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	(251787,24552,'ReportText','<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" />The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" />Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;'),
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	(251837,24557,'PostTitle','Guiding Charter for Family Owned Businesses in Saudi Arabia'),
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	(251840,24557,'PostDate','2018-07-31 18:38:47'),
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	(251844,24557,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" />The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" />Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;');

INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`)
VALUES
	(251845,24557,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" />The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" />Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;'),
	(251846,24557,'MetaLink','content'),
	(251847,24557,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7960&amp;action=edit'),
	(251848,24557,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" />The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" />Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" />The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" />Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;'),
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	(251895,24562,'PostTitle','Cyber security in the Saudi financial services sector: The SAMA Cyber Security Framework'),
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	(251905,24563,'PostTitle','Cyber security in the Saudi financial services sector: The SAMA Cyber Security Framework'),
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	(251908,24563,'PostDate','2018-07-31 18:39:52'),
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	(251912,24563,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><em><img class=\"alignleft size-full wp-image-8048\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_775810141.jpg\" alt=\"\" width=\"6000\" height=\"1520\" />In May 2017, the Saudi Arabian Monetary Authority issued version 1.0 of its Cyber Security Framework. Noting the importance of the need to safeguard sensitive data and transactions to ensure confidence in the Saudi financial sector, the Framework was designed to enable SAMA regulated entities (basically, banks, insurance companies and finance companies) to identify and address cyber security risks. In this article, we summarise key aspects of the Framework.</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is based on SAMA requirements and industry standards (including ISO, BASEL and PCI-DSS). Its stated objectives are to create a common approach for addressing cyber security, to achieve an appropriate maturity level of cyber security controls, and to ensure cyber security risks are properly managed. It supersedes all prior SAMA circulars relating to cyber security.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Entities subject to the Framework include all banks, all insurance and reinsurance companies, all financing companies, all credit bureaus, and the Saudi financial market infrastructure. The Framework also has some degree of application to subsidiaries and the personnel of such entities, as well as to third party contractors and customers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Cyber security is defined in the Framework as:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">the collection of tools, policies, security concepts, security safeguards, guidelines, risk management approaches, actions, training, best practices, assurance, and technologies that can be used to protect the member organization’s information assets against internal and external threats.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The ‘information assets’ to which the Framework relates include electronic information, hardcopies, applications, software, databases, computers and machines such as ATMs, data storage devices, and networks and other technical infrastructure.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The three basic premises upon which the Framework has been developed are confidentiality, integrity and availability. More specifically, confidentiality refers to information assets being accessible only to those who are authorised, and protected from unintended or unauthorised disclosure; integrity refers to information assets being accurate, complete and processed correctly, and protected from unauthorised modification; and availability refers to information assets being resilient and accessible, and protected from unauthorised disruption.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework prescribes key cyber security principles and objectives to be embedded and achieved by each regulated entity. These are broken down in terms of four main cyber security ‘domains’: Leadership &amp; Governance, Risk Management &amp; Compliance, Operations &amp; Technology, and Third Party considerations. The Framework also contemplates regulated entities meeting a minimum level of cyber security maturity (the criteria of which are specified in detail in the Framework), and to subject themselves to periodic self-assessments, reviewed by SAMA.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Leadership &amp; Governance</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework contemplates the implementation of a board-endorsed, defined cyber security governance structure to lead the overall approach to cyber security within the regulated entity. As well as establishing a cybersecurity committee (with representatives from all relevant departments in the organisation), regulated entities also need to establish a cyber security function, independent of the information technology function, and led by a Chief Information Security Officer who is a Saudi national and sufficiently qualified for the CISO role.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Each regulated entity needs to define a cyber security strategy aligned with its own strategic objectives and the broader banking sector’s cyber security strategy. It must also develop a cyber security policy to document and communicate its cyber security commitment and objectives. The policy should be considered in the development of other corporate policies (such as HR policies and IT policies), based on best practices, and supported by detailed security standards. The policy also needs to ensure that information is classified appropriate to its importance, and protected in line with the entity’s risk appetite. Owners need to be appointed for all information assets, and all stakeholders need to be made aware of cyber security. The policy also needs to contain requirements that ensure compliance with regulatory and contractual obligations, and provide for reporting of cyber security breaches and suspected weaknesses.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The ultimate responsibility for cyber security lies with the regulated entity’s board of directors. This responsibility ranges from ensuring an appropriate budget is available for cyber security measures, through to endorsing the entity’s cyber security governance, strategy and policy. The entity’s cyber security committee is responsible at a more operational level.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework imposes an obligation on regulated entities to ensure that relevant stakeholders are aware of, and understand, their cyber security responsibilities. It requires the development of an organisational culture of cyber security risk awareness, enabling personnel, third parties and customers to protect the regulated entity’s information assets. Additionally, it requires the implementation of training to ensure that personnel are equipped with the necessary skills and knowledge to protect the entity’s information assets (including by operating the entity’s systems securely) and to meet its cyber security responsibilities. Cyber security needs to be an integrated part of the regulated entity’s project management methodology, enabling the entity to identify and address cyber security risks as part of any project.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Risk Management &amp; Compliance</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework describes risk management as the ongoing process of identifying, analyzing, responding to, monitoring and reviewing risks. To manage cyber security risks, the Framework requires regulated entities to undertake cyber security risk identification (identification of their cyber security risks), risk analysis (assessment of the likelihood of occurrence, and the resulting impact), risk response (determining the appropriate response to cyber security risks), and monitoring and review (monitoring the risk treatment and review of the effectiveness of the cyber security control).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure cyber security risks are properly managed to protect the confidentiality, integrity and availability of a regulated entity’s information assets, and to ensure alignment of the cyber security risk management process with the entity’s enterprise risk management process, each regulated entity is required to define, approve and implement a cyber security risk management process.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This involves identification (and treatment) of the entity’s cyber security risks and threats, bearing in mind the relevant information assets of the entity, as well as its existing cyber security controls and vulnerabilities, and the likelihood of occurrence of the risks identified and the likely resulting impact. The Framework contemplates this exercise being performed on a rolling basis, so as to ensure its continued effectiveness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities are also required to establish a process whereby they identify, communicate and comply with the cyber security implications of relevant regulations, and adopt mandatory local and international industry standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There is an expectation that information assets of regulated entities will be subjected to thorough, independent and regular cyber security audits, in accordance with generally accepted auditing standards and the Framework.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Operations &amp; Technology</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework makes it is necessary for regulated entities to ensure that security requirements for their information assets are defined, approved and implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities are required to incorporate cyber security requirements into their human resources processes. At a minimum, these should include: cyber security awareness training for personnel at induction and during their employment, personnel agreements setting out cyber security responsibilities and obligations of non-disclosure, post-employment cyber security implications (such as revocation of access rights, and obligations to return access badge, tokens, mobile devices, all electronic and physical information). The Framework also provides for requirements relating to Bring Your Own Device (BYOD) policies, so as to ensure that business and sensitive information is securely handled by personnel when using personal devices.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There is also an obligation to ensure appropriate physical security, by ensuring that all facilities that host information assets are physically protected. These should include: physical entry controls, monitoring and surveillance (e.g., CCTV), protection of data centres and data rooms, environmental protection, and consideration of the physical protection of information assets during their lifecycles (such as during transportation and destruction, and by avoiding unauthorized access and data leakage). The secure disposal of information assets is also contemplated, so as to ensure that business, customer and other information, is protected from unintended or unauthorized disclosure when no longer required.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">More generally, there is an obligation to ensure that access to information assets is restricted in line with need to know/have principles. This requirement brings with it a need to ensure that identity and access be managed and controlled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities need to know what information assets they have, and where (both physically and logically) they are located, in order to ensure cyber security. The Framework requires regulated entities to maintain an accurate and up-to-date inventory, including location and other relevant details, of all information assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities are also required to define their cyber security architecture, outlining the cyber security requirements in their enterprise architecture and addressing the design principles for developing cyber security capabilities. They also need to make sure that they follow and review their cyber security architecture. Similarly, regulated entities need to make sure that cyber security controls are formally documented and implemented for all applications, and that the compliance is monitored and effectiveness evaluated on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Cyber security standards for infrastructure components need to be documented, and compliance monitored. This needs to include all instances of infrastructure (e.g., workstations, laptops, tablets, mobile devices, virtual machines, servers, operating systems, firewalls, network devices, wireless networks, email gateways, external connections, databases, file-shares, PBX), and it needs to cover all relevant locations, including data centres, disaster recovery sites and offices.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities need to define, approve, implement and monitor cyber security standards for payment systems and electronic banking services in order to safeguard the confidentiality and integrity of shared banking systems and customer information and transactions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Third party considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is almost certain that regulated entities will need to engage with third party service providers (including the likes of information services providers, outsourcing providers, cloud computing service providers, technology vendors and governmental agencies) in order to deliver their services. If such engagements do not respect the types of cyber security mechanisms that the regulated entities have implemented, then such engagements could bring with them cyber security risks. With this in mind, the Framework introduces expectations with regard to the engagement of third parties. These can be broadly categorised as contract and vendor management considerations, outsourcing considerations and cloud computing considerations. We consider this in more detail in a separate article.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SAMA Cyber Security Framework, which was developed in coordination with a leading consultancy firm, provides a very clear outline of what SAMA expects, in terms of cyber security, of the entities that it regulates. Just as the types of technology being used in the financial services sector will continue to develop, the volume and nature of cyber security risks to financial services sector business will continue to develop. SAMA’s Cyber Security Framework should go some way to ensuring that businesses operating in the financial services sector are aware of the nature and scope of their information assets and the potential cyber risks to such assets. The processes implemented in compliance with the Framework will also provide a mechanism for future-proofing regulated financial services businesses against new cyber risks as they develop.</p>\r\n<em>Al Tamimi &amp; Company’s Technology, Media &amp; Telecommunications team regularly advises on issues relating to cyber security, including regulatory compliance and breach notification obligations. For further information please contact Nick O’Connell, Partner (n.oconnell@tamimi.com) or Andrew Fawcett, Senior Counsel (a.fawcett@tamimi.com)</em>'),
	(251913,24563,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><em>In May 2017, the Saudi Arabian Monetary Authority issued version 1.0 of its Cyber Security Framework. Noting the importance of the need to safeguard sensitive data and transactions to ensure confidence in the Saudi financial sector, the Framework was designed to enable SAMA regulated entities (basically, banks, insurance companies and finance companies) to identify and address cyber security risks. In this article, we summarise key aspects of the Framework.</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is based on SAMA requirements and industry standards (including ISO, BASEL and PCI-DSS). Its stated objectives are to create a common approach for addressing cyber security, to achieve an appropriate maturity level of cyber security controls, and to ensure cyber security risks are properly managed. It supersedes all prior SAMA circulars relating to cyber security.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Entities subject to the Framework include all banks, all insurance and reinsurance companies, all financing companies, all credit bureaus, and the Saudi financial market infrastructure. The Framework also has some degree of application to subsidiaries and the personnel of such entities, as well as to third party contractors and customers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Cyber security is defined in the Framework as:</p>\r\n\r\n<dir>\r\n<p dir=\"LTR\" align=\"LEFT\">the collection of tools, policies, security concepts, security safeguards, guidelines, risk management approaches, actions, training, best practices, assurance, and technologies that can be used to protect the member organization’s information assets against internal and external threats.</p>\r\n\r\n</dir>\r\n<p dir=\"LTR\" align=\"LEFT\">The ‘information assets’ to which the Framework relates include electronic information, hardcopies, applications, software, databases, computers and machines such as ATMs, data storage devices, and networks and other technical infrastructure.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The three basic premises upon which the Framework has been developed are confidentiality, integrity and availability. More specifically, confidentiality refers to information assets being accessible only to those who are authorised, and protected from unintended or unauthorised disclosure; integrity refers to information assets being accurate, complete and processed correctly, and protected from unauthorised modification; and availability refers to information assets being resilient and accessible, and protected from unauthorised disruption.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework prescribes key cyber security principles and objectives to be embedded and achieved by each regulated entity. These are broken down in terms of four main cyber security ‘domains’: Leadership &amp; Governance, Risk Management &amp; Compliance, Operations &amp; Technology, and Third Party considerations. The Framework also contemplates regulated entities meeting a minimum level of cyber security maturity (the criteria of which are specified in detail in the Framework), and to subject themselves to periodic self-assessments, reviewed by SAMA.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Leadership &amp; Governance</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework contemplates the implementation of a board-endorsed, defined cyber security governance structure to lead the overall approach to cyber security within the regulated entity. As well as establishing a cybersecurity committee (with representatives from all relevant departments in the organisation), regulated entities also need to establish a cyber security function, independent of the information technology function, and led by a Chief Information Security Officer who is a Saudi national and sufficiently qualified for the CISO role.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Each regulated entity needs to define a cyber security strategy aligned with its own strategic objectives and the broader banking sector’s cyber security strategy. It must also develop a cyber security policy to document and communicate its cyber security commitment and objectives. The policy should be considered in the development of other corporate policies (such as HR policies and IT policies), based on best practices, and supported by detailed security standards. The policy also needs to ensure that information is classified appropriate to its importance, and protected in line with the entity’s risk appetite. Owners need to be appointed for all information assets, and all stakeholders need to be made aware of cyber security. The policy also needs to contain requirements that ensure compliance with regulatory and contractual obligations, and provide for reporting of cyber security breaches and suspected weaknesses.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The ultimate responsibility for cyber security lies with the regulated entity’s board of directors. This responsibility ranges from ensuring an appropriate budget is available for cyber security measures, through to endorsing the entity’s cyber security governance, strategy and policy. The entity’s cyber security committee is responsible at a more operational level.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework imposes an obligation on regulated entities to ensure that relevant stakeholders are aware of, and understand, their cyber security responsibilities. It requires the development of an organisational culture of cyber security risk awareness, enabling personnel, third parties and customers to protect the regulated entity’s information assets. Additionally, it requires the implementation of training to ensure that personnel are equipped with the necessary skills and knowledge to protect the entity’s information assets (including by operating the entity’s systems securely) and to meet its cyber security responsibilities. Cyber security needs to be an integrated part of the regulated entity’s project management methodology, enabling the entity to identify and address cyber security risks as part of any project.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Risk Management &amp; Compliance</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework describes risk management as the ongoing process of identifying, analyzing, responding to, monitoring and reviewing risks. To manage cyber security risks, the Framework requires regulated entities to undertake cyber security risk identification (identification of their cyber security risks), risk analysis (assessment of the likelihood of occurrence, and the resulting impact), risk response (determining the appropriate response to cyber security risks), and monitoring and review (monitoring the risk treatment and review of the effectiveness of the cyber security control).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure cyber security risks are properly managed to protect the confidentiality, integrity and availability of a regulated entity’s information assets, and to ensure alignment of the cyber security risk management process with the entity’s enterprise risk management process, each regulated entity is required to define, approve and implement a cyber security risk management process.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This involves identification (and treatment) of the entity’s cyber security risks and threats, bearing in mind the relevant information assets of the entity, as well as its existing cyber security controls and vulnerabilities, and the likelihood of occurrence of the risks identified and the likely resulting impact. The Framework contemplates this exercise being performed on a rolling basis, so as to ensure its continued effectiveness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities are also required to establish a process whereby they identify, communicate and comply with the cyber security implications of relevant regulations, and adopt mandatory local and international industry standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There is an expectation that information assets of regulated entities will be subjected to thorough, independent and regular cyber security audits, in accordance with generally accepted auditing standards and the Framework.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Operations &amp; Technology</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework makes it is necessary for regulated entities to ensure that security requirements for their information assets are defined, approved and implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities are required to incorporate cyber security requirements into their human resources processes. At a minimum, these should include: cyber security awareness training for personnel at induction and during their employment, personnel agreements setting out cyber security responsibilities and obligations of non-disclosure, post-employment cyber security implications (such as revocation of access rights, and obligations to return access badge, tokens, mobile devices, all electronic and physical information). The Framework also provides for requirements relating to Bring Your Own Device (BYOD) policies, so as to ensure that business and sensitive information is securely handled by personnel when using personal devices.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There is also an obligation to ensure appropriate physical security, by ensuring that all facilities that host information assets are physically protected. These should include: physical entry controls, monitoring and surveillance (e.g., CCTV), protection of data centres and data rooms, environmental protection, and consideration of the physical protection of information assets during their lifecycles (such as during transportation and destruction, and by avoiding unauthorized access and data leakage). The secure disposal of information assets is also contemplated, so as to ensure that business, customer and other information, is protected from unintended or unauthorized disclosure when no longer required.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">More generally, there is an obligation to ensure that access to information assets is restricted in line with need to know/have principles. This requirement brings with it a need to ensure that identity and access be managed and controlled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities need to know what information assets they have, and where (both physically and logically) they are located, in order to ensure cyber security. The Framework requires regulated entities to maintain an accurate and up-to-date inventory, including location and other relevant details, of all information assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities are also required to define their cyber security architecture, outlining the cyber security requirements in their enterprise architecture and addressing the design principles for developing cyber security capabilities. They also need to make sure that they follow and review their cyber security architecture. Similarly, regulated entities need to make sure that cyber security controls are formally documented and implemented for all applications, and that the compliance is monitored and effectiveness evaluated on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Cyber security standards for infrastructure components need to be documented, and compliance monitored. This needs to include all instances of infrastructure (e.g., workstations, laptops, tablets, mobile devices, virtual machines, servers, operating systems, firewalls, network devices, wireless networks, email gateways, external connections, databases, file-shares, PBX), and it needs to cover all relevant locations, including data centres, disaster recovery sites and offices.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities need to define, approve, implement and monitor cyber security standards for payment systems and electronic banking services in order to safeguard the confidentiality and integrity of shared banking systems and customer information and transactions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Third party considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is almost certain that regulated entities will need to engage with third party service providers (including the likes of information services providers, outsourcing providers, cloud computing service providers, technology vendors and governmental agencies) in order to deliver their services. If such engagements do not respect the types of cyber security mechanisms that the regulated entities have implemented, then such engagements could bring with them cyber security risks. With this in mind, the Framework introduces expectations with regard to the engagement of third parties. These can be broadly categorised as contract and vendor management considerations, outsourcing considerations and cloud computing considerations. We consider this in more detail in a separate article.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SAMA Cyber Security Framework, which was developed in coordination with a leading consultancy firm, provides a very clear outline of what SAMA expects, in terms of cyber security, of the entities that it regulates. Just as the types of technology being used in the financial services sector will continue to develop, the volume and nature of cyber security risks to financial services sector business will continue to develop. SAMA’s Cyber Security Framework should go some way to ensuring that businesses operating in the financial services sector are aware of the nature and scope of their information assets and the potential cyber risks to such assets. The processes implemented in compliance with the Framework will also provide a mechanism for future-proofing regulated financial services businesses against new cyber risks as they develop.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<em>Al Tamimi &amp; Company’s Technology, Media &amp; Telecommunications team regularly advises on issues relating to cyber security, including regulatory compliance and breach notification obligations. For further information please contact Nick O’Connell, Partner (n.oconnell@tamimi.com) or Andrew Fawcett, Senior Counsel (a.fawcett@tamimi.com)</em>'),
	(251914,24563,'MetaLink','content'),
	(251915,24563,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7961&amp;action=edit'),
