In the absence of an arbitration clause, the default position  is that disputes are resolved by local courts, where proceedings are  conducted in Arabic, in a civil law setting.&nbsp; There is no system of  precedent, although decisions of the highest court typically have  persuasive authority. &nbsp;</p>\r\n<p>Alternative dispute resolution is in its relative infancy in the  Middle East, with methods such as mediation rarely used.&nbsp; There are  reasons for this, including a lack of confidence in the application of  the concept of &ldquo;without prejudice&rdquo;, which is obviously enshrined in  common law countries.&nbsp; Methods tend to be generally more conservative  than those employed in the common law world.</p>\r\n<p>It is imperative that stakeholders obtain expert local law advice  prior to entering into contracts in the Middle East.&nbsp; Naturally, parties  should do the same at the earliest possible stage if an existing  contractual relationship is turning, or has turned, sour.</p>\r\n<p>Al Tamimi &amp; Company&rsquo;s Construction &amp; Engineering team offers  an unrivalled mix of the highest calibre English and Arabic speaking  lawyers who have practiced in numerous jurisdictions in the Middle East  and across the world and advised on a wide range of major projects (from  inception to completion) and project disputes.&nbsp;</p>\r\n<p>Al Tamimi &amp; Company is the largest law firm in the Middle East  that was established in Dubai in 1989.&nbsp; As well as having offices across  the UAE, we have fully serviced offices in Kuwait, Saudi Arabia,  Jordan, Qatar and Iraq.</p>\r\n<p>All enquires and comments on this article should be addressed to Adam Balchin, Regional Head of Construction and Engineering.</p>\r\n<p><em>Published in Asian Legal Business February edition.</em></p>'),
	(85745,4670,'_content','field_59b649b5c8b2b'),
	(85746,4670,'lawUpdateArticleMonth','4661'),
	(85747,4670,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85748,4670,'content_description','The construction industry across the Middle East is showing very encouraging signs of sustained recovery from the global economic crisis.'),
	(85749,4670,'_content_description','field_59b641c07f473'),
	(85750,4670,'pageSummary','The construction industry across the Middle East is showing very encouraging signs of sustained recovery from the global economic crisis.'),
	(85751,4670,'_pageSummary','field_59e59b307dec8'),
	(85752,4670,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/february-4/the-middle-east-construction-and-the-law-1.html'),
	(85753,4670,'_currentURL','field_59d35123ab1e7'),
	(85754,4670,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Adam Balchin'),
	(85755,4670,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85756,4670,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','a.balchin@tamimi.com'),
	(85757,4670,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85758,4670,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85759,4670,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85760,4670,'lawUpdateArticleNoWriters','1'),
	(85761,4670,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85762,4670,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','537'),
	(85763,4670,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85764,4670,'lawUpdateArticlePractices','1'),
	(85765,4670,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85766,4670,'_yoast_wpseo_metadesc','The construction industry across the Middle East is showing very encouraging signs of sustained recovery from the global economic crisis.'),
	(85767,4671,'content','In light of the importance of this topic, this article intends to shed some light on the treatment of Performance Bonds under Qatari law.  In particular, we will identify the ways in which a contractor may resist the arbitrary encashment of such instruments.\r\n\r\n<strong>The Nature of the Performance Bond under Qatari Law </strong>\r\n\r\nAll standard form construction contracts (and many bespoke contracts) require the Contractor to submit a Performance Bond to the Employer as a form of guarantee in respect of the former’s performance of the contract works.  In the event that a Contractor breaches its contractual obligations, the Employer has the option to recoup some or all of his losses by making a call on the Performance Bond, in addition to having recourse to any other available contractual or legal remedies.  As such, Performance Bonds are merely intended to operate as guarantees, and not advance payments in respect of monies which a court or arbitral tribunal may or may not later award to the Employer at a merits hearing.\r\n\r\nIn this jurisdiction, it is common practice for employers to request that a Performance Bond takes the form of an “on demand” Letter of Guarantee from the Contractor’s bank (‘the Bank’) - a document which will unambiguously stipulate that the Bank will remit the full amount of the bond to the Employer upon receipt of written confirmation from the Guarantee’s beneficiary (the Employer) that the Contractor has breached its obligations under the contract.\r\n\r\nArticles 406 to 413, inclusive, of Qatar’s Commercial Law (Law No. (27) of 2006) deal with “on demand” letters of guarantee. Article 406 of the Commercial Law stipulates that:\r\n\r\n<em>“A letter of guarantee is a <strong>written, irrevocable</strong> commitment <strong>issued by a bank</strong> pursuant to the request of one of its clients… <strong>to pay a specified</strong> amount or an amount that can be specified later to… the “beneficiary”, if the beneficiary requests it to do so, within the period specified in the letter, <strong>without taking any objection into consideration. </strong>The letter of guarantee shall specify the purpose for which it was issued.”</em> (emphasis added)\r\n\r\nThus, where the contractual wording confirms that the performance guarantee is to take the form of an unconditional on-demand bond - meaning that the full amount of same is payable upon written demand without being subject to any condition - and the beneficiary (Employer) submits such demand to the guarantor (the Bank), the Bank is obliged to honour the call, even if the Contractor disputes liability for the alleged breach, or if the Employer does not know or believe that he is entitled to call on the Bond, or is simply reckless as to whether he is entitled to payment of the sum demanded.\r\n\r\nThe requirements of the aforementioned Article 406 are further supported by Article 409 of the Commercial Law, which states that a bank shall not be entitled to refuse to pay the beneficiary due to any reason connected to the Bank’s relationship with the applicant (that is, the Contractor) or the applicant’s relationship with the beneficiary (the Employer).\r\n\r\nBased on the above-referenced provisions of Qatari law, it is clear that a bank does not have discretion to decide whether or not a call on a Performance Bond is justified, or whether such a call is arbitrary or fraudulent.  Further, the bank is not entitled to refuse to honour a call on a Performance Bond for any reason whatsoever.\r\n\r\n<strong>Remedies Available to the Contractor</strong>\r\n\r\nA Contractor has two layers of defence against an arbitrary call by an Employer on a Performance Bond, as follows:\r\n\r\nA. Taking Action Before the Call is Made\r\n\r\nIf a Contractor has serious concerns that the Employer may make a call on the Bond, he can seek injunctive relief from the Court, which would suspend the Employer’s right to encash the bond pending the outcome of a hearing on the merits of the Contractor’s claim - that is, if the Contractor has filed, or is about to file, a claim against the Employer on the merits.\r\n\r\nFor the purposes of increasing the likelihood of success in relation to an application for an injunction, the documents submitted by the Contractor in connection with such application will need to persuade the Court that there is a prima facie case to be heard, thus enabling the Court to grant interim relief without making any determination as to the substance, or merits, of the dispute at issue.\r\n\r\nThe Contractor should look to convince the Court, by way of solid, written evidence, that the Employer is likely abusing his right to call on the Bond.  Of particular usefulness here would be evidence confirming that the contract works have been performed substantially or in full (such as, for example, interim or practical completion certificates), or documents which would substantiate an assertion that the Employer’s motivation in making the call is to gain some leverage over the Contractor.  The nature of the supporting documents will differ from one case to another; however, this kind of injunctive relief is very rarely awarded by the Qatari Courts.\r\n\r\nB. Acting After the Call\r\n\r\nAfter an Employer makes a call on a Performance Bond, the Contractor may have recourse to one of the following two remedies:\r\n<ol>\r\n 	<li>The Contractor may seek an injunction from the Court, on an urgent basis, which would have the effect of estopping the bank from making any payment on foot of the Bond until completion of a full hearing on the merits of the dispute between the parties, assuming that such proceedings have been, or are imminently to be filed by the Contractor against the Employer.  However, this option often proves impractical, depending as it does on the speed with which the bank in question reacts to the Employer’s written demand for payment of the bond’s sum; it may be that the Contractor will not have sufficient time to file injunctive proceedings before payment is remitted to the Employer. In light of the foregoing, it is highly advisable that, where such a call appears imminent, the Contractor undertakes all advance preparations required to support his application for an injunction, such as executing a Power of Attorney in favour of his chosen legal representative(s), and translating any documents to be submitted to the Court into Arabic.</li>\r\n 	<li>If the Contractor fails to obtain an injunction before or after the call on the Bond, he may defend the Employer’s allegations as to contractual breach(es), in addition to making any claims he may wish to raise under the Contract, by initiating Court or arbitral proceedings (as appropriate).  In the course of such proceedings, in addition to claiming any available contractual or legal rights or remedies, the Contractor may claim the full amount of the Performance Bond paid to the Employer.</li>\r\n</ol>\r\n<strong>Conclusion</strong>\r\n\r\nNotwithstanding the recent spate of case law on this issue, the treatment of Performance Bonds in Qatar remains largely uncertain.  While there appears to be a noticeable reticence on the part of the Qatari Courts to issue injunctions preventing demands against such guarantees being honoured by banks.  We have, on occasion, been successful in obtaining such injunctive relief for contractor clients following an arbitrary bond call by an Employer.'),
	(149979,4671,'core_values',''),
	(149980,4671,'_core_values','field_59b64ab071de4'),
	(149981,4671,'file',''),
	(149982,4671,'_file','field_59b64c10f6600'),
	(149983,4671,'orderValue4','4'),
	(149984,4671,'_orderValue4','field_59d2096a8ff34'),
	(149985,4671,'related_pages_header',''),
	(149986,4671,'_related_pages_header','field_59b6441e3cc94'),
	(85768,4671,'_content','field_59b649b5c8b2b'),
	(85769,4671,'lawUpdateArticleMonth','4661'),
	(85770,4671,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85771,4671,'content_description','Queries raised by our clients in recent months, and discussions in wider industry circles in Qatar would indicate that there is a high incidence of seemingly-arbitrary calls on Performance Bonds, causing real headaches to main and sub-contractors in this jurisdiction.'),
	(85772,4671,'_content_description','field_59b641c07f473'),
	(85773,4671,'pageSummary','Queries raised by our clients in recent months, and discussions in wider industry circles in Qatar would indicate that there is a high incidence of seemingly-arbitrary calls on Performance Bonds, causing real headaches to main and sub-contractors in this jurisdiction.'),
	(85774,4671,'_pageSummary','field_59e59b307dec8'),
	(85775,4671,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/february-4/performance-bonds-in-qatar-contracts-strike-back.html'),
	(85776,4671,'_currentURL','field_59d35123ab1e7'),
	(149963,4671,'lawUpdateArticleNoWriters',''),
	(149964,4671,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85779,4671,'lawUpdateArticleWriters','1'),
	(85780,4671,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(85781,4671,'_yoast_wpseo_metadesc','Queries raised by our clients in recent months, and discussions in wider industry circles in Qatar would indicate that there is a high incidence of seemingly-arbitrary calls on Performance Bonds, causing real headaches to main and sub-contractors in this jurisdiction.'),
	(85782,4672,'content','<p>North Sudan continues to be governed by the earlier Trademark Law through the national Trademark Office.</p>\r\n<p>Unfortunately to date there are no laws in Southern Sudan regulating  Intellectual Property and needless to say the Trademark Laws of North  Sudan no longer prevail.&nbsp; The Ministry of Justice in Southern Sudan has  issued directives to officials at the Trademark Office that they adopt  certain procedures known as the &ldquo;Reservation of a Trademark&rdquo; until  issuance of a trademark law.&nbsp; The implication is that Southern Sudan  follows a Cautionary Notice approach to the protection of trade marks at  the present time. &nbsp;</p>\r\n<p>At present procedures to be followed in respect of the &ldquo;Reservation of a Trademark&rdquo; are as follow:&nbsp;</p>\r\n<ol>\r\n<li>A written application needs to be submitted to the Registrar  indicating the trademark to be protected, as well as prints of the mark  in question.</li>\r\n<li>The Registrar will conduct a search in the database of the Registry to ascertain whether the mark is registered or not.</li>\r\n<li>If the relevant mark is not registered, the mark will be &ldquo;reserved&rdquo;  in the applicant&rsquo;s name, and no other person will be allowed to use the  said mark.</li>\r\n</ol>\r\n<p>It is also to be noted that no official fees have been fixed at this time for the &ldquo;Reservation of a Trademark&rdquo; procedure.</p>\r\n<p>As a result of the absence of a specific law dealing with the  protection of trademarks in Southern Sudan we are unable to comment on  the legal effect or value of the &ldquo;Reservation of a Trademark&rdquo; procedure.</p>'),
	(85783,4672,'_content','field_59b649b5c8b2b'),
	(85784,4672,'lawUpdateArticleMonth','4661'),
	(85785,4672,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85786,4672,'content_description','Following the end of the civil war in Sudan in 2005 and the separation of North and South Sudan the continuous worry for trademark owners is the protection of their rights in Southern Sudan. '),
	(85787,4672,'_content_description','field_59b641c07f473'),
	(85788,4672,'pageSummary','Following the end of the civil war in Sudan in 2005 and the separation of North and South Sudan the continuous worry for trademark owners is the protection of their rights in Southern Sudan. '),
	(85789,4672,'_pageSummary','field_59e59b307dec8'),
	(85790,4672,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/february-4/trademark-registration-in-southern-sudan.html'),
	(85791,4672,'_currentURL','field_59d35123ab1e7'),
	(85792,4672,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Shernaz DeSa'),
	(85793,4672,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85794,4672,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','s.desa@tamimi.com'),
	(85795,4672,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85796,4672,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85797,4672,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85798,4672,'lawUpdateArticleNoWriters','1'),
	(85799,4672,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85800,4672,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','634'),
	(85801,4672,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85802,4672,'lawUpdateArticlePractices','1'),
	(85803,4672,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85804,4672,'_yoast_wpseo_metadesc','Following the end of the civil war in Sudan in 2005 and the separation of North and South Sudan the continuous worry for trademark owners is the protection of their rights in Southern Sudan.'),
	(219650,7612,'_yoast_wpseo_focuskeywords','[]'),
	(219651,7612,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/law-update/august-2/august-2016/'),
	(219652,7611,'_edit_last','1'),
	(219653,7611,'_yoast_wpseo_content_score','30'),
	(219654,7611,'_yoast_wpseo_focuskeywords','[]'),
	(219655,7611,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/law-update/november-7/november-2017/'),
	(219656,7610,'_edit_last','1'),
	(219657,7610,'_yoast_wpseo_content_score','30'),
	(219658,7610,'_yoast_wpseo_focuskeywords','[]'),
	(219659,7610,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/law-update/september-6/september-2016/'),
	(219660,7609,'_edit_last','1'),
	(219661,7609,'_yoast_wpseo_content_score','30'),
	(219662,7609,'_yoast_wpseo_focuskeywords','[]'),
	(219663,7609,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/law-update/december-2017-january-2018/september-2017/'),
	(219664,7608,'_edit_last','1'),
	(219665,7608,'_yoast_wpseo_content_score','30'),
	(219666,7608,'_yoast_wpseo_focuskeywords','[]'),
	(219667,7608,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/law-update/december-2017-january-2018/october-2017/'),
	(219668,7607,'_edit_last','1'),
	(219669,7607,'_yoast_wpseo_content_score','30'),
	(219670,7607,'_yoast_wpseo_focuskeywords','[]'),
	(219671,7607,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/law-update/december-2017-january-2018/may-2017/'),
	(219672,7606,'_edit_last','1'),
	(219673,7606,'_yoast_wpseo_content_score','30'),
	(219674,7606,'_yoast_wpseo_focuskeywords','[]'),
	(219675,7606,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/law-update/december-2017-january-2018/june-july-2017/'),
	(219676,7604,'_edit_last','1'),
	(219677,7604,'_yoast_wpseo_content_score','30'),
	(219678,7604,'_yoast_wpseo_focuskeywords','[]'),
	(219679,7604,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/law-update/december-2017-january-2018/august-2017/'),
	(219680,7603,'_edit_last','1'),
	(219681,7603,'_yoast_wpseo_content_score','30'),
	(219682,7603,'_yoast_wpseo_focuskeywords','[]'),
	(219683,7603,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/law-update/december-2017-january-2018/april-2017/'),
	(219684,7602,'_edit_last','1'),
	(219685,7602,'_yoast_wpseo_content_score','30'),
	(219686,7602,'_yoast_wpseo_focuskeywords','[]'),
	(219687,7602,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/law-update/march-2018/law-update-march-edition/'),
	(219688,7601,'_edit_last','1'),
	(219689,7601,'_yoast_wpseo_content_score','30'),
	(219690,7601,'_yoast_wpseo_focuskeywords','[]'),
	(219691,7601,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/publication/doing-business-in-oman/doing-business-in-oman-4/'),
	(219692,7574,'_edit_last','1'),
	(219693,7574,'_yoast_wpseo_content_score','30'),
	(219694,7574,'_yoast_wpseo_focuskeywords','[]'),
	(219695,7574,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/law-update/may-2018/may-law-update-edition/'),
	(219696,7573,'_edit_last','1'),
	(219697,7573,'_yoast_wpseo_content_score','30'),
	(219698,7573,'_yoast_wpseo_focuskeywords','[]'),
	(219699,7573,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/publication/chambers-global-practice-guides-copyright-2018/2018-chambers-global-practices-guides-copyright/'),
	(219700,7543,'_edit_last','1'),
	(219701,7543,'_yoast_wpseo_content_score','30'),
	(219702,7543,'_yoast_wpseo_focuskeywords','[]'),
	(219703,7543,'_yoast_wpseo_canonical','http://localhost:8888/tamimi/our-offices/al-khobar/al-khobar-location-map/'),
	(219704,4096,'_edit_lock','1531135015:1'),
	(219705,4096,'_yst_prominent_words_version','1'),
	(219706,1338,'_wp_attachment_image_alt','Fatma Moosa'),
	(219707,841,'_yst_prominent_words_version','1'),
	(219708,7716,'practicesKeyContacts_0_practicesKeyContact','507'),
	(219709,7716,'_practicesKeyContacts_0_practicesKeyContact','field_59d21fc0185c5'),
	(219710,7716,'practicesKeyContacts_1_practicesKeyContact','539'),
	(219711,7716,'_practicesKeyContacts_1_practicesKeyContact','field_59d21fc0185c5'),
	(219712,7716,'practicesKeyContacts','2'),
	(219713,7716,'_practicesKeyContacts','field_59d3480f3918a'),
	(219714,7716,'pageBanner','6345'),
	(219715,7716,'_pageBanner','field_59d238c922b29'),
	(219716,7716,'orderValue1','1'),
	(219717,7716,'_orderValue1','field_59d0c6e5175b5'),
	(219718,7716,'stats_list',''),
	(219719,7716,'_stats_list','field_59b6372466bcc'),
	(219720,7716,'orderValue2','2'),
	(219721,7716,'_orderValue2','field_59d0c6f6175b8'),
	(219722,7716,'timeline_header',''),
	(219723,7716,'_timeline_header','field_59b63de5b74bf'),
	(219724,7716,'timeline',''),
	(219725,7716,'_timeline','field_59b63b29266de'),
	(219726,7716,'orderValue3','3'),
	(219727,7716,'_orderValue3','field_59d2094f8ff33'),
	(219728,7716,'content_header','Regulatory'),
	(219729,7716,'_content_header','field_59b641b57f472'),
	(219730,7716,'content_description',''),
	(219731,7716,'_content_description','field_59b641c07f473'),
	(219732,7716,'content','<h4>• Regulatory Issues • Risk Management • Compliance • Licensing • Corporate Governance</h4>\r\nRegulatory expertise at Al Tamimi &amp; Company reflects the growth of regulated business activities across the GCC region. We lead the market in providing a complete range of regulatory services. We understand that compliance with regulation is key to any successful business strategy.\r\n\r\nOur Regulatory experts are drawn from all our specialist practice areas, including Corporate / Merger &amp; Acquisitions, Commercial, TMT, Construction, Healthcare, Real Estate, Hotels &amp; Leisure, Intellectual Property and Dispute Resolution. Our Regulatory experts are a mix of English and Arabic speaking lawyers of the highest calibre. We offer a genuine ‘one-stop shop’ for regulatory compliance at federal and local level. This capability truly sets us apart.\r\n\r\nWe are often asked to draft or amend laws, and we have excellent relationships with regulators. This puts us in the best position to advise private business on matters of law, legal interpretation and the ‘approach’ taken by regulators in securing compliance at federal and local levels.\r\n\r\nWe believe in the importance of helping our clients to achieve compliance and regularly host regulatory specific workshops and client seminars.\r\n<table style=\"height: 454px;\" width=\"1068\">\r\n<tbody>\r\n<tr>\r\n<td width=\"308\"><strong>Regulatory Services</strong>\r\n<ul>\r\n 	<li>Corporate and commercial regulatory advice</li>\r\n 	<li>Due diligence reporting</li>\r\n 	<li>Governance, Risk and Compliance</li>\r\n 	<li>Legislation &amp; policy</li>\r\n 	<li>Licensing and permit applications</li>\r\n 	<li>Operational regulatory compliance;</li>\r\n</ul>\r\n&nbsp;</td>\r\n<td width=\"308\">&nbsp;\r\n<ul>\r\n 	<li>Regulatory investigations and crisis management</li>\r\n 	<li>Charities and Foundations</li>\r\n 	<li>Competition</li>\r\n 	<li>Consumer protection, product conformity and standards</li>\r\n 	<li>Customs</li>\r\n 	<li>Environmental</li>\r\n</ul>\r\n&nbsp;</td>\r\n<td width=\"308\">&nbsp;\r\n<ul>\r\n 	<li>Health and safety</li>\r\n 	<li>Import/export controls</li>\r\n 	<li>Legal registers and updates</li>\r\n 	<li>Procurement</li>\r\n 	<li>Utilities regulation</li>\r\n</ul>\r\n&nbsp;</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<strong>Sectors we support</strong>\r\n<ul>\r\n 	<li>Construction</li>\r\n 	<li>Defence</li>\r\n 	<li>Energy</li>\r\n 	<li>Healthcare</li>\r\n 	<li>Logistics and trade</li>\r\n 	<li>Projects</li>\r\n 	<li>Rail</li>\r\n 	<li>Retail</li>\r\n 	<li>Sports and Events Management</li>\r\n</ul>'),
	(219733,7716,'_content','field_59b649b5c8b2b'),
	(219734,7716,'core_values',''),
	(219735,7716,'_core_values','field_59b64ab071de4'),
	(219736,7716,'file',''),
	(219737,7716,'_file','field_59b64c10f6600'),
	(219738,7716,'orderValue4','4'),
	(219739,7716,'_orderValue4','field_59d2096a8ff34'),
	(219740,7716,'related_pages_header','Meet the Team'),
	(219741,7716,'_related_pages_header','field_59b6441e3cc94'),
	(219742,7716,'related_pages_0_page','507'),
	(219743,7716,'_related_pages_0_page','field_59b64384f4881'),
	(219744,7716,'related_pages_1_page','539'),
	(219745,7716,'_related_pages_1_page','field_59b64384f4881'),
	(219746,7716,'related_pages','2'),
	(219747,7716,'_related_pages','field_59b6434af4880'),
	(219748,7716,'sidebar',''),
	(219749,7716,'_sidebar','field_59ccd0a1283de'),
	(219750,970,'_yst_prominent_words_version','1'),
	(219751,3837,'_yst_prominent_words_version','1'),
	(219752,7717,'_edit_lock','1532250679:1'),
	(219753,7717,'_edit_last','1'),
	(219754,7717,'_yst_prominent_words_version','1'),
	(219755,7718,'_wp_attached_file','2018/07/Video4.jpg'),