	(251916,24563,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><em>In May 2017, the Saudi Arabian Monetary Authority issued version 1.0 of its Cyber Security Framework. Noting the importance of the need to safeguard sensitive data and transactions to ensure confidence in the Saudi financial sector, the Framework was designed to enable SAMA regulated entities (basically, banks, insurance companies and finance companies) to identify and address cyber security risks. In this article, we summarise key aspects of the Framework.</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is based on SAMA requirements and industry standards (including ISO, BASEL and PCI-DSS). Its stated objectives are to create a common approach for addressing cyber security, to achieve an appropriate maturity level of cyber security controls, and to ensure cyber security risks are properly managed. It supersedes all prior SAMA circulars relating to cyber security.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Entities subject to the Framework include all banks, all insurance and reinsurance companies, all financing companies, all credit bureaus, and the Saudi financial market infrastructure. The Framework also has some degree of application to subsidiaries and the personnel of such entities, as well as to third party contractors and customers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Cyber security is defined in the Framework as:</p>\r\n\r\n<dir>\r\n<p dir=\"LTR\" align=\"LEFT\">the collection of tools, policies, security concepts, security safeguards, guidelines, risk management approaches, actions, training, best practices, assurance, and technologies that can be used to protect the member organization’s information assets against internal and external threats.</p>\r\n\r\n</dir>\r\n<p dir=\"LTR\" align=\"LEFT\">The ‘information assets’ to which the Framework relates include electronic information, hardcopies, applications, software, databases, computers and machines such as ATMs, data storage devices, and networks and other technical infrastructure.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The three basic premises upon which the Framework has been developed are confidentiality, integrity and availability. More specifically, confidentiality refers to information assets being accessible only to those who are authorised, and protected from unintended or unauthorised disclosure; integrity refers to information assets being accurate, complete and processed correctly, and protected from unauthorised modification; and availability refers to information assets being resilient and accessible, and protected from unauthorised disruption.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework prescribes key cyber security principles and objectives to be embedded and achieved by each regulated entity. These are broken down in terms of four main cyber security ‘domains’: Leadership &amp; Governance, Risk Management &amp; Compliance, Operations &amp; Technology, and Third Party considerations. The Framework also contemplates regulated entities meeting a minimum level of cyber security maturity (the criteria of which are specified in detail in the Framework), and to subject themselves to periodic self-assessments, reviewed by SAMA.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Leadership &amp; Governance</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework contemplates the implementation of a board-endorsed, defined cyber security governance structure to lead the overall approach to cyber security within the regulated entity. As well as establishing a cybersecurity committee (with representatives from all relevant departments in the organisation), regulated entities also need to establish a cyber security function, independent of the information technology function, and led by a Chief Information Security Officer who is a Saudi national and sufficiently qualified for the CISO role.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Each regulated entity needs to define a cyber security strategy aligned with its own strategic objectives and the broader banking sector’s cyber security strategy. It must also develop a cyber security policy to document and communicate its cyber security commitment and objectives. The policy should be considered in the development of other corporate policies (such as HR policies and IT policies), based on best practices, and supported by detailed security standards. The policy also needs to ensure that information is classified appropriate to its importance, and protected in line with the entity’s risk appetite. Owners need to be appointed for all information assets, and all stakeholders need to be made aware of cyber security. The policy also needs to contain requirements that ensure compliance with regulatory and contractual obligations, and provide for reporting of cyber security breaches and suspected weaknesses.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The ultimate responsibility for cyber security lies with the regulated entity’s board of directors. This responsibility ranges from ensuring an appropriate budget is available for cyber security measures, through to endorsing the entity’s cyber security governance, strategy and policy. The entity’s cyber security committee is responsible at a more operational level.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework imposes an obligation on regulated entities to ensure that relevant stakeholders are aware of, and understand, their cyber security responsibilities. It requires the development of an organisational culture of cyber security risk awareness, enabling personnel, third parties and customers to protect the regulated entity’s information assets. Additionally, it requires the implementation of training to ensure that personnel are equipped with the necessary skills and knowledge to protect the entity’s information assets (including by operating the entity’s systems securely) and to meet its cyber security responsibilities. Cyber security needs to be an integrated part of the regulated entity’s project management methodology, enabling the entity to identify and address cyber security risks as part of any project.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Risk Management &amp; Compliance</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework describes risk management as the ongoing process of identifying, analyzing, responding to, monitoring and reviewing risks. To manage cyber security risks, the Framework requires regulated entities to undertake cyber security risk identification (identification of their cyber security risks), risk analysis (assessment of the likelihood of occurrence, and the resulting impact), risk response (determining the appropriate response to cyber security risks), and monitoring and review (monitoring the risk treatment and review of the effectiveness of the cyber security control).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure cyber security risks are properly managed to protect the confidentiality, integrity and availability of a regulated entity’s information assets, and to ensure alignment of the cyber security risk management process with the entity’s enterprise risk management process, each regulated entity is required to define, approve and implement a cyber security risk management process.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This involves identification (and treatment) of the entity’s cyber security risks and threats, bearing in mind the relevant information assets of the entity, as well as its existing cyber security controls and vulnerabilities, and the likelihood of occurrence of the risks identified and the likely resulting impact. The Framework contemplates this exercise being performed on a rolling basis, so as to ensure its continued effectiveness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities are also required to establish a process whereby they identify, communicate and comply with the cyber security implications of relevant regulations, and adopt mandatory local and international industry standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There is an expectation that information assets of regulated entities will be subjected to thorough, independent and regular cyber security audits, in accordance with generally accepted auditing standards and the Framework.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Operations &amp; Technology</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework makes it is necessary for regulated entities to ensure that security requirements for their information assets are defined, approved and implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities are required to incorporate cyber security requirements into their human resources processes. At a minimum, these should include: cyber security awareness training for personnel at induction and during their employment, personnel agreements setting out cyber security responsibilities and obligations of non-disclosure, post-employment cyber security implications (such as revocation of access rights, and obligations to return access badge, tokens, mobile devices, all electronic and physical information). The Framework also provides for requirements relating to Bring Your Own Device (BYOD) policies, so as to ensure that business and sensitive information is securely handled by personnel when using personal devices.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There is also an obligation to ensure appropriate physical security, by ensuring that all facilities that host information assets are physically protected. These should include: physical entry controls, monitoring and surveillance (e.g., CCTV), protection of data centres and data rooms, environmental protection, and consideration of the physical protection of information assets during their lifecycles (such as during transportation and destruction, and by avoiding unauthorized access and data leakage). The secure disposal of information assets is also contemplated, so as to ensure that business, customer and other information, is protected from unintended or unauthorized disclosure when no longer required.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">More generally, there is an obligation to ensure that access to information assets is restricted in line with need to know/have principles. This requirement brings with it a need to ensure that identity and access be managed and controlled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities need to know what information assets they have, and where (both physically and logically) they are located, in order to ensure cyber security. The Framework requires regulated entities to maintain an accurate and up-to-date inventory, including location and other relevant details, of all information assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities are also required to define their cyber security architecture, outlining the cyber security requirements in their enterprise architecture and addressing the design principles for developing cyber security capabilities. They also need to make sure that they follow and review their cyber security architecture. Similarly, regulated entities need to make sure that cyber security controls are formally documented and implemented for all applications, and that the compliance is monitored and effectiveness evaluated on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Cyber security standards for infrastructure components need to be documented, and compliance monitored. This needs to include all instances of infrastructure (e.g., workstations, laptops, tablets, mobile devices, virtual machines, servers, operating systems, firewalls, network devices, wireless networks, email gateways, external connections, databases, file-shares, PBX), and it needs to cover all relevant locations, including data centres, disaster recovery sites and offices.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities need to define, approve, implement and monitor cyber security standards for payment systems and electronic banking services in order to safeguard the confidentiality and integrity of shared banking systems and customer information and transactions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Third party considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is almost certain that regulated entities will need to engage with third party service providers (including the likes of information services providers, outsourcing providers, cloud computing service providers, technology vendors and governmental agencies) in order to deliver their services. If such engagements do not respect the types of cyber security mechanisms that the regulated entities have implemented, then such engagements could bring with them cyber security risks. With this in mind, the Framework introduces expectations with regard to the engagement of third parties. These can be broadly categorised as contract and vendor management considerations, outsourcing considerations and cloud computing considerations. We consider this in more detail in a separate article.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SAMA Cyber Security Framework, which was developed in coordination with a leading consultancy firm, provides a very clear outline of what SAMA expects, in terms of cyber security, of the entities that it regulates. Just as the types of technology being used in the financial services sector will continue to develop, the volume and nature of cyber security risks to financial services sector business will continue to develop. SAMA’s Cyber Security Framework should go some way to ensuring that businesses operating in the financial services sector are aware of the nature and scope of their information assets and the potential cyber risks to such assets. The processes implemented in compliance with the Framework will also provide a mechanism for future-proofing regulated financial services businesses against new cyber risks as they develop.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<em>Al Tamimi &amp; Company’s Technology, Media &amp; Telecommunications team regularly advises on issues relating to cyber security, including regulatory compliance and breach notification obligations. For further information please contact Nick O’Connell, Partner (n.oconnell@tamimi.com) or Andrew Fawcett, Senior Counsel (a.fawcett@tamimi.com)</em>|<p dir=\"LTR\" align=\"LEFT\"><em><img class=\"alignleft size-full wp-image-8048\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_775810141.jpg\" alt=\"\" width=\"6000\" height=\"1520\" />In May 2017, the Saudi Arabian Monetary Authority issued version 1.0 of its Cyber Security Framework. Noting the importance of the need to safeguard sensitive data and transactions to ensure confidence in the Saudi financial sector, the Framework was designed to enable SAMA regulated entities (basically, banks, insurance companies and finance companies) to identify and address cyber security risks. In this article, we summarise key aspects of the Framework.</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is based on SAMA requirements and industry standards (including ISO, BASEL and PCI-DSS). Its stated objectives are to create a common approach for addressing cyber security, to achieve an appropriate maturity level of cyber security controls, and to ensure cyber security risks are properly managed. It supersedes all prior SAMA circulars relating to cyber security.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Entities subject to the Framework include all banks, all insurance and reinsurance companies, all financing companies, all credit bureaus, and the Saudi financial market infrastructure. The Framework also has some degree of application to subsidiaries and the personnel of such entities, as well as to third party contractors and customers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Cyber security is defined in the Framework as:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">the collection of tools, policies, security concepts, security safeguards, guidelines, risk management approaches, actions, training, best practices, assurance, and technologies that can be used to protect the member organization’s information assets against internal and external threats.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The ‘information assets’ to which the Framework relates include electronic information, hardcopies, applications, software, databases, computers and machines such as ATMs, data storage devices, and networks and other technical infrastructure.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The three basic premises upon which the Framework has been developed are confidentiality, integrity and availability. More specifically, confidentiality refers to information assets being accessible only to those who are authorised, and protected from unintended or unauthorised disclosure; integrity refers to information assets being accurate, complete and processed correctly, and protected from unauthorised modification; and availability refers to information assets being resilient and accessible, and protected from unauthorised disruption.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework prescribes key cyber security principles and objectives to be embedded and achieved by each regulated entity. These are broken down in terms of four main cyber security ‘domains’: Leadership &amp; Governance, Risk Management &amp; Compliance, Operations &amp; Technology, and Third Party considerations. The Framework also contemplates regulated entities meeting a minimum level of cyber security maturity (the criteria of which are specified in detail in the Framework), and to subject themselves to periodic self-assessments, reviewed by SAMA.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Leadership &amp; Governance</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework contemplates the implementation of a board-endorsed, defined cyber security governance structure to lead the overall approach to cyber security within the regulated entity. As well as establishing a cybersecurity committee (with representatives from all relevant departments in the organisation), regulated entities also need to establish a cyber security function, independent of the information technology function, and led by a Chief Information Security Officer who is a Saudi national and sufficiently qualified for the CISO role.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Each regulated entity needs to define a cyber security strategy aligned with its own strategic objectives and the broader banking sector’s cyber security strategy. It must also develop a cyber security policy to document and communicate its cyber security commitment and objectives. The policy should be considered in the development of other corporate policies (such as HR policies and IT policies), based on best practices, and supported by detailed security standards. The policy also needs to ensure that information is classified appropriate to its importance, and protected in line with the entity’s risk appetite. Owners need to be appointed for all information assets, and all stakeholders need to be made aware of cyber security. The policy also needs to contain requirements that ensure compliance with regulatory and contractual obligations, and provide for reporting of cyber security breaches and suspected weaknesses.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The ultimate responsibility for cyber security lies with the regulated entity’s board of directors. This responsibility ranges from ensuring an appropriate budget is available for cyber security measures, through to endorsing the entity’s cyber security governance, strategy and policy. The entity’s cyber security committee is responsible at a more operational level.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework imposes an obligation on regulated entities to ensure that relevant stakeholders are aware of, and understand, their cyber security responsibilities. It requires the development of an organisational culture of cyber security risk awareness, enabling personnel, third parties and customers to protect the regulated entity’s information assets. Additionally, it requires the implementation of training to ensure that personnel are equipped with the necessary skills and knowledge to protect the entity’s information assets (including by operating the entity’s systems securely) and to meet its cyber security responsibilities. Cyber security needs to be an integrated part of the regulated entity’s project management methodology, enabling the entity to identify and address cyber security risks as part of any project.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Risk Management &amp; Compliance</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework describes risk management as the ongoing process of identifying, analyzing, responding to, monitoring and reviewing risks. To manage cyber security risks, the Framework requires regulated entities to undertake cyber security risk identification (identification of their cyber security risks), risk analysis (assessment of the likelihood of occurrence, and the resulting impact), risk response (determining the appropriate response to cyber security risks), and monitoring and review (monitoring the risk treatment and review of the effectiveness of the cyber security control).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure cyber security risks are properly managed to protect the confidentiality, integrity and availability of a regulated entity’s information assets, and to ensure alignment of the cyber security risk management process with the entity’s enterprise risk management process, each regulated entity is required to define, approve and implement a cyber security risk management process.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This involves identification (and treatment) of the entity’s cyber security risks and threats, bearing in mind the relevant information assets of the entity, as well as its existing cyber security controls and vulnerabilities, and the likelihood of occurrence of the risks identified and the likely resulting impact. The Framework contemplates this exercise being performed on a rolling basis, so as to ensure its continued effectiveness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities are also required to establish a process whereby they identify, communicate and comply with the cyber security implications of relevant regulations, and adopt mandatory local and international industry standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There is an expectation that information assets of regulated entities will be subjected to thorough, independent and regular cyber security audits, in accordance with generally accepted auditing standards and the Framework.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Operations &amp; Technology</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework makes it is necessary for regulated entities to ensure that security requirements for their information assets are defined, approved and implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities are required to incorporate cyber security requirements into their human resources processes. At a minimum, these should include: cyber security awareness training for personnel at induction and during their employment, personnel agreements setting out cyber security responsibilities and obligations of non-disclosure, post-employment cyber security implications (such as revocation of access rights, and obligations to return access badge, tokens, mobile devices, all electronic and physical information). The Framework also provides for requirements relating to Bring Your Own Device (BYOD) policies, so as to ensure that business and sensitive information is securely handled by personnel when using personal devices.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There is also an obligation to ensure appropriate physical security, by ensuring that all facilities that host information assets are physically protected. These should include: physical entry controls, monitoring and surveillance (e.g., CCTV), protection of data centres and data rooms, environmental protection, and consideration of the physical protection of information assets during their lifecycles (such as during transportation and destruction, and by avoiding unauthorized access and data leakage). The secure disposal of information assets is also contemplated, so as to ensure that business, customer and other information, is protected from unintended or unauthorized disclosure when no longer required.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">More generally, there is an obligation to ensure that access to information assets is restricted in line with need to know/have principles. This requirement brings with it a need to ensure that identity and access be managed and controlled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities need to know what information assets they have, and where (both physically and logically) they are located, in order to ensure cyber security. The Framework requires regulated entities to maintain an accurate and up-to-date inventory, including location and other relevant details, of all information assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities are also required to define their cyber security architecture, outlining the cyber security requirements in their enterprise architecture and addressing the design principles for developing cyber security capabilities. They also need to make sure that they follow and review their cyber security architecture. Similarly, regulated entities need to make sure that cyber security controls are formally documented and implemented for all applications, and that the compliance is monitored and effectiveness evaluated on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Cyber security standards for infrastructure components need to be documented, and compliance monitored. This needs to include all instances of infrastructure (e.g., workstations, laptops, tablets, mobile devices, virtual machines, servers, operating systems, firewalls, network devices, wireless networks, email gateways, external connections, databases, file-shares, PBX), and it needs to cover all relevant locations, including data centres, disaster recovery sites and offices.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Regulated entities need to define, approve, implement and monitor cyber security standards for payment systems and electronic banking services in order to safeguard the confidentiality and integrity of shared banking systems and customer information and transactions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Third party considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is almost certain that regulated entities will need to engage with third party service providers (including the likes of information services providers, outsourcing providers, cloud computing service providers, technology vendors and governmental agencies) in order to deliver their services. If such engagements do not respect the types of cyber security mechanisms that the regulated entities have implemented, then such engagements could bring with them cyber security risks. With this in mind, the Framework introduces expectations with regard to the engagement of third parties. These can be broadly categorised as contract and vendor management considerations, outsourcing considerations and cloud computing considerations. We consider this in more detail in a separate article.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SAMA Cyber Security Framework, which was developed in coordination with a leading consultancy firm, provides a very clear outline of what SAMA expects, in terms of cyber security, of the entities that it regulates. Just as the types of technology being used in the financial services sector will continue to develop, the volume and nature of cyber security risks to financial services sector business will continue to develop. SAMA’s Cyber Security Framework should go some way to ensuring that businesses operating in the financial services sector are aware of the nature and scope of their information assets and the potential cyber risks to such assets. The processes implemented in compliance with the Framework will also provide a mechanism for future-proofing regulated financial services businesses against new cyber risks as they develop.</p>\r\n<em>Al Tamimi &amp; Company’s Technology, Media &amp; Telecommunications team regularly advises on issues relating to cyber security, including regulatory compliance and breach notification obligations. For further information please contact Nick O’Connell, Partner (n.oconnell@tamimi.com) or Andrew Fawcett, Senior Counsel (a.fawcett@tamimi.com)</em>'),
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	(251981,24569,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">In this month’s special feature of Law Update we focus on our Sports &amp; Events Management Group, as well as our Expo 2020 practice, and the interesting client issues and sector trends that have been brought into focus over the course of the past year and those which we anticipate will arise in the future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Particular highlights of this edition include an in-depth look at the on-going privatization of football clubs in KSA; an overview of the role that blockchain and other FinTech will play in the sports and events sector going forwards; a look at the rapidly developing regulatory concerns in the nascent e-Sports market; and a special focus on the ramp-up to the grand spectacle that will be Expo 2020.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is beyond doubt that the sports and events sector is booming both globally and regionally. Industry reports predict that the global events industry will grow by 44% between 2017- 2020. In Dubai alone, which now hosts over 300 regular sporting events attracting over 1 million attendees, annual expenditure relating to sport has grown to over $1.7bn. Such growth is symptomatic of the ever-increasing appetite of governmental and non-governmental entities to embrace the sector.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For governmental bodies, events (both sporting and non-sporting) can act as powerful drivers of economic development, which positively impact upon tourism, public health, national pride, social progression and, ultimately, a country’s international reputation. One need look no further than KSA to see how sport can be utilised as a conduit for social reform, with women being allowed to attend football games for the first time in 2018. For brands too, events offer an irresistible platform to promote products in an increasingly digital age. In particular, they offer an opportunity to capture the elusive attention of ‘Millennials’ in an increasingly crowded marketplace. This key demographic demands authenticity in the brands they choose and events can help create an authentic brand experience and story, as shown by consumer surveys identifying that 87% of consumers purchase products relating to a brand’s event after attending.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The outlook is not necessarily uniform across the GCC, either in terms of sports and events background or commitment to further development of the sector. We expect that KSA and the UAE will continue to take a lead in these areas, particularly in support of their respective long-term economic development and diversification plans; however, there are significant opportunities elsewhere in the region that will bring opportunities for well-positioned clients, particularly in Qatar (in the build-up to the 2022 World Cup) and Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With Expo 2020 on the immediate horizon, the time to turn good planning and mindful preparation into active strategies to position participants, suppliers and stakeholders across the spectrum is squarely upon us as stakeholders in the sector. These are also certainly exciting times for the Sports and Events Management industry in the Middle East. With a history of success built in a short period of time over a wide array of events, there is a level of expectation and diversification that suggests the sports and events landscape remains promising. We will continue to closely monitor these developments with our local presence throughout the region whilst engaging with regulators and stakeholders to ensure our clients are best placed to seize the inevitable opportunities that will arise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We hope you will find this edition interesting and information. If you have any queries in relation to any of the articles featured or any other aspect of the Sport &amp; Events Management sector, our dedicated team of sector experts across our network of regional offices will be only too happy to assist.</p>'),
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	(251984,24569,'ReportText','<p dir=\"LTR\" align=\"LEFT\">In this month’s special feature of Law Update we focus on our Sports &amp; Events Management Group, as well as our Expo 2020 practice, and the interesting client issues and sector trends that have been brought into focus over the course of the past year and those which we anticipate will arise in the future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Particular highlights of this edition include an in-depth look at the on-going privatization of football clubs in KSA; an overview of the role that blockchain and other FinTech will play in the sports and events sector going forwards; a look at the rapidly developing regulatory concerns in the nascent e-Sports market; and a special focus on the ramp-up to the grand spectacle that will be Expo 2020.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is beyond doubt that the sports and events sector is booming both globally and regionally. Industry reports predict that the global events industry will grow by 44% between 2017- 2020. In Dubai alone, which now hosts over 300 regular sporting events attracting over 1 million attendees, annual expenditure relating to sport has grown to over $1.7bn. Such growth is symptomatic of the ever-increasing appetite of governmental and non-governmental entities to embrace the sector.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For governmental bodies, events (both sporting and non-sporting) can act as powerful drivers of economic development, which positively impact upon tourism, public health, national pride, social progression and, ultimately, a country’s international reputation. One need look no further than KSA to see how sport can be utilised as a conduit for social reform, with women being allowed to attend football games for the first time in 2018. For brands too, events offer an irresistible platform to promote products in an increasingly digital age. In particular, they offer an opportunity to capture the elusive attention of ‘Millennials’ in an increasingly crowded marketplace. This key demographic demands authenticity in the brands they choose and events can help create an authentic brand experience and story, as shown by consumer surveys identifying that 87% of consumers purchase products relating to a brand’s event after attending.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The outlook is not necessarily uniform across the GCC, either in terms of sports and events background or commitment to further development of the sector. We expect that KSA and the UAE will continue to take a lead in these areas, particularly in support of their respective long-term economic development and diversification plans; however, there are significant opportunities elsewhere in the region that will bring opportunities for well-positioned clients, particularly in Qatar (in the build-up to the 2022 World Cup) and Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With Expo 2020 on the immediate horizon, the time to turn good planning and mindful preparation into active strategies to position participants, suppliers and stakeholders across the spectrum is squarely upon us as stakeholders in the sector. These are also certainly exciting times for the Sports and Events Management industry in the Middle East. With a history of success built in a short period of time over a wide array of events, there is a level of expectation and diversification that suggests the sports and events landscape remains promising. We will continue to closely monitor these developments with our local presence throughout the region whilst engaging with regulators and stakeholders to ensure our clients are best placed to seize the inevitable opportunities that will arise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We hope you will find this edition interesting and information. If you have any queries in relation to any of the articles featured or any other aspect of the Sport &amp; Events Management sector, our dedicated team of sector experts across our network of regional offices will be only too happy to assist.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8049 size-large\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/LU-Cover_Red-01-534x1024.jpg\" alt=\"\" width=\"534\" height=\"1024\" />In this month’s special feature of Law Update we focus on our Sports &amp; Events Management Group, as well as our Expo 2020 practice, and the interesting client issues and sector trends that have been brought into focus over the course of the past year and those which we anticipate will arise in the future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Particular highlights of this edition include an in-depth look at the on-going privatization of football clubs in KSA; an overview of the role that blockchain and other FinTech will play in the sports and events sector going forwards; a look at the rapidly developing regulatory concerns in the nascent e-Sports market; and a special focus on the ramp-up to the grand spectacle that will be Expo 2020.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is beyond doubt that the sports and events sector is booming both globally and regionally. Industry reports predict that the global events industry will grow by 44% between 2017- 2020. In Dubai alone, which now hosts over 300 regular sporting events attracting over 1 million attendees, annual expenditure relating to sport has grown to over $1.7bn. Such growth is symptomatic of the ever-increasing appetite of governmental and non-governmental entities to embrace the sector.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For governmental bodies, events (both sporting and non-sporting) can act as powerful drivers of economic development, which positively impact upon tourism, public health, national pride, social progression and, ultimately, a country’s international reputation. One need look no further than KSA to see how sport can be utilised as a conduit for social reform, with women being allowed to attend football games for the first time in 2018. For brands too, events offer an irresistible platform to promote products in an increasingly digital age. In particular, they offer an opportunity to capture the elusive attention of ‘Millennials’ in an increasingly crowded marketplace. This key demographic demands authenticity in the brands they choose and events can help create an authentic brand experience and story, as shown by consumer surveys identifying that 87% of consumers purchase products relating to a brand’s event after attending.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The outlook is not necessarily uniform across the GCC, either in terms of sports and events background or commitment to further development of the sector. We expect that KSA and the UAE will continue to take a lead in these areas, particularly in support of their respective long-term economic development and diversification plans; however, there are significant opportunities elsewhere in the region that will bring opportunities for well-positioned clients, particularly in Qatar (in the build-up to the 2022 World Cup) and Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With Expo 2020 on the immediate horizon, the time to turn good planning and mindful preparation into active strategies to position participants, suppliers and stakeholders across the spectrum is squarely upon us as stakeholders in the sector. These are also certainly exciting times for the Sports and Events Management industry in the Middle East. With a history of success built in a short period of time over a wide array of events, there is a level of expectation and diversification that suggests the sports and events landscape remains promising. We will continue to closely monitor these developments with our local presence throughout the region whilst engaging with regulators and stakeholders to ensure our clients are best placed to seize the inevitable opportunities that will arise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We hope you will find this edition interesting and information. If you have any queries in relation to any of the articles featured or any other aspect of the Sport &amp; Events Management sector, our dedicated team of sector experts across our network of regional offices will be only too happy to assist.</p>'),
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	(252194,24587,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8050 \" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/hgfhf-796x1024.jpg\" alt=\"\" width=\"539\" height=\"694\" />In this month’s special feature of Law Update we focus on our Sports &amp; Events Management Group, as well as our Expo 2020 practice, and the interesting client issues and sector trends that have been brought into focus over the course of the past year and those which we anticipate will arise in the future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Particular highlights of this edition include an in-depth look at the on-going privatization of football clubs in KSA; an overview of the role that blockchain and other FinTech will play in the sports and events sector going forwards; a look at the rapidly developing regulatory concerns in the nascent e-Sports market; and a special focus on the ramp-up to the grand spectacle that will be Expo 2020.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is beyond doubt that the sports and events sector is booming both globally and regionally. Industry reports predict that the global events industry will grow by 44% between 2017- 2020. In Dubai alone, which now hosts over 300 regular sporting events attracting over 1 million attendees, annual expenditure relating to sport has grown to over $1.7bn. Such growth is symptomatic of the ever-increasing appetite of governmental and non-governmental entities to embrace the sector.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For governmental bodies, events (both sporting and non-sporting) can act as powerful drivers of economic development, which positively impact upon tourism, public health, national pride, social progression and, ultimately, a country’s international reputation. One need look no further than KSA to see how sport can be utilised as a conduit for social reform, with women being allowed to attend football games for the first time in 2018. For brands too, events offer an irresistible platform to promote products in an increasingly digital age. In particular, they offer an opportunity to capture the elusive attention of ‘Millennials’ in an increasingly crowded marketplace. This key demographic demands authenticity in the brands they choose and events can help create an authentic brand experience and story, as shown by consumer surveys identifying that 87% of consumers purchase products relating to a brand’s event after attending.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The outlook is not necessarily uniform across the GCC, either in terms of sports and events background or commitment to further development of the sector. We expect that KSA and the UAE will continue to take a lead in these areas, particularly in support of their respective long-term economic development and diversification plans; however, there are significant opportunities elsewhere in the region that will bring opportunities for well-positioned clients, particularly in Qatar (in the build-up to the 2022 World Cup) and Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With Expo 2020 on the immediate horizon, the time to turn good planning and mindful preparation into active strategies to position participants, suppliers and stakeholders across the spectrum is squarely upon us as stakeholders in the sector. These are also certainly exciting times for the Sports and Events Management industry in the Middle East. With a history of success built in a short period of time over a wide array of events, there is a level of expectation and diversification that suggests the sports and events landscape remains promising. We will continue to closely monitor these developments with our local presence throughout the region whilst engaging with regulators and stakeholders to ensure our clients are best placed to seize the inevitable opportunities that will arise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We hope you will find this edition interesting and information. If you have any queries in relation to any of the articles featured or any other aspect of the Sport &amp; Events Management sector, our dedicated team of sector experts across our network of regional offices will be only too happy to assist.</p>'),
	(252195,24587,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8050 \" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/hgfhf-796x1024.jpg\" alt=\"\" width=\"502\" height=\"646\" />In this month’s special feature of Law Update we focus on our Sports &amp; Events Management Group, as well as our Expo 2020 practice, and the interesting client issues and sector trends that have been brought into focus over the course of the past year and those which we anticipate will arise in the future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Particular highlights of this edition include an in-depth look at the on-going privatization of football clubs in KSA; an overview of the role that blockchain and other FinTech will play in the sports and events sector going forwards; a look at the rapidly developing regulatory concerns in the nascent e-Sports market; and a special focus on the ramp-up to the grand spectacle that will be Expo 2020.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is beyond doubt that the sports and events sector is booming both globally and regionally. Industry reports predict that the global events industry will grow by 44% between 2017- 2020. In Dubai alone, which now hosts over 300 regular sporting events attracting over 1 million attendees, annual expenditure relating to sport has grown to over $1.7bn. Such growth is symptomatic of the ever-increasing appetite of governmental and non-governmental entities to embrace the sector.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For governmental bodies, events (both sporting and non-sporting) can act as powerful drivers of economic development, which positively impact upon tourism, public health, national pride, social progression and, ultimately, a country’s international reputation. One need look no further than KSA to see how sport can be utilised as a conduit for social reform, with women being allowed to attend football games for the first time in 2018. For brands too, events offer an irresistible platform to promote products in an increasingly digital age. In particular, they offer an opportunity to capture the elusive attention of ‘Millennials’ in an increasingly crowded marketplace. This key demographic demands authenticity in the brands they choose and events can help create an authentic brand experience and story, as shown by consumer surveys identifying that 87% of consumers purchase products relating to a brand’s event after attending.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The outlook is not necessarily uniform across the GCC, either in terms of sports and events background or commitment to further development of the sector. We expect that KSA and the UAE will continue to take a lead in these areas, particularly in support of their respective long-term economic development and diversification plans; however, there are significant opportunities elsewhere in the region that will bring opportunities for well-positioned clients, particularly in Qatar (in the build-up to the 2022 World Cup) and Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With Expo 2020 on the immediate horizon, the time to turn good planning and mindful preparation into active strategies to position participants, suppliers and stakeholders across the spectrum is squarely upon us as stakeholders in the sector. These are also certainly exciting times for the Sports and Events Management industry in the Middle East. With a history of success built in a short period of time over a wide array of events, there is a level of expectation and diversification that suggests the sports and events landscape remains promising. We will continue to closely monitor these developments with our local presence throughout the region whilst engaging with regulators and stakeholders to ensure our clients are best placed to seize the inevitable opportunities that will arise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We hope you will find this edition interesting and information. If you have any queries in relation to any of the articles featured or any other aspect of the Sport &amp; Events Management sector, our dedicated team of sector experts across our network of regional offices will be only too happy to assist.</p>'),
	(252196,24587,'MetaLink','content'),
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	(252198,24587,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8050 \" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/hgfhf-796x1024.jpg\" alt=\"\" width=\"502\" height=\"646\" />In this month’s special feature of Law Update we focus on our Sports &amp; Events Management Group, as well as our Expo 2020 practice, and the interesting client issues and sector trends that have been brought into focus over the course of the past year and those which we anticipate will arise in the future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Particular highlights of this edition include an in-depth look at the on-going privatization of football clubs in KSA; an overview of the role that blockchain and other FinTech will play in the sports and events sector going forwards; a look at the rapidly developing regulatory concerns in the nascent e-Sports market; and a special focus on the ramp-up to the grand spectacle that will be Expo 2020.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is beyond doubt that the sports and events sector is booming both globally and regionally. Industry reports predict that the global events industry will grow by 44% between 2017- 2020. In Dubai alone, which now hosts over 300 regular sporting events attracting over 1 million attendees, annual expenditure relating to sport has grown to over $1.7bn. Such growth is symptomatic of the ever-increasing appetite of governmental and non-governmental entities to embrace the sector.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For governmental bodies, events (both sporting and non-sporting) can act as powerful drivers of economic development, which positively impact upon tourism, public health, national pride, social progression and, ultimately, a country’s international reputation. One need look no further than KSA to see how sport can be utilised as a conduit for social reform, with women being allowed to attend football games for the first time in 2018. For brands too, events offer an irresistible platform to promote products in an increasingly digital age. In particular, they offer an opportunity to capture the elusive attention of ‘Millennials’ in an increasingly crowded marketplace. This key demographic demands authenticity in the brands they choose and events can help create an authentic brand experience and story, as shown by consumer surveys identifying that 87% of consumers purchase products relating to a brand’s event after attending.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The outlook is not necessarily uniform across the GCC, either in terms of sports and events background or commitment to further development of the sector. We expect that KSA and the UAE will continue to take a lead in these areas, particularly in support of their respective long-term economic development and diversification plans; however, there are significant opportunities elsewhere in the region that will bring opportunities for well-positioned clients, particularly in Qatar (in the build-up to the 2022 World Cup) and Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With Expo 2020 on the immediate horizon, the time to turn good planning and mindful preparation into active strategies to position participants, suppliers and stakeholders across the spectrum is squarely upon us as stakeholders in the sector. These are also certainly exciting times for the Sports and Events Management industry in the Middle East. With a history of success built in a short period of time over a wide array of events, there is a level of expectation and diversification that suggests the sports and events landscape remains promising. We will continue to closely monitor these developments with our local presence throughout the region whilst engaging with regulators and stakeholders to ensure our clients are best placed to seize the inevitable opportunities that will arise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We hope you will find this edition interesting and information. If you have any queries in relation to any of the articles featured or any other aspect of the Sport &amp; Events Management sector, our dedicated team of sector experts across our network of regional offices will be only too happy to assist.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8050 \" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/hgfhf-796x1024.jpg\" alt=\"\" width=\"539\" height=\"694\" />In this month’s special feature of Law Update we focus on our Sports &amp; Events Management Group, as well as our Expo 2020 practice, and the interesting client issues and sector trends that have been brought into focus over the course of the past year and those which we anticipate will arise in the future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Particular highlights of this edition include an in-depth look at the on-going privatization of football clubs in KSA; an overview of the role that blockchain and other FinTech will play in the sports and events sector going forwards; a look at the rapidly developing regulatory concerns in the nascent e-Sports market; and a special focus on the ramp-up to the grand spectacle that will be Expo 2020.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is beyond doubt that the sports and events sector is booming both globally and regionally. Industry reports predict that the global events industry will grow by 44% between 2017- 2020. In Dubai alone, which now hosts over 300 regular sporting events attracting over 1 million attendees, annual expenditure relating to sport has grown to over $1.7bn. Such growth is symptomatic of the ever-increasing appetite of governmental and non-governmental entities to embrace the sector.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For governmental bodies, events (both sporting and non-sporting) can act as powerful drivers of economic development, which positively impact upon tourism, public health, national pride, social progression and, ultimately, a country’s international reputation. One need look no further than KSA to see how sport can be utilised as a conduit for social reform, with women being allowed to attend football games for the first time in 2018. For brands too, events offer an irresistible platform to promote products in an increasingly digital age. In particular, they offer an opportunity to capture the elusive attention of ‘Millennials’ in an increasingly crowded marketplace. This key demographic demands authenticity in the brands they choose and events can help create an authentic brand experience and story, as shown by consumer surveys identifying that 87% of consumers purchase products relating to a brand’s event after attending.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The outlook is not necessarily uniform across the GCC, either in terms of sports and events background or commitment to further development of the sector. We expect that KSA and the UAE will continue to take a lead in these areas, particularly in support of their respective long-term economic development and diversification plans; however, there are significant opportunities elsewhere in the region that will bring opportunities for well-positioned clients, particularly in Qatar (in the build-up to the 2022 World Cup) and Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With Expo 2020 on the immediate horizon, the time to turn good planning and mindful preparation into active strategies to position participants, suppliers and stakeholders across the spectrum is squarely upon us as stakeholders in the sector. These are also certainly exciting times for the Sports and Events Management industry in the Middle East. With a history of success built in a short period of time over a wide array of events, there is a level of expectation and diversification that suggests the sports and events landscape remains promising. We will continue to closely monitor these developments with our local presence throughout the region whilst engaging with regulators and stakeholders to ensure our clients are best placed to seize the inevitable opportunities that will arise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We hope you will find this edition interesting and information. If you have any queries in relation to any of the articles featured or any other aspect of the Sport &amp; Events Management sector, our dedicated team of sector experts across our network of regional offices will be only too happy to assist.</p>'),
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	(252244,24591,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8050 \" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/hgfhf-796x1024.jpg\" alt=\"\" width=\"363\" height=\"467\" />In this month’s special feature of Law Update we focus on our Sports &amp; Events Management Group, as well as our Expo 2020 practice, and the interesting client issues and sector trends that have been brought into focus over the course of the past year and those which we anticipate will arise in the future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Particular highlights of this edition include an in-depth look at the on-going privatization of football clubs in KSA; an overview of the role that blockchain and other FinTech will play in the sports and events sector going forwards; a look at the rapidly developing regulatory concerns in the nascent e-Sports market; and a special focus on the ramp-up to the grand spectacle that will be Expo 2020.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is beyond doubt that the sports and events sector is booming both globally and regionally. Industry reports predict that the global events industry will grow by 44% between 2017- 2020. In Dubai alone, which now hosts over 300 regular sporting events attracting over 1 million attendees, annual expenditure relating to sport has grown to over $1.7bn. Such growth is symptomatic of the ever-increasing appetite of governmental and non-governmental entities to embrace the sector.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For governmental bodies, events (both sporting and non-sporting) can act as powerful drivers of economic development, which positively impact upon tourism, public health, national pride, social progression and, ultimately, a country’s international reputation. One need look no further than KSA to see how sport can be utilised as a conduit for social reform, with women being allowed to attend football games for the first time in 2018. For brands too, events offer an irresistible platform to promote products in an increasingly digital age. In particular, they offer an opportunity to capture the elusive attention of ‘Millennials’ in an increasingly crowded marketplace. This key demographic demands authenticity in the brands they choose and events can help create an authentic brand experience and story, as shown by consumer surveys identifying that 87% of consumers purchase products relating to a brand’s event after attending.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The outlook is not necessarily uniform across the GCC, either in terms of sports and events background or commitment to further development of the sector. We expect that KSA and the UAE will continue to take a lead in these areas, particularly in support of their respective long-term economic development and diversification plans; however, there are significant opportunities elsewhere in the region that will bring opportunities for well-positioned clients, particularly in Qatar (in the build-up to the 2022 World Cup) and Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With Expo 2020 on the immediate horizon, the time to turn good planning and mindful preparation into active strategies to position participants, suppliers and stakeholders across the spectrum is squarely upon us as stakeholders in the sector. These are also certainly exciting times for the Sports and Events Management industry in the Middle East. With a history of success built in a short period of time over a wide array of events, there is a level of expectation and diversification that suggests the sports and events landscape remains promising. We will continue to closely monitor these developments with our local presence throughout the region whilst engaging with regulators and stakeholders to ensure our clients are best placed to seize the inevitable opportunities that will arise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We hope you will find this edition interesting and information. If you have any queries in relation to any of the articles featured or any other aspect of the Sport &amp; Events Management sector, our dedicated team of sector experts across our network of regional offices will be only too happy to assist.</p>'),
	(252245,24591,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8050 \" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/hgfhf-796x1024.jpg\" alt=\"\" width=\"539\" height=\"694\" />In this month’s special feature of Law Update we focus on our Sports &amp; Events Management Group, as well as our Expo 2020 practice, and the interesting client issues and sector trends that have been brought into focus over the course of the past year and those which we anticipate will arise in the future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Particular highlights of this edition include an in-depth look at the on-going privatization of football clubs in KSA; an overview of the role that blockchain and other FinTech will play in the sports and events sector going forwards; a look at the rapidly developing regulatory concerns in the nascent e-Sports market; and a special focus on the ramp-up to the grand spectacle that will be Expo 2020.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is beyond doubt that the sports and events sector is booming both globally and regionally. Industry reports predict that the global events industry will grow by 44% between 2017- 2020. In Dubai alone, which now hosts over 300 regular sporting events attracting over 1 million attendees, annual expenditure relating to sport has grown to over $1.7bn. Such growth is symptomatic of the ever-increasing appetite of governmental and non-governmental entities to embrace the sector.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For governmental bodies, events (both sporting and non-sporting) can act as powerful drivers of economic development, which positively impact upon tourism, public health, national pride, social progression and, ultimately, a country’s international reputation. One need look no further than KSA to see how sport can be utilised as a conduit for social reform, with women being allowed to attend football games for the first time in 2018. For brands too, events offer an irresistible platform to promote products in an increasingly digital age. In particular, they offer an opportunity to capture the elusive attention of ‘Millennials’ in an increasingly crowded marketplace. This key demographic demands authenticity in the brands they choose and events can help create an authentic brand experience and story, as shown by consumer surveys identifying that 87% of consumers purchase products relating to a brand’s event after attending.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The outlook is not necessarily uniform across the GCC, either in terms of sports and events background or commitment to further development of the sector. We expect that KSA and the UAE will continue to take a lead in these areas, particularly in support of their respective long-term economic development and diversification plans; however, there are significant opportunities elsewhere in the region that will bring opportunities for well-positioned clients, particularly in Qatar (in the build-up to the 2022 World Cup) and Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With Expo 2020 on the immediate horizon, the time to turn good planning and mindful preparation into active strategies to position participants, suppliers and stakeholders across the spectrum is squarely upon us as stakeholders in the sector. These are also certainly exciting times for the Sports and Events Management industry in the Middle East. With a history of success built in a short period of time over a wide array of events, there is a level of expectation and diversification that suggests the sports and events landscape remains promising. We will continue to closely monitor these developments with our local presence throughout the region whilst engaging with regulators and stakeholders to ensure our clients are best placed to seize the inevitable opportunities that will arise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We hope you will find this edition interesting and information. If you have any queries in relation to any of the articles featured or any other aspect of the Sport &amp; Events Management sector, our dedicated team of sector experts across our network of regional offices will be only too happy to assist.</p>'),
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	(252248,24591,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8050 \" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/hgfhf-796x1024.jpg\" alt=\"\" width=\"539\" height=\"694\" />In this month’s special feature of Law Update we focus on our Sports &amp; Events Management Group, as well as our Expo 2020 practice, and the interesting client issues and sector trends that have been brought into focus over the course of the past year and those which we anticipate will arise in the future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Particular highlights of this edition include an in-depth look at the on-going privatization of football clubs in KSA; an overview of the role that blockchain and other FinTech will play in the sports and events sector going forwards; a look at the rapidly developing regulatory concerns in the nascent e-Sports market; and a special focus on the ramp-up to the grand spectacle that will be Expo 2020.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is beyond doubt that the sports and events sector is booming both globally and regionally. 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In particular, they offer an opportunity to capture the elusive attention of ‘Millennials’ in an increasingly crowded marketplace. This key demographic demands authenticity in the brands they choose and events can help create an authentic brand experience and story, as shown by consumer surveys identifying that 87% of consumers purchase products relating to a brand’s event after attending.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The outlook is not necessarily uniform across the GCC, either in terms of sports and events background or commitment to further development of the sector. We expect that KSA and the UAE will continue to take a lead in these areas, particularly in support of their respective long-term economic development and diversification plans; however, there are significant opportunities elsewhere in the region that will bring opportunities for well-positioned clients, particularly in Qatar (in the build-up to the 2022 World Cup) and Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With Expo 2020 on the immediate horizon, the time to turn good planning and mindful preparation into active strategies to position participants, suppliers and stakeholders across the spectrum is squarely upon us as stakeholders in the sector. These are also certainly exciting times for the Sports and Events Management industry in the Middle East. With a history of success built in a short period of time over a wide array of events, there is a level of expectation and diversification that suggests the sports and events landscape remains promising. We will continue to closely monitor these developments with our local presence throughout the region whilst engaging with regulators and stakeholders to ensure our clients are best placed to seize the inevitable opportunities that will arise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We hope you will find this edition interesting and information. If you have any queries in relation to any of the articles featured or any other aspect of the Sport &amp; Events Management sector, our dedicated team of sector experts across our network of regional offices will be only too happy to assist.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8050 \" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/hgfhf-796x1024.jpg\" alt=\"\" width=\"363\" height=\"467\" />In this month’s special feature of Law Update we focus on our Sports &amp; Events Management Group, as well as our Expo 2020 practice, and the interesting client issues and sector trends that have been brought into focus over the course of the past year and those which we anticipate will arise in the future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Particular highlights of this edition include an in-depth look at the on-going privatization of football clubs in KSA; an overview of the role that blockchain and other FinTech will play in the sports and events sector going forwards; a look at the rapidly developing regulatory concerns in the nascent e-Sports market; and a special focus on the ramp-up to the grand spectacle that will be Expo 2020.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is beyond doubt that the sports and events sector is booming both globally and regionally. Industry reports predict that the global events industry will grow by 44% between 2017- 2020. In Dubai alone, which now hosts over 300 regular sporting events attracting over 1 million attendees, annual expenditure relating to sport has grown to over $1.7bn. Such growth is symptomatic of the ever-increasing appetite of governmental and non-governmental entities to embrace the sector.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For governmental bodies, events (both sporting and non-sporting) can act as powerful drivers of economic development, which positively impact upon tourism, public health, national pride, social progression and, ultimately, a country’s international reputation. One need look no further than KSA to see how sport can be utilised as a conduit for social reform, with women being allowed to attend football games for the first time in 2018. For brands too, events offer an irresistible platform to promote products in an increasingly digital age. In particular, they offer an opportunity to capture the elusive attention of ‘Millennials’ in an increasingly crowded marketplace. This key demographic demands authenticity in the brands they choose and events can help create an authentic brand experience and story, as shown by consumer surveys identifying that 87% of consumers purchase products relating to a brand’s event after attending.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The outlook is not necessarily uniform across the GCC, either in terms of sports and events background or commitment to further development of the sector. We expect that KSA and the UAE will continue to take a lead in these areas, particularly in support of their respective long-term economic development and diversification plans; however, there are significant opportunities elsewhere in the region that will bring opportunities for well-positioned clients, particularly in Qatar (in the build-up to the 2022 World Cup) and Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With Expo 2020 on the immediate horizon, the time to turn good planning and mindful preparation into active strategies to position participants, suppliers and stakeholders across the spectrum is squarely upon us as stakeholders in the sector. These are also certainly exciting times for the Sports and Events Management industry in the Middle East. With a history of success built in a short period of time over a wide array of events, there is a level of expectation and diversification that suggests the sports and events landscape remains promising. We will continue to closely monitor these developments with our local presence throughout the region whilst engaging with regulators and stakeholders to ensure our clients are best placed to seize the inevitable opportunities that will arise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We hope you will find this edition interesting and information. If you have any queries in relation to any of the articles featured or any other aspect of the Sport &amp; Events Management sector, our dedicated team of sector experts across our network of regional offices will be only too happy to assist.</p>'),