	(219756,7718,'_wp_attachment_metadata','a:5:{s:5:\"width\";i:2667;s:6:\"height\";i:1500;s:4:\"file\";s:18:\"2018/07/Video4.jpg\";s:5:\"sizes\";a:4:{s:9:\"thumbnail\";a:4:{s:4:\"file\";s:18:\"Video4-150x150.jpg\";s:5:\"width\";i:150;s:6:\"height\";i:150;s:9:\"mime-type\";s:10:\"image/jpeg\";}s:6:\"medium\";a:4:{s:4:\"file\";s:18:\"Video4-300x169.jpg\";s:5:\"width\";i:300;s:6:\"height\";i:169;s:9:\"mime-type\";s:10:\"image/jpeg\";}s:12:\"medium_large\";a:4:{s:4:\"file\";s:18:\"Video4-768x432.jpg\";s:5:\"width\";i:768;s:6:\"height\";i:432;s:9:\"mime-type\";s:10:\"image/jpeg\";}s:5:\"large\";a:4:{s:4:\"file\";s:19:\"Video4-1024x576.jpg\";s:5:\"width\";i:1024;s:6:\"height\";i:576;s:9:\"mime-type\";s:10:\"image/jpeg\";}}s:10:\"image_meta\";a:12:{s:8:\"aperture\";s:1:\"0\";s:6:\"credit\";s:0:\"\";s:6:\"camera\";s:0:\"\";s:7:\"caption\";s:0:\"\";s:17:\"created_timestamp\";s:1:\"0\";s:9:\"copyright\";s:0:\"\";s:12:\"focal_length\";s:1:\"0\";s:3:\"iso\";s:1:\"0\";s:13:\"shutter_speed\";s:1:\"0\";s:5:\"title\";s:0:\"\";s:11:\"orientation\";s:1:\"0\";s:8:\"keywords\";a:0:{}}}'),
	(219757,7717,'_wp_old_date','2018-07-09'),
	(219758,7717,'videoImage','7718'),
	(219759,7717,'_videoImage','field_59e4d26b1aa21'),
	(219760,7717,'videoID','XfN9yv__XIY'),
	(219761,7717,'_videoID','field_59e4d27f1aa22'),
	(219762,7717,'videoDate',''),
	(219763,7717,'_videoDate','field_59f04780721ca'),
	(219764,7717,'videoContentField','At the recent 3rd Annual Arab Lawyers Forum, Dr. Roland Vogl, Director, Stanford Law School shares his thoughts on the future of legal services and recent technological advancements.\r\n\r\nThis successful event was organised by Al Tamimi &amp; Company in collaboration with Hassan Radhi &amp; Associates, Zu’bi &amp; Partners, Haya Rashed Al Khalifa Law Firm, The Bahrain Centre of Disputes Resolution, Thomson Reuters and Deloitte.'),
	(219765,7717,'_videoContentField','field_5b025aa31135f'),
	(219766,7717,'sidebar',''),
	(219767,7717,'_sidebar','field_59ccd0a1283de'),
	(219768,7717,'_yoast_wpseo_content_score','30'),
	(219769,7717,'_yoast_wpseo_focuskeywords','[]'),
	(226231,8185,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(226230,8185,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Reem Khader'),
	(219773,7719,'_edit_lock','1531860577:1'),
	(219774,7719,'_edit_last','1'),
	(219775,7719,'_yst_prominent_words_version','1'),
	(219776,7720,'_wp_attached_file','2018/07/Video5.jpg'),
	(219777,7720,'_wp_attachment_metadata','a:5:{s:5:\"width\";i:2667;s:6:\"height\";i:1500;s:4:\"file\";s:18:\"2018/07/Video5.jpg\";s:5:\"sizes\";a:4:{s:9:\"thumbnail\";a:4:{s:4:\"file\";s:18:\"Video5-150x150.jpg\";s:5:\"width\";i:150;s:6:\"height\";i:150;s:9:\"mime-type\";s:10:\"image/jpeg\";}s:6:\"medium\";a:4:{s:4:\"file\";s:18:\"Video5-300x169.jpg\";s:5:\"width\";i:300;s:6:\"height\";i:169;s:9:\"mime-type\";s:10:\"image/jpeg\";}s:12:\"medium_large\";a:4:{s:4:\"file\";s:18:\"Video5-768x432.jpg\";s:5:\"width\";i:768;s:6:\"height\";i:432;s:9:\"mime-type\";s:10:\"image/jpeg\";}s:5:\"large\";a:4:{s:4:\"file\";s:19:\"Video5-1024x576.jpg\";s:5:\"width\";i:1024;s:6:\"height\";i:576;s:9:\"mime-type\";s:10:\"image/jpeg\";}}s:10:\"image_meta\";a:12:{s:8:\"aperture\";s:1:\"0\";s:6:\"credit\";s:0:\"\";s:6:\"camera\";s:0:\"\";s:7:\"caption\";s:0:\"\";s:17:\"created_timestamp\";s:1:\"0\";s:9:\"copyright\";s:0:\"\";s:12:\"focal_length\";s:1:\"0\";s:3:\"iso\";s:1:\"0\";s:13:\"shutter_speed\";s:1:\"0\";s:5:\"title\";s:0:\"\";s:11:\"orientation\";s:1:\"0\";s:8:\"keywords\";a:0:{}}}'),
	(56164,3360,'_wp_attached_file','uploads/media-3359.jpg'),
	(56165,3360,'_wp_attachment_metadata','a:5:{s:5:\"width\";i:100;s:6:\"height\";i:133;s:4:\"file\";s:22:\"uploads/media-3359.jpg\";s:5:\"sizes\";a:0:{}s:10:\"image_meta\";a:12:{s:8:\"aperture\";s:1:\"0\";s:6:\"credit\";s:0:\"\";s:6:\"camera\";s:0:\"\";s:7:\"caption\";s:0:\"\";s:17:\"created_timestamp\";s:1:\"0\";s:9:\"copyright\";s:0:\"\";s:12:\"focal_length\";s:1:\"0\";s:3:\"iso\";s:1:\"0\";s:13:\"shutter_speed\";s:1:\"0\";s:5:\"title\";s:0:\"\";s:11:\"orientation\";s:1:\"0\";s:8:\"keywords\";a:0:{}}}'),
	(85297,4648,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85295,4648,'_content','field_59b649b5c8b2b'),
	(84884,4627,'_content','field_59b649b5c8b2b'),
	(84885,4627,'lawUpdateArticleMonth','4618'),
	(84886,4627,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(84887,4627,'content_description','The Dubai International Financial Centre, a financial services free zone located in the Emirate of Dubai, has its own ‘European style’ data protection law, applicable in the jurisdiction of the DIFC. '),
	(84888,4627,'_content_description','field_59b641c07f473'),
	(84889,4627,'pageSummary','The Dubai International Financial Centre, a financial services free zone located in the Emirate of Dubai, has its own ‘European style’ data protection law, applicable in the jurisdiction of the DIFC. '),
	(84890,4627,'_pageSummary','field_59e59b307dec8'),
	(84891,4627,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/january-2/new-difc-data-protection-law-comes-into-force.html'),
	(84892,4627,'_currentURL','field_59d35123ab1e7'),
	(84893,4627,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Nick O\' Connell'),
	(84894,4627,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(84895,4627,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','n.oconnell@tamimi.com'),
	(84896,4627,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(84897,4627,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(84898,4627,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(84899,4627,'lawUpdateArticleNoWriters','1'),
	(84900,4627,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(84901,4627,'_yoast_wpseo_metadesc','The Dubai International Financial Centre, a financial services free zone located in the Emirate of Dubai, has its own ‘European style’ data protection law, applicable in the jurisdiction of the DIFC.'),
	(84902,4628,'content','<p>For many companies the business case is compelling. As with any  business decision, it is important to be fully informed, and aware of  the risks.&nbsp; In this article, the first in a series of two, we look at  some of the core legal considerations associated with cloud computing.<br /><br /><strong>Information</strong><br /><br />As  one might expect, issues relating to information are central to legal  considerations associated with cloud computing. Many of the  information-related issues that arise are closely inter-related. By  signing-on with a Cloud Service Provider, and moving data to the CSP&rsquo;s  cloud, the CSP&rsquo;s client is no longer in direct control of the data.&nbsp;  Depending on the nature of the cloud (public, private or &lsquo;hybrid&rsquo;), the  potential vulnerability of the data may vary. In some instances, where  the CSP uses infrastructure located abroad, data is sent outside the  client&rsquo;s country. When data comprises personal data (such as information  relating to the client&rsquo;s customers or employees), the client needs to  be particularly aware of its obligations with regard to data protection.  In the UAE, the processing of personal data may be subject to the Penal  Code prohibition on the disclosure of &lsquo;secrets&rsquo; without the consent of  the person to whom the secret relates. Other laws may also be applicable  where the personal data involves health insurance, medical records, and  credit information. For entities in the Dubai international Financial  Centre and Dubai Health Care City, specific European-style data  protection regulations also impact on the processing of personal  information and sensitive personal information, including with regard to  whether permission is required to transfer the data to another  jurisdiction.&nbsp;<br /><br />Before signing on with a CSP, the client should  familiarize itself with the legal obligations relating to its handling  of personal data. When negotiating the terms of service, the client  should ensure that the agreement does not permit the CSP to engage in  any conduct that would be inconsistent with the client&rsquo;s own obligations  in respect of personal data. The client should also consider whether  there might be any practical aspects of its privacy obligations that the  CSP&rsquo;s system would need to accommodate. (By way of example, in some  jurisdictions, compliance with data protection regulations may require  the ability to annotate records to reflect objections raised by the data  subject. If the CSP&rsquo;s system cannot facilitate this requirement, this  may result in the client failing to comply with its legal obligations.)<br /><br />Security  of information is another important consideration. ISO 27001 is a  standard that details requirements for establishing, implementing,  operating, monitoring, reviewing, maintaining and improving an  information security management system. It acts to formalize specific  criteria for a range of IT security-related processes, including:  information classification and handling; third-party access; incident  management and communication; disposal of media; hiring, discipline and  termination of staff; acceptable use of computer equipment; development  processes; release and change management; and data access, availability  and integrity. As part of its due diligence, a client should aim to  engage CSPs that can show they are compliant with ISO27001. This  certification illustrates that the CSP has implemented a wide range of  security and privacy controls at all levels of its business and that all  its employees have been educated in relevant security and privacy  issues. The client should seek to build compliance with ISO27001 into  the terms of service as a means of ensuring that the CSP will treat  information security with the level of attention it requires.&nbsp;<br /><br />Rules  governing document retention are another point to bear in mind when  considering a move to the cloud. In the UAE, the Commercial Transactions  Law (Federal Law No. 18 of 1993) sets out general requirements for the  retention of commercial records, requiring that such records be retained  for a minimum period of five years from the date of issue or receipt.  With limited exceptions, the Electronic Commerce and Transactions Law  (Federal Law No. 1 of 2006) provides that, where it is required by law  to retain a certain document, record or information for any reason  whatsoever, the retention requirement shall be considered met if the  document, record or information is stored in any electronic form. When  engaging a CSP to manage commercial records, the client should focus on  making sure that the terms relating to the document retention period are  consistent with the requirements of the client&rsquo;s own jurisdiction &ndash; and  not with those of the CSP.&nbsp;<br /><br />In some instances, CSPs may  consolidate the data of multiple clients in order to determine data  usage patterns, business trends and strategies. If this type of use is  undesirable, then the client should seek to have the terms of service  prohibit the CSP from monitoring data usage and from using such  &lsquo;confidential information&rsquo; of the client other than for the purpose of  providing the cloud service to the client. (Such a restriction would, of  course, be additional to any broader confidentiality provisions that  should be specified in the agreement with the CSP.)<br /><br />A further  consideration relates to the location of the client&rsquo;s data when it is  held in the cloud. In many jurisdictions, the government can require  CSPs to disclose client data. In some jurisdictions, the law  specifically protects data stored in the cloud from access by the  government without due process. In other jurisdictions data stored in  the cloud may be disclosed to governmental authorities without due  process. Depending on the nature of the data, and the business of the  client, it may be advisable to confirm with the CSP the location in  which data will be held, and verify independently whether there are any  local law concerns in such jurisdiction. It may also be appropriate to  agree with the CSP that data will not be held in certain jurisdictions.<br /><br />Al  Tamimi &amp; Company&rsquo;s Technology, Media &amp; Telecommunications team  regularly advises on IT service agreements, including in a cloud  context, as well as related issues such as data protection, document  retention and confidentiality provisions. For further information,  please contact David Yates<a href=\"mailto:d.yates@tamimi.com\">d.yates@tamimi.com</a>&nbsp;or Nick O&rsquo;Connell&nbsp;<a href=\"mailto:n.oconnell@tamimi.com\">n.oconnell@tamimi.com</a>.&nbsp;</p>'),
	(84903,4628,'_content','field_59b649b5c8b2b'),
	(84904,4628,'lawUpdateArticleMonth','4618'),
	(84905,4628,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(84906,4628,'content_description','Remote access computing services, whereby software applications, databases, data storage, network configuration and programming tools are made available to clients as a service, are becoming increasingly popular. Cloud computing allows businesses to convert capital expenses associated with IT systems and infrastructure into operating expenses associated with platforms, capacity and applications.'),
	(84907,4628,'_content_description','field_59b641c07f473'),
	(84908,4628,'pageSummary','Remote access computing services, whereby software applications, databases, data storage, network configuration and programming tools are made available to clients as a service, are becoming increasingly popular. Cloud computing allows businesses to convert capital expenses associated with IT systems and infrastructure into operating expenses associated with platforms, capacity and applications.'),
	(84909,4628,'_pageSummary','field_59e59b307dec8'),
	(84910,4628,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/january-2/legal-issues-in-cloud-computing-part-i.html'),
	(84911,4628,'_currentURL','field_59d35123ab1e7'),
	(84912,4628,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Nick O\' Connell'),
	(84913,4628,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(84914,4628,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','n.oconnell@tamimi.com'),
	(84915,4628,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(84916,4628,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(84917,4628,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(84918,4628,'lawUpdateArticleNoWriters','1'),
	(84919,4628,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(84920,4628,'_yoast_wpseo_metadesc','Remote access computing services, whereby software applications, databases, data storage, network configuration and programming tools are made available to clients as a service, are becoming increasingly popular. Cloud computing allows businesses to convert capital expenses associated with IT systems and infrastructure into operating expenses associated with platforms, capacity and applications.'),
	(84921,4629,'content','<p>Where the contractor has failed to complete by the scheduled  completion date, he will be liable to a claim for liquidated damages  either by way of action, by deduction or by a set-off.&nbsp; There can be no  inquiry into the actual loss suffered.&nbsp; The advantage to an employer is  that he will not need to prove the loss suffered.&nbsp; The most common  default by a contractor that will give rise to a claim for liquidated  damages is a failure to reach completion or to achieve specific  milestones.<br /><br />The contractor may have a defence to the claim by  proving that the agreed sum is a penalty.&nbsp; In order to establish a  penalty, the contractor will need to demonstrate that the predominant  contractual function of the provision was to deter it from breaking the  contract, rather than to compensate the innocent party for the breach.&nbsp;  Proportionality of the damages to the costs reasonably anticipated to be  incurred is key to maintaining a valid liquidated damages claim.&nbsp; If  successful in establishing a penalty, the contractor could, however,  still be vulnerable to a claim for unliquidated (general) damages.<br /><br />The  FIDIC Red Book, 1987, provides at clause 47.1 for &ldquo;Liquidated Damages  for Delay&rdquo;, while the 1999 edition provides at clause 8.7 for &ldquo;Delay  Damages&rdquo;.<br /><br />When contractors are contemplating signing a contract  for work in the UAE and the contract is to be governed by UAE law,  however, they need to take heed of the local laws that apply to this  subject.<br /><br /><strong>The UAE Civil Code<br /><br /></strong>Article  390(2) of the UAE Civil Code addresses the issue of the enforceability  of liquidated damages in the UAE.&nbsp; In our translation, the Article  provides:</p>\r\n<ul>\r\n<li>The contracting parties may fix the amount of compensation in  advance by making a provision in the contract, or by later agreement,  subject to the provisions of the law</li>\r\n<li>The court may, on the application of either party, vary such  agreement so as to make the compensation equal to the loss and any  agreement to the contrary shall be void.</li>\r\n</ul>\r\n<p>Under UAE law, despite what the parties may have agreed, the court  (or an arbitrator) has the ability retrospectively to change that  agreement, to ensure that the damages are equal to the loss that has  been suffered.&nbsp; The parties are not able to contract out of this.<br /><br /><strong>Interpretation by the Court<br /></strong><br />Dubai  Court of Cassation judgment 138/94 shows how the Court will view  liquidated damages and penalties.&nbsp; While decisions of the Courts in the  UAE are not binding, Court of Cassation judgments are certainly  persuasive and often followed by lower Courts.<br /><br />In this case,  there was a dispute between a contractor and a subcontractor regarding  delay to completion.&nbsp; The contract between the parties contained a  &ldquo;penalty clause&rdquo; for delay to completion and the Claimant sought to  recover the penalty in full.<br /><br />The Court confirmed its general  power to reduce the amount of damages agreed in the contract, where it  is evident that the actual loss suffered is less than the total amount  of damages agreed in the contract.&nbsp; A wide discretion is certainly alive  and well.<br /><br />It seems in fact that Courts in the UAE do not draw a  distinction between a pure penalty and a pure liquidated damages  provision and indeed the terms penalty and damages were used  interchangeably during the hearing.&nbsp; It is correct to assume that the  distinction between the two terms made in common law jurisdictions is  not significant in the UAE, due the overriding nature of the power of  the courts under Article 390 of the Civil Code.<br /><br /><strong>Conclusion<br /><br /></strong>Parties  entering into contracts need to be aware that the liquidated damages  number that is &lsquo;hotly&rsquo; negotiated and agreed, may be varied by a judge  or arbitrator where the contract is governed by UAE law.&nbsp;&nbsp; There is  discretion under UAE law for a judge or arbitrator to revise the damages  up or down so as to match the actual loss that is suffered.&nbsp; In our  experience, it is more common for the argument to be mounted by a  contactor to reduce the damages.&nbsp;That said, there are certainly  instances where an employer may apply to increase the damages.</p>'),
	(84922,4629,'_content','field_59b649b5c8b2b'),
	(84923,4629,'lawUpdateArticleMonth','4618'),
	(84924,4629,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(84925,4629,'content_description','International contractors from common law jurisdictions will be familiar with the concept of liquidated damages.  A typical clause will provide that should the contractor fail to complete by a date stipulated in the contract, or any extended date, he shall pay or allow the employer to deduct liquidated damages at the rate of ‘X’ per day, or week, for the period during which the works remain uncompleted.'),
	(84926,4629,'_content_description','field_59b641c07f473'),
	(84927,4629,'pageSummary','International contractors from common law jurisdictions will be familiar with the concept of liquidated damages.  A typical clause will provide that should the contractor fail to complete by a date stipulated in the contract, or any extended date, he shall pay or allow the employer to deduct liquidated damages at the rate of ‘X’ per day, or week, for the period during which the works remain uncompleted.'),
	(84928,4629,'_pageSummary','field_59e59b307dec8'),
	(84929,4629,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/january-2/liquidated-damages.html'),
	(84930,4629,'_currentURL','field_59d35123ab1e7'),
	(84931,4629,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','864'),
	(84932,4629,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(84933,4629,'lawUpdateArticleWriters','1'),
	(84934,4629,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(84935,4629,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','537'),
	(84936,4629,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(84937,4629,'lawUpdateArticlePractices','1'),
	(84938,4629,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(84939,4629,'_yoast_wpseo_metadesc','International contractors from common law jurisdictions will be familiar with the concept of liquidated damages. A typical clause will provide that should the contractor fail to complete by a date stipulated in the contract, or any extended date, he shall pay or allow the employer to deduct liquidated damages at the rate of ‘X’ per day, or week, for the period during which the works remain uncompleted.'),
	(84940,4630,'content','<strong>The Kurdish objective</strong>\r\n\r\nWith an estimated population of 1,294,000<sup>1</sup> , Erbil is the 4th largest city in Iraq.  Located in so-called Iraqi Kurdistan, it straddles an interesting divide between the centralized Iraqi government and the Kurdistan Regional Government (the KRG).  Although Baghdad’s policies and laws still reach Kurdistan, the KRG is an autonomous authority controlling the three northern governorates of Dahuk, Erbil and Sulaymaniyah.  It has its own President – Masoud Barzani – elected assembly, and security forces division<sup>2. </sup>It has successfully unified the leadership within Kurdistan and has its own legislative powers.  The KRG’s agenda has allowed for networking events and forums to promote investment and development in the region, such as international exhibitions that are oft frequented by government officials and economists.  Although the KRG attempts to woo a European and American crowd, around 55% of foreign companies currently investing in the region are Turkish<sup>3</sup>.  Kurdish officials have managed to garner support from countries such as Turkey and Iran before looking beyond the ocean.  Governor Nawzad Hadi states “the true objective is to serve the citizen<sup>4</sup>”.\r\n\r\nIf serving the citizen is the true goal, than the KRG has indeed made significant steps to ensure that it is accomplished.  Part of this effort involves putting Kurdish denizens in touch with internationally recognized brands.  This requires making key information easily accessible to companies looking to open departments in the region.  The KRG’s website, for example, offers documents and text in English, unlike the central governments website. It also has a downloadable and detailed investment brochure and offers translations of its important legislation.\r\n\r\nHalf way through 2011, Ernst and Young, Rotana and Standard Chartered had already established themselves in Erbil<sup>5</sup>.  A shopping centre dubbed “The Family Mall” not only showcases products from Ecco, Timberland, and Samsonite, but also has an indoor skating rink and adjacent outdoor theme park<sup>6</sup>. Goods and services that were unavailable to Iraqis under Saddam Hussein’s regime are now prominently on display.\r\n\r\nThe result of the KRG’s efforts to gather investment from across the nation and beyond its borders, according to a report by Middle East business News and Data (MEED) is fruitful.  During the first half of 2012, Kurdistan drew in $3.4 billion worth of foreign investment, compared to $3 billion in 2011 and $4.8 billion in 2010<sup>7</sup>.  Since its touted Investment Law was passed in 2006, the region has attracted “$21 billion in foreign and domestic private sector investment”, $12.5 of which has gone to Erbil<sup>8</sup>. The primary foreign investors in the region are Turkey and Iran, followed by the US, Lebanon, UK, UAE, Jordan, Kuwait, Italy and Germany, contributing to 17% of all investments<sup>9</sup>.\r\n\r\nKurdistan plays a particularly important role in trade between Turkey and Iraq, accounting for 75% of the $12 billion trade in 2011; its contribution is “expected to increase following the opening of a second border crossing”. Local businesses and individuals made up 79% of investment, with the remaining 5% belonging to joint venture companies<sup>10</sup>. Of the 10,500 registered companies in Kurdistan, 11% are international<sup>11</sup>. Kurdistan is evidently proving to the rest of Iraq and the world that it is an economically viable region that continues to grow and prosper.\r\n\r\n<strong>Erbil: making a name for itself</strong>\r\n\r\nArguably, the primary reason for Erbil’s success is the KRG’s 2006 Investment Law.  This law provides for: equal treatment of foreign and local investors, the ability for investors to own all the capital of their projects and to repatriate profits in full.  Furthermore, projects that meet certain criteria will receive the benefit of free or cheap land.  The most enticing stipulations are likely those that give investors a 10-year tax break and the freedom for foreign companies to not have to partner with local firms or have local shareholders operating in the region. This is complemented by a 2009 Iraqi law, which allows foreigners to own land in Iraq.