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	(254127,24753,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">It is rare for arbitrators to be sued in the UAE although the prospect of such steps being taken has garnered much press interest in recent times. The new 2018 arbitration law (UAE Federal Arbitration Law No. 6 of 2018) does not address the issue, and the old law (Articles 208 to 218 of UAE Civil Procedure Law No. 11 of 1992) merely stated that an arbitrator could be liable for damages if the arbitrator resigns without a good reason. However, a recent Dubai Court of Cassation judgment (No. 484 of 2017) has considered the issue and provided helpful guidance. This article considers this important judgment and its implications.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A developer, Al Sayyah &amp; Sons Investments LLC (the \"Developer\"), sold various units off-plan in a tower it was developing in Dubai Marina. Various purchasers assigned their rights under the sale and purchase agreements they had with the Developer to a real estate finance company, Amlak.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Amlak initiated DIAC arbitration proceedings against the Developer, alleging that the units (now built) were not in conformity with the agreements.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In July 2012 DIAC appointed the sole arbitrator (\"Arbitrator No.1\"). He issued a partial award in November 2013 determining jurisdictional issues. Arbitrator No.1 resigned in December 2013 due to issues regarding impartiality. Arbitrator No.2 was subsequently appointed as the sole arbitrator by DIAC. Arbitrator No 2 issued a final award against the Developer. The award ordered that the Developer pay Amlak AED 46.5m plus interest, as well as AED 466,788 in arbitration costs. Arbitrator No 2 issued a supplemental award to correct accounting calculation errors in the final award which reduced the amount payable to AED 42.7m.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The final award was ratified by the Dubai Courts and an amount of AED 42.7m was paid in full by the Developer to Amlak.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Claim Before the Courts</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Developer then filed a claim before the Dubai Court of First Instance alleging that the two arbitrators had committed material errors in their respective awards. It was claimed that:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">The two arbitrators lacked capacity to decide the dispute.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.1 erred in his award on jurisdiction by holding that Al Sayyah &amp; Sons Investments LLC and Al Sayyah Investments were the same legal entity. Arbitrator No.2 made the same error by relying on and adopting the terms of the partial award in issuing the final award.</li>\r\n 	<li dir=\"LTR\">The Developer was not a party to the agreements containing the arbitration clause.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 had denied the Developer’s right to submit its defence as Amlak should have been ordered to submit the original agreements.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 had altered the terms of the agreement in order to render the final award and had failed to address the issue of lack of jurisdiction.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 failed to include the names of the unit owners and misrepresented the unit area data as set out in the architect’s report in his supplemental award.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 failed to take into consideration the relevant Land Department documents delineating the gross area of the units when making the final award.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">For the above reasons the Developer asserted that they were wrongfully ordered to pay Amlak the AED 42m and sought that both arbitrators be held jointly and severally liable to repay this money to the Developer.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of First Instance dismissed the Developer’s claim in January 2017. This was upheld by the Dubai Court of Appeal in September 2017. The Developer appealed to the Dubai Court of Cassation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Dubai Court of Cassation judgment</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 21 December 2017 the Court of Cassation dismissed the appeal. The Court of Cassation explained that in order for an arbitrator to be found liable in tort, the following elements had to be proved by the claimant:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">There had been an act or omission by the arbitrator;</li>\r\n 	<li dir=\"LTR\">Harm was incurred by the claimant; and</li>\r\n 	<li dir=\"LTR\">There was a causal link between the act or omission and the harm caused.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Significantly, the Court then went further and stated that the act or omission would need to be \"a serious mistake tainted by deceit, fraud, collusion with the opponent, or refusal to act without acceptable justification. An ordinary mistake or negligence, whether in judgment or procedure, is not sufficient to hold the arbitrator liable unless it is a serious mistake or fraud\".</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court held that it is for the trial court to examine the evidence and determine whether an arbitrator is liable. In this case the Court held that the errors which the Developer alleged were errors of judgment for which the two arbitrators could not be sued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Step in the Right Direction</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court found that it was not enough for the claimant to demonstrate that an arbitrator made an error that had caused loss to the claimant. The error has to be a ‘serious mistake’ or one tainted by fraud or deceit or otherwise inexplicable. This suggests a high-threshold and one that should give comfort to arbitrators.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This standard of civil liability is in tune with the threshold found in other laws. Both the DIFC and the ADGM have arbitration laws stating that an arbitrator will not be liable ‘unless they are shown to have caused damage by conscious and deliberate wrongdoing’ (Article 22 of the DIFC Arbitration Law 2008; Article 23 of the ADGM Arbitration Regulations 2015).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Many arbitral rules contain terms stating that the parties agree not to sue the arbitrator. This includes the DIAC rules which state, at Article 40, that no member of a tribunal shall be liable in connection with the arbitration. It is not clear why this was not referred to by the Court in its judgment, but its absence leaves open the question of whether an arbitrator’s liability under the law can be further limited by the consent of the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This Court of Cassation judgment is definitely a positive step forward. It should make arbitrator’s feel more confident that whilst they are not immune from suit, they are protected from spurious claims brought by disgruntled parties.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi uniquely possesses the capability to litigate before both of the financial free zone courts and conduct litigation before the UAE Federal Courts and the courts of each individual Emirate. <a href=\"http://localhost:8888/tamimi/practice/arbitration/\">Al Tamimi &amp; Company’s Arbitration team</a> regularly advises on international investment and commercial arbitration. For further information, please contact Dr. Hassan Arab (<a href=\"mailto:h.arab@tamimi.com\">h.arab@tamimi.com</a>) or Dalal Al Houti (<a href=\"mailto:D.Alhouti@tamimi.com\">D.Alhouti@tamimi.com</a>).</em>'),
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	(254130,24753,'ReportText','<p dir=\"LTR\" align=\"LEFT\">It is rare for arbitrators to be sued in the UAE although the prospect of such steps being taken has garnered much press interest in recent times. The new 2018 arbitration law (UAE Federal Arbitration Law No. 6 of 2018) does not address the issue, and the old law (Articles 208 to 218 of UAE Civil Procedure Law No. 11 of 1992) merely stated that an arbitrator could be liable for damages if the arbitrator resigns without a good reason. However, a recent Dubai Court of Cassation judgment (No. 484 of 2017) has considered the issue and provided helpful guidance. This article considers this important judgment and its implications.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A developer, Al Sayyah &amp; Sons Investments LLC (the \"Developer\"), sold various units off-plan in a tower it was developing in Dubai Marina. Various purchasers assigned their rights under the sale and purchase agreements they had with the Developer to a real estate finance company, Amlak.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Amlak initiated DIAC arbitration proceedings against the Developer, alleging that the units (now built) were not in conformity with the agreements.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In July 2012 DIAC appointed the sole arbitrator (\"Arbitrator No.1\"). He issued a partial award in November 2013 determining jurisdictional issues. Arbitrator No.1 resigned in December 2013 due to issues regarding impartiality. Arbitrator No.2 was subsequently appointed as the sole arbitrator by DIAC. Arbitrator No 2 issued a final award against the Developer. The award ordered that the Developer pay Amlak AED 46.5m plus interest, as well as AED 466,788 in arbitration costs. Arbitrator No 2 issued a supplemental award to correct accounting calculation errors in the final award which reduced the amount payable to AED 42.7m.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The final award was ratified by the Dubai Courts and an amount of AED 42.7m was paid in full by the Developer to Amlak.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Claim Before the Courts</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Developer then filed a claim before the Dubai Court of First Instance alleging that the two arbitrators had committed material errors in their respective awards. It was claimed that:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">The two arbitrators lacked capacity to decide the dispute.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.1 erred in his award on jurisdiction by holding that Al Sayyah &amp; Sons Investments LLC and Al Sayyah Investments were the same legal entity. Arbitrator No.2 made the same error by relying on and adopting the terms of the partial award in issuing the final award.</li>\r\n 	<li dir=\"LTR\">The Developer was not a party to the agreements containing the arbitration clause.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 had denied the Developer’s right to submit its defence as Amlak should have been ordered to submit the original agreements.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 had altered the terms of the agreement in order to render the final award and had failed to address the issue of lack of jurisdiction.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 failed to include the names of the unit owners and misrepresented the unit area data as set out in the architect’s report in his supplemental award.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 failed to take into consideration the relevant Land Department documents delineating the gross area of the units when making the final award.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">For the above reasons the Developer asserted that they were wrongfully ordered to pay Amlak the AED 42m and sought that both arbitrators be held jointly and severally liable to repay this money to the Developer.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of First Instance dismissed the Developer’s claim in January 2017. This was upheld by the Dubai Court of Appeal in September 2017. The Developer appealed to the Dubai Court of Cassation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Dubai Court of Cassation judgment</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 21 December 2017 the Court of Cassation dismissed the appeal. The Court of Cassation explained that in order for an arbitrator to be found liable in tort, the following elements had to be proved by the claimant:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">There had been an act or omission by the arbitrator;</li>\r\n 	<li dir=\"LTR\">Harm was incurred by the claimant; and</li>\r\n 	<li dir=\"LTR\">There was a causal link between the act or omission and the harm caused.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Significantly, the Court then went further and stated that the act or omission would need to be \"a serious mistake tainted by deceit, fraud, collusion with the opponent, or refusal to act without acceptable justification. An ordinary mistake or negligence, whether in judgment or procedure, is not sufficient to hold the arbitrator liable unless it is a serious mistake or fraud\".</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court held that it is for the trial court to examine the evidence and determine whether an arbitrator is liable. In this case the Court held that the errors which the Developer alleged were errors of judgment for which the two arbitrators could not be sued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Step in the Right Direction</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court found that it was not enough for the claimant to demonstrate that an arbitrator made an error that had caused loss to the claimant. The error has to be a ‘serious mistake’ or one tainted by fraud or deceit or otherwise inexplicable. This suggests a high-threshold and one that should give comfort to arbitrators.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This standard of civil liability is in tune with the threshold found in other laws. Both the DIFC and the ADGM have arbitration laws stating that an arbitrator will not be liable ‘unless they are shown to have caused damage by conscious and deliberate wrongdoing’ (Article 22 of the DIFC Arbitration Law 2008; Article 23 of the ADGM Arbitration Regulations 2015).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Many arbitral rules contain terms stating that the parties agree not to sue the arbitrator. This includes the DIAC rules which state, at Article 40, that no member of a tribunal shall be liable in connection with the arbitration. It is not clear why this was not referred to by the Court in its judgment, but its absence leaves open the question of whether an arbitrator’s liability under the law can be further limited by the consent of the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This Court of Cassation judgment is definitely a positive step forward. It should make arbitrator’s feel more confident that whilst they are not immune from suit, they are protected from spurious claims brought by disgruntled parties.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi uniquely possesses the capability to litigate before both of the financial free zone courts and conduct litigation before the UAE Federal Courts and the courts of each individual Emirate. <a href=\"http://localhost:8888/tamimi/practice/arbitration/\">Al Tamimi &amp; Company’s Arbitration team</a> regularly advises on international investment and commercial arbitration. For further information, please contact Dr. Hassan Arab (<a href=\"mailto:h.arab@tamimi.com\">h.arab@tamimi.com</a>) or Dalal Al Houti (<a href=\"mailto:D.Alhouti@tamimi.com\">D.Alhouti@tamimi.com</a>).</em>|<p dir=\"LTR\" align=\"LEFT\">It is rare for arbitrators to be sued in the UAE although the prospect of such steps being taken has garnered much press interest in recent times. The new 2018 arbitration law (UAE Federal Arbitration Law No. 6 of 2018) does not address the issue, and the old law (Articles 208 to 218 of UAE Civil Procedure Law No. 11 of 1992) merely stated that an arbitrator could be liable for damages if the arbitrator resigns without a good reason. However, a recent Dubai Court of Cassation judgment (No. 484 of 2017) has considered the issue and provided helpful guidance. This article considers this important judgment and its implications.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A developer, Al Sayyah &amp; Sons Investments LLC (the \"Developer\"), sold various units off-plan in a tower it was developing in Dubai Marina. Various purchasers assigned their rights under the sale and purchase agreements they had with the Developer to a real estate finance company, Amlak.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Amlak initiated DIAC arbitration proceedings against the Developer, alleging that the units (now built) were not in conformity with the agreements.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In July 2012 DIAC appointed the sole arbitrator (\"Arbitrator No.1\"). He issued a partial award in November 2013 determining jurisdictional issues. Arbitrator No.1 resigned in December 2013 due to issues regarding impartiality. Arbitrator No.2 was subsequently appointed as the sole arbitrator by DIAC. Arbitrator No 2 issued a final award against the Developer. The award ordered that the Developer pay Amlak AED 46.5m plus interest, as well as AED 466,788 in arbitration costs. Arbitrator No 2 issued a supplemental award to correct accounting calculation errors in the final award which reduced the amount payable to AED 42.7m.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The final award was ratified by the Dubai Courts and an amount of AED 42.7m was paid in full by the Developer to Amlak.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Claim Before the Courts</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Developer then filed a claim before the Dubai Court of First Instance alleging that the two arbitrators had committed material errors in their respective awards. It was claimed that:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">The two arbitrators lacked capacity to decide the dispute.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.1 erred in his award on jurisdiction by holding that Al Sayyah &amp; Sons Investments LLC and Al Sayyah Investments were the same legal entity. Arbitrator No.2 made the same error by relying on and adopting the terms of the partial award in issuing the final award.</li>\r\n 	<li dir=\"LTR\">The Developer was not a party to the agreements containing the arbitration clause.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 had denied the Developer’s right to submit its defence as Amlak should have been ordered to submit the original agreements.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 had altered the terms of the agreement in order to render the final award and had failed to address the issue of lack of jurisdiction.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 failed to include the names of the unit owners and misrepresented the unit area data as set out in the architect’s report in his supplemental award.</li>\r\n 	<li dir=\"LTR\">Arbitrator No.2 failed to take into consideration the relevant Land Department documents delineating the gross area of the units when making the final award.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">For the above reasons the Developer asserted that they were wrongfully ordered to pay Amlak the AED 42m and sought that both arbitrators be held jointly and severally liable to repay this money to the Developer.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of First Instance dismissed the Developer’s claim in January 2017. This was upheld by the Dubai Court of Appeal in September 2017. The Developer appealed to the Dubai Court of Cassation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Dubai Court of Cassation judgment</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 21 December 2017 the Court of Cassation dismissed the appeal. The Court of Cassation explained that in order for an arbitrator to be found liable in tort, the following elements had to be proved by the claimant:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">There had been an act or omission by the arbitrator;</li>\r\n 	<li dir=\"LTR\">Harm was incurred by the claimant; and</li>\r\n 	<li dir=\"LTR\">There was a causal link between the act or omission and the harm caused.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Significantly, the Court then went further and stated that the act or omission would need to be \"a serious mistake tainted by deceit, fraud, collusion with the opponent, or refusal to act without acceptable justification. An ordinary mistake or negligence, whether in judgment or procedure, is not sufficient to hold the arbitrator liable unless it is a serious mistake or fraud\".</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court held that it is for the trial court to examine the evidence and determine whether an arbitrator is liable. In this case the Court held that the errors which the Developer alleged were errors of judgment for which the two arbitrators could not be sued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Step in the Right Direction</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court found that it was not enough for the claimant to demonstrate that an arbitrator made an error that had caused loss to the claimant. The error has to be a ‘serious mistake’ or one tainted by fraud or deceit or otherwise inexplicable. This suggests a high-threshold and one that should give comfort to arbitrators.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This standard of civil liability is in tune with the threshold found in other laws. Both the DIFC and the ADGM have arbitration laws stating that an arbitrator will not be liable ‘unless they are shown to have caused damage by conscious and deliberate wrongdoing’ (Article 22 of the DIFC Arbitration Law 2008; Article 23 of the ADGM Arbitration Regulations 2015).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Many arbitral rules contain terms stating that the parties agree not to sue the arbitrator. This includes the DIAC rules which state, at Article 40, that no member of a tribunal shall be liable in connection with the arbitration. It is not clear why this was not referred to by the Court in its judgment, but its absence leaves open the question of whether an arbitrator’s liability under the law can be further limited by the consent of the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This Court of Cassation judgment is definitely a positive step forward. It should make arbitrator’s feel more confident that whilst they are not immune from suit, they are protected from spurious claims brought by disgruntled parties.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi uniquely possesses the capability to litigate before both of the financial free zone courts and conduct litigation before the UAE Federal Courts and the courts of each individual Emirate. <a href=\"http://localhost:8888/tamimi/practice/arbitration/\">Al Tamimi &amp; Company’s Arbitration team</a> regularly advises on international investment and commercial arbitration. For further information, please contact Dr. Hassan Arab (<a href=\"mailto:h.arab@tamimi.com\">h.arab@tamimi.com</a>) or Dalal Al Houti (<a href=\"mailto:D.Alhouti@tamimi.com\">D.Alhouti@tamimi.com</a>).</em>');

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	(254281,24765,'ClientIP','83.111.236.141'),
	(254282,24765,'UserAgent','Mozilla/5.0 (Windows NT 10.0; WOW64; Trident/7.0; rv:11.0) like Gecko'),
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	(256748,24957,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft wp-image-7990 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_555491044.jpg\" alt=\"\" width=\"3868\" height=\"1481\" /></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The long-awaited Federal arbitration law of the UAE – Federal Law No. 6 of 2018 on Arbitration (\"New Arbitration Law\" or the \"Law\") – was published in the Federal Official Gazette no. 630 of 15 May 2018 and came into effect last June. This standalone piece of legislation repeals the previous outdated and non-comprehensive UAE Chapter on Arbitration contained in articles 203 to 218 of the UAE Civil Procedures Law No. 11 of 1992 (\"CPC\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The New Arbitration Law was long overdue, as the sporadic articles of the CPC did not provide much needed detail and clarity on some of the major points arising out of, or in connection with, arbitral proceedings. Furthermore, the provisions did not conform to the UNCITRAL Model Law on International Commercial Arbitration as adopted by the United Nations Commission on International Trade Law of 1985 and amended in 2006 (\"UNCITRAL Model Law\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The New Arbitration Law provides for a more secure framework for the conduct of arbitral proceedings in the UAE. The six sections of the New Arbitration Law contain 61 articles, most of which can be traced in the UNCITRAL Model Law, and are expected to significantly revamp the UAE chapter on arbitration.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we intend to provide an overview of the key highlights of the New Arbitration Law with a focus on its practical effects.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Scope of Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">We note the extensive scope of application of the New Arbitration Law, both in terms of substance and time. Firstly, pursuant to Article 2, the New Arbitration Law shall apply to (i) arbitrations seated in the UAE unless the parties agree on the application of a different arbitration law, provided that such a law does not contravene UAE public policy and morality; (ii) commercial arbitrations taking place outside of the UAE where the parties have agreed to submit the arbitration to the provisions of the New Arbitration Law; and (iii) arbitrations arising out of a legal dispute, whether contractual or non-contractual, governed by the laws of the UAE, unless an exception applies. Accordingly, the New Arbitration Law shall generally apply unless the parties have agreed to apply another arbitration law, provided that other law is not in conflict with the public policy and morality of the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Furthermore, we welcome the application of the New Arbitration Law to both domestic and international arbitral proceedings. Contrary to the CPC, which did not contain any reference to international arbitration, Article 3 of the New Arbitration Law introduced the character of international arbitration, which adopts an extraterritorial approach. As such, and under certain circumstances, an arbitration is deemed international even if it is conducted within the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We also note the absence of an express exclusion regarding the application of the New Arbitration Law to arbitrations seated in either the Dubai International Financial Centre or the Abu Dhabi Global Market. However, pursuant to Article 3(2) of Federal Law No. 8 of 2004 Regarding the Financial Free Zones, we conclude that the New Arbitration Law will not govern arbitrations seated in these two free zones, which will continue to be governed by the relevant free zone’s arbitration laws and regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the timing of the introduction of the New Arbitration Law, it came into effect \"one month from the day following its publication in the Official Gazette\". It is therefore our view that the New Arbitration Law came into effect on 15 June 2018. It is interesting to note that contrary to recently enacted arbitration laws in the region, the New Arbitration Law will apply retrospectively. Specifically, Article 59 provides that the New Arbitration Law will apply to all ongoing arbitral proceedings at the time of its coming into effect, including arbitrations arising out of existing arbitration agreements. Such a retrospective application is without any prejudice to all proceedings having taken place prior to the entry into force of the New Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Competent Court</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">One of the major procedural highlights of the New Arbitration Law is the designation of the Competent Court, which has been defined as the \"Federal or local Court of Appeal agreed upon by the parties or in whose jurisdiction the arbitration is conducted.\" We hope that going forward, and in line with other major global arbitration hubs, that a dedicated circuit will hear arbitration matters, with specialised and arbitration-focused members of the judiciary to further support and safeguard the arbitral process.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitration Agreement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 7 confirms the writing requirement for the validity of arbitration agreements. Noteworthy additions to the New Arbitration Law include the expansive interpretation of the writing requirement. As such, an arbitration agreement can be concluded by an exchange of correspondence, including e-mails. Furthermore, the writing requirement is satisfied through the reference in a written contract to an arbitration agreement contained in another document, model contract or international agreement. In Article 5, the Law expressly provides for the notion of arbitration agreements incorporated by reference. Also, an oral agreement to arbitrate during court proceedings is deemed valid if it is recorded in a judgment or if the other party asserts the existence of an arbitration party and the other party does not raise any objection.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Despite the softening of the writing requirement, the New Arbitration Law reconfirms, through Article 4(1), the requirement for arbitration agreements to be signed by persons with authority to do so. Therefore, we draw the attention of parties wishing to enter into an arbitration agreement to the requisite capacity requirements provided for under the relevant laws of the UAE, which remain unaffected by the introduction of the New Arbitration Law. For a UAE incorporated limited liability company, it is recommended that the company’s constituting documents are reviewed prior to the execution of an arbitration agreement in order to verify that authority to enter into arbitration agreements, granted by default to the company’s manager, has not been explicitly withdrawn. Article 4(4) explicitly provides that the ex-post lack of capacity of a party entering into an arbitration agreement, which occurs for example as a result of the death of an individual or the expiry of the entity’s term (as prescribed in its constitutional documents) after it has entered into an arbitration agreement, shall not cause the termination of such an arbitration agreement. It is however interesting to note that the Law seemingly intended for such a provision to be non-mandatory as parties may still otherwise agree. Furthermore, Article 4(2) reiterates that there shall not be an agreement to arbitrate matters which are non-conciliatory.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the validity of arbitration agreements, Article 6, in line with the UNCITRAL Model Law, confirms the separability principle of arbitration agreements. When parties’ agreement to arbitrate is featured within the framework of their main contractual relationship, the New Arbitration Law affirms the independence of the arbitration agreement from the other terms of the main contract in which it is contained. Arbitration agreements are not affected by the nullity, rescission or termination of the main contract, save for grounds arising out of a defective capacity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Finally, Article 8 provides that the court shall dismiss any action that falls within the scope of an arbitration agreement, provided that the existence of the arbitration agreement is brought to the court’s attention before making any substantive claims or defences on the merits, unless the court decides that the arbitration agreement is invalid or impossible to perform. The filing of such an action does not preclude the commencement or continuance of arbitral proceedings or the issuance of the arbitral award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-7992 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_756750676.jpg\" alt=\"\" width=\"4243\" height=\"1636\" />Set and Stringent Time Limits</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In an effort to promote efficiency and prevent unnecessary prejudicial delays, the legislative draftsman of the New Arbitration Law have aimed to fit the arbitral proceedings within a clear set of, often stringent, time limits.