\r\n\r\nThe rebuilding and creation of key infrastructure has warranted the presence of a number of foreign investors from various sectors at the Erbil International Fair and has engendered construction opportunities. In 2009, the annual Construction Fair showcasing building equipment and electrical appliances amassed 300 companies from 23 countries.  With its large, proven oil reserves (estimated at 45 billion barrels), Kurdistan has also garnered attention from East Asia.  South Korea has had a consulate in Erbil since 2008 to promote its country’s trade interests in Iraq, and to also enable scholarship and vocation opportunities for regional inhabitants<sup>12</sup>. China also has plans on opening an office in the near future.\r\n\r\nWith both domestic and international attention being paid to Kurdistan’s capital, the region finds itself economically reborn.  Catering for all of the unprecedented visitors, Hilton has recently announced that it will build a 300-room hotel, featuring a spa, boardrooms and both indoor and outdoor pools<sup>13</sup>.  The Turkish Divan Hotel, having opened in May 2012, has rooms varying in price from $500 to $15,000 a night, indicating the level of international business it expects to come into the region.  With its 8% economic growth in 2011, Erbil’s land prices have increased<sup>14</sup>.  In June 2012, the city discussed spending $172 million a year to resolve a residential shortage by building 5,000 residential units a year.  The Ministry of Housing and Reconstruction has already started to award contracts<sup>15</sup>.  Apart from the incessant housing and commercial building development, foreign car companies such as Porsche and Mercedes have managed to profit from the increasing disposable income in the area.  Erbil even has its own stock exchange. It is no surprise that it is often credited as the “Other Iraq” or the “New Dubai<sup>16</sup>”.\r\n\r\nMichael O’Hanlon of Brookings Institution explains that influx of foreigners brings a certain market with it: “Reporters, oil workers, diplomats are willing to pay extra to sleep safely, work safely and eat safe food.  If the hotel can deliver, then it makes sense for them to expand into high-risk areas<sup>17</sup>.”  The risks that foreign companies, such as hotels, are subject to are mitigated because “hoteliers are only responsible for operating a property without [incurring] the costs associated with the underlying real estate acquisition<sup>18</sup>”.  O’Hanlon also notes, however, that the entry of investors and oil companies into Kurdistan is for the ultimate purpose of “getting a foot in the door to the rest of Iraq<sup>19</sup>”. Nevertheless, Kurdistan strives to differentiate itself from the rest of the country, both politically and economically.\r\n\r\n<strong>Expanding construction opportunities</strong>\r\n\r\nThe opportunities for construction companies in Erbil are large and continue to grow.  They will present themselves in a number of ways, courtesy of the various concurrent projects in operation. Fady Darwish, General Manager of the annual Erbil construction fair, notes: “with some $25 billion in housing projects, $8 billion in transportation and $5.5 billion in water and sewage, the Iraqi government is focusing primarily on reconstruction and rehabilitation<sup>20</sup>.” Governor Hadi stresses the importance of water, stating, “the future focus of the KRG is on building dams, irrigation systems and addressing the water system<sup>21</sup>”.  Cement plants are being constructed or redone across Iraq to facilitate the growing need for “construction solutions<sup>22</sup>”.  Although the water management system in Dubai may be complex, the city had the necessary infrastructure before Erbil.  In this sense, the two cities are dissimilar.  Like Dubai, however, there is an influx of foreign workers for service jobs, which results in competitive pricing and a potent workforce.\r\n\r\nMaking use of the increase in foreign labour, projects currently underway include the construction of two Best Western Premier hotels to be completed in 2013 and 2014 respectively.  Glenn de Souza, VP of Best Western’s International Operations Asia, remarked that Erbil was the “natural first choice” for development in Iraq considering its increasing access to air transport, important roads and status as a recognized trading centre<sup>23</sup>.  Empire Iraq is also scheduled to build an upscale Marriot hotel and series of executive apartments expected to cost over $100 million to complete<sup>24</sup>.  Perhaps more important than the buildings are the roads connecting them. Kita, the first Turkish company to offer logistics and trucking information in Iraq, opened an office in Erbil because of its proximity to strategic oil and gas locations<sup>25</sup>.\r\n\r\nIn relation to oil, the KRG recently agreed with Korean engineering company Posco and Korea National Oil to construct two plants for $700 million<sup>26</sup>.   Foreign companies such as Kita and Posco, in not having to establish partnerships with local entities, are therefore able to bank greater profits.\r\n\r\n<strong>Risk assessment</strong>\r\n\r\nOne of the biggest issues that companies face when establishing business in Erbil is ironically being affected by the same problems they are trying to fix.  Services like water and electricity, although better than they used to be, are lacking.  The Erbil municipality is only able to provide around 17 hours of electricity per day, while country-dwelling residents in Kurdistan may not have access to power at all.   This will pose added costs and delays to any attempts at improving infrastructure.\r\n\r\nFurther fueling expenses is the “lack of local expertise [which] has partially slowed growth, forcing the Kurdish government to lure foreign players with a whole range of business-friendly regulations<sup>28</sup>.”  This would indicate that the KRG is reliant upon foreign investment to fuel and sustain its development initiatives.  Conversely, the majority of Erbil’s investors are Iraqi, and the work culture is something that any company needs to adapt to.  In spite of these inherent flaws in Kurdistan’s current setup, continued investment and growth is expected.\r\n\r\nThe Kurdish language, culture, and history aside, the most crucial and current difference between Kurdistan and the rest of Iraq is its relative safety.  Retired Army colonel Harry Schute believes that Kurdistan is safer than New Jersey<sup>29</sup>.  But Iraq has gained a reputation for violence and minimal security, a scare for tourists, investors and workers.  In May 2007, two car bombs killed a total of 45 people and wounded 150.  A company has to be certain that its employees are going to have physical security and peace of mind.  In spite of the bombings, Lufthansa and Austrian Airlines conduct four flights a week to Erbil, and certain countries, such as the UK, have specifically mentioned that traveling to Kurdistan does not pose the same risks as traveling to the rest of Iraq<sup>30</sup>.  Airlines in the UAE have been flying to Erbil for some time.\r\n\r\nRegardless of a company’s relations with the KRG, the KRG’s relationship with the Iraqi central government is tense.  A good example is when Kurdish authorities allowed Iraq’s VP Tariq al-Hashimi to travel to Qatar in spite of a warrant for his arrest in Baghdad<sup>31</sup>.  Moreover, the KRG halted oil exports through the Iraqi pipeline between April and August 2012, alleging that the KRG had not been adequately compensated for its oil by Baghdad<sup>32</sup>.   The KRG further aggravated the situation when it unilaterally signed a contract with ExxonMobil, prompting the Iraqi government to threaten Exxon with the possibility of legal action – a threat it has, to date, not made good on<sup>33</sup>.  Unfortunately for the KRG, it has no independent pipeline and the Turkish government, with whom it does the most business, has not yet agreed to maneuver around Baghdad’s current policy on Kurdish exports<sup>34</sup>.   Regardless of how much regional autonomy the KRG possesses, it must still respect Baghdad’s authority.  Tensions between regional and central government will not bode well for investment.\r\n\r\nAn added, but minor, complication to doing business in Erbil is that there is little access to ATMs that accept international cards.  This limitation requires a number of dealings to be done in cash, which could pose problems for security.  Cash payments also make money laundering difficult to trace.  Governor Hadi admits “many things and sectors of the state have changed very rapidly, so there will be some corruption<sup>35</sup>.”  This type of illicit conduct could be subject to scrutiny from UK or US regulators (especially following the UK’s Anti-Bribery Act 2010).\r\n\r\nA final, but not fully known variable, is the impact of UN, EU and US sanctions of Iran.  Iran is a heavy investor in Erbil meaning that companies affiliated with certain Iranian businesses or doing any type of business with Iran need to be cautious.  The unilateral sanctions imposed by the US have been particularly strict; companies doing business in the US will be slapped with fines and possibly jail terms should they fail to comply.\r\n\r\n<strong>How we can help</strong>\r\n\r\nAl Tamimi &amp; Company is well placed to assist clients with their legal needs in Iraq.  With an office in Baghdad with a sizeable team of lawyers, Al Tamimi is experienced in providing the type of legal insight that gives a project in a rapidly changing economy such as Kurdistan the greatest chance of success.  The firm has a strong understanding of its clients’ industries and objectives and its depth of advisors and resources allows for a comprehensive and devoted approach to advisory work.  Al Tamimi is experienced in assisting its clients in their ventures in Kurdistan and offers its services to local, regional and international companies alike.\r\n\r\n<strong>Conclusion</strong>\r\n\r\nAs Erbil seeks to reinvent itself, companies across the globe are keen to reap the benefits from this unique process.  Although there will be a significant number of difficulties for current and future investors, Erbil’s economy is advancing at a lightening-fast pace because of its construction and development initiatives across all sectors.  As business grows, so will the need for legal assistance in a variety of areas for domestic and international clients alike.  Al Tamimi is ready to assist clients embrace the exciting new challenges and opportunities in Erbil.\r\n\r\n<strong> Footnotes</strong>\r\n<pre>1-As of 2009\r\n2- “Iraq: Country Profile”. Al Jazeera, 14 Dec. 2011. &lt;<a href=\"http://www.aljazeera.com/indepth/spotlight/2011/12/2011124121054690602.html\">http://www.aljazeera.com/indepth/spotlight/2011/12/2011124121054690602.html</a>&gt;\r\n3-Yassine el-Rabei. “Erbil exhibitions: an opportunity for foreign investment”. The Iraqi Dinar, 23 May 2012. AKNews&lt;<a href=\"http://theiraqidinar.com/2012/05/23/erbil-exhibitions-an-opportunity-for-foreign-investment/\">http://theiraqidinar.com/2012/05/23/erbil-exhibitions-an-opportunity-for-foreign-investment/</a>&gt;\r\n4-Ibid\r\n5- Rebecca Bundhun. “Erbil Remedy to Develop Iraqi Tourism”. The National, 16 May 2011&lt;<a href=\"http://www.thenational.ae/business/travel-tourism/erbil-remedy-to-develop-iraqi-tourism\">http://www.thenational.ae/business/travel-tourism/erbil-remedy-to-develop-iraqi-tourism</a>&gt;\r\n6-Ibid\r\n7- Ed James. “Kurdistan investment levels soar”. MEED, 2 Sept. 2012&lt;<a href=\"http://www.meed.com/3149039\">www.meed.com/3149039</a>&gt;\r\n8-Ibid\r\n9-Ibid\r\n10-Ibid\r\n11-Ibid\r\n12-“Korean Consul General completes term in Erbil”. Kurdish Globe, 28 Aug. 2012 &lt;http://www.kurdishglobe.net/display-article.html?id=AD3564C96BCE8F3C1BB0767BD6064226&gt;\r\n13-“Hilton announces 300-room hotel bound for Erbil”. Construction Week Online, 2 Aug, 2012 &lt;http://www.constructionweekonline.com/article-17892-hilton-announces-300-room-hotel-bound-for-erbil/&gt;\r\n14-Matteo Fagotto. “Is Erbil’s growth spurt hype or for real?”. Gulf News, 5 Aug 2012. alpha Magazine&lt;<a href=\"http://gulfnews.com/news/region/iraq/is-erbil-s-growth-spurt-hype-or-for-real-1.1057846\">http://gulfnews.com/news/region/iraq/is-erbil-s-growth-spurt-hype-or-for-real-1.1057846</a>&gt;\r\n15-Kadhim Ajrash and Khalid al-Ansary. “Iraq Kurdistan Needs 5000 New Homes a Year to End Shortage”. Bloomberg, 12 June 2012&lt;<a href=\"http://www.bloomberg.com/news/2012-06-12/iraq-kurdistan-needs-5-000-new-homes-a-year-to-end-shortage.html\">http://www.bloomberg.com/news/2012-06-12/iraq-kurdistan-needs-5-000-new-homes-a-year-to-end-shortage.html</a>&gt;\r\n16-Op cit, n14\r\n17-Nadja Brandt. “Iraq Draws US Hotel Operators Banking on Business Travelers”. Bloomberg, 15 Dec 2011&lt;<a href=\"http://www.bloomberg.com/news/2011-12-15/iraq-draws-u-s-hotel-operators-banking-on-business-travelers.html\">http://www.bloomberg.com/news/2011-12-15/iraq-draws-u-s-hotel-operators-banking-on-business-travelers.html</a>&gt;\r\n18-Ibid\r\n19-Ibid\r\n20-“Construction Trade Fair in Erbil”. Iraq Business News, 11 Sept. 2010&lt;<a href=\"http://www.iraq-businessnews.com/2010/09/11/construction-trade-fair-in-erbil/\">http://www.iraq-businessnews.com/2010/09/11/construction-trade-fair-in-erbil/</a>&gt;\r\n21-“Erbil Governor outlines development and challenges ahead”. Erbil Governorate, 17 June 2012. Rudaw &lt;<a href=\"http://www.hawlergov.org/en/article.php?id=1340000866\">http://www.hawlergov.org/en/article.php?id=1340000866</a>&gt;\r\n22-Ibid. \r\n23-“Construction Starts on Erbil Best Westerns”. Construction Week Online, 24 Aug. 2012 &lt;http://www.constructionweekonline.com/article-18179-construction-starts-on-erbil-best-westerns/&gt;\r\n24-“Iraq Empire to launch two Marriott hotels in Erbil” Empire World, 2012&lt;http://www.empireiraq.com/erbil-marriott-hotel/overview.html&gt;\r\n25- “Kita Opens Truck Operation in Iraq”. Construction Week Online, 20 Jan 2011&lt;http://www.constructionweekonline.com/article-10841-kita-opens-truck-operation-in-iraq/&gt;\r\n26-Nayla Razzouk.“Iraq’s Kurdistan Signs Power Agreements with KNOC, Posco”. Bloomberg, 7 Aug 2012&lt;<a href=\"http://www.bloomberg.com/news/2012-08-07/iraq-s-kurdistan-signs-power-agreements-with-knoc-posco.html\">http://www.bloomberg.com/news/2012-08-07/iraq-s-kurdistan-signs-power-agreements-with-knoc-posco.html</a>&gt;\r\n27-Op cit, n14\r\n28-Ibid\r\n29-Bernd Debusmann. “Iraqi tourism ? Not for the faint-hearted”. New York Times, 8 Aug. 2007 &lt;<a href=\"http://www.nytimes.com/2007/08/08/business/worldbusiness/08iht-dinar.5.7048682.html?_r=1\">http://www.nytimes.com/2007/08/08/business/worldbusiness/08iht-dinar.5.7048682.html?_r=1</a>&gt;\r\n30-Ibid\r\n31-Kadhim Ajrash. “Iraq Asks Qatar to Hand Over VP Al Hashimi”. Bloomberg, 2 Apr. 2012&lt;<a href=\"http://www.bloomberg.com/news/2012-04-02/iraq-asks-qatar-to-hand-over-kurdish-vice-president-al-hashimi.html\">http://www.bloomberg.com/news/2012-04-02/iraq-asks-qatar-to-hand-over-kurdish-vice-president-al-hashimi.html</a>&gt;\r\n32-Joost R. Hiltermann. “Baghdad and Erbil battle for Iraq”. The National Interest, 17 Aug. 2012&lt;<a href=\"http://nationalinterest.org/commentary/baghdad-erbil-battle-iraq-7357\">http://nationalinterest.org/commentary/baghdad-erbil-battle-iraq-7357</a>&gt;\r\n33-Ibid\r\n34-Ibid\r\n35-Op cit, n21</pre>'),
	(121170,6170,'_wp_attached_file','2017/10/20130318_S1310-MENA-Flyer-bilingual.pdf'),
	(121171,6170,'_edit_lock','1508912382:1'),
	(121172,2225,'_edit_lock','1522235601:1'),
	(121173,2225,'_edit_last','1'),
	(121174,2225,'newsPractices',''),
	(121175,2225,'_newsPractices','field_59e8a0e952a26'),
	(121122,4630,'core_values',''),
	(121123,4630,'_core_values','field_59b64ab071de4'),
	(121124,4630,'file',''),
	(121125,4630,'_file','field_59b64c10f6600'),
	(121126,4630,'orderValue4','4'),
	(121127,4630,'_orderValue4','field_59d2096a8ff34'),
	(121128,4630,'related_pages_header',''),
	(121129,4630,'_related_pages_header','field_59b6441e3cc94'),
	(121130,4630,'related_pages',''),
	(121131,4630,'_related_pages','field_59b6434af4880'),
	(121132,4630,'relatedArticles',''),
	(121133,4630,'_relatedArticles','field_59d349d04107c'),
	(121134,4630,'_yoast_wpseo_content_score','30'),
	(121135,4497,'_edit_lock','1508912223:1'),
	(121136,4497,'_edit_last','1'),
	(121137,4497,'lawUpdateArticlePractices',''),
	(121138,4497,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(121139,4497,'lawUpdateArticleSectors',''),
	(121140,4497,'_lawUpdateArticleSectors','field_59ec462a1e203'),
	(121141,4497,'lawUpdateArticleWriters',''),
	(121142,4497,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(121143,4497,'orderValue1','1'),
	(121144,4497,'_orderValue1','field_59d0c6e5175b5'),
	(84941,4630,'_content','field_59b649b5c8b2b'),
	(84942,4630,'lawUpdateArticleMonth','4618'),
	(84943,4630,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(84944,4630,'content_description','The devastating effects of the 2003 Iraqi War, subsequent sectarian violence and struggles for power have complicated efforts to promote foreign investment, economic growth and reconstruction efforts in the country thought to hold the “cradle of civilization”.  There is, however, a city in Iraq that has managed to not only encourage investment by the private sector, but has made it the heart of its economic ambitions.  Since its harsh economic sanctions were lifted, the northern, semi-autonomous Kurdish region of Iraq has declared itself open for business, enticing foreign enterprises with generous investment laws and a relatively secure business environment. Welcome to Erbil.'),
	(84945,4630,'_content_description','field_59b641c07f473'),
	(84946,4630,'pageSummary','The devastating effects of the 2003 Iraqi War, subsequent sectarian violence and struggles for power have complicated efforts to promote foreign investment, economic growth and reconstruction efforts in the country thought to hold the “cradle of civilization”.  There is, however, a city in Iraq that has managed to not only encourage investment by the private sector, but has made it the heart of its economic ambitions.  Since its harsh economic sanctions were lifted, the northern, semi-autonomous Kurdish region of Iraq has declared itself open for business, enticing foreign enterprises with generous investment laws and a relatively secure business environment. Welcome to Erbil.'),
	(84947,4630,'_pageSummary','field_59e59b307dec8'),
	(84948,4630,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/january-2/here-comes-erbil.html'),
	(84949,4630,'_currentURL','field_59d35123ab1e7'),
	(84950,4630,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Adam Balchin'),
	(84951,4630,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(84952,4630,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','a.balchin@tamimi.com'),
	(84953,4630,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(84954,4630,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(84955,4630,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(84956,4630,'lawUpdateArticleNoWriters','1'),
	(84957,4630,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(84958,4630,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','537'),
	(84959,4630,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(84960,4630,'lawUpdateArticlePractices','1'),
	(84961,4630,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(84962,4630,'_yoast_wpseo_metadesc','The devastating effects of the 2003 Iraqi War, subsequent sectarian violence and struggles for power have complicated efforts to promote foreign investment, economic growth and reconstruction efforts in the country thought to hold the “cradle of civilization”. There is, however, a city in Iraq that has managed to not only encourage investment by the private sector, but has made it the heart of its economic ambitions. Since its harsh economic sanctions were lifted, the northern, semi-autonomous Kurdish region of Iraq has declared itself open for business, enticing foreign enterprises with generous investment laws and a relatively secure business environment. Welcome to Erbil.'),
	(84963,4631,'content','<p><strong>Management of bonuses</strong></p>\r\n<p>Employment relationships in the United Arab  Emirates (&ldquo;UAE&rdquo;) are generally regulated by the UAE Federal Law No. 8 of  1980 (as amended) (the &ldquo;Labour Law&rdquo;) together with regulations  promulgated under that law. The Labour Law applies to all employees  working in the UAE, with a small number of exceptions. One of those  exceptions relates to employees working in the Dubai International  Financial Centre (&ldquo;DIFC&rdquo;) who are subject to the DIFC Employment Law No.  4 of 2005 (the &ldquo;Employment Law&rdquo;).<br /><br />Neither the Labour Law nor the  Employment Law contain provisions in respect of bonuses and it is  therefore a discretionary matter for employers in the UAE and the DIFC  as to whether employees receive bonus payments and, if so, how the  underlying schemes are operated.<br /><br />In some sectors or industries,  it is commonplace for employees to receive bonuses as a result of custom  or practice. Where this is the case, it is likely that the contract of  employment will make some reference to the payment of a bonus.  Contractual reference does not, contrary to popular belief, mean that a  bonus is automatically guaranteed. Ultimately, entitlement to a bonus is  a matter for whether the bonus is deemed to be discretionary or  non-discretionary and this, in itself, can be a tricky matter.<br /><br /><strong>Discretionary vs. non-discretionary<br /><br /></strong>Discretionary  bonuses (whether contractual or not) are those which give the employer  the ability to determine whether a bonus should be paid and, if so, in  what amount. Frequently, where a discretionary bonus is operated,  mention of such bonus will be omitted entirely from the contract of  employment. Alternatively, the contract of employment may mention that a  bonus scheme is from time to time operated but that payment of any  bonus is entirely at the discretion of the employer&rsquo;s management team  and usually subject to certain performance criteria of the individual  and the employer as well.&nbsp;<br /><br />Non-discretionary bonuses are those  which essentially guarantee payment of a bonus to the employee. Whilst  such schemes may utilise eligibility criteria, for example, requisite  length of service or performance targets, they nonetheless guarantee  payment to the employee (subject to meeting the prescribed criteria) and  remove discretion from the employer.<br /><br />It is not unusual for  employers to seek to retain an element of discretion whilst in reality  implementing non-discretionary bonus schemes. This might arise where the  employer implements a bonus scheme which refers to the company meeting  certain levels of turnover or profit and subsequently the employee  meeting targets but then goes on to state that the employer has overall  discretion as to payment of the bonus. In reality, such schemes are  non-discretionary and can create difficulties where the employer  believes that it has retained discretion when this is in actual fact not  the case.<br /><br />In order to avoid complaints, it is prudent for  employers to proceed with some caution when exercising their discretion  over the payment of bonuses. It is apparent that few employers consider  exactly what is meant by the term &ldquo;discretionary&rdquo;, and to what exactly  the discretion relates. A recent UK Employment Appeals Tribunal  decision, which may be persuasive in cases in the UAE and particularly  those before the DIFC Courts, indicated that &ldquo;discretionary&rdquo; in the  context or bonus schemes may mean:</p>\r\n<ol>\r\n<li>The provision of an overarching bonus scheme itself was discretionary;</li>\r\n<li>A decision to operate the bonus scheme each year is discretionary;</li>\r\n<li>The method of calculating the bonus is discretionary; or</li>\r\n<li>&nbsp;The threshold or performance target which triggers a bonus payment is the subject of discretion.</li>\r\n</ol>\r\n<p>The distinctions could potentially have a significant impact on the  respective rights and entitlements of the employer and employee over the  bonus scheme and therefore it is imperative, where the contract of  employment or the bonus scheme documents refer to discretion, that there  is little doubt as to what this discretion refers to. This case  highlights the importance of setting out the terms of any bonus scheme  very carefully, and at the very least making it clear where the employer  can exercise its discretion - be that over the status of the scheme,  the calculation of any bonus payment, and/or the terms of entitlement to  any bonus payment. The fact that a bonus scheme has been referred to as  &ldquo;discretionary&rdquo; may not in fact give the employer the unfettered right  to withhold or refuse to make a bonus payment to employees.&nbsp;<br /><br /><strong>End of service gratuity (&ldquo;EoSG&rdquo;)<br /><br /></strong>An  employee is ordinarily entitled to an EoSG payment in the event of  termination of employment, so long as he has the qualifying length of  service (and is not being summarily dismissed). EoSG is calculated on  the basis of 21 calendar days\' pay for each year of service for the  first five years, and 30 calendar days\' pay for each year of service  thereafter. Pay for the purposes of EoSG is generally accepted as being  the employee&rsquo;s \"basic pay\", excluding allowances, provided that the  contract of employment properly distinguishes between the basic pay and  allowances.