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For example, in the event of alleged non-compliance with the arbitration agreement or the Law, Article 25 provides that if a party does not object within the time limit agreed upon, or within seven days of becoming aware of the alleged non-compliance, that party is deemed to have waived its right to rely on this non-compliance subsequently. It is questionable whether the default seven-day period is reasonable from a practical perspective. However, such a waiver to challenge constitutes an important pro-arbitration provision, which shall have the effect of estopping a party from attempting to halt the conduct of the proceedings if it does not assert any objection in a prompt manner. With that said, we note that a party’s right to challenge an award, based on a defective arbitration agreement, or lack thereof, would still be preserved pursuant to Article 53. It is yet to be tested how the courts will interpret and eventually apply Articles 25 and 53.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the appointment and challenge of arbitrators, the New Arbitration Law has set a reasonable 15-day period. Specifically, pursuant to Article 11(2-3), the parties have a 15-day time limit to agree to the appointment of an arbitrator, from the date of receipt of a request to do so. Under Article 15(1-2), a 15-day time limit has been set for a party to challenge an arbitrator after becoming aware of the arbitrator appointment or after becoming aware of any circumstances justifying the challenge. Such a challenge shall be in a written application addressed to the challenged arbitrator, with a copy of the same addressed to the other members of the tribunal, if any, as well as the other parties. In the event that the arbitrator does not withdraw or the other party does not agree to the removal of the arbitrator, the party making the challenge may present it to the concerned body within 15-days after the lapse of the initial 15-day period.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We note the express acknowledgment of the compétence-compétence principle in Article 19(2) under which the arbitral tribunal has the jurisdiction to rule on its own jurisdiction. Notwithstanding, a party still has the right to challenge a tribunal’s preliminary decision of jurisdiction before the courts within 15 days of the preliminary decision being notified. The Court then has then 30 days to render its decision. While the request is pending, the arbitral proceedings may continue at the request of a party. We note that this possibility to petition the court on the basis of a procedural order and not an award, is uncustomary in the UAE and may lead, at least in the beginning, to uncertainty.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitrator Requirements</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The New Arbitration Law brings clarity on the requisite requirements for arbitrators. Article 10(1) specifies that an arbitrator must not be a minor, or be judicially declared as incapacitated, or one without civil rights for the reasons of bankruptcy (unless discharged), or conviction for a crime (even if she or he has been rehabilitated).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Furthermore, Article 10(2) provides that an arbitrator cannot be a member of the Board of Trustees or of the administrative body of the arbitral institution administering the arbitration in which that person is asked to sit. We highlight the expansive application of this provision to arbitrations administered by both domestic arbitration centres, such as the Dubai International Arbitration Centre and the DIFC-LCIA Arbitration Centre, as well as international arbitration centres, such as the International Chamber of Commerce’s International Court of Arbitration, the London Court of International Arbitration and the Singapore International Arbitration Centre. The triggering event prompting the application of Article 10(2) is therefore the UAE seat of such arbitral proceedings. It is regrettable that the Law did not draw a distinction between party-appointed arbitrators, on one hand, and centre-appointed arbitrators, on the other, as we would be of the view that party-appointed arbitrators, even if members of the Board of Trustees or administrative body of an arbitral institution, should not be affected by this provision. Given the retrospective application of the New Arbitration Law to ongoing arbitrations, we note that the entry into force of the Law will most likely cause certain concerned arbitrators to resign.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We also note that the Ministry of Justice or the Chairman of the competent judicial authority are to compile a list of arbitrators to be appointed in the event of a failure to agree upon the appointment of an arbitrator. As the list has not yet been published, we remain hopeful that the selection process of the prospective arbitrators would follow the international best practices in terms of both procedural knowledge and industry-specific expertise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Finally, pursuant to Article 58, the Ministry of Economy is to issue a charter on the professional conduct of arbitrators in consultation with the arbitration institutions in the UAE. While the issuance of such a charter is likely to instil confidence within the parties to arbitration in the UAE, we are of the view that the effect of such a charter will remain for guidance purposes only. It is notable that the Law does not address the issues relating to the liability of arbitrators. In our view, it would have been desirable that for the Law to have included a provision confirming the civil immunity of arbitrators.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitral Proceedings</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Commencement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to Article 27(1), arbitral proceedings are deemed to have commenced from the following day after which the arbitral tribunal has been constituted, unless the parties agree otherwise. With that said, in relation to the procedural requirement for a substantive claim to confirm and sustain precautionary attachments, Article 27(2) provides that the arbitral proceedings are deemed to have commenced on the date of the notification of the request for arbitration. Even though the relationship between arbitral and court proceedings relating to arbitration is yet to be tested under the New Arbitration Law, the advancement of the date of commencement of the arbitral proceedings for the purpose of precautionary attachments is a positive provision.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Language of the Arbitration</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the New Arbitration Law, the default language of the arbitral proceedings, absent an agreement between the parties, will be Arabic. We therefore draw the attention of foreign parties in particular to the need to agree on a different language for the arbitration should they wish to avoid arbitral proceedings in Arabic, either explicitly, through for example their arbitration agreement, or implicitly, by agreeing to the application of institutional rules.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Acknowledgment of Modern Means of Communication</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The emphasis on the use and role of technology in the New Arbitration Law can be attributed to the desire for more efficient proceedings. There are indeed several references to the use of \"modern means of communication\" in the Law. For example, written correspondence can now be deemed to have been delivered if sent, amongst other means, by email. Article 28(2) provides that arbitral hearings and deliberations can be conducted by modern means of communication and electronic technology. In addition, Article 33(3) provides that hearing may be held through modern means of communication without the physical presence of the parties at the hearing. Pursuant to Article 35, the arbitral tribunal may question witnesses, including expert witnesses, through modern means of communication without their physical presence at the hearing. The emphasis on the use of technology will undoubtedly modernise arbitral proceedings in the UAE and help instil global confidence in such proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Confidentiality</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Contrary to common belief, arbitral proceedings are not confidential by default. The New Arbitration Law addresses the issue of confidentiality by stating, under Article 33(1), that hearings shall be confidential unless parties have otherwise agreed. The confidentiality of arbitral awards is implicitly recognised pursuant to Article 44. However, the Law does not explicitly provide for the confidentiality of documents, pleadings, evidence or submissions produced by the parties and the tribunal during the proceedings. We recommend that parties address the confidentiality of their arbitral proceedings either through an explicit agreement, or implicitly, through an agreement to apply institutional rules providing for the hoped for confidentiality obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conduct</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is clear that the New Arbitration Law attempts to instil discipline and efficiency in the conduct of the arbitral proceedings. As noted above, arbitral hearings can be held at any place, and the Law allows arbitral hearings and deliberations to be conducted by modern means of communication and electronic technology. Article 30(1-2) provides, absent an agreement between the parties, for a 14-day period from the date of the composition of the arbitral tribunal for the claimant to communicate the statement of claim in writing to the respondent and to the arbitrators. After receiving the statement of claim, the respondent has a further 14-day period to communicate its statement of defence. The practical difficulties associated with these relatively contracted time limits will most likely prompt parties to agree on different deadlines.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is worth noting that the New Arbitration Law attempts to put an end to disruptive guerrilla tactics through repetitive challenges of an arbitrator by providing under Article 15(3) that the challenge of an arbitrator does not suspend the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Pursuant to Article 43 of the New Arbitration Law, the arbitral tribunal can decide to continue the arbitral proceedings (i) where there are issues that fall outside the scope of its jurisdiction; (ii) if a document submitted to it is challenged for forgery; or (iii) if criminal proceedings in respect of that document or for any other criminal act which has been instituted. This is a significant improvement as previously, according to the CPC, the tribunal was required to suspend its proceedings under such circumstances.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law provides much needed clarity on the issue of the representation of the parties by non-UAE lawyers. Specifically, Article 33(5) provides that parties may seek the assistance of representatives for their representation in the arbitral proceedings and these representatives may or may not be lawyers. The non-restriction on the appearance of foreign counsel in UAE-seated arbitrations is welcome after the issuance of the 2017 Executive Regulations to the Federal Law No. 23 of 1991 on the Legal Professional, which was interpreted by some to restrict the appearance of non –UAE counsel in arbitral proceedings seated in the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law also provides wide latitude to the parties and the arbitral tribunal to decide upon the conduct of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interim and Conservatory Measures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Interim and conservatory measures constitute crucial tools in arbitral proceedings. The CPC did not grant powers to the tribunal to order such measures, which were within the exclusive powers of the courts. In the event that parties agree to grant such powers to the tribunal, either explicitly or implicitly through the application of institutional rules, the enforcement of tribunal-ordered interim and conservatory measures was an impossible task in the UAE before the enactment of the New Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">One of the much anticipated provisions of the New Arbitration Law is Article 21. Through this article, and unless otherwise agreed by the parties, the New Arbitration Law explicitly recognises the arbitral tribunal’s power to award interim or conservatory measures, either on the request of a party or of its own motion, including ordering a party to provide adequate security to cover the costs of such measures. Pursuant to Article 21(4), a party for whom an interim measure has been ordered in its favour may, with written permission from the tribunal, request the competent court to enforce the order of the tribunal within 15 days of receipt of the request.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding the arbitral tribunal’s newly attributed powers to order such interim and conservatory measures, the court also remains competent to grant interim and conservatory measures based on an application by the tribunal or one of the parties in relation to forthcoming or ongoing arbitral proceedings. As per Article 18(3), the arbitral proceedings shall continue notwithstanding any application for interim or conservatory measures relating to an ongoing arbitration and such an application to the court shall not constitute a waiver to the arbitration agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While the receptivity and approach of the courts in relation to these provisions are yet to be tested, we highly welcome these efforts to safeguard more efficient and equitable arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Award</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the issuance of the award, Article 42(1) provides that, unless agreed otherwise, an award must be issued within 6 months from the date of the first hearing of the arbitration. Contrary to the previous CPC regime, such a date can now be extended for an additional 6 months, unless the parties agree to a longer extension, either explicitly or implicitly through the application of institutional rules. Article 42(2) provides that absent such an agreement, further extension of time can only be made by the courts upon petition by the parties or the tribunal itself. It is important to bear in mind in this regard that the failure to meet this time limit is a ground for challenging an award pursuant to Article 53(1)(g) of the New Arbitration Law as discussed further below.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The time limits set forth in Article 42 lack any mechanism for arbitral institutions to grant an extension of time, though it may be argued that parties have agreed to such an extension by virtue of having agreed to the application of particular institutional rules. Under the previous regime, the CPC allowed the parties to agree to extensions of time whether expressly or by implication.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In our view, Article 41(6) is a very positive introduction, which provides that awards can be signed outside the seat of arbitration and can also be signed electronically. The issuance of the final award shall be deemed to mark the end of the arbitral proceedings. According to Article 44, parties are to be notified of the award within 15 days from the date of issue of the award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law explicitly recognises that an arbitral tribunal may interpret an award by issuing an explanatory award pursuant to Article 49. A party may request the tribunal to interpret any obscurity or ambiguity in its award within 30 days of receipt of the award, unless the parties have agreed to different procedures or time limits. The tribunal shall consider and issue its explanatory award within 30 days after the receipt of the request, which may extended by a further 15 days. Such an explanatory award is deemed to supplement the final arbitral award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Enforcement of Arbitral Awards</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The New Arbitration Law clarifies the process for enforcing UAE arbitral awards with a fast-tracked and overhauled procedure. The New Arbitration Law provides that arbitral awards are binding on the parties, res judicata applies and that such awards shall be enforceable in the same manner as a judicial ruling provided ratification is obtained. If the enforcement of the award is sought in the UAE, a ratification of such an award by the court is required in order to proceed with the enforcement of such an award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A major development in the New Arbitration Law lies in the fact that enforcement proceedings shall now commence directly before the UAE federal or local Court of Appeal, not before the Court of First Instance as before. The form of the enforcement procedure has also been simplified. Instead of filing a case before the court, the award-creditor can seek the ratification and enforcement of an award through the filing of an application with the Chief Justice of the Court of Appeal. Pursuant to Article 55(2), the relevant authority will now have 60 days from the date of the application to order the ratification and enforcement of the award unless it finds grounds for annulment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 57 provides for the possibility of filing a grievance against an order of the Court of Appeal ratifying an award and declaring it enforceable or order of the Court of Appeal denying enforcement. Such a grievance must be filed with the Court of Appeal within 30 days of the Court of Appeal’s notification of the order. We note that it would have been more appropriate for such a grievance to be filed before the Court of Cassation, as the higher appellate court, instead of the Court of Appeal.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to foreign arbitral awards, we note that the Law lacks explicit provisions relating to the enforcement of such awards. It is our view that the CPC provisions, specifically Articles 235 to 238, remain applicable absent a convention or treaty entered into by the UAE dealing with the enforcement of foreign arbitral awards. In the event of enforcement of foreign arbitral awards in the UAE sought on the basis of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (\"New York Convention\"), it is yet to be tested whether the new expedited enforcement provisions of the Law would apply to such enforcements given that Article III of the New York Convention provides that: \"(…) There shall not be imposed substantially more onerous conditions or higher fees or charges on the recognition or enforcement of arbitral awards to which this Convention applies than are imposed on the recognition or enforcement of domestic arbitral awards.\"</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Given the absence of any explicit provisions to the contrary within the Law, we are of the view that the new provisions of the Law should apply to enforcements of foreign arbitral awards under the New York Convention.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Award Challenge</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The grounds to challenge and set aside an award are limited and consistent with the spirit of Article 34 of the UNCITRAL Model Law. Article 53(1) of the New Arbitration Law provides for limited grounds for annulment, which include the lack of capacity of a party entering into the arbitration agreement, lack of authorisation to act on the matter or lack of notice. Unlike the UNCITRAL Model Law, the New Arbitration Law also provides that the issuance of a final award which does not apply the substantive law chosen by the parties or the arbitral tribunal’s failure to issue the award within the specified time-frame shall also constitute grounds for challenge. In addition, Article 53(2) provides that the court has the right to set aside the award on its own initiative, if the subject matter of the dispute is not arbitrable or if the award contravenes the public policy and morality of the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In an effort to preserve the arbitral proceedings, several articles purport to safeguard the sanctity of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For example, pursuant to Article 50(1-2), a party may request the arbitral tribunal to correct any typographical or clerical errors in the award within 30 days of receipt of the award, unless the parties have agreed to different procedures or time limits. Such correction is to be made within 30 days after the tribunal issues the award or after receiving the request for correction by one of the parties, as the case may be. Such period may be extended by a further 15 days. The arbitral tribunal shall notify the parties after corrections are made within 15 days from the date of issue of correction. Also, Article 51(1-2) provides that a party may request the tribunal to issue an additional award if the party believes that the final award did not deal with some of the requests made. Such a request must be made within 30 days of receipt of the award. If such a request is justified, then the arbitral tribunal shall issue the additional award within 60 days after the receipt of the request and may extend by a further 30 days. In addition, pursuant to Article 54(6), the court may suspend the setting aside proceedings for a period of up to 60 days in order to give the arbitral tribunal an opportunity to take any action or make any amendment to the form of the award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whereas under the previous CPC regime, there was no specific deadline for the purpose of filing a set aside action, the New Arbitration Law, pursuant to Article 54(2) provides for a 30-day time limit from the date of receiving notice of the award for a party to commence annulment proceedings. This is a significant change to the previous regime, and we believe that this will contribute to the legal security of final awards. However, Article 54(1) provides that the decision to set aside is final and can only be appealed to the Court of Cassation. We note that there is no set time limit for the Court of Cassation to render its decision.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the general spirit of the New Arbitration Law for more efficient proceedings, an action to set aside an arbitral award does not stay its enforcement. Nevertheless, the court may order a stay of enforcement if a party requests for a stay of enforcement. Such stay of enforcement is to be decided within 15 days after the date of the first scheduled hearing.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Federal Law No. 6 of 2018 on Arbitration undoubtedly constitutes a landmark development for arbitration in the UAE by providing a standalone arbitration law aligned with international best practices and standards. We consider that the overall preservation and respect of party autonomy and the focus on more streamlined and efficient proceedings will build the UAE’s reputation as a preferred seat for international arbitration in the region. We remain hopeful in the courts’ significant role in appropriately applying and preserving the spirit of the Law. The Executive Regulations, which are in the pipeline, will also undoubtedly clarify some of the issues raised in hope of a more rationalised and synchronised proceedings among the various players in UAE seated arbitrations.</p>\r\n<em>For further information, please contact <a href=\"http://localhost:8888/tamimi/lawyer/essam-al-tamimi/\">Essam Al Tamimi</a> (e.tamimi@tamimi.com) or <a href=\"http://localhost:8888/tamimi/lawyer/sara-aranjo/\">Sara Koleilat-Aranjo</a> (s.aranjo@tamimi.com).</em>'),
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	(256750,24957,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7934&amp;action=edit'),
	(256751,24957,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft wp-image-7990 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_555491044.jpg\" alt=\"\" width=\"3868\" height=\"1481\" /></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The long-awaited Federal arbitration law of the UAE – Federal Law No. 6 of 2018 on Arbitration (\"New Arbitration Law\" or the \"Law\") – was published in the Federal Official Gazette no. 630 of 15 May 2018 and came into effect last June. This standalone piece of legislation repeals the previous outdated and non-comprehensive UAE Chapter on Arbitration contained in articles 203 to 218 of the UAE Civil Procedures Law No. 11 of 1992 (\"CPC\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The New Arbitration Law was long overdue, as the sporadic articles of the CPC did not provide much needed detail and clarity on some of the major points arising out of, or in connection with, arbitral proceedings. Furthermore, the provisions did not conform to the UNCITRAL Model Law on International Commercial Arbitration as adopted by the United Nations Commission on International Trade Law of 1985 and amended in 2006 (\"UNCITRAL Model Law\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The New Arbitration Law provides for a more secure framework for the conduct of arbitral proceedings in the UAE. The six sections of the New Arbitration Law contain 61 articles, most of which can be traced in the UNCITRAL Model Law, and are expected to significantly revamp the UAE chapter on arbitration.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we intend to provide an overview of the key highlights of the New Arbitration Law with a focus on its practical effects.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Scope of Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">We note the extensive scope of application of the New Arbitration Law, both in terms of substance and time. Firstly, pursuant to Article 2, the New Arbitration Law shall apply to (i) arbitrations seated in the UAE unless the parties agree on the application of a different arbitration law, provided that such a law does not contravene UAE public policy and morality; (ii) commercial arbitrations taking place outside of the UAE where the parties have agreed to submit the arbitration to the provisions of the New Arbitration Law; and (iii) arbitrations arising out of a legal dispute, whether contractual or non-contractual, governed by the laws of the UAE, unless an exception applies. Accordingly, the New Arbitration Law shall generally apply unless the parties have agreed to apply another arbitration law, provided that other law is not in conflict with the public policy and morality of the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Furthermore, we welcome the application of the New Arbitration Law to both domestic and international arbitral proceedings. Contrary to the CPC, which did not contain any reference to international arbitration, Article 3 of the New Arbitration Law introduced the character of international arbitration, which adopts an extraterritorial approach. As such, and under certain circumstances, an arbitration is deemed international even if it is conducted within the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We also note the absence of an express exclusion regarding the application of the New Arbitration Law to arbitrations seated in either the Dubai International Financial Centre or the Abu Dhabi Global Market. However, pursuant to Article 3(2) of Federal Law No. 8 of 2004 Regarding the Financial Free Zones, we conclude that the New Arbitration Law will not govern arbitrations seated in these two free zones, which will continue to be governed by the relevant free zone’s arbitration laws and regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the timing of the introduction of the New Arbitration Law, it came into effect \"one month from the day following its publication in the Official Gazette\". It is therefore our view that the New Arbitration Law came into effect on 15 June 2018. It is interesting to note that contrary to recently enacted arbitration laws in the region, the New Arbitration Law will apply retrospectively. Specifically, Article 59 provides that the New Arbitration Law will apply to all ongoing arbitral proceedings at the time of its coming into effect, including arbitrations arising out of existing arbitration agreements. Such a retrospective application is without any prejudice to all proceedings having taken place prior to the entry into force of the New Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Competent Court</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">One of the major procedural highlights of the New Arbitration Law is the designation of the Competent Court, which has been defined as the \"Federal or local Court of Appeal agreed upon by the parties or in whose jurisdiction the arbitration is conducted.\" We hope that going forward, and in line with other major global arbitration hubs, that a dedicated circuit will hear arbitration matters, with specialised and arbitration-focused members of the judiciary to further support and safeguard the arbitral process.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitration Agreement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 7 confirms the writing requirement for the validity of arbitration agreements. Noteworthy additions to the New Arbitration Law include the expansive interpretation of the writing requirement. As such, an arbitration agreement can be concluded by an exchange of correspondence, including e-mails. Furthermore, the writing requirement is satisfied through the reference in a written contract to an arbitration agreement contained in another document, model contract or international agreement. In Article 5, the Law expressly provides for the notion of arbitration agreements incorporated by reference. Also, an oral agreement to arbitrate during court proceedings is deemed valid if it is recorded in a judgment or if the other party asserts the existence of an arbitration party and the other party does not raise any objection.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Despite the softening of the writing requirement, the New Arbitration Law reconfirms, through Article 4(1), the requirement for arbitration agreements to be signed by persons with authority to do so. Therefore, we draw the attention of parties wishing to enter into an arbitration agreement to the requisite capacity requirements provided for under the relevant laws of the UAE, which remain unaffected by the introduction of the New Arbitration Law. For a UAE incorporated limited liability company, it is recommended that the company’s constituting documents are reviewed prior to the execution of an arbitration agreement in order to verify that authority to enter into arbitration agreements, granted by default to the company’s manager, has not been explicitly withdrawn. Article 4(4) explicitly provides that the ex-post lack of capacity of a party entering into an arbitration agreement, which occurs for example as a result of the death of an individual or the expiry of the entity’s term (as prescribed in its constitutional documents) after it has entered into an arbitration agreement, shall not cause the termination of such an arbitration agreement. It is however interesting to note that the Law seemingly intended for such a provision to be non-mandatory as parties may still otherwise agree. Furthermore, Article 4(2) reiterates that there shall not be an agreement to arbitrate matters which are non-conciliatory.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the validity of arbitration agreements, Article 6, in line with the UNCITRAL Model Law, confirms the separability principle of arbitration agreements. When parties’ agreement to arbitrate is featured within the framework of their main contractual relationship, the New Arbitration Law affirms the independence of the arbitration agreement from the other terms of the main contract in which it is contained. Arbitration agreements are not affected by the nullity, rescission or termination of the main contract, save for grounds arising out of a defective capacity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Finally, Article 8 provides that the court shall dismiss any action that falls within the scope of an arbitration agreement, provided that the existence of the arbitration agreement is brought to the court’s attention before making any substantive claims or defences on the merits, unless the court decides that the arbitration agreement is invalid or impossible to perform. The filing of such an action does not preclude the commencement or continuance of arbitral proceedings or the issuance of the arbitral award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-7992 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_756750676.jpg\" alt=\"\" width=\"4243\" height=\"1636\" />Set and Stringent Time Limits</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In an effort to promote efficiency and prevent unnecessary prejudicial delays, the legislative draftsman of the New Arbitration Law have aimed to fit the arbitral proceedings within a clear set of, often stringent, time limits.