<br /><br />A recent Court of Cassation judgment has added some  confusion to this area.&nbsp; Essentially, the Court of Cassation has deemed  that EoSG calculations should be based upon basic salary and, in  addition, commissions or bonuses where such amounts are essentially  fixed or guaranteed. Accordingly, there is now a risk for employers  paying bonuses on a fixed or guaranteed basis that such bonuses may lead  to a much larger obligation on termination than originally intended.<br /><br />In  order to seek to limit the potential liability for EoSG for employees  who receive bonuses, it is advisable that performance indicators are  utilised which, if not met, mean that the bonuses are not payable.<br /><br /><strong>Managing expectations<br /><br /></strong>Despite  efforts to manage employees&rsquo; expectations, the award of (or failure to  award) bonuses can have both a detrimental effect on employee morale,  and may lead to allegations of breach of contract and/or discrimination.<br /><br />Where  an employer is intending to introduce a bonus scheme, caution should be  exercised to ensure that the rules of the scheme are sufficiently well  drafted to cover most eventualities.&nbsp; When drafting discretionary bonus  scheme rules, it is also important to consider in what circumstances  payments may not be made to the employee.&nbsp; For example, it is useful  practice to have a provision in the employee&rsquo;s contract saying that any  discretionary payment under the bonus scheme will only be made if the  employee is in employment on the bonus payment date, and is not under  notice (whether given or received).&nbsp; This is intended to enable an  employer to exercise its discretion not to award an employee a  discretionary bonus payment in circumstances where the employee has  resigned to go to a competitor, or has been dismissed part way through  the year.<br /><br />To avoid any dispute as to this matter upon termination  of employment, it is sensible to include wording in the contract of  employment (where the bonus is contractual) which states that any bonus  entitlement which has not been declared or paid out at the time of  notice being given or received is forfeited.<br /><br />It is also worth  considering what specific factors will be taken into account in  exercising discretion.&nbsp; Many employers prefer not to express this and to  leave their discretion as wide as possible.&nbsp; However, it may be helpful  sometimes to express that both employer and employee (and perhaps team)  performance can be taken into account in assessing the discretionary  payment which may be made to an employee. Moreover, mention of  discretion without clarity as to the scope thereof, may lead to  arguments as to what the discretion relates to (as discussed above).<br /><br /><strong>Potential disputes<br /><br /></strong>The  relevant case law also indicates that where an employer has an absolute  discretion, it must not exercise, or fail to exercise, that discretion  irrationally, and it must act in good faith particularly in the DIFC.  Cases in other jurisdictions have suggested that the test may be even  stricter than this, and that &ldquo;it is presumed to be the reasonable  expectation and therefore the common intention of the parties that there  should be genuine and rational, as opposed to an empty or irrational,  exercise of discretion&rdquo;.<br /><br />If discretion is exercised perversely or  irrationally, or in breach of any express conditions detailed in the  employee&rsquo;s contract or bonus scheme rules, the employee could bring a  claim for breach of contract. The damages sought would be the bonus  monies the employee believes he should have been paid. In addition, as  any breach would relate to the employee&rsquo;s remuneration (which is  considered a fundamental term of a contract of employment), it would be  open for the employee to resign and claim constructive arbitrary (or  unfair) dismissal. The employee would seek his notice monies, and  arbitrary dismissal compensation constituting a basic award of up to 3  months&rsquo; remuneration (outside of the DIFC) and potentially damages (in  the DIFC). Alternatively, the employee could remain in employment but  protest at the level/lack of bonus and commence proceedings for an  unlawful deduction from wages.<br /><br />When paying out a contractual  bonus, employers should be careful to ensure that they are making the  award in accordance with the rules of the scheme, otherwise a claim for  breach of contract is likely to ensue. Where this type of claim has come  before the UAE Courts previously, a pro-rated payment of the potential  bonus entitlement has been favoured.<br /><br />Finally, the employee could  claim that the discretion has been exercised in a discriminatory way.  This is more likely to be a serious consideration for employers in the  DIFC.<br /><br />When determining bonuses, employers should therefore be  cautious not to forget about those who remain employees but are not  currently working in the office, such as those who are on long term  sickness absence or maternity leave.&nbsp; Care should be taken to ensure  that those employees are treated fairly and in accordance with the rules  of the bonus scheme (which must not be discriminatory).<br /><br />Given  the complexities involved in drafting bonus schemes, it is often a good  idea to seek advice at an early stage, before claims are brought as a  result of employees not receiving what they had expected under the rules  of the scheme.</p>'),
	(84964,4631,'_content','field_59b649b5c8b2b'),
	(84965,4631,'lawUpdateArticleMonth','4618'),
	(84966,4631,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(84967,4631,'content_description','Employers often use bonus schemes as incentives to reward and retain valuable employees and this is usually the time of year when employers are reviewing performance and determining whether bonuses will be issued. The criteria on which performance is measured, and against which bonuses are ultimately quantified, vary across companies and market sectors and, although bonus schemes are common, there are no statutory restrictions or guidelines dealing with the payment of bonuses in the UAE.'),
	(84968,4631,'_content_description','field_59b641c07f473'),
	(84969,4631,'pageSummary','Employers often use bonus schemes as incentives to reward and retain valuable employees and this is usually the time of year when employers are reviewing performance and determining whether bonuses will be issued. The criteria on which performance is measured, and against which bonuses are ultimately quantified, vary across companies and market sectors and, although bonus schemes are common, there are no statutory restrictions or guidelines dealing with the payment of bonuses in the UAE.'),
	(84970,4631,'_pageSummary','field_59e59b307dec8'),
	(84971,4631,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/january-2/bonuses.html'),
	(84972,4631,'_currentURL','field_59d35123ab1e7'),
	(84973,4631,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','917'),
	(84974,4631,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(84975,4631,'lawUpdateArticleWriters_1_lawUpdateArticleWriter','891'),
	(84976,4631,'_lawUpdateArticleWriters_1_lawUpdateArticleWriter','field_59da2ac06b065'),
	(84977,4631,'lawUpdateArticleWriters','2'),
	(84978,4631,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(84979,4631,'_yoast_wpseo_metadesc','Employers often use bonus schemes as incentives to reward and retain valuable employees and this is usually the time of year when employers are reviewing performance and determining whether bonuses will be issued. The criteria on which performance is measured, and against which bonuses are ultimately quantified, vary across companies and market sectors and, although bonus schemes are common, there are no statutory restrictions or guidelines dealing with the payment of bonuses in the UAE.'),
	(84980,4632,'content','<p>Three factors are mainly to blame. First, the natural stresses of  family dynamics, sibling rivalry and a failure to educate and inspire  the new generation to become stewards of the family legacy is a factor.  Second, the dilution of ownership naturally occurring as part of the  estate devolution rules often results in the business being run by a  bickering committee of family heirs and not all businesses survive being  governed in this way.&nbsp;<br /><br />Without a properly pre-framed family rule  book, no business can prosper in the face of unresolved family  conflicts, deferred decision making and general bad management. This  pushes the family into going their separate ways by breaking up or  dividing the business thus undermining a once successful economic force.  Family businesses are often better off staying together, their market  strength and staying power stems from this unity. This divide may  ultimately end the business and deprive the coming generations of the  family legacy.&nbsp;<br /><br /><strong>Third,</strong>&nbsp;the main UAE legal  platform, the UAE Commercial Companies Law (&ldquo;CCL&rdquo;) lends no assistance  to generational transition and the preservation of family legacy because  it does not provide any adequate framework for central and strong  stewardship after the fragmentation of holdings through the inheritance  rules. The CCL is not adapted to handle the unique features of family  companies (particularly large ones) and is not flexible enough to deal  with the evolution of the families from one generation to another.&nbsp;<br /><br />Family  businesses are not ordinary companies and it is about time they  received special treatment. Without a legislative recognition for family  companies, family &lsquo;rule books&rsquo; will have no teeth.<br /><br />This article  will highlight some of the main impediments entrenched in the CCL which  hinder the successful implementation of the two main pillars of family  success. Those pillars as usually mandated in a family book are mainly  (i) family corporate governance; and (ii) Keeping the family business  together.&nbsp;<br /><br /><strong>I.&nbsp;Family Corporate Governance:</strong><br /><br />This first part will focus on those impediments in the CCL in relation to implementing a successful family governance program.&nbsp;<br /><br /><strong>Restrictions in Number of Shareholders:</strong><br /><br />Let&rsquo;s  take this example; a family business with a significant number of  potential heirs operates under a limited liability company (&ldquo;LLC&rdquo;).&nbsp;  When transitioning from one generation to another, the large numbers of  potential family heirs become owners, and exceed the fifty partners&rsquo;  limitation imposed by Article 218 of the CCL.&nbsp;<br /><br />The family company  considers its options and switches to a joint stock company to  accommodate its ever-expanding family (where no so such legal limit  exists) only to face other legal road blocks. The joint stock company  requires hands-on procedural governmental involvement and red tape  involving the Ministry of Economy if the company wishes to amend its  Articles of Association to adapt to changes in their structure and  family arrangements. So it is an unsuitable platform for family  companies where flexibility is a welcome feature to its ever expanding  shareholder registry.&nbsp;<br /><br />There is no obvious &ldquo;go-to&rdquo; option in such  a situation. Large family companies should not be faced with hurdles on  the number of shareholders allowed. They should be able to operate  under their choice of corporate legal platform (an LLC is the most  common type found in the UAE) so they can set their own rule book  regardless of the number of family shareholders.<br /><br />Family companies need special exemptions to enable them to operate as LLCs.<br /><br /><strong>The case of the accidental shareholders</strong><br /><br />&ldquo;Accidental&rdquo;  shareholders are best described as those family heirs who become  shareholders by operation of the inheritance rules and not as the result  of any conscious decision. If you take the literal meaning, by no means  is &ldquo;inheritance&rdquo; considered an accident, the business should be well  prepared for the possibility of the heirs becoming potential partners.  Yet, many proprietors by inheritance do not prepare for their role and  most companies fail to plan for their arrival.<br /><br />The term  &ldquo;accidental&rdquo; is more of an analogy for the element of surprise that  comes along with it. Will they act for the best interest of the  business, or will they treat the business as their personal ATM machine  and cast their shareholder votes accordingly?&nbsp;<br /><br />Reform is required  to protect the legacy and prosperity of the business from the business  equivalent of &ldquo;mob rule&rdquo; and the scramble for cash.<br /><br /><strong>I am a partner and have strategic powers!</strong><br /><br />An  outburst like that from an &ldquo;ATM only&rdquo; partner can have a chilling  effect on committed partners (here, our &ldquo;good guys&rdquo;). Even with  management powers delegated largely to the board, there are still some  strategic decisions that fall into the hands of shareholders and that  could be an issue if the &ldquo;ATM only&rdquo; faction has power.<br /><br />Those  decisions, which are mandated by the CCL, cannot be contracted out in  either the company&rsquo;s by-laws or separate shareholder agreements.&nbsp;  Examples of some of those decisions are set forth below:<br /><br /><strong>(i)&nbsp; &nbsp;Powers to dismiss members of the board:</strong>&nbsp;<br /><br />Article 116 of the CCL mandates the General Assembly has the power to dismiss any or all members of the board of directors:&nbsp;<br />Those powers explicitly override any conflicting article in the company&rsquo;s by-laws.<br /><br /><strong>(ii)&nbsp;Powers to amend the by-Laws &amp; crucial decisions:</strong>&nbsp;<br /><br />Article  137 of the CCL mandates the Extraordinary General Assembly with the  powers to amend the company&rsquo;s by-Laws and incorporation contract (all  amendments permissible except for certain restricted events) and  additionally shall have the following powers:<br />-&nbsp;To increase or to reduce the company&rsquo;s capital;<br /><br />-&nbsp;to dissolve the company or&nbsp; amalgamate it with another company;<br />-&nbsp;to sell or otherwise dispose of the project undertaken by the company; and<br />-&nbsp;to extend the duration of the company.<br /><br />The  dangers of the decisions being in the hands of &ldquo;ATM only&rdquo; partners are  obvious. They could disrupt the growth of the business should they  (unrightfully) decide to veto some strategic decisions or fail to  respond in timely manner thus compromising important deals for the  business.&nbsp;<br />The CCL should create different classes of shares with  different voting rights. Not every partner must be warranted voting  rights! For example, the business can implement rules where it grants  the voting rights to certain individuals answering to certain specific  criteria.. This will require major legislation reform but it can be a  useful tool in keeping at bay undesired partners from the decision  making process.<br /><br /><strong>Notes:</strong></p>\r\n<ul>\r\n<li>The reference to the articles above applied to joint stock companies  given that they have the most hurdles and require most reforms.  However, LLC&rsquo;s do not fair any better, they share similar restrictions  (if more flexible) with regards to governance and have a similar effect  on hindering family transition.</li>\r\n<li>Furthermore, we have not addressed the importance of board  management, its selection process and eligibility criteria and how it  should be dealt with under the CCL. These should be addressed in depth  and in a separate article given their significance in proper family  governance.&nbsp;<br />Next we tackle the second pillar of a family success which is keeping the family together.</li>\r\n</ul>\r\n<p><br /><strong>II.&nbsp;Keeping the Family Together</strong><br /><br />Exit  mismanagement is one of the main culprits in family conflicts. This  almost certainly creates imbalance in ownership, triggering a chain of  reaction of resentment, unfairness and ultimately leading to the break  up of the business and the loss of family control.&nbsp;<br />A good exit management (i.e. share exchanges) allows the following:</p>\r\n<ul>\r\n<li>Fair treatment of family members by preserving their exit rights;</li>\r\n<li>Meeting the liquidity needs (to the extent possible) of family shareholders; and</li>\r\n<li>Sustaining the business by protecting against breakup of ownership.</li>\r\n</ul>\r\n<p>So how do we face exit mismanagement and preserve the sustainability of the business?&nbsp;<br /><br />You  cannot rely solely on family ties as an incentive to resolve conflicts.  There needs to be a more tangible and foreign force to which those  family shareholders can rely on to resolve the much hyped conflicts  tagged to unruly exits.&nbsp;<br /><br />What better force than tailored  statutory rules! The current system under the CCL (or the lack of it)  regulating share exchanges does not have a good track record in securing  smooth exits between family members. We emphasize below on the buy  backs and how they are dealt with under the CCL.&nbsp;<br /><br /><strong>Buy backs:</strong>&nbsp;<br /><br />Let&rsquo;s  take the example of a family shareholder who, in need of liquidity,  offers part or all of his shares for sale. Ideally, the business should  have the flexibility and discretion (depending on the terms of family  book) to offer to buy those shares This will help the business control  any off the record dealings between the shareholders (which could result  in some members obtaining a majority control of shares) and fairly meet  (depending on its cash availability) the liquidity needs of a  shareholder. For this process to run smoothly, the business needs enough  flexibility to allow it to dictate (and enforce) in the family book and  its by-laws the exit mechanics from transfer window to payment mode and  the like. This helps the business control the exits and possibly  mitigate potential family conflicts.<br /><br />Now compare this ideal level of flexibility to the current situation under the CCL.<br /><br />Under  the CCL, buy backs are heavily regulated for joint stock companies and  are only allowed in two stipulated circumstances. Article 168 of the CCL  sets forth lengthy and procedural conditions governing buy backs and  requiring the involvement of the competent ministry. Additionally, the  business needs to comply as well with Article 209 of the CCL which  limits the option to reduce capital (i.e. as a result of buy back) only  in two stipulated circumstances (capital exceeding a company&rsquo;s  requirements and the business sustaining a loss which is not recoverable  from future profits).&nbsp;<br />As such, under the CCL, the business will not  be able to implement a selective buy back and hence accommodate an  exiting shareholder outside those two cases.&nbsp;<br /><br />Effective family  management and uniting the family is one of the main facets of  survivability of family businesses. Yet, they are often poorly served by  the CCL. What we need for preserving family businesses and legacy is a  clear legislation reform that recognizes family companies and exempts  them from the many legal hurdles awaiting them upon transition. Families  businesses are a special breed and so should be their legal platforms!</p>'),
	(84981,4632,'_content','field_59b649b5c8b2b'),
	(84982,4632,'lawUpdateArticleMonth','4618'),
	(84983,4632,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(84984,4632,'content_description','Did you know that most of the successful businesses in the Gulf are in fact family owned? Did you also know that only a small minority actually survive into the second generation? '),
	(84985,4632,'_content_description','field_59b641c07f473'),
	(84986,4632,'pageSummary','Did you know that most of the successful businesses in the Gulf are in fact family owned? Did you also know that only a small minority actually survive into the second generation? '),
	(84987,4632,'_pageSummary','field_59e59b307dec8'),
	(84988,4632,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/january-2/can-family-companies-survive-the-winds-of-change-a-cry-for-legislative-help.html'),
	(84989,4632,'_currentURL','field_59d35123ab1e7'),
	(84990,4632,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','878'),
	(84991,4632,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(84992,4632,'lawUpdateArticleWriters','1'),
	(84993,4632,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(84994,4632,'_yoast_wpseo_metadesc','Did you know that most of the successful businesses in the Gulf are in fact family owned? Did you also know that only a small minority actually survive into the second generation?'),
	(84995,4633,'content','<p>Consider the shared systems and services in an integrated building  such as this, including, fire systems, lifts, and the exterior. Consider  also the levels of service and corresponding costs that a residential  apartment building may find desirable compared to that required by a  hotel.&nbsp;</p>\r\n<p>Thankfully, many potential compromises will exist in order to balance  these tensions for any development, the exact nature of which forms  much of the focus of a lawyer&rsquo;s craft. Of course individuals may  disagree as to whether a fair compromise has been reached and for this  reason it is important to emphasise (once again) the importance of  developers clearly disclosing to all investors the compromise and  structures chosen for their developments.</p>\r\n<p>Such developments are regulated pursuant to Law No 27 of 2007 on  Ownership of Jointly Owned Properties in the Emirate of Dubai (&ldquo;JOP  Law&rdquo;) and the Directions to Law No 27 of 2007 which are implemented by  RERA (&ldquo;Directions&rdquo;).&nbsp;<br /><br />Such &ldquo;simple&rdquo; schemes of joint ownership  however have come close to being the exception in Dubai and many other  cities in the Gulf where mixed use developments are common. A mixed use  development will usually possess more than one &ldquo;uses&rdquo; for example;  residential apartment, office, hotel and retail uses. The volumetric  area comprising each such &ldquo;use&rdquo; is generally termed a &ldquo;Component&rdquo;.&nbsp;<br /><br />All  mixed use developments present certain challenges in terms of  management. Consider for example the case of a residential and retail  building. Perhaps the residential Component has a swimming pool and gym  as part of its facilities. Should the retail Owner(s) be responsible for  the costs of these facilities? Conversely would the residential Owners  want the retail Owner(s) and potentially their clients using the  swimming pool and gym?<br /><br />Generally speaking retail Owners would  have no interest in such facilities and would not want to pay for the  same. Such issues would therefore need to be resolved through the  constitutional documents (for example the &ldquo;Jointly Owned Property  Declaration&rdquo; as it is termed in Dubai) for the development.&nbsp;<br /><br />The  above however represents a fairly simple situation, where the interests  of the parties are clear. There are however numerous occasions where  more complex issues arise both by virtue of the areas and services in  question and the nature of the building. There is no better example of  this than in the case of mixed use developments incorporating a hotel,  residential and other Components.<br /><br />To illuminate the issues, let  us consider Diagram 1 (below) where area &ldquo;A&rdquo; is a singly owned Hotel  Component and area &ldquo;B&rdquo; is a jointly owned Residential Component. Area  &ldquo;C&rdquo; represents an area shared between the two Components.&nbsp;<br /><br /></p>\r\n<table border=\"0\" align=\"center\">\r\n<tbody>\r\n<tr>\r\n<td><img height=\"257\" src=\"https://admin.newsweaver.com/notessa/repository/169641484993255628/H8/31ork0b9i6d2l2r6c4bw8xa6q1yflhfa9asatfqteulkpzq3j.jpg\" width=\"438\" /></td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<p>Let us say that area &ldquo;A&rdquo; (the &ldquo;Hotel Component&rdquo;) and Area &ldquo;B&rdquo; (the  &ldquo;Residential Component&rdquo;) are relatively self contained with each  retaining its own entrance lobby and mechanical, electrical and plumbing  infrastructure. Area &ldquo;C&rdquo; in this example comprises a shared leisure  area comprising a swimming pool, gym area and spa area (&ldquo;Facilities&rdquo;).<br /><br />Both Components may have a legitimate interest in the use of the Facilities however the following issues arise:</p>\r\n<ol>\r\n<li>Who should control the management of the Facilities?</li>\r\n<li>To what standard should the Facilities be maintained and operated  to? The standard required of the Residential Component or the standard  required by the Hotel Component?