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For example, in the event of alleged non-compliance with the arbitration agreement or the Law, Article 25 provides that if a party does not object within the time limit agreed upon, or within seven days of becoming aware of the alleged non-compliance, that party is deemed to have waived its right to rely on this non-compliance subsequently. It is questionable whether the default seven-day period is reasonable from a practical perspective. However, such a waiver to challenge constitutes an important pro-arbitration provision, which shall have the effect of estopping a party from attempting to halt the conduct of the proceedings if it does not assert any objection in a prompt manner. With that said, we note that a party’s right to challenge an award, based on a defective arbitration agreement, or lack thereof, would still be preserved pursuant to Article 53. It is yet to be tested how the courts will interpret and eventually apply Articles 25 and 53.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the appointment and challenge of arbitrators, the New Arbitration Law has set a reasonable 15-day period. Specifically, pursuant to Article 11(2-3), the parties have a 15-day time limit to agree to the appointment of an arbitrator, from the date of receipt of a request to do so. Under Article 15(1-2), a 15-day time limit has been set for a party to challenge an arbitrator after becoming aware of the arbitrator appointment or after becoming aware of any circumstances justifying the challenge. Such a challenge shall be in a written application addressed to the challenged arbitrator, with a copy of the same addressed to the other members of the tribunal, if any, as well as the other parties. In the event that the arbitrator does not withdraw or the other party does not agree to the removal of the arbitrator, the party making the challenge may present it to the concerned body within 15-days after the lapse of the initial 15-day period.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We note the express acknowledgment of the compétence-compétence principle in Article 19(2) under which the arbitral tribunal has the jurisdiction to rule on its own jurisdiction. Notwithstanding, a party still has the right to challenge a tribunal’s preliminary decision of jurisdiction before the courts within 15 days of the preliminary decision being notified. The Court then has then 30 days to render its decision. While the request is pending, the arbitral proceedings may continue at the request of a party. We note that this possibility to petition the court on the basis of a procedural order and not an award, is uncustomary in the UAE and may lead, at least in the beginning, to uncertainty.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitrator Requirements</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The New Arbitration Law brings clarity on the requisite requirements for arbitrators. Article 10(1) specifies that an arbitrator must not be a minor, or be judicially declared as incapacitated, or one without civil rights for the reasons of bankruptcy (unless discharged), or conviction for a crime (even if she or he has been rehabilitated).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Furthermore, Article 10(2) provides that an arbitrator cannot be a member of the Board of Trustees or of the administrative body of the arbitral institution administering the arbitration in which that person is asked to sit. We highlight the expansive application of this provision to arbitrations administered by both domestic arbitration centres, such as the Dubai International Arbitration Centre and the DIFC-LCIA Arbitration Centre, as well as international arbitration centres, such as the International Chamber of Commerce’s International Court of Arbitration, the London Court of International Arbitration and the Singapore International Arbitration Centre. The triggering event prompting the application of Article 10(2) is therefore the UAE seat of such arbitral proceedings. It is regrettable that the Law did not draw a distinction between party-appointed arbitrators, on one hand, and centre-appointed arbitrators, on the other, as we would be of the view that party-appointed arbitrators, even if members of the Board of Trustees or administrative body of an arbitral institution, should not be affected by this provision. Given the retrospective application of the New Arbitration Law to ongoing arbitrations, we note that the entry into force of the Law will most likely cause certain concerned arbitrators to resign.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We also note that the Ministry of Justice or the Chairman of the competent judicial authority are to compile a list of arbitrators to be appointed in the event of a failure to agree upon the appointment of an arbitrator. As the list has not yet been published, we remain hopeful that the selection process of the prospective arbitrators would follow the international best practices in terms of both procedural knowledge and industry-specific expertise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Finally, pursuant to Article 58, the Ministry of Economy is to issue a charter on the professional conduct of arbitrators in consultation with the arbitration institutions in the UAE. While the issuance of such a charter is likely to instil confidence within the parties to arbitration in the UAE, we are of the view that the effect of such a charter will remain for guidance purposes only. It is notable that the Law does not address the issues relating to the liability of arbitrators. In our view, it would have been desirable that for the Law to have included a provision confirming the civil immunity of arbitrators.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitral Proceedings</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Commencement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to Article 27(1), arbitral proceedings are deemed to have commenced from the following day after which the arbitral tribunal has been constituted, unless the parties agree otherwise. With that said, in relation to the procedural requirement for a substantive claim to confirm and sustain precautionary attachments, Article 27(2) provides that the arbitral proceedings are deemed to have commenced on the date of the notification of the request for arbitration. Even though the relationship between arbitral and court proceedings relating to arbitration is yet to be tested under the New Arbitration Law, the advancement of the date of commencement of the arbitral proceedings for the purpose of precautionary attachments is a positive provision.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Language of the Arbitration</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the New Arbitration Law, the default language of the arbitral proceedings, absent an agreement between the parties, will be Arabic. We therefore draw the attention of foreign parties in particular to the need to agree on a different language for the arbitration should they wish to avoid arbitral proceedings in Arabic, either explicitly, through for example their arbitration agreement, or implicitly, by agreeing to the application of institutional rules.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Acknowledgment of Modern Means of Communication</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The emphasis on the use and role of technology in the New Arbitration Law can be attributed to the desire for more efficient proceedings. There are indeed several references to the use of \"modern means of communication\" in the Law. For example, written correspondence can now be deemed to have been delivered if sent, amongst other means, by email. Article 28(2) provides that arbitral hearings and deliberations can be conducted by modern means of communication and electronic technology. In addition, Article 33(3) provides that hearing may be held through modern means of communication without the physical presence of the parties at the hearing. Pursuant to Article 35, the arbitral tribunal may question witnesses, including expert witnesses, through modern means of communication without their physical presence at the hearing. The emphasis on the use of technology will undoubtedly modernise arbitral proceedings in the UAE and help instil global confidence in such proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Confidentiality</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Contrary to common belief, arbitral proceedings are not confidential by default. The New Arbitration Law addresses the issue of confidentiality by stating, under Article 33(1), that hearings shall be confidential unless parties have otherwise agreed. The confidentiality of arbitral awards is implicitly recognised pursuant to Article 44. However, the Law does not explicitly provide for the confidentiality of documents, pleadings, evidence or submissions produced by the parties and the tribunal during the proceedings. We recommend that parties address the confidentiality of their arbitral proceedings either through an explicit agreement, or implicitly, through an agreement to apply institutional rules providing for the hoped for confidentiality obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conduct</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is clear that the New Arbitration Law attempts to instil discipline and efficiency in the conduct of the arbitral proceedings. As noted above, arbitral hearings can be held at any place, and the Law allows arbitral hearings and deliberations to be conducted by modern means of communication and electronic technology. Article 30(1-2) provides, absent an agreement between the parties, for a 14-day period from the date of the composition of the arbitral tribunal for the claimant to communicate the statement of claim in writing to the respondent and to the arbitrators. After receiving the statement of claim, the respondent has a further 14-day period to communicate its statement of defence. The practical difficulties associated with these relatively contracted time limits will most likely prompt parties to agree on different deadlines.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is worth noting that the New Arbitration Law attempts to put an end to disruptive guerrilla tactics through repetitive challenges of an arbitrator by providing under Article 15(3) that the challenge of an arbitrator does not suspend the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Pursuant to Article 43 of the New Arbitration Law, the arbitral tribunal can decide to continue the arbitral proceedings (i) where there are issues that fall outside the scope of its jurisdiction; (ii) if a document submitted to it is challenged for forgery; or (iii) if criminal proceedings in respect of that document or for any other criminal act which has been instituted. This is a significant improvement as previously, according to the CPC, the tribunal was required to suspend its proceedings under such circumstances.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law provides much needed clarity on the issue of the representation of the parties by non-UAE lawyers. Specifically, Article 33(5) provides that parties may seek the assistance of representatives for their representation in the arbitral proceedings and these representatives may or may not be lawyers. The non-restriction on the appearance of foreign counsel in UAE-seated arbitrations is welcome after the issuance of the 2017 Executive Regulations to the Federal Law No. 23 of 1991 on the Legal Professional, which was interpreted by some to restrict the appearance of non –UAE counsel in arbitral proceedings seated in the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law also provides wide latitude to the parties and the arbitral tribunal to decide upon the conduct of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interim and Conservatory Measures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Interim and conservatory measures constitute crucial tools in arbitral proceedings. The CPC did not grant powers to the tribunal to order such measures, which were within the exclusive powers of the courts. In the event that parties agree to grant such powers to the tribunal, either explicitly or implicitly through the application of institutional rules, the enforcement of tribunal-ordered interim and conservatory measures was an impossible task in the UAE before the enactment of the New Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">One of the much anticipated provisions of the New Arbitration Law is Article 21. Through this article, and unless otherwise agreed by the parties, the New Arbitration Law explicitly recognises the arbitral tribunal’s power to award interim or conservatory measures, either on the request of a party or of its own motion, including ordering a party to provide adequate security to cover the costs of such measures. Pursuant to Article 21(4), a party for whom an interim measure has been ordered in its favour may, with written permission from the tribunal, request the competent court to enforce the order of the tribunal within 15 days of receipt of the request.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding the arbitral tribunal’s newly attributed powers to order such interim and conservatory measures, the court also remains competent to grant interim and conservatory measures based on an application by the tribunal or one of the parties in relation to forthcoming or ongoing arbitral proceedings. As per Article 18(3), the arbitral proceedings shall continue notwithstanding any application for interim or conservatory measures relating to an ongoing arbitration and such an application to the court shall not constitute a waiver to the arbitration agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While the receptivity and approach of the courts in relation to these provisions are yet to be tested, we highly welcome these efforts to safeguard more efficient and equitable arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Award</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the issuance of the award, Article 42(1) provides that, unless agreed otherwise, an award must be issued within 6 months from the date of the first hearing of the arbitration. Contrary to the previous CPC regime, such a date can now be extended for an additional 6 months, unless the parties agree to a longer extension, either explicitly or implicitly through the application of institutional rules. Article 42(2) provides that absent such an agreement, further extension of time can only be made by the courts upon petition by the parties or the tribunal itself. It is important to bear in mind in this regard that the failure to meet this time limit is a ground for challenging an award pursuant to Article 53(1)(g) of the New Arbitration Law as discussed further below.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The time limits set forth in Article 42 lack any mechanism for arbitral institutions to grant an extension of time, though it may be argued that parties have agreed to such an extension by virtue of having agreed to the application of particular institutional rules. Under the previous regime, the CPC allowed the parties to agree to extensions of time whether expressly or by implication.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In our view, Article 41(6) is a very positive introduction, which provides that awards can be signed outside the seat of arbitration and can also be signed electronically. The issuance of the final award shall be deemed to mark the end of the arbitral proceedings. According to Article 44, parties are to be notified of the award within 15 days from the date of issue of the award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law explicitly recognises that an arbitral tribunal may interpret an award by issuing an explanatory award pursuant to Article 49. A party may request the tribunal to interpret any obscurity or ambiguity in its award within 30 days of receipt of the award, unless the parties have agreed to different procedures or time limits. The tribunal shall consider and issue its explanatory award within 30 days after the receipt of the request, which may extended by a further 15 days. Such an explanatory award is deemed to supplement the final arbitral award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Enforcement of Arbitral Awards</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The New Arbitration Law clarifies the process for enforcing UAE arbitral awards with a fast-tracked and overhauled procedure. The New Arbitration Law provides that arbitral awards are binding on the parties, res judicata applies and that such awards shall be enforceable in the same manner as a judicial ruling provided ratification is obtained. If the enforcement of the award is sought in the UAE, a ratification of such an award by the court is required in order to proceed with the enforcement of such an award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A major development in the New Arbitration Law lies in the fact that enforcement proceedings shall now commence directly before the UAE federal or local Court of Appeal, not before the Court of First Instance as before. The form of the enforcement procedure has also been simplified. Instead of filing a case before the court, the award-creditor can seek the ratification and enforcement of an award through the filing of an application with the Chief Justice of the Court of Appeal. Pursuant to Article 55(2), the relevant authority will now have 60 days from the date of the application to order the ratification and enforcement of the award unless it finds grounds for annulment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 57 provides for the possibility of filing a grievance against an order of the Court of Appeal ratifying an award and declaring it enforceable or order of the Court of Appeal denying enforcement. Such a grievance must be filed with the Court of Appeal within 30 days of the Court of Appeal’s notification of the order. We note that it would have been more appropriate for such a grievance to be filed before the Court of Cassation, as the higher appellate court, instead of the Court of Appeal.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to foreign arbitral awards, we note that the Law lacks explicit provisions relating to the enforcement of such awards. It is our view that the CPC provisions, specifically Articles 235 to 238, remain applicable absent a convention or treaty entered into by the UAE dealing with the enforcement of foreign arbitral awards. In the event of enforcement of foreign arbitral awards in the UAE sought on the basis of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (\"New York Convention\"), it is yet to be tested whether the new expedited enforcement provisions of the Law would apply to such enforcements given that Article III of the New York Convention provides that: \"(…) There shall not be imposed substantially more onerous conditions or higher fees or charges on the recognition or enforcement of arbitral awards to which this Convention applies than are imposed on the recognition or enforcement of domestic arbitral awards.\"</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Given the absence of any explicit provisions to the contrary within the Law, we are of the view that the new provisions of the Law should apply to enforcements of foreign arbitral awards under the New York Convention.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Award Challenge</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The grounds to challenge and set aside an award are limited and consistent with the spirit of Article 34 of the UNCITRAL Model Law. Article 53(1) of the New Arbitration Law provides for limited grounds for annulment, which include the lack of capacity of a party entering into the arbitration agreement, lack of authorisation to act on the matter or lack of notice. Unlike the UNCITRAL Model Law, the New Arbitration Law also provides that the issuance of a final award which does not apply the substantive law chosen by the parties or the arbitral tribunal’s failure to issue the award within the specified time-frame shall also constitute grounds for challenge. In addition, Article 53(2) provides that the court has the right to set aside the award on its own initiative, if the subject matter of the dispute is not arbitrable or if the award contravenes the public policy and morality of the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In an effort to preserve the arbitral proceedings, several articles purport to safeguard the sanctity of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For example, pursuant to Article 50(1-2), a party may request the arbitral tribunal to correct any typographical or clerical errors in the award within 30 days of receipt of the award, unless the parties have agreed to different procedures or time limits. Such correction is to be made within 30 days after the tribunal issues the award or after receiving the request for correction by one of the parties, as the case may be. Such period may be extended by a further 15 days. The arbitral tribunal shall notify the parties after corrections are made within 15 days from the date of issue of correction. Also, Article 51(1-2) provides that a party may request the tribunal to issue an additional award if the party believes that the final award did not deal with some of the requests made. Such a request must be made within 30 days of receipt of the award. If such a request is justified, then the arbitral tribunal shall issue the additional award within 60 days after the receipt of the request and may extend by a further 30 days. In addition, pursuant to Article 54(6), the court may suspend the setting aside proceedings for a period of up to 60 days in order to give the arbitral tribunal an opportunity to take any action or make any amendment to the form of the award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whereas under the previous CPC regime, there was no specific deadline for the purpose of filing a set aside action, the New Arbitration Law, pursuant to Article 54(2) provides for a 30-day time limit from the date of receiving notice of the award for a party to commence annulment proceedings. This is a significant change to the previous regime, and we believe that this will contribute to the legal security of final awards. However, Article 54(1) provides that the decision to set aside is final and can only be appealed to the Court of Cassation. We note that there is no set time limit for the Court of Cassation to render its decision.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the general spirit of the New Arbitration Law for more efficient proceedings, an action to set aside an arbitral award does not stay its enforcement. Nevertheless, the court may order a stay of enforcement if a party requests for a stay of enforcement. Such stay of enforcement is to be decided within 15 days after the date of the first scheduled hearing.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Federal Law No. 6 of 2018 on Arbitration undoubtedly constitutes a landmark development for arbitration in the UAE by providing a standalone arbitration law aligned with international best practices and standards. We consider that the overall preservation and respect of party autonomy and the focus on more streamlined and efficient proceedings will build the UAE’s reputation as a preferred seat for international arbitration in the region. We remain hopeful in the courts’ significant role in appropriately applying and preserving the spirit of the Law. The Executive Regulations, which are in the pipeline, will also undoubtedly clarify some of the issues raised in hope of a more rationalised and synchronised proceedings among the various players in UAE seated arbitrations.</p>\r\n<em>For further information, please contact <a href=\"http://localhost:8888/tamimi/lawyer/essam-al-tamimi/\">Essam Al Tamimi</a> (e.tamimi@tamimi.com) or <a href=\"http://localhost:8888/tamimi/lawyer/sara-aranjo/\">Sara Koleilat-Aranjo</a> (s.aranjo@tamimi.com).</em>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft wp-image-7990 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_555491044.jpg\" alt=\"\" width=\"3868\" height=\"1481\" /></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The long-awaited Federal arbitration law of the UAE – Federal Law No. 6 of 2018 on Arbitration (\"New Arbitration Law\" or the \"Law\") – was published in the Federal Official Gazette no. 630 of 15 May 2018 and came into effect last June. This standalone piece of legislation repeals the previous outdated and non-comprehensive UAE Chapter on Arbitration contained in articles 203 to 218 of the UAE Civil Procedures Law No. 11 of 1992 (\"CPC\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The New Arbitration Law was long overdue, as the sporadic articles of the CPC did not provide much needed detail and clarity on some of the major points arising out of, or in connection with, arbitral proceedings. Furthermore, the provisions did not conform to the UNCITRAL Model Law on International Commercial Arbitration as adopted by the United Nations Commission on International Trade Law of 1985 and amended in 2006 (\"UNCITRAL Model Law\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The New Arbitration Law provides for a more secure framework for the conduct of arbitral proceedings in the UAE. The six sections of the New Arbitration Law contain 61 articles, most of which can be traced in the UNCITRAL Model Law, and are expected to significantly revamp the UAE chapter on arbitration.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we intend to provide an overview of the key highlights of the New Arbitration Law with a focus on its practical effects.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Scope of Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">We note the extensive scope of application of the New Arbitration Law, both in terms of substance and time. Firstly, pursuant to Article 2, the New Arbitration Law shall apply to (i) arbitrations seated in the UAE unless the parties agree on the application of a different arbitration law, provided that such a law does not contravene UAE public policy and morality; (ii) commercial arbitrations taking place outside of the UAE where the parties have agreed to submit the arbitration to the provisions of the New Arbitration Law; and (iii) arbitrations arising out of a legal dispute, whether contractual or non-contractual, governed by the laws of the UAE, unless an exception applies. Accordingly, the New Arbitration Law shall generally apply unless the parties have agreed to apply another arbitration law, provided that other law is not in conflict with the public policy and morality of the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Furthermore, we welcome the application of the New Arbitration Law to both domestic and international arbitral proceedings. Contrary to the CPC, which did not contain any reference to international arbitration, Article 3 of the New Arbitration Law introduced the character of international arbitration, which adopts an extraterritorial approach. As such, and under certain circumstances, an arbitration is deemed international even if it is conducted within the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We also note the absence of an express exclusion regarding the application of the New Arbitration Law to arbitrations seated in either the Dubai International Financial Centre or the Abu Dhabi Global Market. However, pursuant to Article 3(2) of Federal Law No. 8 of 2004 Regarding the Financial Free Zones, we conclude that the New Arbitration Law will not govern arbitrations seated in these two free zones, which will continue to be governed by the relevant free zone’s arbitration laws and regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the timing of the introduction of the New Arbitration Law, it came into effect \"one month from the day following its publication in the Official Gazette\". It is therefore our view that the New Arbitration Law came into effect on 15 June 2018. It is interesting to note that contrary to recently enacted arbitration laws in the region, the New Arbitration Law will apply retrospectively. Specifically, Article 59 provides that the New Arbitration Law will apply to all ongoing arbitral proceedings at the time of its coming into effect, including arbitrations arising out of existing arbitration agreements. Such a retrospective application is without any prejudice to all proceedings having taken place prior to the entry into force of the New Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Competent Court</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">One of the major procedural highlights of the New Arbitration Law is the designation of the Competent Court, which has been defined as the \"Federal or local Court of Appeal agreed upon by the parties or in whose jurisdiction the arbitration is conducted.\" We hope that going forward, and in line with other major global arbitration hubs, that a dedicated circuit will hear arbitration matters, with specialised and arbitration-focused members of the judiciary to further support and safeguard the arbitral process.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitration Agreement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 7 confirms the writing requirement for the validity of arbitration agreements. Noteworthy additions to the New Arbitration Law include the expansive interpretation of the writing requirement. As such, an arbitration agreement can be concluded by an exchange of correspondence, including e-mails. Furthermore, the writing requirement is satisfied through the reference in a written contract to an arbitration agreement contained in another document, model contract or international agreement. In Article 5, the Law expressly provides for the notion of arbitration agreements incorporated by reference. Also, an oral agreement to arbitrate during court proceedings is deemed valid if it is recorded in a judgment or if the other party asserts the existence of an arbitration party and the other party does not raise any objection.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Despite the softening of the writing requirement, the New Arbitration Law reconfirms, through Article 4(1), the requirement for arbitration agreements to be signed by persons with authority to do so. Therefore, we draw the attention of parties wishing to enter into an arbitration agreement to the requisite capacity requirements provided for under the relevant laws of the UAE, which remain unaffected by the introduction of the New Arbitration Law. For a UAE incorporated limited liability company, it is recommended that the company’s constituting documents are reviewed prior to the execution of an arbitration agreement in order to verify that authority to enter into arbitration agreements, granted by default to the company’s manager, has not been explicitly withdrawn. Article 4(4) explicitly provides that the ex-post lack of capacity of a party entering into an arbitration agreement, which occurs for example as a result of the death of an individual or the expiry of the entity’s term (as prescribed in its constitutional documents) after it has entered into an arbitration agreement, shall not cause the termination of such an arbitration agreement. It is however interesting to note that the Law seemingly intended for such a provision to be non-mandatory as parties may still otherwise agree. Furthermore, Article 4(2) reiterates that there shall not be an agreement to arbitrate matters which are non-conciliatory.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the validity of arbitration agreements, Article 6, in line with the UNCITRAL Model Law, confirms the separability principle of arbitration agreements. When parties’ agreement to arbitrate is featured within the framework of their main contractual relationship, the New Arbitration Law affirms the independence of the arbitration agreement from the other terms of the main contract in which it is contained. Arbitration agreements are not affected by the nullity, rescission or termination of the main contract, save for grounds arising out of a defective capacity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Finally, Article 8 provides that the court shall dismiss any action that falls within the scope of an arbitration agreement, provided that the existence of the arbitration agreement is brought to the court’s attention before making any substantive claims or defences on the merits, unless the court decides that the arbitration agreement is invalid or impossible to perform. The filing of such an action does not preclude the commencement or continuance of arbitral proceedings or the issuance of the arbitral award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-7992 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_756750676.jpg\" alt=\"\" width=\"4243\" height=\"1636\" />Set and Stringent Time Limits</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In an effort to promote efficiency and prevent unnecessary prejudicial delays, the legislative draftsman of the New Arbitration Law have aimed to fit the arbitral proceedings within a clear set of, often stringent, time limits.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For example, in the event of alleged non-compliance with the arbitration agreement or the Law, Article 25 provides that if a party does not object within the time limit agreed upon, or within seven days of becoming aware of the alleged non-compliance, that party is deemed to have waived its right to rely on this non-compliance subsequently. It is questionable whether the default seven-day period is reasonable from a practical perspective. However, such a waiver to challenge constitutes an important pro-arbitration provision, which shall have the effect of estopping a party from attempting to halt the conduct of the proceedings if it does not assert any objection in a prompt manner. With that said, we note that a party’s right to challenge an award, based on a defective arbitration agreement, or lack thereof, would still be preserved pursuant to Article 53. It is yet to be tested how the courts will interpret and eventually apply Articles 25 and 53.