<span>&nbsp;</span></li>\r\n</ol>\r\n<p>The answer from the Owner of the Hotel Component has to be that these  areas must remain in their control as the Hotel Component Owner will  need to be able to promise to its Operator, control over such areas in  order that the Operator can maintain its &ldquo;brand standards&rdquo; and customer  service levels.&nbsp;<br />&nbsp;<br />Let us therefore consider the following management possibilities for Area &ldquo;C&rdquo;:</p>\r\n<ol>\r\n<li>The area becomes a Common Area and an Owners Association be formed having jurisdiction over Area &ldquo;C&rdquo;; on</li>\r\n<li>Ownership over Area &ldquo;C&rdquo; passes to the Owner of Component &ldquo;A&rdquo; (the Hotel Component&rdquo;)</li>\r\n</ol>\r\n<p>Let us consider in more detail each management possibility:<br />&nbsp;<br /><strong>Option 1 &ndash; Area &ldquo;C&rdquo; is Common Area and an Owners Association is formed.</strong><br />&nbsp;<br />Under this option the following needs to be considered:</p>\r\n<ol>\r\n<li>Decisions of an Owners Association are made either by the General Assembly or by the Board.</li>\r\n<li>Decisions of the General Assembly usually relate to constitutional  issues such as rule formation and the appointment of the Board.</li>\r\n<li>Decisions on constitutional matters may depend on the number of votes of the voting &ldquo;entitlement&rdquo; the relative Components have.</li>\r\n<li>Decisions as to who the Board may comprise may depend on the number  of Owners in each Component and also the number of votes or voting  &ldquo;entitlement&rdquo; held.&nbsp;</li>\r\n</ol>\r\n<p>It will be apparent from the above that to leave decisions as to who  manages such areas strictly to the JOP Law and Directions can be  arbitrary and risks an ongoing political struggle for control of such  Facilities.&nbsp;<br />&nbsp;<br /><strong>Option 2 &ndash; Ownership of Area &ldquo;C&rdquo; passes to the Owner of the Hotel Component.</strong><br />&nbsp;<br />Under this option the following needs to be considered:</p>\r\n<ol>\r\n<li>Ownership would entitle the Owner of Component &ldquo;A&rdquo; to exclude all  Owners in the Residential Component &ldquo;B&rdquo; (the Residential Component).</li>\r\n<li>The Owners of Component &ldquo;B&rdquo; would be required to pay for the costs  of the maintenance and repairs and all other services in connection with  the Facilities.</li>\r\n<li>The above factors would mean that transparency as to the costs of  the Facilities may be unlikely, and could lead to a situation where the  Owner of Component &ldquo;A&rdquo; simply names its price for the use of the  Facilities.&nbsp;</li>\r\n</ol>\r\n<p>Option 2 would appear the optimal solution for the Hotel Component  Owner, however in many cases the developments may have been designed  such that such Facilities were intended for the use of both Components.  In other cases the developments may have been sold on the basis of  shared use (to have sold on a &ldquo;user pays&rdquo; basis may have reduced the  sale price of the Residential Units).&nbsp;<br />&nbsp;<br />The astute reader may  well have gathered that either Option 1 or Option 2 may work provided  appropriate mechanisms are put in place to protect the respective  Owners&rsquo; interests. The other important point (though not the focus of  this article) is that any mechanisms need to be disclosed to investors  prior to the sale of Component A or Units in Component B.&nbsp;<br />&nbsp;<br />Let us consider some potential mechanisms for resolving this Hotel/Residential mixed use scenario:<br />&nbsp;<br /><strong>Option 1 &ndash; Area &ldquo;C&rdquo; is Common Area and an Owners Association is formed.</strong><br />&nbsp;<br />Within  the constitutional documentation for the Owners Association the  following needs to be clarified so as to bind the Owners Association, as  well as the Owner of the Hotel Component and Owners in the Residential  Component:</p>\r\n<ol>\r\n<li>The standards of maintenance and repair and provision of the  Facilities needs to be that required by the Owner of the Hotel  Component.</li>\r\n<li>Owners within the Residential Component would need to accept  heightened charges for the Facilities due to the higher standards  required, or at least a cost split agreed up front.</li>\r\n<li>If the Owners in the Residential Component dominated at the General  Assembly or could control the Board then there would need to be a means  of curtailing such rights to ensure 1 and 2 above were achieved.&nbsp;</li>\r\n</ol>\r\n<p><strong>Option 2 &ndash; Ownership of Area &ldquo;C&rdquo; passes to the Owner of the Hotel Component.</strong><br />&nbsp;<br />For  this option to add value to the Owners in the Residential Component  there would need to be an agreement (commonly called a &ldquo;Building  Management Statement&rdquo;) setting out the rights and obligations of the  Owners of the Components in relation to Area &ldquo;C&rdquo;.&nbsp;<br /><br />Typically a Building Management Statement would:</p>\r\n<ol>\r\n<li>Specify that Area &ldquo;C&rdquo; would fall within the Hotel Component;</li>\r\n<li>By a separate plan designate that rights would be granted over Area &ldquo;C&rdquo; to the Owners in the Residential Component;</li>\r\n<li>By the Building Management Statement and usually a schedule  (commonly called a &ldquo;Building Management Schedule&rdquo;) designate the rights  and obligations of the Owners in the Residential Component in relation  to Area &ldquo;C&rdquo; including:<br />&nbsp;<br />a.&nbsp;that the Owner of the Hotel Component would have the right to appoint the contractors;<br />&nbsp;<br />b.&nbsp;by  the Building Management Schedule, setting out the level of costs that  the Owners respectively would have to share in relation to Area &ldquo;C&rdquo;.</li>\r\n</ol>\r\n<p>Neither Option 1 nor Option 2 represents a perfect solution for both  parties.&nbsp; Each requires consideration in order to reach a balance that  is attractive to both parties.&nbsp;<br /><br />Option 1 would require the Owner  of the Hotel Component to become subject to the jurisdiction of an  Owners Association with its associated procedures and mechanisms which  may be considered onerous and more capable of dispute in a situation  where Operators may want clarity, simplicity and control.&nbsp;<br /><br />Option  2 however would lack transparency from the point of view of an Owner in  the Residential Component. In particular, how could the Owners in the  Residential Component be confident that the contracts and costs incurred  by or on behalf of the Owner of the Hotel Component were procured in a  fair and transparent fashion?&nbsp;<br /><br />At this juncture, readers may also  like to consider Diagram 2 where Area &ldquo;A&rdquo; once again is the Hotel  Component, Area &ldquo;B&rdquo; is the Residential Component and Area &ldquo;C&rdquo; represents  the shared car-parking, lobby and foyer areas and pool gym and  recreational areas.&nbsp;</p>\r\n<p><span><br /></span></p>'),
	(84996,4633,'_content','field_59b649b5c8b2b'),
	(84997,4633,'lawUpdateArticleMonth','4618'),
	(84998,4633,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(84999,4633,'content_description','Dubai is now familiar with the concept of Jointly Owned Property where developments are sub-divided into “Units”, being the separately owned part of the development (for which the Owner will receive their title), and “Common Areas”, which are to be owned by all Owners in undivided shares and managed by the “Owners Association”. '),
	(85000,4633,'_content_description','field_59b641c07f473'),
	(85001,4633,'pageSummary','Dubai is now familiar with the concept of Jointly Owned Property where developments are sub-divided into “Units”, being the separately owned part of the development (for which the Owner will receive their title), and “Common Areas”, which are to be owned by all Owners in undivided shares and managed by the “Owners Association”. '),
	(85002,4633,'_pageSummary','field_59e59b307dec8'),
	(85003,4633,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/january-2/mixed-use-developments-incorporating-hotel-and-residential-features.html'),
	(85004,4633,'_currentURL','field_59d35123ab1e7'),
	(85005,4633,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','860'),
	(85006,4633,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(85007,4633,'lawUpdateArticleWriters','1'),
	(85008,4633,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(85009,4633,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Katrine Kofoed'),
	(85010,4633,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85011,4633,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','k.kofoed@tamimi.com'),
	(85012,4633,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85013,4633,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85014,4633,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85015,4633,'lawUpdateArticleNoWriters','1'),
	(85016,4633,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85017,4633,'_yoast_wpseo_metadesc','Dubai is now familiar with the concept of Jointly Owned Property where developments are sub-divided into “Units”, being the separately owned part of the development (for which the Owner will receive their title), and “Common Areas”, which are to be owned by all Owners in undivided shares and managed by the “Owners Association”.'),
	(85018,4634,'content','<p>The Landlord and Tenant Law allows the parties to a lease to fix the  rent by agreement in the lease.&nbsp; Where the rent is not fixed, the  landlord currently has the right to an annual rent increment.&nbsp; This  right is currently subject to a maximum increase of 5% of the existing  rental amount (the &ldquo;Rent Cap&rdquo;).&nbsp; The Rent Cap may be increased, reduced  or cancelled from time to time by the Chairman of the Executive Council  as he considers appropriate.&nbsp; A tenant may refer the matter to the Abu  Dhabi Rent Committee for determination of the rent where a landlord  exceeds the Rent Cap. &nbsp;</p>\r\n<p>The term of a lease will remain in force until its expiry and may be  renewed upon the mutual consent of both parties.&nbsp; Should a tenant remain  in occupation upon expiry of a lease with the knowledge and consent of  his landlord, then the lease shall be deemed to have been renewed for a  similar term on the same terms and conditions.&nbsp; Should either party not  wish to renew a lease, then at least 2 months&rsquo; (for residential  property) or 3 months&rsquo; (for commercial property) prior written notice  must be given to the other party. &nbsp;</p>\r\n<p>Law No. (4) introduces changes for renewal of leases upon their  expiry and the determination of rent payable under renewal leases.&nbsp;  Under the current law, a landlord may not request that a tenant vacates a  property upon expiry of his lease.&nbsp; Once Law No. (4) has been fully  implemented a landlord will be entitled to request that a tenant vacates  a property on expiry of his lease and may refuse the renewal of the  lease, subject to requirement for necessary notice provisions to be  observed.&nbsp; Therefore whilst Rent Caps will continue to apply during the  lease terms there will be no protection for tenants against rent  increases upon lease renewals. &nbsp;</p>\r\n<p>The deadline for full implementation set by Law No. (4) was  originally set for 9 November 2010, however the deadline has  subsequently been extended three times.&nbsp; The resolution issued on 13  November 2012 now states that the law will not be fully implemented  until 9 November 2013.&nbsp; We currently await publication of this  resolution in the Official Gazette.</p>'),
	(85019,4634,'_content','field_59b649b5c8b2b'),
	(85020,4634,'lawUpdateArticleMonth','4618'),
	(85021,4634,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85022,4634,'content_description','Abu Dhabi Law No. (20) of 2006 (the “Landlord and Tenant Law”), as amended by Laws No. (6) of 2009 and No. (4) of 2010 (“Law No. (4)”) and Executive Council Resolutions No. (56) of 2010, No. (25) of 2011 (“Resolution No. (25)”) and another resolution (as yet unpublished) made on 13 November 2012, regulates most landlord and tenant relationships in the Emirate of Abu Dhabi.'),
	(85023,4634,'_content_description','field_59b641c07f473'),
	(85024,4634,'pageSummary','Abu Dhabi Law No. (20) of 2006 (the “Landlord and Tenant Law”), as amended by Laws No. (6) of 2009 and No. (4) of 2010 (“Law No. (4)”) and Executive Council Resolutions No. (56) of 2010, No. (25) of 2011 (“Resolution No. (25)”) and another resolution (as yet unpublished) made on 13 November 2012, regulates most landlord and tenant relationships in the Emirate of Abu Dhabi.'),
	(85025,4634,'_pageSummary','field_59e59b307dec8'),
	(85026,4634,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/january-2/abu-dhabi-rent-controls-and-lease-renewals.html'),
	(85027,4634,'_currentURL','field_59d35123ab1e7'),
	(85028,4634,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','523'),
	(85029,4634,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(85030,4634,'lawUpdateArticleWriters','1'),
	(85031,4634,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(85032,4634,'_yoast_wpseo_metadesc','Abu Dhabi Law No. (20) of 2006 (the “Landlord and Tenant Law”), as amended by Laws No. (6) of 2009 and No. (4) of 2010 (“Law No. (4)”) and Executive Council Resolutions No. (56) of 2010, No. (25) of 2011 (“Resolution No. (25)”) and another resolution (as yet unpublished) made on 13 November 2012, regulates most landlord and tenant relationships in the Emirate of Abu Dhabi.'),
	(85033,4635,'content','<p>We shed some light on some of said issues, particularly, (i) the  event of not signing part of the agreement; (ii) not calling upon the  arbitration clause before the national courts and (iii) the absence of a  special delegation to the signatory of an arbitration agreement, as  follows:</p>\r\n<p><strong>I. Not signing part of the Agreement where the arbitral clause is embedded</strong>:</p>\r\n<p>In a recent case handled by Al Tamimi &amp; Company in Abu Dhabi, the  Claimant filed a case against the Defendant before the Abu Dhabi Courts  disputing some issues in the agreement they previously concluded and  requesting the appointment of an expert to evidence the Defendant&rsquo;s  alleged defaults.&nbsp;</p>\r\n<p>The disputed agreement was a set of documents divided into two parts attached to each other, namely, part 1 and part 2.</p>\r\n<p>a) Part 1 was four pages signed by both parties containing the very  basic details of the contracting parties and a summary of their  obligations.&nbsp;</p>\r\n<p>This part had an explicit clause referring to Part 2, deeming it as  an integral part forming the whole agreement and further states that the  Claimant has received, read and agreed to comply with its terms.&nbsp;</p>\r\n<p>b) Part 2 was the full extensive part of the agreement, detailing the  obligations of each party, the triggers for default, and an arbitration  clause clearly stating that any dispute shall be resolved by  arbitration.&nbsp;</p>\r\n<p>Since Part 1 (signed by both parties) referred to Part 2 and the  parties knew that the agreement could not be executed without Part 2,  the parties saw no need to sign Part 2.</p>\r\n<p>At the first hearing before the Abu Dhabi Court of First Instance,  the Defendant brought the arbitration clause to the court&rsquo;s attention.  Nevertheless, the Court of First Instance rejected such plea and instead  issued a preliminary judgment to appoint an expert as requested by the  Claimant.&nbsp;</p>\r\n<p>The Court&rsquo;s rationale was that the Court deemed the above Parts (1  and 2), as two separate agreements. The Court further explained that  only Part 1 was signed by the parties showing their consent to its  content, on the contrary to Part 2 which was not signed. The Court  neglected Part 2 (or the &ldquo;second agreement&rdquo; as per its interpretation)  and thus the arbitration clause was not binding.&nbsp;</p>\r\n<p>The Defendant appealed the preliminary judgment for misapplication of the law and misinterpreting the facts of the dispute.&nbsp;</p>\r\n<p>The Appellant relied on the fact that an agreement to arbitration was  made through the reference made in Part 1 to the content of Part 2 i.e.  the arbitration clause.&nbsp;</p>\r\n<p><strong>The Court of Appeal upheld the judgment issued by the Court of First Instance for the same reason.&nbsp;</strong></p>\r\n<p>Originally and as a general rule, we note that the national courts  retains jurisdiction for disputes arising from contractual agreements.  However, paragraph 1 of article 203 of the Civil Procedure Code No. 11  of 1992 as amended (the &ldquo;CPC&rdquo;) provides an exception to the above rule.  Said paragraph states that:</p>\r\n<p>1. <em>&ldquo; It shall be permissible for contracting parties generally to  stipulate in the original contract or in a subsequent agreement to  refer any dispute between them concerning the implementation of a  specified contract to one or more arbitrators and it shall likewise be  permissible to agree by special conditions to arbitration in a  particular dispute.&rdquo;</em></p>\r\n<p>Although such exception is regulated by law, certain conditions must  be satisfied for it to be deemed as a valid agreement. We note that  paragraph 2 of the above article states that:</p>\r\n<p>2. <em>&ldquo;An arbitration agreement may be proved only by writing.&rdquo;</em></p>\r\n<p>It is thus essential to have the agreement to arbitrate made in  writing, which is the case for most standard commercial agreements. It  is the act of &ldquo;signing the said agreement&rdquo; that remains a question to be  addressed. Is signature mandatory or would the evidence showing that it  was agreeable by the parties - even if it was not initialed and signed &ndash;  suffice? In the above example, the implied doctrine is that it should  be signed, otherwise it will not be deemed&nbsp; binding and will be  overlooked.</p>\r\n<p>In conclusion and to avoid any unforeseen alteration to a planned  method of resolving potential disputes, it is recommended that the  contracting parties sign and initial every page of the agreement.</p>\r\n<p><strong>II. Call upon Arbitration at the first hearing before the National Court:</strong></p>\r\n<p>We often encounter situations where our clients instruct us on a very  short notice to represent them in a dispute before the national court  whose hearing is scheduled the next day. The first question we ask the  client is whether there is an arbitration agreement between the two  parties.&nbsp;</p>\r\n<p>Unless you wish to give the courts jurisdiction to hear a case,  raising the issue of arbitration before the national court is very  important.&nbsp; If not raised at the first hearing, the court will assume  that the parties have waived their rights to refer the matter to  arbitration and submit to the jurisdiction of the court.&nbsp;</p>\r\n<p>Paragraph 5 of Article 203 of the CPC provides that:</p>\r\n<p><em>&ldquo;If the parties agree to arbitrate the dispute it shall not be  permissible to bring an action in respect thereof before the courts but  nevertheless if one of the parties does have recourse to litigation  without regard to the arbitration clause and the other party does not  object at the first hearing the action must be tried and the arbitration  clause shall be deemed to be cancelled.&rdquo;</em></p>\r\n<p>The timing you should call upon the arbitration clause is a key  factor to have the claim rejected by the national court. The principle  established in the Abu Dhabi judiciary is that any objection to  jurisdiction on the basis of having an agreement to resolve the dispute  through arbitration should be raised at the first hearing. The first  hearing in such context means the very first one where your lawyer  attends before the court, even if the purpose of such attendance is to  submit the power of attorney and requests an extension to review the  case file and submit the statement of defence.&nbsp;</p>\r\n<p>As a result,, remaining silent and not contesting jurisdiction for  having an arbitration clause is deemed a waiver of the previous  agreement to arbitration. The arbitral clause will become ineffective  and the national court retains jurisdiction to review the dispute.</p>\r\n<p>In this regard the Cassation Court ruled in the Cassation No. 141 of  2007 &ndash; Session of 22/11/2007 (Commercial) that the party adhering to the  arbitration clause must take a positive action to object in the first  hearing on the filing of the claim made before the national court by his  opponent.&nbsp;</p>\r\n<p>Consequently, it is essential that the above objection occur at the  first hearing or else the case will be reviewed by the national court  and the arbitration agreement will be cancelled.&nbsp;</p>\r\n<p><strong>III. Absence of a special delegation to the signatory of the Arbitration Agreement:</strong></p>\r\n<p>We always bring to the attention of our clients that the signatories  to an arbitration agreement should have explicit authority allowing them  to arbitrate. Article 203(4) of the CPC states that: &ldquo;It shall not be  permissible to arbitrate in matters which conciliation is not  permissible. An agreement to arbitrate shall not be valid unless made by  persons having the legal capacity to make a disposition over the right  the subject matter of the dispute.&rdquo;</p>\r\n<p>In application of the above article, the Dubai Cassation Court ruled  &ldquo;In accordance with article 203 (4) of the Civil Procedures Law &ndash; that  it is not permissible to agree on resorting to arbitration without  having the capacity to make a disposition over the right of the subject  matter, and not the legal capacity to resort to court. Agreeing to  arbitration means waiving the right to file the claim before the  national courts, which requires a special power of attorney. A  delegation from the principals to the agent to conclude some actions and  dealings will not do.&rdquo; Cassation No. 577/2003 &ndash; Hearing of 12/6/2004</p>\r\n<p>Furthermore, article 58(2) of the CPC stipulates that: &ldquo;No admission  or waiver of a right alleged or settlement or submission to arbitration  or acceptance of or requisition for the oath or refusal thereof or  abandonment of the proceedings or waiver of the judgment in whole or in  part&hellip;.. without special authority&rdquo;.&nbsp;</p>\r\n<p>The above articles of the CPC denote that no rights shall be  submitted to arbitration without a special authority (power of attorney)  to authorize such submission.</p>\r\n<p>In many events we find that the signatories of an agreement having an  arbitration clause do not have a special authority evidenced in their  delegation/power of attorney authorizing them to sign arbitration  agreements in compliance with articles 203(4) and 58(2) of the CPC noted  above.&nbsp;</p>\r\n<p>In light of the above, the arbitration clause could be declared null  and void and resorting to arbitration may not be possible, making the  national courts competent to review the dispute, or even allowing for a  situation where any arbitral award rendered based on said clause could  be annulled by the national courts while ratifying it as per article 216  (b) of the CPC. Article 216 allows the parties to request nullification  from the Court (that looks into the ratification of the arbitration  award) of the arbitration award in the following circumstances, one of  which is having an agreement to arbitrate made by a person lacking the  capacity to arbitrate as outlined above.</p>');

INSERT INTO `tm_postmeta` (`meta_id`, `post_id`, `meta_key`, `meta_value`)
VALUES
	(85034,4635,'_content','field_59b649b5c8b2b'),
	(85035,4635,'lawUpdateArticleMonth','4618'),
	(85036,4635,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85037,4635,'content_description','This article addresses situations where there is an arbitration agreement but the dispute is reviewed by the national courts instead of being referred to arbitration or the arbitration clause is contested. Minor issues could cause an unwanted outcome contrary to what the parties agreed to initially. '),
	(85038,4635,'_content_description','field_59b641c07f473'),
	(85039,4635,'pageSummary','This article addresses situations where there is an arbitration agreement but the dispute is reviewed by the national courts instead of being referred to arbitration or the arbitration clause is contested. Minor issues could cause an unwanted outcome contrary to what the parties agreed to initially. '),
	(85040,4635,'_pageSummary','field_59e59b307dec8'),
	(85041,4635,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/january-2/so-you-think-you-can-arbitrate-1.html'),
	(85042,4635,'_currentURL','field_59d35123ab1e7'),
	(85043,4635,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','556'),
	(85044,4635,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(85045,4635,'lawUpdateArticleWriters','1'),
	(85046,4635,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(85047,4635,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','410'),
	(85048,4635,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85049,4635,'lawUpdateArticlePractices','1'),
	(85050,4635,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85051,4635,'_yoast_wpseo_metadesc','This article addresses situations where there is an arbitration agreement but the dispute is reviewed by the national courts instead of being referred to arbitration or the arbitration clause is contested. Minor issues could cause an unwanted outcome contrary to what the parties agreed to initially.'),