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the appointment and challenge of arbitrators, the New Arbitration Law has set a reasonable 15-day period. Specifically, pursuant to Article 11(2-3), the parties have a 15-day time limit to agree to the appointment of an arbitrator, from the date of receipt of a request to do so. Under Article 15(1-2), a 15-day time limit has been set for a party to challenge an arbitrator after becoming aware of the arbitrator appointment or after becoming aware of any circumstances justifying the challenge. Such a challenge shall be in a written application addressed to the challenged arbitrator, with a copy of the same addressed to the other members of the tribunal, if any, as well as the other parties. In the event that the arbitrator does not withdraw or the other party does not agree to the removal of the arbitrator, the party making the challenge may present it to the concerned body within 15-days after the lapse of the initial 15-day period.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We note the express acknowledgment of the compétence-compétence principle in Article 19(2) under which the arbitral tribunal has the jurisdiction to rule on its own jurisdiction. Notwithstanding, a party still has the right to challenge a tribunal’s preliminary decision of jurisdiction before the courts within 15 days of the preliminary decision being notified. The Court then has then 30 days to render its decision. While the request is pending, the arbitral proceedings may continue at the request of a party. We note that this possibility to petition the court on the basis of a procedural order and not an award, is uncustomary in the UAE and may lead, at least in the beginning, to uncertainty.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitrator Requirements</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The New Arbitration Law brings clarity on the requisite requirements for arbitrators. Article 10(1) specifies that an arbitrator must not be a minor, or be judicially declared as incapacitated, or one without civil rights for the reasons of bankruptcy (unless discharged), or conviction for a crime (even if she or he has been rehabilitated).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Furthermore, Article 10(2) provides that an arbitrator cannot be a member of the Board of Trustees or of the administrative body of the arbitral institution administering the arbitration in which that person is asked to sit. We highlight the expansive application of this provision to arbitrations administered by both domestic arbitration centres, such as the Dubai International Arbitration Centre and the DIFC-LCIA Arbitration Centre, as well as international arbitration centres, such as the International Chamber of Commerce’s International Court of Arbitration, the London Court of International Arbitration and the Singapore International Arbitration Centre. The triggering event prompting the application of Article 10(2) is therefore the UAE seat of such arbitral proceedings. It is regrettable that the Law did not draw a distinction between party-appointed arbitrators, on one hand, and centre-appointed arbitrators, on the other, as we would be of the view that party-appointed arbitrators, even if members of the Board of Trustees or administrative body of an arbitral institution, should not be affected by this provision. Given the retrospective application of the New Arbitration Law to ongoing arbitrations, we note that the entry into force of the Law will most likely cause certain concerned arbitrators to resign.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We also note that the Ministry of Justice or the Chairman of the competent judicial authority are to compile a list of arbitrators to be appointed in the event of a failure to agree upon the appointment of an arbitrator. As the list has not yet been published, we remain hopeful that the selection process of the prospective arbitrators would follow the international best practices in terms of both procedural knowledge and industry-specific expertise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Finally, pursuant to Article 58, the Ministry of Economy is to issue a charter on the professional conduct of arbitrators in consultation with the arbitration institutions in the UAE. While the issuance of such a charter is likely to instil confidence within the parties to arbitration in the UAE, we are of the view that the effect of such a charter will remain for guidance purposes only. It is notable that the Law does not address the issues relating to the liability of arbitrators. In our view, it would have been desirable that for the Law to have included a provision confirming the civil immunity of arbitrators.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitral Proceedings</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Commencement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to Article 27(1), arbitral proceedings are deemed to have commenced from the following day after which the arbitral tribunal has been constituted, unless the parties agree otherwise. With that said, in relation to the procedural requirement for a substantive claim to confirm and sustain precautionary attachments, Article 27(2) provides that the arbitral proceedings are deemed to have commenced on the date of the notification of the request for arbitration. Even though the relationship between arbitral and court proceedings relating to arbitration is yet to be tested under the New Arbitration Law, the advancement of the date of commencement of the arbitral proceedings for the purpose of precautionary attachments is a positive provision.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Language of the Arbitration</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the New Arbitration Law, the default language of the arbitral proceedings, absent an agreement between the parties, will be Arabic. We therefore draw the attention of foreign parties in particular to the need to agree on a different language for the arbitration should they wish to avoid arbitral proceedings in Arabic, either explicitly, through for example their arbitration agreement, or implicitly, by agreeing to the application of institutional rules.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Acknowledgment of Modern Means of Communication</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The emphasis on the use and role of technology in the New Arbitration Law can be attributed to the desire for more efficient proceedings. There are indeed several references to the use of \"modern means of communication\" in the Law. For example, written correspondence can now be deemed to have been delivered if sent, amongst other means, by email. Article 28(2) provides that arbitral hearings and deliberations can be conducted by modern means of communication and electronic technology. In addition, Article 33(3) provides that hearing may be held through modern means of communication without the physical presence of the parties at the hearing. Pursuant to Article 35, the arbitral tribunal may question witnesses, including expert witnesses, through modern means of communication without their physical presence at the hearing. The emphasis on the use of technology will undoubtedly modernise arbitral proceedings in the UAE and help instil global confidence in such proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Confidentiality</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Contrary to common belief, arbitral proceedings are not confidential by default. The New Arbitration Law addresses the issue of confidentiality by stating, under Article 33(1), that hearings shall be confidential unless parties have otherwise agreed. The confidentiality of arbitral awards is implicitly recognised pursuant to Article 44. However, the Law does not explicitly provide for the confidentiality of documents, pleadings, evidence or submissions produced by the parties and the tribunal during the proceedings. We recommend that parties address the confidentiality of their arbitral proceedings either through an explicit agreement, or implicitly, through an agreement to apply institutional rules providing for the hoped for confidentiality obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conduct</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is clear that the New Arbitration Law attempts to instil discipline and efficiency in the conduct of the arbitral proceedings. As noted above, arbitral hearings can be held at any place, and the Law allows arbitral hearings and deliberations to be conducted by modern means of communication and electronic technology. Article 30(1-2) provides, absent an agreement between the parties, for a 14-day period from the date of the composition of the arbitral tribunal for the claimant to communicate the statement of claim in writing to the respondent and to the arbitrators. After receiving the statement of claim, the respondent has a further 14-day period to communicate its statement of defence. The practical difficulties associated with these relatively contracted time limits will most likely prompt parties to agree on different deadlines.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is worth noting that the New Arbitration Law attempts to put an end to disruptive guerrilla tactics through repetitive challenges of an arbitrator by providing under Article 15(3) that the challenge of an arbitrator does not suspend the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Pursuant to Article 43 of the New Arbitration Law, the arbitral tribunal can decide to continue the arbitral proceedings (i) where there are issues that fall outside the scope of its jurisdiction; (ii) if a document submitted to it is challenged for forgery; or (iii) if criminal proceedings in respect of that document or for any other criminal act which has been instituted. This is a significant improvement as previously, according to the CPC, the tribunal was required to suspend its proceedings under such circumstances.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law provides much needed clarity on the issue of the representation of the parties by non-UAE lawyers. Specifically, Article 33(5) provides that parties may seek the assistance of representatives for their representation in the arbitral proceedings and these representatives may or may not be lawyers. The non-restriction on the appearance of foreign counsel in UAE-seated arbitrations is welcome after the issuance of the 2017 Executive Regulations to the Federal Law No. 23 of 1991 on the Legal Professional, which was interpreted by some to restrict the appearance of non –UAE counsel in arbitral proceedings seated in the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law also provides wide latitude to the parties and the arbitral tribunal to decide upon the conduct of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interim and Conservatory Measures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Interim and conservatory measures constitute crucial tools in arbitral proceedings. The CPC did not grant powers to the tribunal to order such measures, which were within the exclusive powers of the courts. In the event that parties agree to grant such powers to the tribunal, either explicitly or implicitly through the application of institutional rules, the enforcement of tribunal-ordered interim and conservatory measures was an impossible task in the UAE before the enactment of the New Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">One of the much anticipated provisions of the New Arbitration Law is Article 21. Through this article, and unless otherwise agreed by the parties, the New Arbitration Law explicitly recognises the arbitral tribunal’s power to award interim or conservatory measures, either on the request of a party or of its own motion, including ordering a party to provide adequate security to cover the costs of such measures. Pursuant to Article 21(4), a party for whom an interim measure has been ordered in its favour may, with written permission from the tribunal, request the competent court to enforce the order of the tribunal within 15 days of receipt of the request.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding the arbitral tribunal’s newly attributed powers to order such interim and conservatory measures, the court also remains competent to grant interim and conservatory measures based on an application by the tribunal or one of the parties in relation to forthcoming or ongoing arbitral proceedings. As per Article 18(3), the arbitral proceedings shall continue notwithstanding any application for interim or conservatory measures relating to an ongoing arbitration and such an application to the court shall not constitute a waiver to the arbitration agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While the receptivity and approach of the courts in relation to these provisions are yet to be tested, we highly welcome these efforts to safeguard more efficient and equitable arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Award</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the issuance of the award, Article 42(1) provides that, unless agreed otherwise, an award must be issued within 6 months from the date of the first hearing of the arbitration. Contrary to the previous CPC regime, such a date can now be extended for an additional 6 months, unless the parties agree to a longer extension, either explicitly or implicitly through the application of institutional rules. Article 42(2) provides that absent such an agreement, further extension of time can only be made by the courts upon petition by the parties or the tribunal itself. It is important to bear in mind in this regard that the failure to meet this time limit is a ground for challenging an award pursuant to Article 53(1)(g) of the New Arbitration Law as discussed further below.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The time limits set forth in Article 42 lack any mechanism for arbitral institutions to grant an extension of time, though it may be argued that parties have agreed to such an extension by virtue of having agreed to the application of particular institutional rules. Under the previous regime, the CPC allowed the parties to agree to extensions of time whether expressly or by implication.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In our view, Article 41(6) is a very positive introduction, which provides that awards can be signed outside the seat of arbitration and can also be signed electronically. The issuance of the final award shall be deemed to mark the end of the arbitral proceedings. According to Article 44, parties are to be notified of the award within 15 days from the date of issue of the award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law explicitly recognises that an arbitral tribunal may interpret an award by issuing an explanatory award pursuant to Article 49. A party may request the tribunal to interpret any obscurity or ambiguity in its award within 30 days of receipt of the award, unless the parties have agreed to different procedures or time limits. The tribunal shall consider and issue its explanatory award within 30 days after the receipt of the request, which may extended by a further 15 days. Such an explanatory award is deemed to supplement the final arbitral award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Enforcement of Arbitral Awards</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The New Arbitration Law clarifies the process for enforcing UAE arbitral awards with a fast-tracked and overhauled procedure. The New Arbitration Law provides that arbitral awards are binding on the parties, res judicata applies and that such awards shall be enforceable in the same manner as a judicial ruling provided ratification is obtained. If the enforcement of the award is sought in the UAE, a ratification of such an award by the court is required in order to proceed with the enforcement of such an award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A major development in the New Arbitration Law lies in the fact that enforcement proceedings shall now commence directly before the UAE federal or local Court of Appeal, not before the Court of First Instance as before. The form of the enforcement procedure has also been simplified. Instead of filing a case before the court, the award-creditor can seek the ratification and enforcement of an award through the filing of an application with the Chief Justice of the Court of Appeal. Pursuant to Article 55(2), the relevant authority will now have 60 days from the date of the application to order the ratification and enforcement of the award unless it finds grounds for annulment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 57 provides for the possibility of filing a grievance against an order of the Court of Appeal ratifying an award and declaring it enforceable or order of the Court of Appeal denying enforcement. Such a grievance must be filed with the Court of Appeal within 30 days of the Court of Appeal’s notification of the order. We note that it would have been more appropriate for such a grievance to be filed before the Court of Cassation, as the higher appellate court, instead of the Court of Appeal.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to foreign arbitral awards, we note that the Law lacks explicit provisions relating to the enforcement of such awards. It is our view that the CPC provisions, specifically Articles 235 to 238, remain applicable absent a convention or treaty entered into by the UAE dealing with the enforcement of foreign arbitral awards. In the event of enforcement of foreign arbitral awards in the UAE sought on the basis of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (\"New York Convention\"), it is yet to be tested whether the new expedited enforcement provisions of the Law would apply to such enforcements given that Article III of the New York Convention provides that: \"(…) There shall not be imposed substantially more onerous conditions or higher fees or charges on the recognition or enforcement of arbitral awards to which this Convention applies than are imposed on the recognition or enforcement of domestic arbitral awards.\"</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Given the absence of any explicit provisions to the contrary within the Law, we are of the view that the new provisions of the Law should apply to enforcements of foreign arbitral awards under the New York Convention.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Award Challenge</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The grounds to challenge and set aside an award are limited and consistent with the spirit of Article 34 of the UNCITRAL Model Law. Article 53(1) of the New Arbitration Law provides for limited grounds for annulment, which include the lack of capacity of a party entering into the arbitration agreement, lack of authorisation to act on the matter or lack of notice. Unlike the UNCITRAL Model Law, the New Arbitration Law also provides that the issuance of a final award which does not apply the substantive law chosen by the parties or the arbitral tribunal’s failure to issue the award within the specified time-frame shall also constitute grounds for challenge. In addition, Article 53(2) provides that the court has the right to set aside the award on its own initiative, if the subject matter of the dispute is not arbitrable or if the award contravenes the public policy and morality of the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In an effort to preserve the arbitral proceedings, several articles purport to safeguard the sanctity of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For example, pursuant to Article 50(1-2), a party may request the arbitral tribunal to correct any typographical or clerical errors in the award within 30 days of receipt of the award, unless the parties have agreed to different procedures or time limits. Such correction is to be made within 30 days after the tribunal issues the award or after receiving the request for correction by one of the parties, as the case may be. Such period may be extended by a further 15 days. The arbitral tribunal shall notify the parties after corrections are made within 15 days from the date of issue of correction. Also, Article 51(1-2) provides that a party may request the tribunal to issue an additional award if the party believes that the final award did not deal with some of the requests made. Such a request must be made within 30 days of receipt of the award. If such a request is justified, then the arbitral tribunal shall issue the additional award within 60 days after the receipt of the request and may extend by a further 30 days. In addition, pursuant to Article 54(6), the court may suspend the setting aside proceedings for a period of up to 60 days in order to give the arbitral tribunal an opportunity to take any action or make any amendment to the form of the award.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whereas under the previous CPC regime, there was no specific deadline for the purpose of filing a set aside action, the New Arbitration Law, pursuant to Article 54(2) provides for a 30-day time limit from the date of receiving notice of the award for a party to commence annulment proceedings. This is a significant change to the previous regime, and we believe that this will contribute to the legal security of final awards. However, Article 54(1) provides that the decision to set aside is final and can only be appealed to the Court of Cassation. We note that there is no set time limit for the Court of Cassation to render its decision.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the general spirit of the New Arbitration Law for more efficient proceedings, an action to set aside an arbitral award does not stay its enforcement. Nevertheless, the court may order a stay of enforcement if a party requests for a stay of enforcement. Such stay of enforcement is to be decided within 15 days after the date of the first scheduled hearing.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Federal Law No. 6 of 2018 on Arbitration undoubtedly constitutes a landmark development for arbitration in the UAE by providing a standalone arbitration law aligned with international best practices and standards. We consider that the overall preservation and respect of party autonomy and the focus on more streamlined and efficient proceedings will build the UAE’s reputation as a preferred seat for international arbitration in the region. We remain hopeful in the courts’ significant role in appropriately applying and preserving the spirit of the Law. The Executive Regulations, which are in the pipeline, will also undoubtedly clarify some of the issues raised in hope of a more rationalised and synchronised proceedings among the various players in UAE seated arbitrations.</p>\r\n<em>For further information, please contact <a href=\"http://localhost:8888/tamimi/lawyer/essam-al-tamimi/\">Essam Al Tamimi</a> (e.tamimi@tamimi.com) or <a href=\"http://localhost:8888/tamimi/lawyer/sara-aranjo/\">Sara Koleilat-Aranjo</a> (s.aranjo@tamimi.com).</em>'),
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	(257414,25018,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignright size-full wp-image-8021\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/12323.jpg\" alt=\"\" width=\"4272\" height=\"1747\" />A brief history of stadiums</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The origins of stadiums lie in Ancient Greece in the 8th Century BC where a \"stadion’ (or \"stadium\" in its translated Latin form) was a unit of measurement approximately 200 metres in length. The name of stadion referred to both the elongated U-shaped track of the same length and the sprint race that was run along its distance. The tracks were usually surrounded by rudimentary stands that were sometimes built into hillsides or surrounded by artificial embankments of stone steps in order for spectators to view the race.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Romans later advanced the development of stadiums with the \"circus\", which had a similar, open-ended horseshoe shape to the stadion, but which was used for horse and chariot racing. However, the familiar modern day design was really started with the amphitheatre, which could accommodate much larger crowds, was often multi-tiered and wrapped around the often gruesome gladiatorial, venatio (animal hunts) and naumachia (staged naval battles to the death involving condemned prisoners) events put on for mass entertainment in a circle of blood thirsty noise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With the fall of the Roman Empire, \"sports\" and their associated facilities also fell into a steep decline during the Middle Ages with the world more pre-occupied with other matters – with jousting being a notable anomaly.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It was not until the late 19th Century, with large scale urbanisation and the huge growth in organised sports such as football, rugby and cricket in the UK and baseball in the United States, that the modern era of the stadium began and which drew upon its ancient roots. Although the sportsmen on the field of play now managed to escape with their lives, football stadiums in the UK, at least, retained much of the \"red in tooth and claw\" atmosphere of their Roman ancestors right up to as recently as the end of the 1980s.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">My own first experience of attending a stadium was as a child with my father in 1987 standing in the Gallowgate End at St James’ Park watching Newcastle United inflict a very rare 2-1 victory over Manchester United. The memories of that day remain very vivid – the pitch, the ear-splitting volume of the chants, the soggy meat pies, watching Gazza do his stuff as a young 19 year-old, Gordon Strachan’s long range equaliser on the stroke of half time (with the ball remaining ominously lodged in the top right stanchion of the goal in front of me for the whole of the half time interval) and Paul Goddard’s 90th minute winner which sent the place ballistic in a primeval frenzy – all of which was simultaneously pretty intoxicating and slightly terrifying for a 10 year old.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As Nick Hornby describes of his first football match in his 1992 novel Fever Pitch, an autobiographical account of his lifelong obsession with Arsenal FC:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">\"All I saw on the day was a bewildering chain of incomprehensible incidents ... I remember the overwhelming maleness of it all – cigar and pipe smoke, foul language ... I’d been to public entertainments before, of course ... but that was different. The audiences I had hithero been a part of had paid to have a good time and, though occasionally one might spot a fidgety child or yawning adult, I hadn’t ever noticed faces contorted by rage or despair or frustration. Entertainment as pain was an idea entirely new to me\".</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, change was afoot. The design of football stadiums and related health and safety legislation in the UK were subject to a massive overhaul following a series of tragedies such as Hillsborough, the Bradford City fire and the Heysel Stadium disaster in the 1980s. Such catastrophes highlighted fatal flaws in stadium design and crowd control at such time. As a result, standing areas were removed from stadiums, which became all-seaters, and an era of much safer, comfortable and more family friendly stadiums was ushered in. The new designs also led to the commercialisation of the stadium with the introduction of hospitality areas and services, acoustics and lighting fit for TV purposes, the hosting of alternative events such as music concerts, and additional commercial facilities such as food and beverage outlets, hotels and conference rooms – all of which increased the frequency and diversity of stadium use.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A view from pitch side</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Talking of Manchester United, I spoke with Dan Schofield, Head of Venue Operations at Old Trafford and self-confessed stadium geek on the current state of play. Dan provided me with the following insights:</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Stadium development is such a hot topic at the moment in the football industry with clubs jostling and jockeying for position in bringing the newest and best developments in the quest for commercial gain, footballing excellence and fan experience. The big challenge for us all is to find the right balance of each of those elements and different clubs have taken differing approaches. Some, such as Liverpool, FC Barcelona and Sheffield United are looking at modernising existing stadiums whilst others, including Tottenham Hotspur, Everton and Chelsea are spending huge amounts on developing completely new stadiums. To justify these huge outlays in capital expenditure clubs are looking to \"sweat the asset\" and stage as many different events and activities as they can in the stadium. If managed well the non-matchday business can be as lucrative as the matchday business.</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>If you take a deep-dive in to the new White Hart Lane development, for example, you will see that Spurs have incorporated a skywalk, abseil and a huge Museum experience - all to bolster the non-matchday revenue generating potential of the facility. That is in addition to an average of 27 homes games (across all competitions) and a number of NFL games and concerts which they have contracted to take place. This diversification is always a balancing act between bringing in commercially viable events whilst not impacting on the footballing performance on the pitch. It’s been fascinating to follow the development at Spurs and in particular the retractable pitch they are implementing which will enable them to host NFL games and concerts on an artificial surface whilst the football surface is retracted out of the stadium on a series of mechanical trays, rails and hoists.</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>I’m very fortunate that my role heading up the venue operations at Manchester United allows me to visit stadiums all over the world and I make a point of trying to learn something from every venue we visit. I’m particularly looking forward to a trip to Michigan at the end of July where we are playing a pre-season tour game at the 107,000 capacity \"Big House\" stadium. Every stadium you visit is different and having joked about it for years I’ve certainly got enough Stadium based anecdotes to write a book called \"Around the World in 80 Stadiums\" which one day I may well do….. I recently added a new stadium I want to visit to my bucket-list with the Ekaterinburg Arena in Russia in its World Cup guise with its 147 foot high temporary scaffold stands literally outside the stadium with part of the perimeter cut out allowing fans to see the game. You look at photos, scratch your head and question how it’s possible and I’d love to visit and have a proper stomp all over it in person.</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>I’m blessed with a fantastic facility in the 75,000 capacity Old Trafford and it’s a fantastic time to be involved in the stadium industry with a number of exciting developments happening all over the world and new ones being announced on an almost weekly basis. I’d recommend for anyone interested in the subject to sign-up to a couple of industry newsletters which help keep you abreast of developments and changes in the global stadium industry, I’d particularly recommend www.stadia-magazine.com and www.sportindustry.biz \"</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignright wp-image-8007 \" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_421751620-1024x682.jpg\" alt=\"\" width=\"470\" height=\"313\" />E-gaming stadiums</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the future, stadiums will continue to evolve - becoming safer and more technologically sophisticated, diverse in their uses and sustainable; often built with iconic designs (see Qatar 2022) that provide a focal point for cities that are instantly recognisable internationally. They can also help to rejuvenate the economy and attract business in previously run down areas of a city in which they are anchored.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">One example of such evolution in the digital age is with the new phenomena of e-sports stadiums, where professional gamers compete with each other in front of a live audience. Such stadiums are already operational in the United States, China and South Korea and have a huge potential in terms of audience numbers and revenue.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With a plethora of international standard stadiums already built and construction of the new Dubai Arena well underway, Dubai, ever at the cutting edge of building design and digital technology and soon to be host of EXPO 2020, has also announced the Dubai X-Stadium, a new e-gaming stadium being developed through a joint initiative between Dubai Media Office and TECOM Group.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The features and design of such e-gaming stadiums diverge from traditional stadiums, most notably in that all the action is on huge high definition screens rather than the audience focus being on the competitors, who may be squirreled away in separate booths during play. Use of holographic displays and augmented and virtual reality are also likely to play a significant part in the audience’s experience. Fans are also likely to have a much less sedentary, static relationship with the games – with the freedom to circulate within the stadium and experience other zones and outlets catering to the modern tastes of a new generation - soggy meat pies are likely to be thin on the ground.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Some UAE real estate legal considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"We don’t want people to leave the stadium until the game finishes\"</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Jurgen Klopp, manager of Liverpool FC in 2016</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the UAE, there are a number of mixed use, master communities that have a stadium as their focal point or as a prominent feature such as Sports City and Motor City in Dubai, Yas Island in Abu Dhabi and Hazza Bin Zayed Stadium in Al Ain (home of Al Ain F.C).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Developers of such cornerstone plots in such developments will often be granted certain concessions in terms of master community fees in light of the fact that use of such facilities is more intermittent than standard commercial use and that they serve as a key attractor to investors, retailers and third party purchasers of residential property within the master community. Any such concessions should be expressly disclosed to third party purchasers by the master developer prior to the parties entering into a sale and purchase agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, although you would think that any such third party purchasers of residential property or commercial tenants would be well aware of potential infringements upon their use and enjoyment of their properties within such a stadium focussed master community, it would also be prudent of master developers to cover off the risk of any nuisance related claims. This may include express wording contained in the relevant master community declaration (which typically purchasers are bound by through the signing of a declaration of adherence upon purchase) or lease whereby a purchaser/tenant acknowledges and waives any claims relating to such matters as traffic congestion, noise and light pollution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Another issue for retail tenants in stadium facilities are conflicts that may arise with the landlord/stadium owner’s sponsors – particularly in relation to special, one off events taking place at the stadium. It is therefore not unusual to find provisions in such leases whereby the landlord reserves rights to impose signage and branding blackouts or restrictions on the sale of goods or services during certain times when a conflict arises with sponsors. This can be a tricky issue and needs to be carefully managed and negotiated up front in the lease. Often with leases where tenants that have a particular connection to the type of sport practised at the stadium, the lease itself may be just a part of a wider commercial deal with the stadium and this may assist with negotiations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Stadiums should also have good standard forms of venue hire agreements and short term kiosk type agreements in place. One issue to be considered is the potential effect of landlord and tenant laws in the UAE on such agreements. Unlike in the UK for example, where the case of Street v Mountford [1985] established that the legal distinction between a lease and an occupational licence is whether or not the tenant enjoys \"exclusive possession\" of the premises, there is no such distinction under UAE law. A short term occupational licence, even if it is described as such on its face and contains express wording that the parties do not intend to create a lease or a relationship of landlord or tenant, is therefore likely to be considered a lease if the question is brought before judicial authorities. This is significant as this will mean that the so called \"licence\" will be subject to landlord and tenant legislation which, in onshore Dubai for example, is generally very tenant friendly in terms of the rights of the landlord to terminate, renewal and security of tenure for tenants. Nevertheless, on a case by case basis depending on the circumstances, certain structuring of the relevant agreement can potentially help to mitigate the risk of it being caught by local landlord and tenant laws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">...... and there goes the full time whistle.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For further information please contact Ian Arnott (i.arnott@tamimi.com)</p>'),