	(85052,4636,'content','<p><span>However, The Dubai Court of Cassation in its rulings  established an exception to this general rule laid by law. The court in  the following judgment rendered its decision extending the liability of  the partners in a limited liability company to reach their personal  assets provided the satisfaction of certain extraordinary specific  circumstances as we will see.&nbsp;</span></p>\r\n<p><strong>Summary of Facts:</strong>&nbsp;</p>\r\n<ul>\r\n<li>The Claimant (a creditor of a limited liability company) obtained a  court judgment (First Action) against its debtor (the limited liability  company, referred to as &ldquo;the LLC&rdquo;) obligating the latter to pay the sum  of AED 781,619.07 with interest.&nbsp;</li>\r\n<li>The Claimant, upon failing execution of the First Action, sought  recourse against the shareholders of its debtor ,the LLC, by filing  another commercial action against the Respondents (shareholders of the  LLC).&nbsp;</li>\r\n<li>The Claimant requested in its second action engaging the liability  of the Respondents in their personal assets to pay the sum of the debt.&nbsp;</li>\r\n<li>The Claimant also stated that the Respondents as shareholders in the  LLC are liable to pay the awarded amount each to the extent of his  share in the capital. Furthermore, according to the UAE Commercial  Companies Law the &ldquo;Law&rdquo; the Second Respondent being the Manager of the  LLC is liable to the full extent of his personal assets for the  company&rsquo;s liabilities and for claims for indemnity. Additionally the  Respondents are personally liable for their fault to comply with  Articles 238 and 255 of the said law.&nbsp;</li>\r\n</ul>\r\n<p><strong>Procedural History:</strong></p>\r\n<ul>\r\n<li>The Court of First Instance dismissed the case.</li>\r\n<li>The Claimant appealed before the Court of Appeals which overturned  the appealed judgment on the grounds of pre-adjudication in the same  subject matter.</li>\r\n<li>The Claimant, therefore, appealed to the Dubai Court of Cassation  which in turn overturned the Appeals Court&rsquo;s decision, and referred the  case back to the Appeal Court to adjudicate the case. The Cassation  Court held that the lower court erred in its application of the law when  it considered the matter pre adjudicated against the Respondents  although there is no unity in the parties or the causation of the  dispute.&nbsp;</li>\r\n<li>The referral court after referring the case to the Dispute  Resolution and Expertise Department of the Ruler&rsquo;s Court rendered its  judgment obligating the Respondents to pay to the Claimant the sum of  AED 781,619.07 jointly and severally each to the extent of his  share/shares in the capital.&nbsp;</li>\r\n<li>The Respondents appealed to the Court of Cassation requesting overturning the judgment.&nbsp;</li>\r\n</ul>\r\n<p><strong>The Court of Cassation</strong></p>\r\n<p><span>The Respondents in their challenging the Court of Appeals judgment raised two arguments</span></p>\r\n<p><span>&nbsp;</span><span>1. The Respondents argued that the lower court  erred in obligating the Respondents to pay the sum awarded in the first  action. On the grounds that the lower court contradicted the principal  of res judicata (courts may not re-adjudicate matters which have been  previously judicially finalized). In this sense the Appeals Court  allowed the Claimant to obtain a court order with the payment of the sum  awarded twice from the same transaction.&nbsp;</span></p>\r\n<p><span>Responding to this argument the court held that it was  groundless. It is an established judicial principle, that if there are  several sources of an obligation, meaning if one person&rsquo;s liability is  derived from the contract and another person&rsquo;s liability is derived from  the harmful act, while both liabilities are tied to the same matter,  each of these persons will be held liable against the injured party for  full compensation.&nbsp;</span></p>\r\n<p><span>In this case, the Claimant did not receive satisfaction of the  debt from the LLC as an entity, therefore, the Claimant sought recourse  against its shareholders personally (the Respondents). However, the  Claimant will not obtain compensation twice. The Claimant&rsquo;s right is  limited to receiving satisfaction of the sum just once. If he receives  the awarded sum from either the LLC as an entity or from one of the  Respondents, then the other is discharged. The Claimant will then have  no right of recourse or enforcement against any of the obligors (being  the LLC or the Respondents).&nbsp;</span></p>\r\n<p><span>Since there was no proof furnished that the Claimant obtained  the awarded amount, he has the right for recourse against the  Respondents for their harmful act.&nbsp;</span></p>\r\n<p>2. The Respondents further argued that the Court of Appeals erred in  establishing that the Respondents intentionally committed an aggravated  harm to the Claimant.&nbsp; The appealed judgment did not demonstrate the  harmful act or the Respondents&rsquo; role in harming their company&rsquo;s creditor  (the Claimant).</p>\r\n<p><span>&nbsp;</span><span>The Cassation Court held that this argument was groundless. The court established its reasoning on three bases:</span>&nbsp;</p>\r\n<p><span>1. The effect of the provisions of the UAE Commercial Companies Law in relation to limited liability companies provides:</span></p>\r\n<ul>\r\n<li>The share holders who are not also directors shall have the right to  inspect the operations of the company, to examine its books and  documents in addition to providing advice and guidance to the manager.&nbsp;</li>\r\n<li>The company shall have a general assembly consisting of all of the  shareholders, which shall meet at least once a year during the four  months following the end of the financial year.&nbsp;</li>\r\n<li>The agenda of such meeting must include hearing the manager&rsquo;s report  concerning the activities and the financial status of the company  during the year, the auditor&rsquo;s report, and a discussion of the balance  sheet and profit and loss account in addition to ratifying them.&nbsp;</li>\r\n<li>Any of the shareholders, whether in person or by his agent, has the  right to examine minutes of the general assembly meeting and resolutions  and he shall also have the right to examine the balance sheet , profit  and loss account and the annual report.&nbsp;</li>\r\n<li>The company must have an auditor of accounts elected by the general  assembly to audit accounts of the company and to observe whether the law  and the constitutive documentation of the company have been observed,  he must submit his report stating the result of the examination to the  general assembly.&nbsp;</li>\r\n<li>The company must set aside 10% of its net profits to form the  statutory reserve, and the shareholders may decide to stop setting aside  such monies if the reserve reaches one-half of the capital.&nbsp;</li>\r\n<li>The Court construed from the above that shareholders of a limited  liability company are required by the law to be aware and informed of  its profit and loss accounts.</li>\r\n</ul>\r\n<p><span>2. The general rule set forth in Article 218 of the CCL  provides that a shareholder in a limited liability company is  responsible only to the extent of his share/shares in the capital of the  company. The exception to this general rule, as the Court reasoned, is  that such shareholder will be held personally liable, if he exploited  the principle of the independent liability of the company, as means to  conceal his fraudulent acts or misappropriation of the funds of the  company in order to cause harm his partners or creditors. In such case,  the protection bestowed by law for shareholder in a limited liability  company will not apply. He will be held liable in his personal capacity  for such dispositions in a way that such liability will extent to his  personal assets.</span></p>\r\n<p><span>3. It is also construed from provisions of the CCL that the  manager of a limited liability company is liable towards the company,  the shareholders and third parties for indemnifying loss arising out of  his default and neglect in management, all acts of fraud and abuse of  power and any breach of the law or the company&rsquo;s constitutive  documents.&nbsp;</span></p>\r\n<p><span>The court further held that, the appointed expert&rsquo;s report  established the LLC&rsquo;s budget exhibited that its most valuable asset was  its reserve which value reached AED 6 million. The expert stated that  there are no traces of such reserve while the company&rsquo;s debt reached AED  1 million.&nbsp;</span></p>\r\n<p><span>The expert report in its conclusion revealed the intentional  vast committed by the manager and the shareholders (the Respondents).  Their fraudulent acts are exhibited in concealing the company&rsquo;s assets  which represented the company&rsquo;s general guarantee to its debts.&nbsp;</span></p>\r\n<p><span>The Court therefore established that the Respondents by  misappropriating the funds of the LLC by their faults intended to cause  damage it its creditors. The Court therefore held the Respondents  personally liable for the awarded sum and dismissed the challenge.&nbsp;</span></p>\r\n<p><strong>Practice Note:</strong>&nbsp;</p>\r\n<p><span>We understand from the above judgment that the exception to the  limitation of the liability of limited liability companies&rsquo;  shareholders to the extent of their shares is crucial to safeguard the  company&rsquo;s creditors. In some instances, shareholders in limited  liability companies opted to abuse the protection bestowed by law to  defraud the company&rsquo;s creditors. By engaging their personal liability,  this exception imposes a condition upon the shareholders and directors  of the limited liability company to maintain its assets as a general  guarantee to the creditors of the company. Such court practice helps  restore customers and investors credibility in conducting transactions  with limited liability companies.&nbsp;</span></p>\r\n<p><span>&nbsp;</span></p>'),
	(85053,4636,'_content','field_59b649b5c8b2b'),
	(85054,4636,'lawUpdateArticleMonth','4618'),
	(85055,4636,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85056,4636,'content_description','A Limited Liability Company as defined by Article 218 of the UAE Commercial Companies Law is a company in which the liability of its partner is limited only to the extent of their shares in the capital.'),
	(85057,4636,'_content_description','field_59b641c07f473'),
	(85058,4636,'pageSummary','A Limited Liability Company as defined by Article 218 of the UAE Commercial Companies Law is a company in which the liability of its partner is limited only to the extent of their shares in the capital.'),
	(85059,4636,'_pageSummary','field_59e59b307dec8'),
	(85060,4636,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/january-2/dubai-liability-of-shareholders-in-a-limited-liability-company.html'),
	(85061,4636,'_currentURL','field_59d35123ab1e7'),
	(85062,4636,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Al Misbah Sabiel'),
	(85063,4636,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85064,4636,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','a.sabiel@tamimi.com'),
	(85065,4636,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85066,4636,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85067,4636,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85068,4636,'lawUpdateArticleNoWriters_1_lawUpdateAuthorName','Marwa El Mahdy'),
	(85069,4636,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85070,4636,'lawUpdateArticleNoWriters_1_lawUpdateAuthorEmail','m.elmahdy@tamimi.com'),
	(85071,4636,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85072,4636,'lawUpdateArticleNoWriters_1_lawUpdateAuthorLocation',''),
	(85073,4636,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85074,4636,'lawUpdateArticleNoWriters','2'),
	(85075,4636,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85076,4636,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','410'),
	(85077,4636,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85078,4636,'lawUpdateArticlePractices','1'),
	(85079,4636,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85080,4636,'_yoast_wpseo_metadesc','A Limited Liability Company as defined by Article 218 of the UAE Commercial Companies Law is a company in which the liability of its partner is limited only to the extent of their shares in the capital.'),
	(85081,4637,'content','<p>When it comes to setting the rules and principles of jurisdiction,  each country holds the absolute discretion in determining the cases over  which its courts shall have jurisdiction when it comes to both national  conflicts and conflicts concerning international parties. Additionally,  we usually find that the national legislator makes use of a few rules  concerning domestic jurisdiction as basis for convening international  jurisdiction in cases of similar nature. This includes, as an example,  the jurisdiction of the plaintiff&rsquo;s habitat or residency. However, it is  important to note that the organization and structuring of  International Jurisdiction is also subject to other rules concerning the  sovereignty of the state, the need for international dealings and the  power of enforcement. Additionally, it is important to note that in most  cases, international legislation contain common general principles when  it comes to the rules regarding jurisdiction. These include the  plaintiff&rsquo;s nationality, domicile, financial location, source or  execution of obligation place, voluntary submission, the correlation and  preliminary issues (the &ldquo;General Principles&rdquo;).</p>\r\n<p>Going back to the Iraqi Law, we find that the laws explicitly tackle  the issue of International Jurisdiction in certain legislation. This is  as conflicts of international character are subject to the provision of  the private laws when it comes to civil, commercial and personal status  issues. Moreover, these issues are mainly tackled in the provisions of  the Civil Code No.40 of 1951 (the &ldquo;Code&rdquo;) as well as the Personal Status  Law for Foreigners No 78 of 1931 (the &ldquo;Law&rdquo;).&nbsp;</p>\r\n<p>This is so as Article 14 of the Code provides that &ldquo;The Iraqi is  prosecuted before the Courts of Iraq for any obligations bestowed upon  him, even if it was concluded outside Iraq&rdquo;. Furthermore, Article 15  states &ldquo;the foreigner is prosecuted before Iraqi Courts in the following  conditions:&nbsp;</p>\r\n<ol>\r\n<li>If he was found in Iraq.</li>\r\n<li>If the prosecution was revolving around a right concerning a real  estate in Iraq or a moveable object in Iraq at the time of the bringing  of claim.&nbsp;</li>\r\n<li>If the litigation was about a contract concluded or enforceable in  Iraq or if the litigation was about an incident that occurred in Iraq.</li>\r\n</ol>\r\n<p>Additionally, Article 2 of the Law provides that:</p>\r\n<ol>\r\n<li>The Civil Courts look into the personal status claims for Foreigners.</li>\r\n<li>Sharia&rsquo;a Courts are competent to look into personal status issues  for Muslim Foreigners only when the applicable law in accordance with  item 1 above is a civil law rather are the jurisprudence and sharia&rsquo;a  provisions.</li>\r\n</ol>\r\n<p>Therefore, and according to the aforementioned provisions we can sum  up the rules of the international jurisdiction of Iraqi Courts to be:&nbsp;</p>\r\n<ol>\r\n<li>The jurisdiction based on Iraqi citizenship of the plaintiff.</li>\r\n<li>The jurisdiction based on the existence of money in Iraq.</li>\r\n<li>The jurisdiction based on the occurrence and the execution of obligation in Iraq.</li>\r\n<li>The jurisdiction based on voluntary submission, notwithstanding the  fact that this principle was not explicitly set by the Iraqi Legislator,  but it can be drawn from the concept of breach for article No. 7 of the  Law of Execution of Foreign Awards No 30 for 1928 (&ldquo;Foreign Awards  Law&rdquo;) that states the jurisdiction of the Foreign Court. As subsection  (E) provides that &ldquo;the sentenced was present at the proceedings upon his  own choice&rdquo; and subsection (Y) provides that &ldquo;the sentenced has agreed  on the jurisdiction of the Foreign court in his lawsuit&rdquo;&nbsp;</li>\r\n<li>5The jurisdiction of the preliminary issues and the reciprocal case  and the related case. As the jurisdiction for Iraqi Courts in previously  noted issues is in accordance to general rules, outlined in the Law of  Civil Procedures.&nbsp;</li>\r\n<li>The jurisdiction of issues regarding precautionary and temporary measures.</li>\r\n<li><span>Noting that the Iraqi  legislator did not provide rules on the jurisdiction of precautionary  and temporary international jurisdiction of Iraqi Courts, unlike other  countries&rsquo; laws such as the Egyptian Civil Procedures Law in article 3.&nbsp;</span></li>\r\n</ol>\r\n<p>However, Iraqi Courts hold this jurisdiction even if it was not  competent to rule in the original case, since the precautionary or  temporary measure might be in preparation for a case to be held in Iraq.  This jurisdiction is deemed an application of the general principles  listed in the Law of Civil Procedures. As their procedures correlate  with civil security. This includes the principle of precautionary  seizure stipulated in Articles (231-250) from the Law of Civil  Procedures.&nbsp;</p>\r\n<p>Exceptions to the General Principles are as follows:</p>\r\n<p>1.&nbsp;<span>The jurisdiction for lawsuits regarding real estate outside Iraq.&nbsp;</span></p>\r\n<p>There is an absolute jurisdiction for Iraqi courts in this matter. As  one can understand from the wording of Article 15 of the Civil code,  which grants jurisdiction to Iraqi courts in matters regarding real  estate in Iraq, that Iraqi courts correspondingly do not have any  jurisdiction in matters regarding a real estate outside Iraq. As in this  matter, the jurisdiction is given solely to the court of the country  where the real estate stands. This was explicitly listed in subsection  (a) of Article 7 of the Foreign Execution Law, which declared that the  foreign court in the area where the immovable property is has the  jurisdiction to rule.</p>\r\n<p>2. The jurisdiction for lawsuits pursuant to bankruptcy.</p>\r\n<p>This jurisdiction was stipulated explicitly in section five of the  Commerce Code No 9 of 1970, which elaborates on bankruptcy and still is  applicable despite the fact that the above mentioned law has been  cancelled. As Articles (573 -574) from Section 5 deals with  international jurisdiction for Iraqi courts in cases of bankruptcy and  any other related cases. The bankruptcy lawsuits are filed in the  domicile or place of business for the merchant. Equally, the main store  or the place of residence for the merchant are considered his domicile  if he passes away or retires from the profession.&nbsp;</p>\r\n<p>Additionally, and if the merchant carries out a part of his business  in a store in Iraq, or in a branch in Iraq or if the merchant was a  juristic person that owns a branch or an agency in Iraq, the bankruptcy  will be solely on the said branch or agency in the Iraqi territories,  unless there existed an international agreement that states otherwise.</p>\r\n<p>3. The Jurisdiction of Company&rsquo;s Lawsuits.&nbsp;</p>\r\n<p>Article 9 of the Law defined the International Jurisdiction of  the Iraqi Courts in claims regarding the management of any deceased  foreigners&rsquo; inheritance.&nbsp;</p>\r\n<p>4. The Jurisdiction granted by virtue of an enforced treaty in Iraq. &nbsp;</p>\r\n<p>If an enforced treaty exists and Iraq is a signatory, then the  articles of this treaty shall place constraints on the general  principles of jurisdiction as the provisions of the agreement shall be  deemed binding and should be followed, as it is considered a special  provision, and special provisions prevail over general provisions. For  example, Article 28 of The Warsaw Agreement on the Unification of some  provisions on the Responsibility of air carriers for 1929, where Iraq is  a signatory party. And the Riyadh Arab Agreement for Judicial  Cooperation for 1983 in Articles 26 and 27 state that the jurisdiction  shall be in the state&rsquo;s courts where the defendant resides.</p>\r\n<p>To conclude, the Iraqi legislator has determined the international  jurisdiction of Iraqi courts in certain provisions of the Iraqi laws.  These articles include Articles 14 and 15 of the Code in addition to  Article 2 of the Law. Furthermore, it is important to note that there  exists an international jurisdiction the Judge can derive from the  concept of breach; like the jurisdiction based on voluntary submission  as it was explained above. Or the jurisdiction based on general  principles included in the Law of Civil Procedures like the jurisdiction  of issues regarding precautionary and temporary measures. And as  explained above, there are exceptions to the general principles, for  example: the jurisdiction for lawsuits pursuant to bankruptcy or the  jurisdiction stipulated in international treaties.&nbsp;</p>'),
	(85082,4637,'_content','field_59b649b5c8b2b'),
	(85083,4637,'lawUpdateArticleMonth','4618'),
	(85084,4637,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85085,4637,'content_description','On the onset, it is important to understand that jurisdiction is defined by local legislation to be “the set of rules that determine the competence of a state’s jurisdiction to look into cases inclusive to an international element. '),
	(85086,4637,'_content_description','field_59b641c07f473'),
	(85087,4637,'pageSummary','On the onset, it is important to understand that jurisdiction is defined by local legislation to be “the set of rules that determine the competence of a state’s jurisdiction to look into cases inclusive to an international element. '),
	(85088,4637,'_pageSummary','field_59e59b307dec8'),
	(85089,4637,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/january-2/the-international-jurisdiction-of-the-iraqi-courts.html'),
	(85090,4637,'_currentURL','field_59d35123ab1e7'),
	(85091,4637,'lawUpdateArticleWriters_0_lawUpdateArticleWriter','617'),
	(85092,4637,'_lawUpdateArticleWriters_0_lawUpdateArticleWriter','field_59da2ac06b065'),
	(85093,4637,'lawUpdateArticleWriters','1'),
	(85094,4637,'_lawUpdateArticleWriters','field_59da2a866b064'),
	(85095,4637,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','410'),
	(85096,4637,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85097,4637,'lawUpdateArticlePractices','1'),
	(85098,4637,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85099,4637,'_yoast_wpseo_metadesc','On the onset, it is important to understand that jurisdiction is defined by local legislation to be “the set of rules that determine the competence of a state’s jurisdiction to look into cases inclusive to an international element.'),
	(85100,4638,'content','<p><strong>Introduction</strong></p>\r\n<p>Wakala contracts are agency agreements that are widely used in  Shari&rsquo;ah compliant Islamic finance transactions.&nbsp; A wakala contract is  formed when a principal, the muwakkil, appoints an agent, the wakeel, to  undertake certain transactions on the principal&rsquo;s behalf.&nbsp; An important  characteristic of wakala contracts is that the muwakkil and the wakeel  share in the profit and risk of loss of the transaction.&nbsp; Nonetheless,  some wakala contracts contain provisions that guarantee a specified rate  of return or certain profits despite the results of the  transaction(s).&nbsp; Such provisions arguably contravene Shari&rsquo;ah principles  as guaranteed returns or profits are not Shari&rsquo;ah compliant in that  they do not enable risk sharing between the wakeel and the muwakkil.<span>&nbsp;&nbsp;</span></p>\r\n<p>Recent court decisions regarding disputes involving such wakala  contracts have created some concerns among the Islamic finance sector.&nbsp;  One such dispute involving Blom Developments Bank, S.A.L. (&ldquo;Blom&rdquo;), a  Lebanese bank, and the Investment Dar (&ldquo;TID&rdquo;), a Shari&rsquo;ah-compliant  finance house based in Kuwait, was litigated in England in late 2009.&nbsp;  In addition, a case with a similar fact pattern has been litigated in  Kuwaiti courts and its implications on the current Islamic finance  sector within Kuwait will be analyzed below.&nbsp;</p>\r\n<p><strong>Blom v. TID</strong>&nbsp;</p>\r\n<p>The aforementioned dispute surrounds Blom&rsquo;s English law governed  master wakala contract with TID (the &ldquo;Contract&rdquo;).&nbsp; Under the Contract  Blom appointed TID as its agent to make certain investments in  Shari&rsquo;ah-compliant instruments on behalf of Blom&rsquo;s 11.5 million US  Dollar investment with TID. TID also had an obligation to pay Blom a  specific rate of return regardless of the results of the investments.&nbsp;  TID&rsquo;s investments were unsuccessful and as a result TID was unable to  make payments to Blom under the Contract.&nbsp; Consequently, Blom filed a  claim for summary judgment requesting that the court order TID to repay  to Blom the amounts it had invested with TID, in addition to the repay  the specified rate of return on the investments owed to Blom.&nbsp; The  English High Court granted summary judgment to Blom and ordered that TID  pay Blom the original principal amount but not the profit element.&nbsp;</p>\r\n<p>During appeal, TID argued that its constitutional documents prohibit  it from entering into non-Shari&rsquo;ah compliant agreements and that the  Contract was non-Shari&rsquo;ah compliant, and therefore nullifying the  Contract. The appellate court held that TID raised an arguable case  which required consideration at a full trial.&nbsp;</p>\r\n<p><strong>National Sukuk Company v. Al-Madina Finance and Investment Company</strong></p>\r\n<p>With respect to the recent decision held by the courts of Kuwait, two  companies had entered into a wakala agreement (the &ldquo;Agreement&rdquo;) whereby  National Sukuk Company (the &ldquo;Principal&rdquo;) provided facility amount of  AED 120 Million (KD 9,261,045) to Al-Madina Finance and Investment  Company (the &ldquo;Investment Agent&rdquo;).&nbsp; In the Agreement, the two parties  agreed that upon a defined maturity date, the Investment Agent would  repay to the Principal the original facility amount plus a prescribed  profit amount. Upon the maturity date, the Investment Agent failed to  repay said amounts, and entered into a settlement agreement with the  Principal to pay a lesser amount on a subsequent maturity date. Upon  this subsequent maturity date, the Investment Agent failed to pay the  agreed upon amount, and thus the Principal filed a civil claim against  the Investment Agent.&nbsp;</p>\r\n<p>The Kuwait Court of First Instance rendered a judgment in favour of  the Principal ordering the Investment Agent to pay settlement amount to  the Principal. It based its opinion on a report submitted by an expert.  Upon appeal by the Investment Agent, the appellate court slightly  reduced the award to the Principal. The Investment Agent filed a second  appeal basing the same on the following: (i) the judgment is in  violation of the law; (ii) the court erred in its application of the law  by failing to provide an adequate explanation as to the fault of the  Investment Agent; and (iii) that its judgment was based on the expert&rsquo;s  opinion which failed to apply the principals of a Shari&rsquo;ah compliant  wakala agreement.&nbsp;</p>\r\n<p>The Investment Agent&rsquo;s argument against the expert&rsquo;s opinion was that  the expert failed to accept that the Agreement was based on the  Shari&rsquo;ah principles of a wakala arrangement by concluding that the  parties intended for the facility amount to be repaid with a fixed  profit. In other words, the relationship between the Investment Agent  and the Principal was built upon the premise that profit is expected and  probable and not fixed. Further, the Investment Agent argued that the  expert should have interpreted the Agreement whereby the Investment  Agent was not guaranteeing the facility amount but rather that the two  parties shared the risk of loss, unless in circumstances of intentional  error or gross negligence by the Investment Agent.&nbsp;</p>\r\n<p>The appellate court agreed with the Investment Agent that if these  defences raised by the Investment Agent were substantiated and if the  expert did not apply an acceptable rationale for its opinion, then there  would be reason to overturn the lower court&rsquo;s opinion. Therefore, the  appellate court remanded the case to a panel of three experts from the  Kuwait Department of Experts at the Ministry of Justice to determine the  following issues of law: (i) whether the facts of the case merit an  interpretation that the Agreement is a Shari&rsquo;ah compliant wakala  arrangement; (ii) whether either party had breached its obligations; and  (iii) what is the proper amount of the award, if any.&nbsp;</p>\r\n<p><strong>Analysis</strong></p>\r\n<p>An ultimate decision has yet to be held in either case; however, from  a Kuwaiti law and court perspective, it seems as though the outcome of  the National Sukuk case may provide an affirmative defence for Islamic  financial institutions like Al-Madina Finance and Investment Company  that because the executed transaction was later viewed as non-Shari&rsquo;ah  compliant despite having knowingly agreed and accepted terms and  conditions of the so-called wakala arrangement, its obligations to repay  become nullified. &nbsp;</p>\r\n<p>Such a decision will likely raise a red flag to any creditor who has  entered into similar arrangements under Kuwaiti law with Kuwaiti court  jurisdiction.&nbsp; Furthermore, the credibility of these institutions may be  negatively impacted if such an affirmative defence would allow  nullification of these arrangements.&nbsp; Ultimately, any creditor who seeks  to enter into a similar arrangement shall consider inserting protective  provisions such as a waiver by the investment agent to any defence it  may have in connection with the arrangement being Shari&rsquo;ah compliant and  furthermore to require a Shar&rsquo;iah pronouncement by the investment  agent&rsquo;s Shar&rsquo;iah board confirming the terms and conditions of the  arrangement.</p>'),
	(85101,4638,'_content','field_59b649b5c8b2b'),
	(85102,4638,'lawUpdateArticleMonth','4618'),
	(85103,4638,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85104,4638,'content_description','Wakala contracts are agency agreements that are widely used in Shari’ah compliant Islamic finance transactions.'),
	(85105,4638,'_content_description','field_59b641c07f473'),
	(85106,4638,'pageSummary','Wakala contracts are agency agreements that are widely used in Shari’ah compliant Islamic finance transactions.'),
	(85107,4638,'_pageSummary','field_59e59b307dec8'),
	(85108,4638,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/january-2/implications-of-the-kuwait-tid-v-blom-judgment-on-wakala-contracts.html'),
	(85109,4638,'_currentURL','field_59d35123ab1e7'),
	(85110,4638,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Paul Saba'),
	(85111,4638,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85112,4638,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','p.saba@tamimi.com'),
	(85113,4638,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85114,4638,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85115,4638,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85116,4638,'lawUpdateArticleNoWriters_1_lawUpdateAuthorName','Fatema Fathnezhad'),
	(85117,4638,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85118,4638,'lawUpdateArticleNoWriters_1_lawUpdateAuthorEmail','f.fathnezhad@tamimi.com'),
	(85119,4638,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85120,4638,'lawUpdateArticleNoWriters_1_lawUpdateAuthorLocation',''),
	(85121,4638,'_lawUpdateArticleNoWriters_1_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85122,4638,'lawUpdateArticleNoWriters','2'),
	(85123,4638,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85124,4638,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','410'),
	(85125,4638,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85126,4638,'lawUpdateArticlePractices','1'),
	(85127,4638,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85128,4638,'_yoast_wpseo_metadesc','Wakala contracts are agency agreements that are widely used in Shari’ah compliant Islamic finance transactions.'),
	(85129,4639,'content','<p>Additionally, the Court of Cassation has stated that &ldquo;the agreement  to arbitrate is not established unless the common intent of the  contracting parties is set on it.&rdquo; We take a look at one of the cases  where the parties had both an arbitration clause and a clause given  Dubai Courts jurisdiction, and how the Court of Cassation resolved the  dispute.</p>\r\n<p><strong>Facts of the case</strong></p>\r\n<p>Two Dubai trading companies (the &ldquo;Claimants&rdquo;) filed a commercial  action with the Court of First Instance against another local company  (the &ldquo;Defendant&rdquo;). The Claimants requested the Court to order the  Defendant to pay them the amount of AED 2,765,253.82 as compensation for  breaching a services contract which they had executed.&nbsp;</p>\r\n<p>The Claimants argued that on 1 March 2008 they had concluded a  services contract with the Defendant to prepare and carry out interior  design works, and to develop the Claimant&rsquo;s private hotels. The Claimant  further submitted that the Defendant had failed to adhere to its  obligations as stipulated in the contract, delivered the assigned work  late and delivered a defective work product which was below the  standards recognized by the hotel industry. As a consequence, the  Claimants terminated the contract.</p>\r\n<p>Due to the fact that the contract contained in Article 13 an  arbitration clause (&ldquo;the Arbitration Clause&rdquo;), the Defendant requested  the Court to dismiss the case for lack of jurisdiction. The Claimants  argued the same contract contained in Article 14 (&ldquo;the Dubai Courts  Clause&rdquo;) a clause which allowed either party to seek an order from the  Dubai Courts for any dispute that arises out of the contract.</p>\r\n<p><strong>Court of First Instance</strong></p>\r\n<p>The Court of First Instance ruled in favor of the Defendant and  dismissed the case for lack of jurisdiction. The Claimants subsequently  appealed the decision.</p>\r\n<p><strong>Court of Appeal</strong></p>\r\n<p>The Court of Appeal upheld the lower&rsquo;s court decision. The Claimants appealed to the Court of Cassation.</p>\r\n<p><strong>Court of Cassation</strong></p>\r\n<p>The Claimants argued that the Court of Appeal had erred in its  decision to uphold the lower court&rsquo;s decision in that reliance had been  placed on the Arbitration Clause of Article 13 of the services contract  instead of the Dubai Courts Clause of Article 14 of the same contract.  The Claimants submitted that the Dubai Courts Clause gave Dubai Courts  the jurisdiction to oversee any dispute arising out of that contract.</p>\r\n<p>The Court of Cassation interpreted Article 203 (1) and 203 (5) of the  Civil Procedure Law (CPL) to mean that if parties agreed to arbitrate a  dispute it shall not be possible to initiate an action before the  Court. If, notwithstanding the arbitration clause, one party did file an  action in Court and the other party did not object at the first  hearing, then the Court would consider the arbitration clause as void  and take jurisdiction of the case.&nbsp; However, if the other party did  raise an objection at the first hearing, the Court should dismiss the  case for lack of jurisdiction.&nbsp;</p>\r\n<p>The Court held also that arbitration is a final and binding form of  dispute resolution which is conducted outside the usual forum (i.e. the  local courts). The Court clarified however, that what the parties  intended to be meant by &ldquo;dispute&rdquo; should be clearly specified in the  arbitration deed.&nbsp;</p>\r\n<p>With regards to the conflict between the two clauses the Cassation  Court stated that the court looking at the essence of the dispute has  the authority to ascertain the facts of the case, the agreements of the  parties and the common intent of the parties. Any decision taken by such  court, as long as it is supported by sound reasoning based on evidence  provided, is not subject to review by the Court of Cassation. The Court  then proceeded to review the factors considered by the lower courts as  follows:</p>\r\n<ul>\r\n<li>The lower court had found that the Arbitration Clause was written in  a very detailed manner, whereas the Dubai Courts Clause was very short.</li>\r\n<li>The Court found that the recourse to the Dubai Court as stated in  Article 13 could be sought only to explain the contract and have a  binding decision in relation to this explanation, whereas the  adjudication of disputes arising out of the contract was to be dealt  with by arbitration as per Article 14 of the contract. The Court of  Cassation held that any explanation to the contrary would result in  conflict between the two Articles. If the Articles were viewed to be  contradictory, then the Court held that the clearer clause and the more  detailed clause should be applied rather than the ambiguous clause as it  did not need any explanation or clarification from the Court.&nbsp;</li>\r\n<li>Additionally, the Court reasoned, the Arbitration Clause came right  before the Dubai Courts Clause which shows that the parties clearly  intended for the Arbitration Clause to be binding. Furthermore, the  Dubai Courts Clause came under the subheading of &ldquo;Legal Procedure&rdquo;  whereas the Arbitration Clause was under the general heading of  &ldquo;Disputes&rdquo; which shows that the Dubai Courts Clause was meant to be used  in very limited situations.</li>\r\n</ul>\r\n<p>Given that these factors were supported by the evidence and the lower  courts relied on them in their determination, the Court of Cassation  upheld their judgment and the Arbitration Clause.</p>'),
	(85130,4639,'_content','field_59b649b5c8b2b'),
	(85131,4639,'lawUpdateArticleMonth','4618'),
	(85132,4639,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85133,4639,'content_description','Article 203 of the UAE Civil Transactions Law allows parties to agree to seek arbitration for any dispute that arises between them in a given contract, and sets the rules for such agreement. However, since the agreement to arbitrate includes giving up the right to seek court review of the essence of the dispute, the legislators required for it to be expressed in writing.'),
	(85134,4639,'_content_description','field_59b641c07f473'),
	(85135,4639,'pageSummary','Article 203 of the UAE Civil Transactions Law allows parties to agree to seek arbitration for any dispute that arises between them in a given contract, and sets the rules for such agreement. However, since the agreement to arbitrate includes giving up the right to seek court review of the essence of the dispute, the legislators required for it to be expressed in writing.'),
	(85136,4639,'_pageSummary','field_59e59b307dec8'),
	(85137,4639,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/january-2/arbitration-clauses-resolving-conflicting-jurisdictional-clauses-in-the-same-agreement.html'),
	(85138,4639,'_currentURL','field_59d35123ab1e7'),
	(85139,4639,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Suzzane Abdallah'),
	(85140,4639,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85141,4639,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','S.abdallah@tamimi.com'),
	(85142,4639,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85143,4639,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85144,4639,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85145,4639,'lawUpdateArticleNoWriters','1'),
	(85146,4639,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85147,4639,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','410'),
	(85148,4639,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85149,4639,'lawUpdateArticlePractices','1'),
	(85150,4639,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85151,4639,'_yoast_wpseo_metadesc','Article 203 of the UAE Civil Transactions Law allows parties to agree to seek arbitration for any dispute that arises between them in a given contract, and sets the rules for such agreement. However, since the agreement to arbitrate includes giving up the right to seek court review of the essence of the dispute, the legislators required for it to be expressed in writing.'),
	(85152,4641,'_wp_attached_file','uploads2/media-4640.jpg'),
	(85153,4641,'_wp_attachment_metadata','a:5:{s:5:\"width\";i:100;s:6:\"height\";i:133;s:4:\"file\";s:23:\"uploads2/media-4640.jpg\";s:5:\"sizes\";a:0:{}s:10:\"image_meta\";a:12:{s:8:\"aperture\";s:1:\"0\";s:6:\"credit\";s:0:\"\";s:6:\"camera\";s:0:\"\";s:7:\"caption\";s:0:\"\";s:17:\"created_timestamp\";s:1:\"0\";s:9:\"copyright\";s:0:\"\";s:12:\"focal_length\";s:1:\"0\";s:3:\"iso\";s:1:\"0\";s:13:\"shutter_speed\";s:1:\"0\";s:5:\"title\";s:0:\"\";s:11:\"orientation\";s:1:\"0\";s:8:\"keywords\";a:0:{}}}'),
	(85154,4640,'lawUpdateImageURL','5906'),
	(85155,4640,'_lawUpdateImageURL','field_59c8deca117cd'),
	(85156,4640,'lawUpdateDesc',''),
	(85157,4640,'_lawUpdateDesc','field_59da24cd91f17'),
	(85158,4640,'lawUpdateYear','2013'),
	(85159,4640,'_lawUpdateYear','field_59da245091f13'),
	(85160,4640,'pageSummary',''),
	(85161,4640,'_pageSummary','field_59e59b307dec8'),
	(85162,4640,'lawUpdateStartMonth','March'),
	(85163,4640,'_lawUpdateStartMonth','field_59da247791f14'),
	(85164,4640,'currentURL','http://localhost:8888/tamimi/en/section/law-update/section-5/march-4'),
	(85165,4640,'_currentURL','field_59d35123ab1e7'),
	(85166,4642,'content','<strong>Introduction</strong>\r\n\r\nOn the 28th of April 2004 Mr. Daniel Kaufmann (Global Governance Director of the World Bank Institute) – commenting on the costs of corruption- stated that: “a conservative approach to such measurement gives an estimate for annual worldwide bribery of about US 1 trillion dollars.” <sup>1\r\n</sup>\r\n\r\nCorruption can take many forms that vary in degree from the minor use of influence to institutionalized bribery. Transparency International’s definition of corruption is: “the abuse of entrusted power for private gain”. This can mean not only financial gain but also non-financial advantages.<sup>2</sup>\r\n\r\nThe definition of corruption and how much money it involves is not a particularly challenging notion to tackle. This paper, rather, brings to the attention of the reader the economic importance of combating corruption. The aim is to show the reader: 1- the role law plays in economic development, 2- the negative effects of income inequality on sustainable economic development and importance of redistribution on grounds of the Marginal Utility theory, 3- redistribution as the most effective method of eradicating poverty, 4- the negative effects of low approval ratings (unhappiness) on sustainable economic development and 5- the negative effects of corruption on redistribution as well as approval ratings and consequently on sustainable economic development.\r\n\r\nThe argument simply put is as follows: 1- empirical studies show that countries with better redistribution of wealth enjoy longer periods of economic development. 2- Redistribution of wealth is justified by the idea that if utility is the building block of economic policy then redistribution of wealth is a favourable on the grounds that it brings upon well being to the greatest possible number of people (since the poor’s benefit is much greater than the rich’s loss out of the redistirbutional process). 3- Redistribution (based on the idea of Marginal Utility) should only limited by the idea of Efficiency Cost (when it robs production from individual incentive)<sup>3</sup>  4- Countries suffering from corruption cannot implement sound redistributional policies and thus are not expected to take benefit from sustainable economic development despite embarking upon economic growth from time to time for some reason or the other.\r\n\r\nThe argument, simply put, as well, has it that empirical studies show that countries with higher approval ratings (happiness index) enjoy longer periods of economic development. Countries suffering from corruption have low approval ratings because of the public’s frustration of their legitimate expectations, impressions of unfair treatments, expectations of unequal treatment which impose a great risk on individual incentive to produce (Efficiency Cost).\r\n\r\nWhereas some would differentiate between bad and good corruption  arguing that only corruption<sup>4</sup> which is associated with poor institutions has a negative effect on GDP growth whilst residual corruption (corruption which is uncorrelated with other governance characteristics) is positively related to GDP growth with poor institutions,. This line of thought has it that an analysis of financial data is positively correlated with capital accumulation and productivity growth in developing countries and that these empirical findings are consistent with the theory that corruption helps overcome inefficient barriers.\r\n\r\nThis article argues that all forms of corruption are intrinsically bad (from an economic point of view) justifying the contemporary global practice of combating corruption.\r\n\r\nThe paper will show how corruption, if left unchallenged, undermines a country’s attempts to: 1- fight poverty and inequality (redistribution of wealth), 2- increase approval ratings (happiness index) and 3- consequently engage in sustainable development. The paper attempts to do so by reflecting upon the role of law in economic development as well as shedding some light on current economic development policies and how paramount combating corruption features in them.\r\n\r\nIt is worth mentioning in this regard that the United Arab Emirates legal market takes benefit from the presence of Al Tamimi &amp; Company’s Special Projects Department, which is the only specialized team of experts in the field of combating corruption in any regional Arab law firm.\r\n\r\n<strong>Law and economic development:\r\n</strong>\r\n\r\n<strong>The role of law in development is obscure. Some see law as a transcendental notion of applied justice that has nothing to do with politics, morality and the distribution of wealth. Others see certain types of legal regimes as the environment that fosters and nourishes development. Others recognized the social effects of legalism, its political aspects and distributive function.</strong>\r\n\r\nIn this part I will explore these different roles attributed to law in the field of development.\r\n\r\n<strong>i. </strong><strong>Formalism</strong>\r\n\r\nThe formalists believed deduction of law to be a logical science. There could only be one legally right answer to a certain disputable fact. Law is coherent and has answers to every controversy. Law is detached from politics, morality, religion and society. It thus, according to this theory, has nothing to do with economic development because legalism entails no political decisionism, and exhibits no distributive effects. It is rather the product of impeccable logical deduction from transcendental notions existing supra-society.\r\n\r\nThe role of the state is to preserve private autonomy, keeping each individual as an absolute lord within his dominion (compartment) of private rights and liberties.\r\n\r\n<strong>I. </strong><strong>Weberianism\r\n</strong>\r\n\r\n<strong>Some saw in the abovementioned legal arrangements the pretext of economic development.<sup>6</sup> Law as a rational science separated from politics, religion, being man made, universally applied, and disputes decided by general rules, <sup>7</sup> essential for developing science, human activities, and entrepreneurship.</strong>\r\n\r\nOther societies which have no such legal doctrine could not develop specifically because they don’t have such laws.\r\n\r\nThe difference between this line of thought and the previous is that the “Law as pretext” acknowledges Formal legalism as the inevitable institutional infrastructure for development, whereas Formalists did not.\r\n\r\nTwo attributes of logically formal rationality legalism are highly praised. First its relative degree of calculability, second its capacity to develop substantive provisions, principally those relating to freedom of contract necessary to the functioning of the market system. <sup>7</sup>\r\n\r\n<strong>ii.</strong><strong>Realism\r\n</strong>\r\n\r\nThe Realists’ breakthrough is the critique they presented to the foundations of Formalism. Law derivation is not a science, it is not coherent, and it does not embody answers to all. Cases are decided on its facts not legal doctrine. <sup>8</sup>  Adjudication <sup>9</sup>  in essence is not deductive logic; it is rather judicial/political decision-making.\r\n\r\nThey also recognized the distributive function of legalism.<sup>10</sup> Each legal rule renders comparative advantage to the party it favours. In each situation, parties use the available legal norms to twist the counterparty’s arms in order to receive as much as possible of the outcome of the bargained deal. <sup>11</sup>  Foucault’s Power Relations theory entertains a highly praised position in their literature in addition to Hobbes state of nature.\r\n\r\n<strong>Chronological note on economic development:\r\n</strong>\r\n\r\nDevelopment as a field of study became the major concern of the post-Second World War international order. It starts off with two presumed hypotheses: 1) The problemization of poverty,<sup>13</sup>  meaning that even if we don’t view securing the well-being of individuals as the function of the state, the state from a pragmatic<sup>14</sup>  point of view has to address poverty because of its negative social effects. 2) The importance of industrialization and technology.\r\n\r\nIn this coming section I will briefly account the line of thought of the Modernization theorists, the Dependency theorists and the Neo-liberal theorists as follows. This should give the reader an idea of the current state of affairs in economic policy and where does our contemporary global practice of combating corruption come from and where it fits.\r\n\r\n<strong>i.</strong><strong>Modernization theorists\r\n</strong>\r\n\r\nThey are influenced by the Weberian<sup>15</sup>  social theory.\r\n\r\nThe pillars of their line of thought are: anti-traditionalism (in both its material and psychological sense),<sup>15</sup>  and an emphasis on the role of the state and that every man is derived from his own economic self interest.