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	(257417,25018,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignright size-full wp-image-8021\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/12323.jpg\" alt=\"\" width=\"4272\" height=\"1747\" />A brief history of stadiums</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The origins of stadiums lie in Ancient Greece in the 8th Century BC where a \"stadion’ (or \"stadium\" in its translated Latin form) was a unit of measurement approximately 200 metres in length. The name of stadion referred to both the elongated U-shaped track of the same length and the sprint race that was run along its distance. The tracks were usually surrounded by rudimentary stands that were sometimes built into hillsides or surrounded by artificial embankments of stone steps in order for spectators to view the race.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Romans later advanced the development of stadiums with the \"circus\", which had a similar, open-ended horseshoe shape to the stadion, but which was used for horse and chariot racing. However, the familiar modern day design was really started with the amphitheatre, which could accommodate much larger crowds, was often multi-tiered and wrapped around the often gruesome gladiatorial, venatio (animal hunts) and naumachia (staged naval battles to the death involving condemned prisoners) events put on for mass entertainment in a circle of blood thirsty noise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With the fall of the Roman Empire, \"sports\" and their associated facilities also fell into a steep decline during the Middle Ages with the world more pre-occupied with other matters – with jousting being a notable anomaly.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It was not until the late 19th Century, with large scale urbanisation and the huge growth in organised sports such as football, rugby and cricket in the UK and baseball in the United States, that the modern era of the stadium began and which drew upon its ancient roots. Although the sportsmen on the field of play now managed to escape with their lives, football stadiums in the UK, at least, retained much of the \"red in tooth and claw\" atmosphere of their Roman ancestors right up to as recently as the end of the 1980s.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">My own first experience of attending a stadium was as a child with my father in 1987 standing in the Gallowgate End at St James’ Park watching Newcastle United inflict a very rare 2-1 victory over Manchester United. The memories of that day remain very vivid – the pitch, the ear-splitting volume of the chants, the soggy meat pies, watching Gazza do his stuff as a young 19 year-old, Gordon Strachan’s long range equaliser on the stroke of half time (with the ball remaining ominously lodged in the top right stanchion of the goal in front of me for the whole of the half time interval) and Paul Goddard’s 90th minute winner which sent the place ballistic in a primeval frenzy – all of which was simultaneously pretty intoxicating and slightly terrifying for a 10 year old.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As Nick Hornby describes of his first football match in his 1992 novel Fever Pitch, an autobiographical account of his lifelong obsession with Arsenal FC:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">\"All I saw on the day was a bewildering chain of incomprehensible incidents ... I remember the overwhelming maleness of it all – cigar and pipe smoke, foul language ... I’d been to public entertainments before, of course ... but that was different. The audiences I had hithero been a part of had paid to have a good time and, though occasionally one might spot a fidgety child or yawning adult, I hadn’t ever noticed faces contorted by rage or despair or frustration. Entertainment as pain was an idea entirely new to me\".</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, change was afoot. The design of football stadiums and related health and safety legislation in the UK were subject to a massive overhaul following a series of tragedies such as Hillsborough, the Bradford City fire and the Heysel Stadium disaster in the 1980s. Such catastrophes highlighted fatal flaws in stadium design and crowd control at such time. As a result, standing areas were removed from stadiums, which became all-seaters, and an era of much safer, comfortable and more family friendly stadiums was ushered in. The new designs also led to the commercialisation of the stadium with the introduction of hospitality areas and services, acoustics and lighting fit for TV purposes, the hosting of alternative events such as music concerts, and additional commercial facilities such as food and beverage outlets, hotels and conference rooms – all of which increased the frequency and diversity of stadium use.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A view from pitch side</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Talking of Manchester United, I spoke with Dan Schofield, Head of Venue Operations at Old Trafford and self-confessed stadium geek on the current state of play. Dan provided me with the following insights:</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Stadium development is such a hot topic at the moment in the football industry with clubs jostling and jockeying for position in bringing the newest and best developments in the quest for commercial gain, footballing excellence and fan experience. The big challenge for us all is to find the right balance of each of those elements and different clubs have taken differing approaches. Some, such as Liverpool, FC Barcelona and Sheffield United are looking at modernising existing stadiums whilst others, including Tottenham Hotspur, Everton and Chelsea are spending huge amounts on developing completely new stadiums. To justify these huge outlays in capital expenditure clubs are looking to \"sweat the asset\" and stage as many different events and activities as they can in the stadium. If managed well the non-matchday business can be as lucrative as the matchday business.</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>If you take a deep-dive in to the new White Hart Lane development, for example, you will see that Spurs have incorporated a skywalk, abseil and a huge Museum experience - all to bolster the non-matchday revenue generating potential of the facility. That is in addition to an average of 27 homes games (across all competitions) and a number of NFL games and concerts which they have contracted to take place. This diversification is always a balancing act between bringing in commercially viable events whilst not impacting on the footballing performance on the pitch. It’s been fascinating to follow the development at Spurs and in particular the retractable pitch they are implementing which will enable them to host NFL games and concerts on an artificial surface whilst the football surface is retracted out of the stadium on a series of mechanical trays, rails and hoists.</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>I’m very fortunate that my role heading up the venue operations at Manchester United allows me to visit stadiums all over the world and I make a point of trying to learn something from every venue we visit. I’m particularly looking forward to a trip to Michigan at the end of July where we are playing a pre-season tour game at the 107,000 capacity \"Big House\" stadium. Every stadium you visit is different and having joked about it for years I’ve certainly got enough Stadium based anecdotes to write a book called \"Around the World in 80 Stadiums\" which one day I may well do….. I recently added a new stadium I want to visit to my bucket-list with the Ekaterinburg Arena in Russia in its World Cup guise with its 147 foot high temporary scaffold stands literally outside the stadium with part of the perimeter cut out allowing fans to see the game. You look at photos, scratch your head and question how it’s possible and I’d love to visit and have a proper stomp all over it in person.</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>I’m blessed with a fantastic facility in the 75,000 capacity Old Trafford and it’s a fantastic time to be involved in the stadium industry with a number of exciting developments happening all over the world and new ones being announced on an almost weekly basis. I’d recommend for anyone interested in the subject to sign-up to a couple of industry newsletters which help keep you abreast of developments and changes in the global stadium industry, I’d particularly recommend www.stadia-magazine.com and www.sportindustry.biz \"</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignright wp-image-8007 \" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_421751620-1024x682.jpg\" alt=\"\" width=\"470\" height=\"313\" />E-gaming stadiums</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the future, stadiums will continue to evolve - becoming safer and more technologically sophisticated, diverse in their uses and sustainable; often built with iconic designs (see Qatar 2022) that provide a focal point for cities that are instantly recognisable internationally. They can also help to rejuvenate the economy and attract business in previously run down areas of a city in which they are anchored.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">One example of such evolution in the digital age is with the new phenomena of e-sports stadiums, where professional gamers compete with each other in front of a live audience. Such stadiums are already operational in the United States, China and South Korea and have a huge potential in terms of audience numbers and revenue.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With a plethora of international standard stadiums already built and construction of the new Dubai Arena well underway, Dubai, ever at the cutting edge of building design and digital technology and soon to be host of EXPO 2020, has also announced the Dubai X-Stadium, a new e-gaming stadium being developed through a joint initiative between Dubai Media Office and TECOM Group.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The features and design of such e-gaming stadiums diverge from traditional stadiums, most notably in that all the action is on huge high definition screens rather than the audience focus being on the competitors, who may be squirreled away in separate booths during play. Use of holographic displays and augmented and virtual reality are also likely to play a significant part in the audience’s experience. Fans are also likely to have a much less sedentary, static relationship with the games – with the freedom to circulate within the stadium and experience other zones and outlets catering to the modern tastes of a new generation - soggy meat pies are likely to be thin on the ground.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Some UAE real estate legal considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"We don’t want people to leave the stadium until the game finishes\"</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Jurgen Klopp, manager of Liverpool FC in 2016</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the UAE, there are a number of mixed use, master communities that have a stadium as their focal point or as a prominent feature such as Sports City and Motor City in Dubai, Yas Island in Abu Dhabi and Hazza Bin Zayed Stadium in Al Ain (home of Al Ain F.C).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Developers of such cornerstone plots in such developments will often be granted certain concessions in terms of master community fees in light of the fact that use of such facilities is more intermittent than standard commercial use and that they serve as a key attractor to investors, retailers and third party purchasers of residential property within the master community. Any such concessions should be expressly disclosed to third party purchasers by the master developer prior to the parties entering into a sale and purchase agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, although you would think that any such third party purchasers of residential property or commercial tenants would be well aware of potential infringements upon their use and enjoyment of their properties within such a stadium focussed master community, it would also be prudent of master developers to cover off the risk of any nuisance related claims. This may include express wording contained in the relevant master community declaration (which typically purchasers are bound by through the signing of a declaration of adherence upon purchase) or lease whereby a purchaser/tenant acknowledges and waives any claims relating to such matters as traffic congestion, noise and light pollution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Another issue for retail tenants in stadium facilities are conflicts that may arise with the landlord/stadium owner’s sponsors – particularly in relation to special, one off events taking place at the stadium. It is therefore not unusual to find provisions in such leases whereby the landlord reserves rights to impose signage and branding blackouts or restrictions on the sale of goods or services during certain times when a conflict arises with sponsors. This can be a tricky issue and needs to be carefully managed and negotiated up front in the lease. Often with leases where tenants that have a particular connection to the type of sport practised at the stadium, the lease itself may be just a part of a wider commercial deal with the stadium and this may assist with negotiations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Stadiums should also have good standard forms of venue hire agreements and short term kiosk type agreements in place. One issue to be considered is the potential effect of landlord and tenant laws in the UAE on such agreements. Unlike in the UK for example, where the case of Street v Mountford [1985] established that the legal distinction between a lease and an occupational licence is whether or not the tenant enjoys \"exclusive possession\" of the premises, there is no such distinction under UAE law. A short term occupational licence, even if it is described as such on its face and contains express wording that the parties do not intend to create a lease or a relationship of landlord or tenant, is therefore likely to be considered a lease if the question is brought before judicial authorities. This is significant as this will mean that the so called \"licence\" will be subject to landlord and tenant legislation which, in onshore Dubai for example, is generally very tenant friendly in terms of the rights of the landlord to terminate, renewal and security of tenure for tenants. Nevertheless, on a case by case basis depending on the circumstances, certain structuring of the relevant agreement can potentially help to mitigate the risk of it being caught by local landlord and tenant laws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">...... and there goes the full time whistle.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For further information please contact Ian Arnott (i.arnott@tamimi.com)</p>|<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignright size-full wp-image-8021\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/12323.jpg\" alt=\"\" width=\"4272\" height=\"1747\" />A brief history of stadiums</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The origins of stadiums lie in Ancient Greece in the 8th Century BC where a \"stadion’ (or \"stadium\" in its translated Latin form) was a unit of measurement approximately 200 metres in length. The name of stadion referred to both the elongated U-shaped track of the same length and the sprint race that was run along its distance. The tracks were usually surrounded by rudimentary stands that were sometimes built into hillsides or surrounded by artificial embankments of stone steps in order for spectators to view the race.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Romans later advanced the development of stadiums with the \"circus\", which had a similar, open-ended horseshoe shape to the stadion, but which was used for horse and chariot racing. However, the familiar modern day design was really started with the amphitheatre, which could accommodate much larger crowds, was often multi-tiered and wrapped around the often gruesome gladiatorial, venatio (animal hunts) and naumachia (staged naval battles to the death involving condemned prisoners) events put on for mass entertainment in a circle of blood thirsty noise.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With the fall of the Roman Empire, \"sports\" and their associated facilities also fell into a steep decline during the Middle Ages with the world more pre-occupied with other matters – with jousting being a notable anomaly.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It was not until the late 19th Century, with large scale urbanisation and the huge growth in organised sports such as football, rugby and cricket in the UK and baseball in the United States, that the modern era of the stadium began and which drew upon its ancient roots. Although the sportsmen on the field of play now managed to escape with their lives, football stadiums in the UK, at least, retained much of the \"red in tooth and claw\" atmosphere of their Roman ancestors right up to as recently as the end of the 1980s.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">My own first experience of attending a stadium was as a child with my father in 1987 standing in the Gallowgate End at St James’ Park watching Newcastle United inflict a very rare 2-1 victory over Manchester United. The memories of that day remain very vivid – the pitch, the ear-splitting volume of the chants, the soggy meat pies, watching Gazza do his stuff as a young 19 year-old, Gordon Strachan’s long range equaliser on the stroke of half time (with the ball remaining ominously lodged in the top right stanchion of the goal in front of me for the whole of the half time interval) and Paul Goddard’s 90th minute winner which sent the place ballistic in a primeval frenzy – all of which was simultaneously pretty intoxicating and slightly terrifying for a 10 year old.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As Nick Hornby describes of his first football match in his 1992 novel Fever Pitch, an autobiographical account of his lifelong obsession with Arsenal FC:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">\"All I saw on the day was a bewildering chain of incomprehensible incidents ... I remember the overwhelming maleness of it all – cigar and pipe smoke, foul language ... I’d been to public entertainments before, of course ... but that was different. The audiences I had hithero been a part of had paid to have a good time and, though occasionally one might spot a fidgety child or yawning adult, I hadn’t ever noticed faces contorted by rage or despair or frustration. Entertainment as pain was an idea entirely new to me\".</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, change was afoot. The design of football stadiums and related health and safety legislation in the UK were subject to a massive overhaul following a series of tragedies such as Hillsborough, the Bradford City fire and the Heysel Stadium disaster in the 1980s. Such catastrophes highlighted fatal flaws in stadium design and crowd control at such time. As a result, standing areas were removed from stadiums, which became all-seaters, and an era of much safer, comfortable and more family friendly stadiums was ushered in. The new designs also led to the commercialisation of the stadium with the introduction of hospitality areas and services, acoustics and lighting fit for TV purposes, the hosting of alternative events such as music concerts, and additional commercial facilities such as food and beverage outlets, hotels and conference rooms – all of which increased the frequency and diversity of stadium use.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A view from pitch side</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Talking of Manchester United, I spoke with Dan Schofield, Head of Venue Operations at Old Trafford and self-confessed stadium geek on the current state of play. Dan provided me with the following insights:</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Stadium development is such a hot topic at the moment in the football industry with clubs jostling and jockeying for position in bringing the newest and best developments in the quest for commercial gain, footballing excellence and fan experience. The big challenge for us all is to find the right balance of each of those elements and different clubs have taken differing approaches. Some, such as Liverpool, FC Barcelona and Sheffield United are looking at modernising existing stadiums whilst others, including Tottenham Hotspur, Everton and Chelsea are spending huge amounts on developing completely new stadiums. To justify these huge outlays in capital expenditure clubs are looking to \"sweat the asset\" and stage as many different events and activities as they can in the stadium. If managed well the non-matchday business can be as lucrative as the matchday business.</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>If you take a deep-dive in to the new White Hart Lane development, for example, you will see that Spurs have incorporated a skywalk, abseil and a huge Museum experience - all to bolster the non-matchday revenue generating potential of the facility. That is in addition to an average of 27 homes games (across all competitions) and a number of NFL games and concerts which they have contracted to take place. This diversification is always a balancing act between bringing in commercially viable events whilst not impacting on the footballing performance on the pitch. It’s been fascinating to follow the development at Spurs and in particular the retractable pitch they are implementing which will enable them to host NFL games and concerts on an artificial surface whilst the football surface is retracted out of the stadium on a series of mechanical trays, rails and hoists.</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>I’m very fortunate that my role heading up the venue operations at Manchester United allows me to visit stadiums all over the world and I make a point of trying to learn something from every venue we visit. I’m particularly looking forward to a trip to Michigan at the end of July where we are playing a pre-season tour game at the 107,000 capacity \"Big House\" stadium. Every stadium you visit is different and having joked about it for years I’ve certainly got enough Stadium based anecdotes to write a book called \"Around the World in 80 Stadiums\" which one day I may well do….. I recently added a new stadium I want to visit to my bucket-list with the Ekaterinburg Arena in Russia in its World Cup guise with its 147 foot high temporary scaffold stands literally outside the stadium with part of the perimeter cut out allowing fans to see the game. You look at photos, scratch your head and question how it’s possible and I’d love to visit and have a proper stomp all over it in person.</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>I’m blessed with a fantastic facility in the 75,000 capacity Old Trafford and it’s a fantastic time to be involved in the stadium industry with a number of exciting developments happening all over the world and new ones being announced on an almost weekly basis. I’d recommend for anyone interested in the subject to sign-up to a couple of industry newsletters which help keep you abreast of developments and changes in the global stadium industry, I’d particularly recommend www.stadia-magazine.com and www.sportindustry.biz \"</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"wp-image-8007  alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_421751620-1024x682.jpg\" alt=\"\" width=\"470\" height=\"313\" />E-gaming stadiums</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the future, stadiums will continue to evolve - becoming safer and more technologically sophisticated, diverse in their uses and sustainable; often built with iconic designs (see Qatar 2022) that provide a focal point for cities that are instantly recognisable internationally. They can also help to rejuvenate the economy and attract business in previously run down areas of a city in which they are anchored.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">One example of such evolution in the digital age is with the new phenomena of e-sports stadiums, where professional gamers compete with each other in front of a live audience. Such stadiums are already operational in the United States, China and South Korea and have a huge potential in terms of audience numbers and revenue.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With a plethora of international standard stadiums already built and construction of the new Dubai Arena well underway, Dubai, ever at the cutting edge of building design and digital technology and soon to be host of EXPO 2020, has also announced the Dubai X-Stadium, a new e-gaming stadium being developed through a joint initiative between Dubai Media Office and TECOM Group.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The features and design of such e-gaming stadiums diverge from traditional stadiums, most notably in that all the action is on huge high definition screens rather than the audience focus being on the competitors, who may be squirreled away in separate booths during play. Use of holographic displays and augmented and virtual reality are also likely to play a significant part in the audience’s experience. Fans are also likely to have a much less sedentary, static relationship with the games – with the freedom to circulate within the stadium and experience other zones and outlets catering to the modern tastes of a new generation - soggy meat pies are likely to be thin on the ground.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Some UAE real estate legal considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"We don’t want people to leave the stadium until the game finishes\"</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Jurgen Klopp, manager of Liverpool FC in 2016</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the UAE, there are a number of mixed use, master communities that have a stadium as their focal point or as a prominent feature such as Sports City and Motor City in Dubai, Yas Island in Abu Dhabi and Hazza Bin Zayed Stadium in Al Ain (home of Al Ain F.C).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Developers of such cornerstone plots in such developments will often be granted certain concessions in terms of master community fees in light of the fact that use of such facilities is more intermittent than standard commercial use and that they serve as a key attractor to investors, retailers and third party purchasers of residential property within the master community. Any such concessions should be expressly disclosed to third party purchasers by the master developer prior to the parties entering into a sale and purchase agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, although you would think that any such third party purchasers of residential property or commercial tenants would be well aware of potential infringements upon their use and enjoyment of their properties within such a stadium focussed master community, it would also be prudent of master developers to cover off the risk of any nuisance related claims. This may include express wording contained in the relevant master community declaration (which typically purchasers are bound by through the signing of a declaration of adherence upon purchase) or lease whereby a purchaser/tenant acknowledges and waives any claims relating to such matters as traffic congestion, noise and light pollution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Another issue for retail tenants in stadium facilities are conflicts that may arise with the landlord/stadium owner’s sponsors – particularly in relation to special, one off events taking place at the stadium. It is therefore not unusual to find provisions in such leases whereby the landlord reserves rights to impose signage and branding blackouts or restrictions on the sale of goods or services during certain times when a conflict arises with sponsors. This can be a tricky issue and needs to be carefully managed and negotiated up front in the lease. Often with leases where tenants that have a particular connection to the type of sport practised at the stadium, the lease itself may be just a part of a wider commercial deal with the stadium and this may assist with negotiations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Stadiums should also have good standard forms of venue hire agreements and short term kiosk type agreements in place. One issue to be considered is the potential effect of landlord and tenant laws in the UAE on such agreements. Unlike in the UK for example, where the case of Street v Mountford [1985] established that the legal distinction between a lease and an occupational licence is whether or not the tenant enjoys \"exclusive possession\" of the premises, there is no such distinction under UAE law. A short term occupational licence, even if it is described as such on its face and contains express wording that the parties do not intend to create a lease or a relationship of landlord or tenant, is therefore likely to be considered a lease if the question is brought before judicial authorities. This is significant as this will mean that the so called \"licence\" will be subject to landlord and tenant legislation which, in onshore Dubai for example, is generally very tenant friendly in terms of the rights of the landlord to terminate, renewal and security of tenure for tenants. Nevertheless, on a case by case basis depending on the circumstances, certain structuring of the relevant agreement can potentially help to mitigate the risk of it being caught by local landlord and tenant laws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">...... and there goes the full time whistle.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For further information please contact Ian Arnott (i.arnott@tamimi.com)</p>'),