<sup>17\r\n</sup>\r\n\r\nAccording to Modernization theorists, the problem with underdevelopment is that underdeveloped societies are traditional whereas developed societies are modern.<sup>17</sup>  They are modern in their means of production <sup>18</sup>  and their value systems.<sup>19\r\n</sup>\r\n\r\nFor a society to develop it has to shift from a “traditional society” to a more rational/material/modern one. It also has to transform its means of production to industrialization and technology.<sup>20</sup>  The role of the state is crucial because it is the state that will impose that shift. They believe that once the state sets the conditions of the shift people will change on their own in pursuit of their economic best interests and hence development inevitably occurs.<sup>21\r\n</sup>\r\n\r\nThey further suggested several approaches to introduce modernity to society. First the “Big Push” theory,<sup>22</sup> where the state will choose certain strategic projects and will use large scale industries in these projects to give momentum to the whole modernization process. Second the “Balanced growth” theory<sup>24</sup>,  where the state will use technological/industrial means in diverse sectors to create the momentum, coupled with decreasing its exports. Third is the “Unbalanced Growth” theory,<sup>24</sup>  where the state creates inbalance within sectors to create forward and backward linkages<sup>25</sup>  between industries.\r\n\r\n<strong>ii.</strong><strong>Dependency theorists\r\n</strong>\r\n\r\n<strong>They are influenced by Marxian ideology.<sup>26</sup>  They have a strong connection with the national/political independence movements in the third world.</strong>\r\n\r\nThe pillar of their line of thought is the exploitation of underdeveloped societies by developed societies and the causal link between being exploited and being underdeveloped.\r\n\r\nFor them the key is to de-link underdeveloped societies from developed societies and cut the vicious circle of exploitation. Unlike the Modernists, to them underdevelopment is not the attribute of underdeveloped societies (internal), but it is rather imposed by the developed via exploitation (external)<sup>27 </sup>and dominance. <sup>28</sup>  Dependency is thus the economic antidote of economic imperialism. <sup>29\r\n</sup>\r\n\r\nA dependent society is one that depends upon other societies for its accumulation of capital (funds, new technology, machinery, equipment of the production of capital goods and enterprise expansion).<sup>30</sup>\r\n\r\nTheir major contribution to the realm of development theory is their Import Substitution Industrialization (self reliance) policy (ISI).<sup>31</sup> The rationale behind the ISI ideology was to obtain self sufficiency via national industries. <sup>32\r\n</sup>\r\n\r\n<strong>iii.</strong><strong>Neo-liberal theorists\r\n</strong>\r\n\r\nThey are influenced by Adam Smith’s line of thought. The pillars of their theory are the diminished role of the state, private autonomy, and the emphasis on providing the best set of rules and conditions for market forces to function with the greatest liberty possible. The supporters of this school of thought (Ayn Rand, Alan Greenspan) were influential in our contemporary social order. Rand’s theory of Objectivist epistemology is a manifestation of the abstractions of the Neo-liberal ideologies.\r\n\r\nNeo-liberalists call for privatization of all means of production,<sup>33</sup>  free trade, free capital flows, free direct foreign investment and free immigration and movement of labour. <sup>34</sup>  The role of the state is restricted in providing basic services such as education, infrastructure, health care<sup>35</sup>  and providing for best practices for the well functioning of the free market economy. <sup>36</sup> This stems from the idea that state intervention and public spending in the functioning of the economy is non-productive and impairs societal economic growth <sup>c</sup>  because the market itself is the most efficient mechanism for allocating its resources.<sup>38</sup>\r\n\r\n<strong>iv.</strong><strong>2nd generation reforms or the post Washington consensus:\r\n</strong>\r\n\r\nThe development field today came as a reaction to the failure of the Neo-liberal theories. Underdeveloped countries that adopted the Neo-liberal strategies remained underdeveloped.\r\n\r\nThough Washington Consensus comes from the same economic background (free market economy) as that of the Neo-liberal movement, the concern now is with the necessary social infrastructure for a functioning/developing free market economy.\r\n\r\nTo seek unrestrained personal interests whilst sharing the very same limited resources with other human beings (who in their turn are also seeking unrestrained personal interests) is deeply conflicted. Some sort of organization/compromise must exist to sustain our existence (collective consciousness) <sup>39</sup>. Both social order as well as political power our products of social necessity. <sup>40</sup>\r\n\r\nUnderstanding that government was organically invented to serve a social need<sup>41</sup>  helps us attribute, consequentially, a purpose of governance and a criteria of judging the legitimacy of its exercise; the Greatest Happiness Principle<sup>42</sup>.\r\n\r\nLegislation seeks to realize the greatest possible happiness (all things considered) of the greatest number of citizens (Rule Utilitarianism-Act Utilitarianism).<sup>43\r\n</sup>\r\nRedistribution of wealth (taxation etc.) is only legitimate if and only if such limitation of individual rights is necessary for the welfare of society<sup>44</sup> (by application of the Marginal Utility Principle) and should stop when it starts to become counterproductive (Efficiency Cost). The sole reliance on human endeavors to determine the Greatest Happiness Principle<sup>45</sup>  is almost a practical impossibility<sup>46</sup>. That is why we rely on the idea of Marginal Utility. The idea is that the benefit a $ 100 brings to a single unemployed mother is much greater than that it contributes to the well being of a well-to-do business person. Imagine that a person is stranded in the desert and is dying of thirst. The added value of the first drink of water you offer him/her is priceless. But then this “added value” attributed to drinks diminishes the more he/she consumes what you offer. Same concept applies to money, goods and services. The idea of Marginal Utility is conceptualized. When applied in political economy it means that governments will take from the better doing and give to the less fortunate because economic policy is all about utility (added value). And utility is maximized whenever the greatest number of people benefit out of it. The challenge is to balance social well fare policies so as not to discourage productivity by robbing people of any individual incentive to produce (Efficiency Cost).\r\n\r\nContemporary development theories<sup>47 </sup>would have it that in order for a given economy to flourish there should be a pre-existing social/legal/human order. For a free market economy to function a certain legislative infrastructure should pre-exist.<sup>48</sup>  This theory of Development holds law at the very front of its battles.<sup>49 </sup>Law is not just a fostering environment for development;<sup>50</sup>  it is the most important tool<sup>51</sup> for redistribution of power and wealth.<sup>52\r\n</sup>\r\nHuman development is at the core of concerns of the development field today.<sup>53</sup>  To have a developing free market economy, they believe, it is crucial to remove all forms of constrains to human freedoms, both political and civil. <sup>54</sup>  They are concerned with Human Rights issues. They call for democracy, independent civil societies <sup>55</sup>  independent state institutions,<sup>56</sup>  better law enforcement, market friendly legislations, free trade, free transfer of funds, free transfer of labour, and more direct foreign investments. They preach and stress upon the combat of corruption, international crime and money laundry. They demand for gender equality. They emphasize on informal norms as a source of best practices.<sup>57</sup> They stress on the importance of formalization of all society’s assets.<sup>58</sup>\r\n\r\nThe players of the development field today are no longer just the governments and metaphysical market forces. In addition to the government and the market forces we have organizations such as the World Bank, the International Monetary Fund, the International Financial Institutions, International and National non-governmental organizations, civil society, in addition to pressure groups and business men. <sup>59</sup>  Public awareness and pro-activity is also highly praised in today’s development field. <sup>60</sup>\r\n\r\nAdopting GDP and/or per-capita income as signs of economic health and no longer trusted. Trusting in the invisible hand of the market and its Trickling Down Theory to achieve social as well as economic stability is no longer considered prudent.  Recognizing the draw backs of consumption economics<sup>61</sup>  economists now prefers to target perfect equality, transparency and stability in any given society. To measure this they usually apply, amongst other things, the Gini Coefficient<sup>62</sup>  which measures the extent of inequality in income distribution in a given country. By measuring income inequality (not wealth inequality) it distinguishes itself from being a Marxist ideology.  Also by excluding non-cash social benefit from the calculation (welfare provision through public services is ignored) it enables governments create a sort of social balance and economic stability by restoring the inequalities in income distribution by providing subsidized goods and services and thus creating a society wherein individuals are equally empowered (no one is suffering poverty) but not all are necessarily equally wealthy.\r\n\r\nThe Development field witnessed a further step forward by the work of Amartya Sen.  <sup>63 </sup>His contribution comes as an addition to the 2nd generation reforms in view of the role of human infrastructure. Typically all the previous developmental theorists would evaluate the development of a given society by means of fiscal measures. However, Professor Sen asserts that this is not immune to critique. He illustrates that the actual end of development is not to achieve financial welfare but rather to promote human well-being.\r\n<strong>\r\nConclusion:\r\n</strong>\r\nOne concludes, according to the above, that law plays a major role in development.\r\n\r\nResearch shows that a society with less income inequality (better redistribution) almost always enjoys more frequent and longer periods of economic growth (sustainable development). <sup>64</sup>\r\n\r\nResearch also shows that a society with a higher happiness index (approval ratings) almost always enjoys more frequent and longer periods of economic growth (sustainable development). <sup>65</sup>\r\n\r\nIt almost goes without saying that corruption is futile to any effective redistribution scheme a government is undertaking. It also goes without saying that corruption frustrates people and leave them disproving of their institutions. Both things mean that a society with corruption can not possibly enjoy leaps and bounds of sustainable economic growth and development.\r\n\r\nCorruption is now recognized to be one of the world’s greatest challenges. It is a major hindrance to sustainable development, with a disproportionate impact on poor communities and is corrosive on the very fabric of society.\r\n\r\nThe impact on the private sector is also considerable, it impedes economic growth, distorts competition and requests serious legal and reputational risks. Corruption is also very costly for business, with the extra financial burden estimated to add 10 % or more to the costs of doing business in many parts of the world.\r\n\r\nThe rapid development of rules of corporate governance around the world is also prompting companies to focus on anti-corruption measures as part of their mechanisms to protect their reputations and the interests of their shareholders. Their internal controls are increasingly being extended to a range of ethics and integrity issues and a growing number of investment mangers are looking to these controls as evidence that the companies undertake good business practice and are well managed.\r\n\r\nThe international legal fight against corruption has gained momentum in more recent times through the Organization for Economic Cooperation and Development (OECD) 1997 Convention on Combating Bribery of Foreign Public Officials in International Business Transactions<sup>66</sup>  and through the entering into force of the first globally agreed instrument; the United Nations Convention Against Corruption (UNCAC) – adopted in Merida, Mexico in December 2003- on the 14th of December 2005.<sup>67</sup>  The Arab Convention Against Corruption was signed by both the ministers of interior affairs and ministers of justice of all state members of the Arab League (save for Somalia) on the 21st of December 2010.\r\n\r\nOn the 24th of June 2004 during the United Nations Global Compact Leaders Summit it was announced that the UN Global Compact henceforth includes a tenth principle against corruption. The Principle reads as follows: “businesses should work against corruption in all its forms, including extortion and bribery.” This was adopted after extensive consultations and all participants yielded overwhelming expressions of support, sending a strong worldwide signal that the private sector shares responsibility for the challenges of eliminating corruption. It also demonstrated a new willingness in the business community to play its part in the fight against corruption.\r\n\r\nThe UNCAC is the underlying legal instrument for the 10th Principle against corruption.\r\n\r\nThe adoption of the 10th Principle commits UN Global Compact participants not only to avoid bribery, extortion and other forms of corruption, but also to develop policies and concrete programs to address corruption. Companies are challenged to join governments, UN agencies and civil society to realize a more transparent global economy. <sup>68\r\n</sup>\r\n\r\nLegal practitioners specializing in the field of combating corruption not only work in an ever developing exciting field but also play an important role in the upkeep of global economy.\r\n\r\n<strong>Footnotes:</strong>\r\n<ol>\r\n 	<li>For further details, please see: “the costs of corruption” under feature stories, press releases – news- on the World Bank website.</li>\r\n 	<li>See further: www.transparency.org</li>\r\n 	<li>Andrew G. Berg and Jonothan D. Ostry, “Equality and efficiency”, Finance and Development, IMF, 2011.</li>\r\n 	<li>Maxim Mironov, “Bad corruption, good corruption and growth”, Graduate School of Business, University of Chicago, November 14th 2005.</li>\r\n 	<li>David M. Trubek, “Max Weber on law and the rise of Capitalism”, p. 722.</li>\r\n 	<li>Id. P. 724.</li>\r\n 	<li>David M. Trubek, “Max Weber on law and the rise of Capitalism”, p. 740.</li>\r\n 	<li>Joseph William Singer, “Legal Realism now”, p. 469.</li>\r\n 	<li>See further on adjudication: “A critique of adjudication”, Duncan Kennedy, Harvard University Press, 1999. And “Hard Cases”, Ronald Dworkin, HeinOnline, 88 Harv. L. Rev. 1057 (1974-1975).</li>\r\n 	<li>For further account of such effect see further: “Why the “Haves” come out ahead: Speculations on the limits of legal change”, Marc Galanter, Law and Society Review. Vol. 9, No. 1, (1974).</li>\r\n 	<li>David Kenedy, “The stakes of law, or Hale and Foucault”, p. 327.</li>\r\n 	<li>Arturo Escobar, “Encountering development: The making and unmaking of the third world”, p. 44.</li>\r\n 	<li>William James, “Pragmatism” Dover Publications Inc. 1995 p. 18.</li>\r\n 	<li>Max Weber, “Economy and society: An outline of interpretive sociology”, University of California Press, 4th ED. 1978.</li>\r\n 	<li>Myron Weiner, “Modernization: The dynamics of growth”, p. 3.</li>\r\n 	<li> Id. P. 11.</li>\r\n 	<li>W. W. Rostow, “The stages of economic growth”, P.4.</li>\r\n 	<li>Arturo Escobar, “Encountering development: The making and unmaking of the third world”, p. 39, 40.</li>\r\n 	<li>Myron Weiner, “Modernization: The dynamics of growth”, p. 5.</li>\r\n 	<li>Arturo Escobar, “Encountering development: The making and unmaking of the third world”, p. 39, 40.</li>\r\n 	<li>Myron Weiner, “Modernization: The dynamics of growth”, P. 9, 10.</li>\r\n 	<li>James M. Cipher and James L. Diety, “The process of economic development”, p. 137.</li>\r\n 	<li>Id. P. 140.</li>\r\n 	<li>Id. P. 143.</li>\r\n 	<li>Id. P. 144.</li>\r\n 	<li>The Material Dialect. The residues of Hegel is apparent in their line of thought.</li>\r\n 	<li>Henrique Cardoso and Enzo Faletto, “Dependency and development in Latin America”, p. viii.</li>\r\n 	<li>Id. P. xxii.</li>\r\n 	<li>Id. P. xv.</li>\r\n 	<li>Id. P. xxi.</li>\r\n 	<li>Gilbert Rist, “Self reliance: The communal past as a model for the future”, p. 123.</li>\r\n 	<li>Albert Hirschman, “The political economy of Import Substituting Industrialization in Latin America”, p.4.</li>\r\n 	<li>Jardish Bhagwati, “Economic freedom: Prosperity and social progress” (page not included).</li>\r\n 	<li>Id.</li>\r\n 	<li>Kerry Rittich, “Recharacterizing restructuring law distribution and gender in market reform”, p. 29.</li>\r\n 	<li>Id. P. 30.</li>\r\n 	<li>Id. P. 30.</li>\r\n 	<li>Id. P. 115.</li>\r\n 	<li>On the topic of interdependence (mechanical and organic solidarities), please see further: “De la division du travail social” – The division of labor in society, 1893, Emile Durkheim.</li>\r\n 	<li>More on the topic please see: “Droit constitutionnel et institutions politiques” – Constitutional law and political institutions, 1972, Andre Hauriou.</li>\r\n 	<li>More on the topic of public service please see further: “l’etat, les gouvernants et les agents”- The state, governments and agents, 1903, Leon Duguit.</li>\r\n 	<li>More on the theory of the Greatest Happiness Principle please see further: “Utilitarianism”, 1863, John Stuart Mill.</li>\r\n 	<li>Please see on the Utilitarian exercise of political power/legislation: “The principles of morals and legislation”, 1781, Jeremy Bentham.</li>\r\n 	<li>Please see further: “L’etat, le droit objectif et la loi positive” – The state, objective rights and positivist law, Leon Duguit.</li>\r\n 	<li>On the transformation from the Theological to the Metaphysical to the Positivist, please see further: “The course in Positive Philosophy”, 1830-1842, Auguste Comte. See also: “A general view of Positivism”, 1844, Auguste Comte.</li>\r\n 	<li>On the impracticality of identifying the Greatest Happiness choice, please see further: “Darwin’s dangerous idea”, 1995, Daniel Dennett.</li>\r\n 	<li>Post Neo-Liberal also known as the 2nd generation reforms..</li>\r\n 	<li>See further: David Schneiderman, “Constitutional approaches to privatization: An inquiry into the magnitude of Neo-Liberal Constitutionalism”, (2000) 63 Law and Contemporary Problems.</li>\r\n 	<li>Kerry Rittich, “The future of law and development: Second generation reforms and the incorporation of the social”.</li>\r\n 	<li>Max Weber, Economy and Society: An outline of interpretive sociology”, University of California Press, 4th ED. 1978. See also David M. Trubek, “Max Weber on law and the rise of Capitalism”.</li>\r\n 	<li>Joseph William Singer, “Legal Realism now”.</li>\r\n 	<li>David Kenedy, “The stakes of law, or Hale and Foucault”.</li>\r\n 	<li>Kerry Rittich, “The future of law and development: Second generation reforms and the incorporation of the social”, p. 200.</li>\r\n 	<li>Amartya Sen, “Development as freedom”, Oxford University Press, 1999, p.35.</li>\r\n 	<li>Carlos Solinas de Gortari and Roberto Mangabeira Unger, “The market turn without Neoliberalism”, p. 17.</li>\r\n 	<li>Roberto Mangabeira Unger, “The really new Bretton woods”, p. 17.</li>\r\n 	<li>Kerry Rittich, “ The future of law and development: Second generation reforms and the incorporation of the social”, p. 220.</li>\r\n 	<li>Hernando de Soto, “The mystery of capital”, p. 30.</li>\r\n 	<li>Kerry Rittich, “The future of law and development: Second generation reforms and the incorporation of the social”, p. 218.</li>\r\n 	<li> Id. P. 219.</li>\r\n 	<li>See further on this: E. Misham’s “The costs of economic growth”, E.F. Schumacher’s “Small is beautiful”, and Herbert Marcuse’s “One dimensional man”.</li>\r\n 	<li>Corrado Gini, “variabilita e mutabilita”, Jounral of the Royal Statistical Society, Vol. 76, No. 3, February 1913, PP. 326. Variability and Mutability by Corrado Gini.</li>\r\n 	<li>Professor of Economics at Harvard University and Noble Prize for economics award winner.</li>\r\n 	<li>See further: Andrew G. Berg and Jonathan D. Ostry, “Inequality and unsustainable growth: two sides of the same coin?”, IMF staff discussion note, SDN/11/08, April 8 2011 and Martin Ravallion, “A poverty-inequality Trade-off?”, Development Research Group, World Bank, WPS3579, April 2005.</li>\r\n 	<li>See further: Richard Layard, “Happiness: has social science a clue?”, “Lecture 2. Income and happiness: rethinking economic policy”, Lionel Robbins Memorial Lectures 2002/3, delivered on 3, 4, 5 March 2003 at the London School of Economics.</li>\r\n 	<li>See further: www.oecd.org/corruption/oecdantibriberyconvention.htm</li>\r\n 	<li>See further: www.unodc.org/onodc/en/treaties/cac/index.html</li>\r\n 	<li>See further: www.unglobalcompact.org/aboutthegc/thetenprinciples/principle10.html</li>\r\n</ol>'),
	(217231,4642,'core_values',''),
	(217232,4642,'_core_values','field_59b64ab071de4'),
	(217233,4642,'file',''),
	(217234,4642,'_file','field_59b64c10f6600'),
	(217235,4642,'orderValue4','4'),
	(217236,4642,'_orderValue4','field_59d2096a8ff34'),
	(217237,4642,'related_pages_header',''),
	(217238,4642,'_related_pages_header','field_59b6441e3cc94'),
	(217239,4642,'related_pages',''),
	(217240,4642,'_related_pages','field_59b6434af4880'),
	(217242,4642,'_yoast_wpseo_focuskeywords','[]'),
	(218642,7639,'_wp_attached_file','2018/06/Video8.jpg'),
	(217244,7569,'_yst_prominent_words_version','1'),
	(217245,7569,'_edit_lock','1531827165:1'),
	(217246,7569,'_edit_last','1'),
	(217247,7569,'newsPractices',''),
	(217248,7569,'_newsPractices','field_59e8a0e952a26'),
	(217249,7569,'blogWriters_0_blogWriter','917'),
	(217250,7569,'_blogWriters_0_blogWriter','field_5a520f2c7f2bb'),
	(217251,7569,'blogWriters_1_blogWriter','847'),
	(217252,7569,'_blogWriters_1_blogWriter','field_5a520f2c7f2bb'),
	(217253,7569,'blogWriters','2'),
	(217254,7569,'_blogWriters','field_5a520f2c5b11e'),
	(217255,7569,'orderValue1','1'),
	(217256,7569,'_orderValue1','field_59d0c6e5175b5'),
	(217257,7569,'stats_list',''),
	(217258,7569,'_stats_list','field_59b6372466bcc'),
	(217259,7569,'orderValue2','2'),
	(217260,7569,'_orderValue2','field_59d0c6f6175b8'),
	(217261,7569,'timeline_header',''),
	(217262,7569,'_timeline_header','field_59b63de5b74bf'),
	(85167,4642,'_content','field_59b649b5c8b2b'),
	(85168,4642,'lawUpdateArticleMonth','4640'),
	(85169,4642,'_lawUpdateArticleMonth','field_59da2a396b063'),
	(85170,4642,'content_description','On the 28th of April 2004 Mr. Daniel Kaufmann (Global Governance Director of the World Bank Institute) – commenting on the costs of corruption- stated that: “a conservative approach to such measurement gives an estimate for annual worldwide bribery of about US 1 trillion dollars.”'),
	(85171,4642,'_content_description','field_59b641c07f473'),
	(85172,4642,'pageSummary','On the 28th of April 2004 Mr. Daniel Kaufmann (Global Governance Director of the World Bank Institute) – commenting on the costs of corruption- stated that: “a conservative approach to such measurement gives an estimate for annual worldwide bribery of about US 1 trillion dollars.”'),
	(85173,4642,'_pageSummary','field_59e59b307dec8'),
	(85174,4642,'currentURL','http://localhost:8888/tamimi/en/magazine/law-update/section-5/march-4/the-effects-of-corruption-on-economic-development.html'),
	(85175,4642,'_currentURL','field_59d35123ab1e7'),
	(85176,4642,'lawUpdateArticleNoWriters_0_lawUpdateAuthorName','Mahmoud Moustafa'),
	(85177,4642,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorName','field_59e59ad5d15dd'),
	(85178,4642,'lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','info@tamimi.com'),
	(85179,4642,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorEmail','field_59e59afcd15de'),
	(85180,4642,'lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation',''),
	(85181,4642,'_lawUpdateArticleNoWriters_0_lawUpdateAuthorLocation','field_59e59b05d15df'),
	(85182,4642,'lawUpdateArticleNoWriters','1'),
	(85183,4642,'_lawUpdateArticleNoWriters','field_59e59aaed15dc'),
	(85184,4642,'lawUpdateArticlePractices_0_lawUpdateArticlePractice','631'),
	(85185,4642,'_lawUpdateArticlePractices_0_lawUpdateArticlePractice','field_59dc79c8e10ce'),
	(85186,4642,'lawUpdateArticlePractices','1'),
	(85187,4642,'_lawUpdateArticlePractices','field_59dc7918de021'),
	(85188,4642,'_yoast_wpseo_metadesc','On the 28th of April 2004 Mr. Daniel Kaufmann (Global Governance Director of the World Bank Institute) – commenting on the costs of corruption- stated that: “a conservative approach to such measurement gives an estimate for annual worldwide bribery of about US 1 trillion dollars.”'),
